Archive for February, 2010

Projections
February 3, 2010

I’m in the position at present of making financial projections in an effort to raise capital.  The backasswards thing about it is the most accurate projection is “I have no idea.”

With sufficient funding, then sales grow “a lot.” Without that funding, they grow “not as much.” Zeroing in on anything more specific is tough.  Having been on both sides of the table, I certainly understand the need/want to see what invested money will lead to with a business.  But part of the numbers comes down to simply trusting the people at the business:  the investment is good if you trust them to grow the business, which eventually leads to a good ROI.  And if you don’t trust them, then you should pass.

If your business is looking for funding then the truth is, in the end, the investment is being made in YOU.  That’s why its easiest to raise funds from friends and family; they know you and believe in you.  Convincing a total stranger is a different beast entirely.

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