Shoestring Startup dot Net

Need some Cash Flow? Wondering how to Fund your New Business?

Sell something.

There you have it. My number one rule of small business funding.

Sure you might want to beg, (search for an investor), borrow (get an SBA or Home Equity Loan), uh, or steal, but I wouldn’t recommend it.

Especially if you are starting up from scratch and bootstrapping it.

The best way you can get yourself going is to sell your products. It is also the best advice I was ever given in business.

If you’ve got trouble, go sell. If you need cash - you guessed it:
Go sell something.

You can use this rule before you’ve actually started your business, and you can use it years later when you need a cash boost. The method stays the same so you stay out of debt.

Sell something.

I know this sounds simplistic, but it works.

Two Potential Problems with This Solution

I can think of two potential problems using this solution.

1. You aren’t a salesperson. You are planning to hire sales staff. Your expertise is in the product itself. Perhaps you are a manufacturer or inventor. Whatever it is, your knowledge and comfort zone isn’t in the sales end.

2. You don’t actually have your product yet. You are just getting started and are in the development stage or pre-production without anything on the shelve to sell.

Ok, I’ll address number 1 first. If you aren’t a salesperson,

you can still learn to sell, and you’ll need to learn this skill if you want to be in business for yourself.

The easiest, ‘bestest’ way to learn to sell is to learn to listen well. Listen with eager ears and open heart so that you understand what your customers and potential customers really need and want. Listen for what they tell you about being ready to buy. If they have questions, answer them. Sounds too easy doesn’t it? When I teach sales and marketing to non sales people, we always focus on the customer first, the sale second. If you do that small thing - listening - you’ll find that selling isn’t so bad. In fact I’ll go even further and say:

Most people don’t bother to listen, so you’ll stand out from the crowd if you do.

Listen to what your clients want and need - and then think about the benefits you have to offer them. Don’t worry about all your bells and whistles. Beginner salespeople are so excited they like to brag on their products. However,  if your product is any good, it will stand up on its own. What you want to do is show how you can solve their problem with your solution.

….And you’ll be selling before you know it.

to re-cap the holistic selling process:

• Listen with open ears.
• Be genuine in your desire to help others.
• Offer solutions.

The second potential problem: you don’t have inventory yet.

Can you still sell your product before you are in business?

This is where your creativity comes in. If you’ve built up trust in your industry, (you’ve done that right? I’ll explore ways to build trust in your industry next week), then you can approach several of your associates or potential customers. Ask them to buy your product or service at a special pre-opening price.

This isn’t a sleazy sales technique. Your approach will work when you ask with integrity and have every intention of following through. Your authenticity, (buzz word, I know) will show. If you give more than you promise, your customer will talk about it. They’ll become lifetime clients. You’ll sell something, you’ll get clients, your business will be on its way, and you’ll have cash.

to recap the pre-sales technique:

do this first:

• Listen with open ears.
• Be genuine in your desire to help others.
• Offer solutions.

Then,

• Offer solutions with pre-opening discounts
• Follow through with everything promised
• Give more than you  promised - extra value for your clients.

Did I always do this? No way.

I’ve maxed out my credit cards, sold my personal jewelry, and worked two jobs as well as my business to get it funded. I’ve also begged, and borrowed. But hey, do as I say, not as I do. You want to learn from my mistakes right?