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Advice #1
You’re not ready to raise capital when you’re buried in personal debt.
I’m mentoring a number of founders and one in particular is trying to solve funding his startup, plus his own income at the same time from the intended new capital.
It doesn’t work like that. At least not as your motivation. You can tell a great story to secure financing, but your own personal financial stress may be what prevents you from getting that close.
The world of money is all about flows.
Money flows like a river. If you have an unobstructed channel for money to flow on, it will generally flow to you.
But if you have built a dam in front you, such as huge personal debt, then it will likely not flow. It will instead stop and never make it into your bank account.
Advice #2
Don’t launch a startup to solve paying off debt.
If you’re broke, in big debt, and have a great idea for a product, service or new business model, I always recommend you keep your current job and income, and do both.
It’s going to be a challenge, but that’s what entrepreneurship is all about.
You have to pay your rent, bills and eat, and that most likely won’t happen from starting a new business for a while.
But don’t be discouraged.
Let it be your incentive. Until you’re at a point you finally must be full time on your new business and can afford to take the leap, then I recommend you solve making both happen.
Advice #3
Don’t quit your only source of personal income to launch a startup
And finally, realize that any truly seasoned early stage startup Angel knows what you’re going through.
But they also want to know how keen are your abilities to financially manage. After all, they have to feel confidence in who they’re handing over their money to.
So, how confident will they be in handing you 25,000 or 250,000 when you haven’t even solved managing your own stressful personal debt?
Not very.
So keep this in mind and realize that stressful influence of your own personal debt may need to get somehow solved before you’re on a road show soliciting startup funding.
Hope these words of advice help you as a founder in making the right decisions and in building a path to your success ahead!
Jason Bennick
President DIG Holdings A | CEO Blockrails™ | Founder, Advisor, Boards, Mentor | Human Rights Advocate
