The reality is that the startup or early stage pre-revenue business is only worth what value someone puts on it at the time. There are no metrics to value a business on an idea or on a website or anything pre-revenue. Investors who offer money in pre-revenue situations are very difficult to find and if you find them …take the money! Do not get hung up over 5% or even 10% difference in the amount of shares they are asking for.

With the startup investment you can move your business forward.

Without it you are still on the starting line.

Investors who back start-ups are brave risk takers and should be admired just like entrepreneurs with great ideas.

So remember: a bird in the hand is worth at least two, if not many more, in the bush!!

One of the most galling issues for me over the years has been how quickly investment has been eaten up by poor cash management.

It is more often than not that the amount of money raised by entrepreneurs is underestimated and overspent.

Normally a plan is put together which overstates sales expectations and understates costs. Then, when reality bites, the two cross over and all hell breaks loose!

If you are looking for investment money, CUT your costs to the bone, do not take high salaries and ensure that the money you raise is the minimum you need to get you from A to B….. and make sure the investor knows this!!

More to follow….