Finance before you need the money
Image credit: https://flic.kr/p/biaSNZ
Even if your operation is a frugal bootstrap, most of the times you will need cash to finance your business as it grows.
For 3 reasons, you should always obtain that money before you need it.
- This give you plenty of time to discuss your financing needs with a wide variety of sources. This way you can obtain the best terms and deal with people or institutions you’re most comfortable with
- Desperation repels. It always provokes the question, usually unspoken
- Desperation means the investor dictates the terms; usually take it or leave it
Anyhow, remember at all times that the litmus test we are using for money is the sense of ease and comfort it gives you. Money should not cause a mental rush. Grow your business with that in mind and you will have an inbuilt arbiter of healthy development.
It is not a question of whether your business should grow at 10% or 150%. The question is what growth rate is comfortable for you. You are what this business is all about.