How To Raise Business Capital When Everyone Else Turns You Down |
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Introduction:
When you have an idea, nothing is more frustrating than not having the money to launch it.
For example, David Balter, who was featured on the Inc. Magazine website, was turned down by 200 investors before securing funding in just 56 days. More on that in a moment…
Your Idea Can Make the World Better:
Daymond John from Shark Tank was turned down by 23 banks before starting FUBU. Howard Schultz of Starbucks was rejected by 242 banks. Even Walt Disney was turned down 302 times while trying to raise money for Disneyland.
Can you imagine a world without Disneyland? Without Disneyland, there’d be no Disney World, and Orlando, as we know it today, would be completely different. And if you’ve visited Disney parks in the last few years, you’ve probably noticed Starbucks is everywhere within them!
Now, think about all the great ideas that were never launched because their founders gave up too soon or didn’t know how to raise capital.
Think of all the fond memories people have created over the decades, developing closer relationships with friends and family, because one man had the resilience to be rejected enough times to finally get a "yes."
The Ability To Handle Rejection As An Entrepreneur:
Daymond John being rejected by one bank is tough. Coming back after being rejected 27 times? That requires a remarkable level of resilience.
The ability to handle rejection is a key trait of successful entrepreneurs.
Daymond John has stated he was rejected by 27 banks because he didn’t know how to present the information banks needed to feel confident in him. Most people approach banks and lenders without understanding what’s important to them.
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What Do Lenders Want From You?
One of the biggest mistakes people make when trying to raise money for their business is relying on personal credit or credit cards.
Banks are low-risk lenders. If you’re new to business, you’re unlikely to get the money you need unless you appear credible. Banks need confidence that you’ll repay the loan.
Even if you’re just starting out or your business is not yet established, putting in the effort to look like a legitimate business will greatly increase your chances of securing funding.
Red Flags for Lenders:
Something as simple as your email address can raise red flags. For example, I work with many businesses that use a Gmail or Yahoo email address. To banks and lenders, this screams “risky business,” making it less likely you’ll secure the funds you need.
Are You Financially Educated?
In his book The Power of Broke, Daymond John explained how his lack of financial education initially held him back. Many smart people fail to get the money they need for their projects because they lack knowledge—not through any fault of their own.
Financial literacy is rarely taught in school. Unless you read books, attend seminars, or find a mentor, you might struggle to get the funding needed for your business.
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Do You Know How to Raise Capital?
Entrepreneur Magazine states that fewer than 10% of people are familiar with business credit, and even fewer know how to leverage it. Many people put their families' futures at risk because they lack financial education.
Protect Yourself From Financial Loss:
Why risk your home and family’s future to fund your business when you don’t have to? Laws exist to protect you if your business doesn’t succeed. Using business credit instead of personal credit ensures that, in the event of failure, your personal finances remain intact.
Personal credit follows you for life, but business credit does not. If one business fails, you can start another without its history affecting you.
This is why so many wealthy individuals operate multiple businesses. They understand the importance of financial separation. Nelson Rockefeller famously said, “The secret to success is to own nothing, but control everything.”
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You Need More Than a Good Idea:
The glamour of Shark Tank often overshadows the fact that investors want more than a great idea. Many investors look for the same indicators as banks: credibility, being financially educated, and the ability to repay.
Zero To 3.5M In 12 Months:
Here’s a remarkable example from someone in my social circle:
- A 20-year-old entrepreneur went from $0 to $3.5 million in credit with 220 credit cards in 12 months.
- He raised his credit score from 580 to 770 in 12 months.
- He earned 20 million points, which translated to 160 free flights.
- Despite being turned down by 200 investors, he secured funding in just 56 days.
Blake, the entrepreneur mentioned at the start of this article, struggled because he initially didn’t know what he was doing. Once he understood the process, he got the financing he needed within 56 days.
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How to Raise $100,000 in 48 Hours:
If you start applying for business capital without first legitimizing yourself in the eyes of lenders, you’ll set off warning signals and likely be turned down.
That’s why we invite you to join our membership website. We’ll guide you step-by-step on how to legitimize yourself for lenders, secure financing, and access software and advisors to help you raise $50,000 to $100,000 in as little as 48 hours to 180 days.
Additionally, you’ll learn if you qualify for up to $12 million in FREE government funding to finance your business—just like Steve Jobs and Donald Trump did.
Visit http://BizCapital.AlphaLifestyleAcademy.com
P.S. Be sure to download your workbook and action plans, which outline how I raised $14,100 in 24 hours—without going into debt at http://RodeoDriveGroup.com
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