let’s talk about funding and how to scare your business using external cash please before going out and getting cash for your business make sure you have some form of product market fit and you can actually prove that your business is working too many companies just raise cash to cover up holds and inefficiencies in their business and that’s not gonna work alright I’m gonna quickly introduce different funding strategies and talk about how we value our company and what the funding options are this comes to my newsletter make sure you subscribed especially if you want to copy and paste the pumps I’m gonna show you stop not all companies need funding just because that is the dream in Silicon Valley and startup culture does not necessarily mean you need to you can 100% boost trap a business by reinvesting the profits into growth in fact it’s a way healthier way to do it some benefits of funding though are speed if you have cash you can move faster there’s an opportunity in the market you can move in it really quickly also if you’re working with angels or vcs or some kind of incubator you must get access to expertise which is an additional benefit probably the biggest disadvantage is loss control this no longer just your business you are now beholden to either investors or equity partners this in turn means external pressures you need to hit certain targets in order to make your investors happy before seeking any type of investment you need to make sure you know what your company is actually worth having a good valuation of your company is going to be essential when you’re going into negotiations valuation is its own arts and science and there’s a whole bunch of different ways to do it so I’m not gonna be able to give you the one answer there are a few models like multiples of earnings discounted cash flow and asset based valuation thankfully we can use AI to run through the calculations for this particular prompt which you’ll find in the playbook is going to give you all three of those model by having multiple models evaluation you can come to some kind of average which gonna be more accurate than just relying on one single model once you know what your business actually worth you can start to look at what the options are basically different options work at different levels like a VC is not gonna touch you if your company is only worth $100,000 generally early on you’re gonna be looking at bootstrapping in order to increase your valuation or maybe taking on a small bank loan or family and friends cash then as you kinda work your way up the valuation chain then you can start to look at larger angels and venture capitalists regardless of who you’re going to get the funding for me you’re going to need to get some basic documentation put together we’re talking a business plan solid financial projections and a clear use of your fund there will be specific additional requirements depending on the source but these three Germany is going to take you 80% of the way once again I’ve prepared a mega pump which is gonna run through this for you and help you to come up with those documentations so first up work out what your company is actually worth that’s going to tell you which funding options gonna be viable for you once you know which funding options you are interested in and you’re gonna prepare your documentation in order to seek that funding and we can leverage AI all the way across this in order to make the process a lot easier as usual you can get the pumps in my newsletter link in bio