What is the best way to fund a startup? Dr Z and Clay Clark break down the harsh realities of what it takes to fund your startup.
Question: What Is The Best Way To Fund A Startup Business
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You worked out of that home, stayed in that home living at home for over 15 years, if I’m, correct seniors, and so here you are, you had a lot of business coaching success. You’re I think you’re. Just the beginning of of your success, you’re not even near near the diplomat telling you’re just the beginning, look up:charles cole echo off fitness:you can see the physical locations I mean these are multimillion-dollar facilities, and yet you still have the curiosity to want to grow your business it. So here you are you get a chance to ask the man the myth, dr. Z, my mentor. Any business question possible:i I’m excited it’s a double blind study. Here we go. Charles when he got his first off. I was going to say thank you for this opportunity to talk to his doctor. Z here., well I was going to say, i. Think a lot of drivers out therewant to know what is farson like financing to get them to start a business. What what what kind of recommendations moves? Do you know of, or you would recommend for certain people that want to get started? I like for me, cuz i, know it’s such a grind to get started. What’s what’s going to your take on helping businesses that want to start up or somebody who’s currently in a business want to grow their business to get financing so you’re. The question you’re asking so I could just like get this. It’s the money question the money question. Are you asking what’s z’s take on funding businesses? What is advice to somebody out there who wants to get funding yeah? Basically, the seven who’s needing funding to go to either start probably start a business I think most of these people are starting.
A lot of these people are driving force. I wanted to one-up me on this, because this is something like sure:we’re getting it if you’re listening out there and you don’t have the money needed to start a businessplease, listen to the background of dr. Z before he gives you his answer. So this is the background. He went to nsu northeastern, state, right, northeastern, oklahoma, state, north, northeastern, state university and their you study, mathematics and optometry correct. You did not come from a wealthy home. You had a lot of kids in a little little bunny lot of kids in the family and you had a vision to start your own business someday correct and you went to work for eyemart and route. We rose up in the business coaching company, become the president of the company and are you looking fired? The only business you brought my job been fired from right, correct and then you got rejected by every single bank you went to in tulsa will try to get the final touch backwards on a picture that that is accurate, but it’s a beforeseven days a week to turn your dreams into reality. Correct. So if he gives you some advice here and it might sound harsh I’m just telling you, my man has worked 7 days a week for years in a row to build he’s the master of delayed gratification so see what advice would you have done or who says I’m trying to get business coaching funding went by so would you have here is step one, you better make sure you have a war chest and how do you get a worcester livalo? Your means, you get thing called a job job job and make it to you make some money. You might even get two jobs. You say:hey, listen, I’m, not doing anything on the weekend. I’ll do a third job. Are you talking about two jobs? What about life balance, though you have time for that later, okay, you got to get a war chest, because if you go to a financial institution the best place to get money in the bank and get the cheapest, you can get there. You go to adventure capitalist. If you’ve got a great idea, they’re going to want they’re going to want a lot a little bit more than the banks going to want uspa loans. I can walk you through thatwhich, going to have to have part of the money up front to job.
That was thinking about just the whole life and what things I need a lot of times. I, don’t work like you know like 40 hours a week and I’m just taking my ideas, just incredible and I just want to see. Do you do always have to work like your multiple job and we have to save money. I mean. Does that have to happen? Yes, I would challenge you to the average american us citizens watching 5 hours of tv a day. Take that 5 hours job? How much can you make in a year with those 5 hours working? Okay, ricki lake she’s got some really hot topic. The reason why you have no the reason why the average american only has $400 in the bank and savings is because you’re living above their meat that I have currently I just want to be the very relevant they’ve got 10 bills, and they can only afford 9 of them as it is right now in the route you know by and buy more stuff people say:i can’t work, two jobs right Now:i’ve got kids I’ve Goti’ve got a lot of going on. In his mind, is so awesome. You have to have her back in college. The only job that I can work into my schedule was i. Was the overnight dishwasher at a truck? Stop that I would have did it at night and got up at 6 in the morning on the weekend that was a weekend zoellner’s in there washing dishes right now to on we’ve got pizza ready for you, since I was grown and I did a great job and I remember the owner when I was paying in cashand. You know what I have no idea. What you’re doing working here so, but you are the best thing dishwasher we’ve ever had shady truck stops where it offers certain products in the business coaching bathroom I mean where you at that kind of a truck stop. Was it like a truck stop where, if you don’t officer, there’s certain ones that vending machines that offer certain class and they put money and I’ll, sell it to him?
