The question before the question.
WHAT INVESTMENT IS FOR
Spending money now to produce more later, faster than your own cash allows.
WHAT IT IS NOT FOR
Covering losses indefinitely Paying yourself Avoiding hard decisions about the business
WHY THAT MATTERS
Investment into a business that does not work produces a larger failure.
WHAT TO ESTABLISH
What specifically the money would do What that would produce Whether the business works at smaller scale first
WHY THAT LAST QUESTION
Capital accelerates whatever is already happening, including losses.
WHAT BOOTSTRAPPING MEANS
Funding growth from revenue.
WHAT IT PROVIDES
Full ownership Full control Discipline imposed by limited money
WHAT IT COSTS
Slower growth Opportunities missed Personal financial strain
WHAT RAISING PROVIDES
Speed Capacity to build before revenue Sometimes, expertise and relationships
WHAT IT COSTS
Ownership Control, to varying degrees Obligations to investors Time spent raising rather than building
HOW MUCH TIME RAISING TAKES
Months, usually, and it consumes the founder.
WHAT TO ASK HONESTLY
Whether the business needs capital, or whether you want validation.
WHAT MOST SMALL BUSINESSES ACTUALLY NEED
Customers, not investors.
