DOING BUSINESS TOGETHER, INCLUDING FUNDING
Karl Dakin
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
QUICK CALENDAR
TOMORROW, TUESDAY, NOVEMBER 19, Successful Funding show, 8 am Mountain Time / 10 am Eastern Time – Dr. Tom Frey – Future of Entrepreneur Funding
WEDNESDAY, NOVEMBER 20, Belize Real Estate and Life Styles show, 8 am Mountain Time / 10 Eastern Time
WEDNESDAY, NOVEMBER 20, Don Cohen show, 9 am Mountain Time / 10 Eastern Time
THURSDAY, NOVEMBER 21, Community Revitalization show, 8 am Mountain Time / 10 Eastern Time
ASK CAP
?CAP, my artificial intelligence (AI) avatar is available on my website 24/7/365 to answer your questions for free on matters related to funding.
?I developed CAP with a license from Knowledge Avatars to answer frequent questions about funding and save myself time when answering the harder questions.
?I asked CAP,
“What are the advantages of a small business in raising funding if it teams with one or more other businesses, real estate projects or other investment opportunities?”
CAP responded:
“Small businesses can benefit greatly from teaming up with other businesses, real estate projects, or other investment opportunities when raising funding.
By collaborating with other entities, small businesses can access a wider pool of resources, expertise, and networks.”
“This can lead to increased credibility in the eyes of investors, as well as the potential for larger funding amounts. Additionally, partnering with other businesses can help spread out the risk and workload associated with fundraising, making the process more manageable and efficient. Overall, forming strategic partnerships can enhance the overall success and sustainability of a small business's fundraising efforts.”
?FUNDING HAPPENINGS
Otis McGregor is a veteran who publishes a weekly newsletter on business for veterans. Today’s newsletter on LinkedIn includes a recommendation on building ‘buffer time’ into your daily schedule in acknowledgment of the benefits of a physical and mental respite in doing whatever you are doing.
?FUNDING POINT – DOING BUSINESS TOGETHER INCLUDING FUNDING
Everyone is familiar with the icon of the sole entrepreneur, who is depicted as bringing a product or service to market by themselves while overcoming all of the common challenges of starting a new business.
?There is a great deal of pride in being successful as an individual that appears to be diluted when this same success is achieved as a team. This pride or ego can impair decision-making, where the benefits of working as a team may be ignored.
?I remember an early teaching from the Bible about a man who was teaching a lesson of life to his sons. In this story, he picked up a stick and asked one of his sons to break it. The son quickly and easily broke the stick. The man then then picked up several sticks and held them as a bundle. He asked any of his sons to break the bundle, but none of them were able to do so. His lesson to his sons was that even though they each had their own strength, as a group, they were far stronger together than they may be separately.
?When I talk with an entrepreneur or small business team that is seeking to raise capital, I am reminded of this story. As I engage in a discussion on possible strategies that may achieve necessary funding, I consider those strategies that require teamwork in comparison with those that may be achieved by a single individual.
?Raising money once for two or more businesses, organizations, or projects enables splitting the cost of raising funding. Greater efficiency in the reduction of costs of raising funding may be achieved by adding more and more businesses or investment opportunities.
?Funding may be obtained from:
·?????? Team
·?????? Partners
·?????? Suppliers/vendors
·?????? Resellers
·?????? Allies (businesses that sell to the same customers)
·?????? Customers
·?????? Community businesses
?Acknowledging that paired or grouped investment opportunities are more complex does not necessarily mean that they are higher risk, slower to fund, or have a lower probability of funding.
?The complexity challenge is countered by the fact that more people are participating in the funding campaign. This aggregation of people means more talent and more networks with potentially higher creditability in the eyes of an investor candidate.
?A grouped investment opportunity may also create a broader range of benefits, which may attract a larger and/or different group of investor candidates.
