Recap1:53 with Pasan Premaratne
Let's recap what we've learned so far about financing our company.
Before we finish, I want to point out a somewhat newer method of 0:00 financing that may work for you as it has for many people, and this is crowdfunding. 0:03 Crowdfunding brings together individuals to pool their resources, 0:09 usually via the internet, to fund different things. 0:13 It can be political campaigns, disaster relief efforts and so on. 0:15 Under a crowdfunding model, you can access a larger group of smaller investors to 0:20 reach a funding goal, rather than look for high net worth individuals. 0:24 The more common crowdfunding model, popularized by Kickstarter, 0:29 is where you exchange a product or service in exchange for funding. 0:33 The other model, and the more difficult one, 0:37 is to sell equity portions in the company in exchange for funding. 0:39 However, this is becoming more popular, and you can crowdfund your 0:43 business in countries like the U.S., U.K., and Australia. 0:46 Check out some of the links provided to learn more if you're interested. 0:50 Now, each country has its own rules and 0:54 regulations, so do your research before jumping in. 0:56 Regardless of the type of financing you pursue, 1:00 you're using money that you haven't generated yourself, so treat it wisely. 1:02 Here's a good set of tips to always keep in mind. 1:07 Focus on cash flow. 1:10 Run your business in a way that brings in cash as soon as possible. 1:12 This means setting up short sales cycles and 1:17 payment terms, so you can close deals faster and bring in that money. 1:19 Set up a recurring revenue model so 1:24 that you'll get continual value out of a single customer. 1:26 This way, you don't spend the majority of your time worrying about 1:30 finding new customers. 1:33 Ship then test. 1:35 This goes back to the minimal, viable product that we discussed earlier. 1:37 Get that product out the door. 1:41 Don't sit on it and perfect it for months. 1:43 Conduct experiments, validate, and 1:45 get your product into your customers' hands as soon as possible. 1:48
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