Don’t spend it before you get it
For the past two months I have been actively working on obtaining funding for Roboinvest from investors in New York. We have almost closed the round, but it’s not officially closed until the documents have been signed and the money is in the bank.
When you are raising capital for your own start-up, it’s important you don’t spend the money until it’s in the bank and you can actually access it.
Markets change and people change.
They can always back out of the deal, and most will, but you need to stay the course, continue to make progress and gain traction in whatever metric you choose to show investors you are worth investing in.
You might have to lower your standard of living for awhile, but that’s all part of being an entrepreneur and starting a company. If it were easy everyone would do it.
Just ensure you continue to plan for when the funding is banked, but don’t make any commitments or promises that you can’t deliver.
This is particularly important with new hires. Take on interns instead of employees, give yourself flexibility and remain agile.
During the past month, stock markets around the world have been through the most difficult period since the height of the GFC back in 2008 and the media have seized on the opportunity to spread fear.
This has had flow on effects for private capital markets and therefore made it very difficult to convince investors to part with their money for a start-up.
But I have continued executing on our roadmap because I know the best time to invest is when everyone is fearful. To paraphrase Warren Buffett, “Be fearful when others are greedy, and greedy when others are fearful”.
Don’t worry about what’s happening with the stock market, the economy, your competitors or anything else out of your control.
Don’t let short-term setbacks discourage you. Stay focused on your start-up and keep things within your control.
As my mentor says, “The stronger the wind, the stronger the trees”.
- Don’t spend the money until it’s in the bank.
- Continue executing on your roadmap with the resources you have.
- Gain traction and show progress in your chosen metric(s).
- Take on interns, give yourself flexibility and remain agile.
- Be fearful when others are greedy, and greedy when others are fearful.
- Stay focused on your start-up and things within your control.
- The stronger the wind, the stronger the trees.