?As an illustration, consider fundraising by a single owner/entrepreneur coffee shop. As a stand-alone business, it represents a small economic footprint with limited potential profit margins. This investment opportunity picture presents a limited range of investor candidates and investment offer types and structures. A very common situation. Venture capitalists, private equity firms, angel investors, and most bankers are out of the picture. This leaves friends and family, local government agencies, and local businesses who may offer loans and possibly low ROI equity investments. The cost of raising capital may make the aggregate price of money (cost of raising capital + price of money) unreasonably expensive.
?Enter the picture of a possible group investment opportunity. In some manner, the coffee shop must join forces with another individual, business, or organization to present a better investment opportunity than the coffee shop alone.
?One example that I am currently working with through my participation in RCI Community Funds is raising money through a community investment fund. Its model (created by the National Coalition for Community Capital) calls for a single capital raise that will invest in real estate (60%) and local businesses (40%). If the coffee shop can team up with one or more additional businesses and with one or more real estate projects, it will match the community investment model.
?Using a group investment opportunity model will:
·?????? Elevate the opportunity to a community level where more if not all of the residents in the community may benefit – greater economic activity, more or larger businesses, more jobs, more taxes for safety, infrastructure, and taxes
·?????? Shared cost – although the cost of raising funding for a single community investment fund is higher than for a single business when the cost is spread over all of the recipients of investment funding, the cost to the coffee shop is reduced
·?????? Shared risk – the risk of investment in a single business – the coffee shop – is reduced by investment in both real estate and two or more businesses creating a portfolio or pooled investment that is viewed by many investor candidates as lower
·?????? Shared networks and promotion – the capability of making investor candidates aware of the group investment opportunity is directly increased by the number of real estate projects and local businesses that will directly receive investment from the community investment fund. Due to the expanded level of community benefit, it may be possible to get every resident, local business, civic organization, foundation, and economic development organization to join in the promotion of the investment opportunity.
?There are several other group investment opportunity models other than a community investment fund that may achieve more funding at lower costs.
?Before striking out on its own, a small business or community project should evaluate options for participating in a group investment opportunity.
BELIZE REAL ESTATE & LIFESTYLES SHOW
NEXT WEDNESDAY, NOVEMBER 20, Boris Mannsfeld and I will host the inaugural Belize Real Estate & Life Styles show at 8 am Mountain Time / 10 am Eastern Time (this show is rescheduled from a few weeks ago). The program will provide insight into doing business and living in Belize.
You may view the show live or watch it later as a recording at:
SUCCESSFUL FUNDING SHOW
TOMORROW, TUESDAY, Thomas Frey CSP will be my guest on the Successful Funding show at 8 am Mountain Time / 10 am Eastern Time. Dr. Tom Frey is a world-class futurist. We will be talking about the future of funding.
You may watch the show live or watch the recording at a later time at:
LAST TUESDAY, Andrew Sherbo with the University of Denver, Daniels School of Business, was the guest on my Successful Funding show. We discussed entrepreneur education. The conversation renewed the concerns from last week’s show with Eric Hanson on the need for greater financial literacy – personal, business, and community. Basic concepts such as return on investment (ROI) based upon the time value of money and the need for planning pointed to challenges remaining for educators.
You may see a video recording of the show at:
DON COHEN SHOW
NEXT WEDNESDAY, November 20, I will be a guest again on the Donald Cohen show. 9 am Mountain Time / 11 am Eastern Time. Don and I will discuss the challenge of monetizing appearances on live-streamed shows and podcasts.
You may be in the audience or watch the show later on a recording at:
LAST WEDNESDAY, I was the guest on the Donald Cohen show. We talked about strategy. The act of forming a strategy serves to guide an organization in future planning and operations – to point the organization in a specific direction. Strategy development is improved by having more people participate to create multiple perspectives based on a broader range of experiences.
If you would like to a recording, go to:
You may subscribe to this Weekly edition of my Instant Funding Newsletter, or you may subscribe to my Daily edition.
Karl Dakin, the Capital Coach
Dakin Capital LLC
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3 天前Great opportunity...lost. when all they've got are handouts, Canberra seats are occupied far too long 3 elections are enough
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3 天前That's going to be Amazing program thanks for sharing this karl Dakin best wishes to each and everyone their ?????????????????????????
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
4 天前Have you teamed on funding?