I recently had the opportunity to review a book for entrepreneurs that had some great advice, a list of seven priorities for the critical first year of business. The more I thought about this list, the more important that it seemed to me. So I have decided to create a series of posts elaborating on this theme. While “Young Guns“, by Robert Tuchman, is targeted to a just-out-of-college-and-wondering-what-to-do market, I believe that these priorities apply to anyone starting a new venture.
Try to fund it yourself, or mostly yourself. It pays to go after the least amount of funding that is necessary. When you’re starting out, it feels good to say that some venture-capital firm invested millions of dollars in your idea.But a few years down the road, when you’re doing well, it will not feel so great to know that you own only 25% of your company.
Well, I can’t say too much about this – since none of my little ventures have ever been funded by anybody other than me – but it sure sounds like pretty good advice to me. If you keep outside funding to a smaller share of your enterprise, then when it does take off you can afford to buy out your partners.
What is your experience with funding a start-up? Share in the comments.
