Guy Kawasaki had written a book, The Art of The Start, years ago about investment and funding. He updated it with fresh new tips about financial management and business accounting, making it an asset for startups.
If you haven’t already read it or if you’d like to know of the key takeaways that the book has to offer about small business finance management, we have good news for you. We have amassed the important tips for you below:
Get Familiar With Investors Before Going To Meet Them
Before taking a step towards meeting potential investors, it is advisable to get to know them. You can simply look at their social media accounts, particularly LinkedIn, for this. When you research them, make sure you find an interest or anything else (same sports, same school, same country) that you could use to connect when you meet. When a connection is established, things get easier.
Focus On Captivating One Investor
What happens with investment is that you need one investor to encourage other investors to invest. That is why, finding the first one is always very difficult. Thus, you shouldn’t chase the entire herd in one go. Pick one after great research and put all your energy into convincing him to invest. Once you do that, more investors will follow quite easily. That’s the right way of funding and financial management.
It Is All About Fantasy, My Friend
Instead of giving your thoughts, calculations, and other details about finance management, Guy Kawasaki advises that you let the investors calculate and thereby create a fantasy as they do so. Your job is to simply catalyze what they are thinking. Kawasaki uses the example of pets.com in his book. For example, there are 300 million Americans, and one in four owns a dog. That’s 75 million dogs that need two cans of dog food per day. That’s a market of 150 million cans of dog food per day–the kind of fantasy that got Pets.com funded.”
Your Capital Is Your Biggest Asset
Kawasaki says that it doesn’t matter how much money you raise. True financial management revolves around being prudent about your capital. You should always spend your capital as if it is your last resort because it might as well be the last! “The assumption that you can always raise more money is insanity.”
These funding tips are truly helpful and must be closely understood.
Guy Kawasaki recently updated his book about investment tips with deep insights and advice about financial management and funding. Learning the key points and using them can really help you convince potential investors.