April 5, 2008

Allowing Others to Finance Your Business

As a startup, it’s a challenge to manage cash — don’t worry, we know.  But one of the things that we’ve learned (through both personal experience and with helping other entrepreneurs) is that there of creative ways to bootstrap/finance your company.  Let me provide a few examples:

  1. Leasing computers.  Instead of going to the nearest electronic store and purchasing a new computer, go to one of the large manufactures (Dell, HP, etc.) and see if you can obtain a credit line to finance the computers you need.  We’ve seen that most companies can usually obtain a $25k line of credit pretty quickly.
  2. Credit Cards:  If you do your homework, there are quite a few credit cards out there that will allow a company obtain more than the standard $3-$5k limit.
  3. Other credit lines:  one of the examples that I like to use is Google.  For those of you that use Google adwords, do what you can to get a hold of an account manager to help you obtain a credit line on your ads.  Instead of maxing out your credit cards every other day paying for your ads, they will often provide a credit line that helps you to manage your cash flow.

Those are just a few quick examples.  Remember, cash is king.  Do all that you can to keep cash in your hands and allow others to finance your business for you!

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