8 Fundraising Strategies Entrepreneurs can apply to Raise Capital
Hey gang, this is Mike with my RealEstateDOJO, and in the next few minutes I’m going to show you 8 fundraising strategies for entrepreneurs that they can apply to raise capital, but actually I’m going to give you a bonus, I’m going to give you 9 ways that entrepreneurs or real estate investors can raise capital. The first five or basically the cookie cutter, institutional type. The next few are imagination creativity and you want to check it out so I’m saving the last three, actually the last two are the very best ones and they’re new way of thinking, so let’s start.
The very first way is, the way I start all my businesses since high school is called just Boot Strapping it.
And what does boot strapping means you just dig in and you start where you stand and then you come back to the best you can. So again, you start where you stand and you come back to the best you can. And in this strategy, you’re not going to bankers, you’re not going in borrowing money; whatever you have, for example you love your bicycle and you have a great idea, and you want to change your family’s life, and you’re willing to sell your bicycle to fund for your idea. And I think that this is the part that most entrepreneurship, or people in America are missing because of the institutional and the marketing that goes on with the bankers all the way to the monopoly of the education. Where’re trained to have a business plan and go out there and beg for some money from stinky banker or from some kind of institution; but I think that true entrepreneurship is about bootstrapping, starting your business and sacrificing to get what you want instead of some other methods that I’m going to talk about. So bootstrapping is what I’ve done, I’ve never borrowed money to start a business if it was from buying houses, rental houses or if it was starting my moving company or my brokerage firm, all I did was use my imagination and creativity.
Now remember, the first two that I’m going to talk about, most people already know. But the last two or three is where creativity comes into play. So let’s move forward.
The next way to raise capital as an entrepreneur is your good old friends and family.
So what that means is you just go to your friends and family and you’re asking them to believe to your idea, so other people’s family will support you, other family will laugh at you and tell you to F yourself. And there’s mutual defend boundaries, debate, sides that says don’t work for your family; and there’s people that say that it’s a great idea to work with your family. So that’s that, I personally work for my family and I got burnt, but that doesn’t mean that’s going to happen to you or vice versa. So keep in mind that if the relationship gets sour or the business goes sour, it may ruin your guy’s relationship or one way or another. The next thing that I want to talk about is what everyone in America already knows, and that’s what they talk about, glamourized on TV, CNN, college, high school; and that’s basically debt and plus or multiply with Credit card. Now, there’s a lot of channels on YouTube and individuals that talk about leverage, this is also called leverage and there’s a lot of movement, play and support in this idea here in America, and the reason is that so many people are in debt; so they think that if you’re zero, it’s like you’re not rich and you have no money, but you’re not in the debt; if you want to go right, you want to go positive, it doesn’t make sense that you go left which is negative; negative represents debt, positive means making money, surplus. So if you want to have surplus or go positive, it doesn’t make sense to go negative or get into debt and I know this goes against many people’s beliefs because we’ve been conditioned to the training of schools because they want us to work for the man in the cubicle instead of being entrepreneurs and free thinkers that a lot of individuals will talk about how great leverage is. Think about it, if GMC or all these different companies that we had to bail out with all our tax money in the last crash. If leverage is such a great idea, how can a big company like GMC or I’m not naming a specific company just X, can go bankrupt or almost bankrupt? Well that’s because of leverage, leverage allows you to artificially grow and with that artificial growth, it’s kind of like the stock market or bit coins; it goes up there really fast, it’s going to crash. So as you can see, I’m not a big fan of number three at all but some people are so I just want to put it up there.
The next way to raise capital is VC and angel investors.
Now if you have a business, you can go to angel investors and if they believe in your idea, they might fund you, they might fund you with a lot less money or percentage like hard money lender or private lender etc. So these people are called angel investors because they kind of like do stuff that other people will like. I’m an angel investor, if you have great business idea that’s making money, a lot of times I can just put my knowledge in your business and exponentially grow your business. So if you’re interested of you have a business proposal for me, shoot me an email. But there are people that do this on a regular basis, I don’t do it on a regular basis, only if I think it’s a great idea, and there’s VC’s. Let’s go to the next one.
The next one after number five is going to be a great idea, this is most people haven’t talked about.
The next one is called IPO, and we all heard about this.
Companies that are private, they go public and they sell stocks and etc. There’s a lot of regulations here, pretty hard to get in there like lawyers, CPA’s all this kind of stuffs. All like the wealthy and the wealthy have the opportunity to raise funds in a sense, but the next point is kind of like a new idea but not a super idea but next two are going to be real good so stay tuned.
It is called crowd funding, and this has caught on because it allows the average Joe like you and me and Sam and Harry or whatever it is to put ideas in the internet, worldwide investors, angel investors, VC’s or what average mom and pop business owner or whoever, your students, your friends to fund your deal and which is a great part. Some of them gets ownership of your business, some of them get the products for free, and it depends on the deal’s structure.
