Founder Insight gives you feedback from the startup trenches.
Rob Frohwein is well aware of the challenges new business owners face, particularly when it comes to funding. His Atlanta-based company, Kabbage Inc., is tackling this problem head on, providing business owners access to working capital. Kabbage is the #1 online provider of working capital to small businesses. Kabbage has built the world’s fastest platform to provide capital to small businesses, funding companies within 7 minutes.
In the video below, Rob offers these suggestions for getting funding;
1. Draw the line between personal and business expenses
Small businesses have to act like businesses and make sure they are managing their money appropriately. When you spend money on your business, submit an expense report and then pay yourself back later.
2. Beg and borrow, but don’t steal
You have to be very diligent about getting cash. First, talk to family and friends, but if you don’t have a rich uncle, you might want to look into borrowing or look for alternative financing sources.
3. Know your bottom line
If you’re going to get cash, you want to make sure you’re getting it for the right reasons. If you’re not focused on a return in investment, say no to more money.
4. Be stubborn
Don’t take no for an answer. If you are turned down, find out why and work to make your product better.
5. Be scrappy
Focus on the revenue, and don’t spend money on anything that won’t generate assets.
This Winter, Rob will mentor new startup founders at the Atlanta Founder Institute. If you could benefit from expert feedback and advice to launch a technology company in Atlanta, click here to learn more and apply today. Final applications are due Sunday (2014-05-25).