Okay, so you do your step, one. As you would say, you can get a job get. You got to get some money in the bank right. If you go to a banker and you’re trying to do a concept, and they said well, how much skin can you put the game? Go outside i, don’t have any cuz. You know such a great idea, I mean. Don’t you see that the value and funding this they’re going to do more tests on the way you do that is working and living below your means and just automatically saving money? Okay and the number to the best place to get money like I said, is an sba loan through a bank. The government then does a 90% guaranteed to the bank that the banks, love them, and some things are a little bit more business-friendly than others. Let me, let me just make sure we’re getting this business coaching divided nation. If you’re listening right now and you want to get an sba loan here-are some of the technical things, the big five. You have to have ready to go pitch that deal to make okay, so I’m going to say you have to make a 7:25 or above or don’t go in that door, don’t go in there with a 500 score, they’re going to reject you and your business and you’re going to feel like they’re going to laugh at you see this jackass coming in here today with a 400 credit. Tell you why they just didn’t use the use of business plans of toilet paper. That’s what they’re doing! Okay, so just go in there with at least the 7:20 or so the next thing have some collateral, because the bank is going to say and what you plan on putting up for collateral your house, your car, your car, your house, you take i, don’t want to risk anything know. You’ve got to have so much collateral in the game burn the ships say, though I’m not willing to risk up by charles. You just build a massive facility message:ebony, multiple!
You don’t have to put up some collateral that every time your word is very good. We’ll just take that that’s when the rubber meets the road, as he said, I would love that I love. My business idea, I just not willing to put my house up for it. Come on it’s not going to work, I mean that’s the opposite. Mindset of a successful entrepreneur again I just this is just this is very normal. The third you have to have a business plan and chuck we can put on the show notes, but we have an outline for what it’s called the perfect business plan that we’ve laid out for you. It’s actually compliant with what banks want and you can get it as a downloadable by going to thrive time show cooking on the podcast button. You can get it right there and the outline was created by bessemer venture capital and it lays out specifically what you have you have to have a business plan. You can’t be shocked when they ask if these things right. The fourth thing you have never seen this the thing that your startup people don’t want to hear like I’ve, never start a business before and I’m going at it so low, and they don’t want to see like me, who’s on your team, maybe having a partner, would be helpful, maybe having some kind of advice and v. You have to have a firm knowledge of your numbers. I mean see. If someone ask you your numbers, you enough, but nobody’s of the ideas so big that I was not even matter. Concept of a billion is what is a lot right? Yeah man she’s going to be like 250 k, bro I can, like I’ll conquer i, go to starbucks man, i, don’t like on every corner.
I’ll give you like 5% of my birthday, say my coffee is better than starbucks what the coffee I’m going to make he’s going to be better. In my mind, I can picture the talking to you. It’s, not even so much coffee, it’s more like a movement my touch, too, much, starbucks, I’m, going to name my moon box cuz, it’s just so good, so much bigger bigger than a star about a buck, not wearing pants they’re, always mooning. You know, i, like my name, my moon 2 bucks, because it’s going to be twice ever seen:uncle bucks, it’s awesome, but it’s back to the business plan. The show sushi man she’s a great little cup of coffee I said that would be awesome and we are united. You know what things are going to happen by accident, bro and so we’re here to get literally came to the offices at 16th and boston. This is before thrive and he tells me you know why we’re here right now. God does not make accidents were here by divine, business coaching appointment and we’re here for this appointed moment, because this fuel additive that I have right here. This is going to change the game. I’m going okay, I’d like to see a business plan died in the god, doesn’t make actually cuz of the whole god card and he was dead serious that god doesn’t make accidents and we’re here for a divine appointment about his fuel additive that all he wanted was a million bucks. That’s all! Also it’s like dude, you haven’t sold anything yet and your business is worth $1,000. Are you crazy? You know so listing business owners are probably 90% of folks. We work with the existing business owners, so they can get it they get. Raising. Capital am I missing something there in my room and i. Think that’s it for me, real quick cannot go in for a business loan without a decent credit score.