Let’s go to number seven. Number seven is really cool and it just came out, it’s called ICO it’s called the initial coin offering. And what the initial coin offering is kind of like IPO but without all the regulations and hoop jumping and meeting all the staff and it’s really cool because it is what basically capitalism is in a sense where you can have intervention, creativity, imagination, without regulation in a sense. These regulations is what killed the industry and that is why everyone, all of our clothes are made from China, made in India, made in this; all of these manufacturers are going out, not all of them but majority because there’s so much regulations, it’s hard to survive as an entrepreneur and only select a few debt by the lobbies and the lobbies buy the congress or the law makers to survive and that’s I don’t think is true. Capitalism in a sense, nut any ways the great thing about ICO is that you are able to put your idea out there and sell tokens that can be two types; they just have a meeting with the regulators that some of the tokens can be considered securities, some tokens can be for utilities and they’re not going to fit in that regulations square. So basically if you’re an entrepreneur and you have an idea, you can put it in the internet and sell tokens in exchange, what do I mean? For example, let’s do it on the real state sight; let’s imagine you want to start a carwash business, you want to buy the land and you want to build on it, you can sell tokens into the whole project and on top of that, whatever the building setup, you can sell tokens; kind of like when you go to a carwash place, you pay and you get tokens and you can only use it there, so it’s kind of like the same thing but actually you are raising money or capital for your idea. I am giving example where you can raise, you can do tokens to raise the capital for that venture which is kind of like the carwash business where you are going to get the land and build on it but on top of that, once it was funded that way, you can use tokens to get your buyers to change tender US dollars or whatever currency you’re in, what country you’re in for that token which is kind of great idea. Or if you want to fund a real estate project, you can do ICO versus one of these or some other security that requires a lot of regulation in passing.
The other number eight which is a great one, this is the one I use all the time and this is my big secret and what basically Tesla use as well; and what they kind of did, what I did when I started my moving company instead of me going to a banker, instead of me going to my friends and family; not only bootstrap it, but used number eight because I had my customers fund me the money before I render the services. For example, when I started I don’t have a moving truck so what I used is one customer’s booked with me and put a security deposit like a hundred and fifty bucks and I used that money to go rent a truck because I was dead broke I had $25 in my pocket. The point of what I’m saying is I used my customers to fund me, for me to render the services or the products. And that’s exactly what Tesla did in their cars, they got hundreds and thousands of people give them $1000 interest free, while they build they’re factories, batteries, etc. It’s a very ingenious way to do it, I’ve done that many times, when I came out with my VA book, the book isn’t finished and the champs, the smart people bought the book for $100, the same book I’m selling for $15 and these people put their money up and they waited weeks or months to receive it but I presold and I made almost 12,000, almost 13,000 before I even went live with it guys, and so the technique I used was I had my customers fund me, this one in number six is how the crowd fund you but my idea and it sounds like a very good idea is have my customers fund me I’ve been using that since 1999, 2000 and it’s a great way and I still use it in my real state dojo; one great example is my VA book which is a top seller, I sold like $13,000 in 19 days, many downloads, great reviews; so if you’re thinking about hiring a VA’s and why would you want a VA? Imagine paying somebody 75 cents an hour and they have a college degree and they speak great English, they can do your cold callings for you, imagine that. Can you make money out of that? Absolutely, because some of us will go to Zillow or Trillion or other lead provider and pay 3, 4, 5, 600 dollars a month and we have to share that at least to some other people. Here you can have a professional that speaks English, they just happen to live in the Philippines or they happen to live in India. In the power of the US currency exchange, you can take a hundred twenty dollars a month and exchange in to rupees in India and have a guy with a master’s degree that speaks English willing to work the grave night shift in his own country because he’s hungry to work for you for only $120. You want to know how to do that? Get my VA book, I know a lot of you guys have heard me talking about VA’s, I had a student just yesterday he’s paying 2 VA’s $800 a month. See, many of you guys heard me say stuff and you go out there and do it and all you do is lose money. And the reason is because I’ve been doing this for almost 20 years and I’ve been dealing with VA’s for programming, IT to sale. I tweaked and I lost so much money and I’m giving you 20 years of information just like the review says.
And right now, by the way I’m having a flash sale on my website, a fire sale; everything is like 50-60% off, you may want to go and check it out guys.
Let’s get back to the subject, number nine. The number nine way is also one of the best ways, the very best ways to create money interest free without debt. A lot of times own anyone anything and this is the creator put into your soul, it’s your life mission, if you guys chase money, you’re chase money, you can never be your soul’s purpose on earth; but if you be you’re souls purpose on earth, whatever that is, if it’s taking care of old people, being a doctor, a nurse, an attorney, be an entrepreneur, write a book, losing weight, being the best parent ever, whatever it is, you know it. But if you’re chasing money you can never do that, and the best way to do your soul’s purpose without debt, without paying anybody, not asking friends or family. Raising money is through your imagination and creativity, and that’s totally for free guys. If you put your heart to it and you believe above and you walk into the darkness for your purpose of your soul, you’re going to making and you can use your imagination to do all these stuff without ever borrowing money from anyone. How do I know? That’s what exactly I’ve done from my moving company to what I’m doing right now. And you don’t need to know what to do, just start where you stand and then you come back to the best you can. And many of us, when we want to do something, we always want to make it the best we can in first and make it perfect and put so much weight on our shoulder. We are not perfect and we can’t do something perfect, especially the first time we try something. One great example is when my students take the alchemy stone class, many of them can’t make the video, many of them are so nervous and never done a video before but I told them start where you stand, let’s go get it done; later on, 1 month, six months you come back and do the best you can.
