By: Bill Simi
If you are trying to grow your company, you know it takes two things: time and money. Your time is limited to the number of hours you, personally, can invest. Then you need money to hire people – essentially buying more time. How can you generate enough money to buy peoples’ time without getting outside investors involved, and losing equity in your company?
When you need to bring money in right away, there are two ways to do it: offer equity or assume debt. By offering equity, you gain immediate funding, but you lose future profits and some control of your company. Assuming debt may be a better “investment” for you. Opening a line of credit or getting a loan from a bank may cost less long term than sacrificing a percentage of your company. Taking out a loan so that you can bring on an employee, for example, might be a better choice for your company if you can pay the loan off quickly with the profits that employee will bring in.
You will also need to pedal your wares. Sell yourself. Sell, sell, sell. Get your name and your product out there as quickly as you can. Sell to your family, your friends and their friends. Ask people who already trust you to take a chance on you. Set up coffee meetings and lunches, and network your way to success. When you sell enough, hire someone, and make them do the same. Networking can go a long way as you try to get your product out there. Using social media can give you a huge advantage. You can reach more people in less time, and since your time is money, social media is a game changer. Use it strategically. Spend a little extra and put out ads. Use social media to create stronger networks, and to develop trust in relationships that you will come to depend on as you grow.
Exchange goods and services if you need to. Bartering can be an effective tool in today’s market. Don’t just exchange for good and services that you need. Stay open to exchanges that you can use to network or sell your own product. While you may not be able to use something like a spa treatment or a haircut, offering that service to someone else can be great for networking.