Recently, Ramon Ray was speaking at the NY Public Library. One of the attendees, a DJ, shared that he needed $8,000 in funding to start his business and asked Ramon for advice. Ramon cautioned that instead of seeking $8,000 in funding, the DJ should focus first on SELLING more of his DJ services. He can save the money to start the next phase of his business or wait until his business grows more. For investors $8,000 is a very small amount of money and the DJ’s business is too early for funding.
Another option is to at the every least seek a loan from family or friend.
While Shark Tank is an amazing show, I’ve interviewed many of the Sharks and show contestants, FUNDING is not what many emerging business owners needs. Sometimes we see the “media” frenzy over companies getting funding and forget that MOST businesses DO NOT need funding to start.
As Earl “Butch” Graves discussed with Marc Cuban at the Black Enterprise Entrepreneur’s Summit — what is MOST needed by business owners who are starting their businesses is making SALES and HUSTLE.
As you grow, sometimes you need a line of credit (or other financial option) to fund the GROWTH of your business — but NOT to start it.