Many of you know what you want to do in life but for some reason, you’re not taking the actions; because you’re scared or because you don’t have money, you don’t know what to do, you got bills, all that stuffs. And what I’m telling you is one of the most powerful things on here is your imagination and creativity which is totally for free, and the schools and colleges they don’t talk about that because everyone has it, it’s free; the creator gave it to all of us. They talk about all the stuff that makes you think that you’re dumb, you’re lacking something, if you’re A, B, C or D. here in the dojo, I’m telling everyone here you guys are all gold now it depends if you have the alchemy mindset to transform, but you don’t need any money, that’s why me and Tesla were able to use our customers to fund us, we used imagination and creativity to do anything, I can’t write, I can’t spell and I was able to use my imagination and get my book in Amazon first list in a couple of days, and how did I do that? Very simple, I was a giving guy; I hit the streets, I put my money, I fed a bunch of homeless people and I took pictures of it and I put it on my Facebook, I put it on my instagram and I met a lot of people, every person that bought a book, I fed a homeless person, and what happened? I got success, I was able to get on Amazon, it’s pretty darn hard to be on the first page of Amazon but I was able to do it, not because I’m the best writer or I have great spelling, I used my imagination and creativity, I created things out of love like I’m doing right now, I’m educating you guys, I’m not getting paid for it, I’m doing it out of love and same thing in feeding the homeless people. I did two things that I wanted to do which is I want to do something, climb this mountain which is writing a book, put it on Amazon I’ve never done this. School said I was a stupid ass I can’t pass English but I want to do that and the other thing is I get things that I love, I love helping homeless people, I think we’re all the same. When I see you guys, I bow down to you, it’s because we’re both equally the same, I recognize that you’re divine and I’m divine and that’s why we are like this, you’re not ahead of me, I’m not ahead of you, we are both equally the same and I recognize you’re divine and I bow down to you. The point of the story is if you chase your dreams, if their money or what, because you want to have stuff, this and that, you’ll work hard. I’m telling you if you chase your dreams and your soul’s purpose are on earth and you have the ultimate belief system that it’s going to work and you’re not the type that “is it going to work God? Are you going to help me out” you just got to know that when you shine, you’re shining the creator’s light, the creature put you here to make things happen. And when you do that, you make things happen for yourself you shine the power of the creator.
Simply put guys, if you don’t have money and you’re in the rag race, I just showed you nine ways to fund your business, whatever it is; if you want to make a gadget, if you want to make a toy, you want to get in to real estate and if you guys are in real estate and you don’t know how to fund your real estate deal, get on my website, I have a video about nine ways to fund your real estate without getting into debt.
Don’t forget the alchemy stones guys, if you already have success in your business or you are already doing deals, alchemy stones aren’t for broke people that don’t have a job, I have videos on YouTube for my blog for you guys, I have much love for you guys, I’ve been there before. But the alchemy chaps, all the people that came in, they do multiple deals a year that have money and pay for advertisement. So if you don’t want to pay for advertisement or if you don’t got no money, I got love for you I’ve been there but you have to get your hassle up, get on my YouTube, get on my blog and go do it. Don’t hit me with you stories. I feel you, take action, no sad stories. But for you guys that are successful but you want to do more deals, for you guys that are spending money for advertisement and you’re not getting as much deals as you want and for you guys that are not getting constant deals and to the guys and girls that want to automate their business and for people that want to get free advertisement because even though the class cost money, some of the third vendor cost money, In the class I only teach free advertisement, all the ideas are in the section of creativity. I have like 14 marketing channels that generates massive amount of leads for you in auto pilot however, out of 14, 13 of them are for free. I’m one of those guys that tells you “hey you got you use your imagination and creativity to make money, I’ll show you how to do it” but the alchemy stones is almost $2,500 and that’s on sale, very soon it’s going to be on $9,000 and if you want to automate your business, you want to pull in the traffic, you want to have follow up sales and closing happen in automation funnel, then you need to get into my alchemy class. I’m going to show you, not only I’m going to talk about it I’m going to work with you one on one, two days for 8 hours and at the same time we’re going to set up all these systems, we’re going to set up all these traffic funnels, we’re going to setup all these follow up funnels. We’re going to talk about all these creative new ways to do cold calling without you ever picking up the phone. The alchemy stones are simplified, allows the sellers to chase you, versus you chasing them. So if you use the alchemy stones strategies, you’ll have the sellers calling you or chasing you versus you chasing them. Don’t take no for an answer. See you later gang.
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