So if yours is low, there’s things you can do to fix it so I reached out to a credit repair specialist. You just have to do it if you’re, not if you’re not doing that, it did just make a whole lot of sense to do that. Okay, to just going with a good credit score, don’t go in with a 400 credit score physical asset. You have everything, I mean everything all at your usual fun. Whatever grandfather left in heritance, they were given. You have cash in the land of you got to go all we talked about this on a previous show, but I’ve got a client right now. Who did that she sold her house a year-and-a-half ago to start her business? She did a half a million dollars a business or first year and guess what she still living with her mom she’s, making money but she’s delay in that application layer and going to save and go girl. I don’t have the whip on your client and i. Don’t i, just wanna make sure you get this i, don’t know of a single example of any of the audible herpes outbreak on my shelf of any of the who did not put everything into the business. I can’t think of a single example me walt, disney lost it all twice:thomas edison lost at five-time five times, elon musk 10 years of his life invested in tesla I mean i. Can go on and on every example, I mean sara. Blakely was down to her last $1,500 before she built the billion-dollar business coaching company space, td jakes working in the bus plant, making buses while offering free food as a way to trick you into going to church I mean seriously. These are the things. This is how it happens. If you have a back-up plan, you’re going to lose, z I know, i, know, i, know, i, know what I believe you, because I know you’re the world’s best business coach, I’ve, seen it I felt it i, hear it and I know it and. So it’s got to do what you got to do it now. The next thing you got to have a business plan. You got to go in there with a business plan. If you don’t have a business plan will put it up, will make it available for you on today’s show notes. You can click the link for the perfect business coaching pitch deck, which is created by bessemer, bessemer, venture capital. Okay, you can eat people put on the show notes. He was also distilled in the book called pitching hacks by duvall rava contour. The early investors in facebook he’s going to start an angel list. The website for venture capitalist have it there for you to do a business plan is very intimidating.. We made it easy on you, so it’s it’s going to be on today show. You have a team, I mean this I mean this I mean you got to get this. You have to have a team when you read the perfect business plan. Outline you’ll see this. So as an example. If I went into a local market to start at gym tomorrow, I have no experience owning a gym, I’ve coached clients, the only gym, but if the pitch deck it said on the business plan, the pitch deck in the word business planner synonymous. If it said that my partner in the venture was charles cole, all he serving on the board and he’s a half a percent owner or whatever it is on the board, and they go oh by the way he’s owned. By can tell by the way he zone, 3 multimillion-dollar gm’s, he’s the one advising me on all of the equipment I’m buying, wouldn’t that make a comforting kind of a feeling come over the absolutely really you’re not going to just guess you’re going to have a little advice in the final things you have to know your numbers and I will just say this in the most entrepreneurs.
Don’t think at all about the numbers, but you’ve got to have someone in your camp someone on your team, helping you look at those numbers, otherwise you’re just going to get laughed at when you go in for a bank loan or just that the banks are just going to probably won’t laugh to your face. But that means that you are smart. You make you feel smart you’ve invested in the bank and you guys are invested as a team in the regent bank, which was totally the bank of nowata. You bought the bank, the bank doing very well. Yes on the board. Yes, where you had to hear about these people. These unfortunate folks didn’t know these 5 moves and you have to run it by the board. Sometimes there’d ideas are good, but if you don’t have to listen to it most banks out there their default is no and then that way, they don’t just know just know just know, and you can please leave you know. So you have to be compelling, and you have to have your stuff together, and those 5 moves at clay just outlined are the moves, because whenever you can go into a bank and get a loan, you know you’ve done your homework right, you’re, getting the cheapest money out there and the best deal for you long term. So you don’t have to go to venture capitalist and have someone own 48% of your company. You know what to give you whatever it is you’re looking for. If you get your business coaching act together, do the moves we just talked on his podcast. You can go out there and secure loan and start your business and roll on with it or business coaches can help. You write this plan. We do it very often revolution health, it’s in tulsa, revolution, health., org I wrote the business plan for him. Alright, I’ve I mean this is a real example there’s so many businesses out there we’ve done this for I promise you we can help you. We have a template, the systems. We can’t help it. If we don’t get to know you so go to thrive time. Show.Com today schedule your one-on-one business coaching consultation and see what three and a two and a 1/2. Absolutely here we go already. Drivers are there now too