Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
In considering a fundraise, think about your ultimate goal with the business.
Are you building a business that will be your lifestyle business for the next 20 years, or are you building a business that you plan to sell for a sizeable gain?
What’s the exit plan for my business? How do you see it ending up?
What’s the timeline for the business? Is it a going concern for the next 5, 10, 15, 20 years?
If you know the exit plan of your business and how long it will take, then funding the business becomes much easier to sort out.
If you plan to keep the business as a cash flow machine for yourself, then revenue-based funding may be the way to fund it.
If you plan to sell the business for a nice return, then equity funding will be a good option.
If you don’t need much funding, then you could cash flow it from revenue.
If you don’t plan to sell the business and need a small amount of funding, you could take out a loan and after you pay it off you have the business free and clear for whatever you want to do.
The key is to understand the overall game plan for the business and then decide how to fund it.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today.
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Copyright (c) 2021, Hall Martin and investorconnect.org. All rights reserved.
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.