VIDEO: How To Raise Money The Bootstrapper Way

It seems every entrepreneur needs to raise money. Scratch that. Some don't, but it feels like all do. So here is a question about just that, and in this On A Roll video you will learn both the traditional method of fund raising through angels and VCs as well as the boot strapper model to "internal raises"...

Another video by Mike Michalowicz, Author of The Toilet Paper Entrepreneur

Category: Video, Women Entrepreneurs
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  • http://www.KyleClouse.com Kyle Clouse

    Mike, I love the new life that your videos have taken on…not to mention the great content that you always deliver! Great work.

  • http://www.ecudoctors.com Jorge Morales

    Hi Mike,

    Cool Vid.

    but I wonder how you would go about “pre-selling” a service??

    Please give us a few examples

  • http://Ficklets.com Ros

    Mike, you’re a riot! How did you fit all those swagsters in your office? And Whoa… you actually chewed the Lamb Chops. Good thing I wasn’t eating at the time.

    Yes, I agree… PPM not the easiest route. Just wanted you to know, I received your book a couple days ago (via Womentorz) and my husband started to read it. Guess what? He says your book is really good. Waay cool, huh? Well, it is… he’s a little ADD, so the fact that your book has got his attention long enough for him to go pass the cover, is Huge!

    P.S. More “funny” videos please. Who loves you Mike, Who loves you? We do!

  • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

    Jorge – pre-selling is to offer your product service (usually at a price discount or by offering customization) prior to delivery. Dell did this by selling us computers through their website and then assembling them… in exchange we got a “customize computer.”

    Another strategy is to limit the availability. Meaning you tell people that you will only produce X number of units and only take orders for X number of days. Then they can pre-order and on a certain date, a few weeks later you ship out the stuff.

  • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

    Ros – I love YOU (and your husband)… yes, my love goes both ways. Thrilled to hear he is enjoying the book…. and have my fingers crossed that he makes it through all the way.

    A huge thanks to Womentorz (a VERY cool business / website)… Melinda negotiate a really cool deal for her clients with me. Really grateful that she did.

  • http://www.ubermarketing.wordpress.com Akash Sharma

    Great advice again Mike, Love the Pre-sell part as every firm reaches a stage where they want to make a real big move on several fronts and at that time most obvious thing to look for is VC funding.I think there is a lot to learn from Dell’s triumph on this.

    Keep Rocking !!

  • http://www.DoneForYou.me Dianne Sikel

    I love your style.
    I’d love to learn more about PPM- even if it isnt the easiest way to raise capital. Please direct me on where to learn more about this technique.

    Presell is a common technique in the salon industry. Actually anyone providing a service- or any company who is selling Gift Cards is Preselling.

  • http://Davidbeking.com David King

    Thanks for the tips and vid michael! you rock!
    Keep it up!

    David

  • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

    Hi Dianne – I am jazzed that you love my style. Definitely turns off some (of the super serious) folks.

    Here is where you can get info on writing a PPM:

    http://www.growthink.com/capital-raising/PPM/how-to-write-a-private-placement-memorandum

    Gift cards are the ultimate pre-sell technique! I think something like 20% never get used.

  • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

    @Kyle – hey brother! Thanks for checking in…. always love to see you on the TPE site.

    @David – thank you sir! YOU ROCK!!!

    @Akash -Good to see you on TPE. Long time no email.

  • http://1000markets.com Matt

    The advice you give on bootstrapping a company is awesome, but i would like to point out that the PPM is a distraction if you are trying to raise money.

    Frankly, nobody raises angel or VC money using a PPM. The PPM is a structural/legal document, don’t waste your time on it.

    To pitch a VC or an angel, you need a pitch deck (10 slides, google it) and, ideally, 5 year pro forma financials.

    If you get to the point where you are discussing terms (e.g., preferred stock structure and so on) it will usually get summarized in a “term sheet” and that is almost always drafted by the lead investor, not the business owner.

  • Heather Lopez

    Great video Mike. I love the ending. So funny! I have never seen anyone eat a dog biscuit. I am only buying Lambchop now. LOL!

  • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

    DISCLAIMER – NOTICE – HEADS UP – Just in case you haven’t figured it out from my bad acting, the whole “vomit scene” is a fake. The Lambchop biscuits are in fact pretty darn good, considering they are made for dogs and not people. Order some and try it yourself. I think they go particularly well with salmon.

  • Kaitlyn

    Hey Mike, how would a TPE get money to purchase inventory for a retail start up business? It seems like for this type of start up you need loans, investors, etc.

    Love the book and the site! Thanks!

    Kaitlyn

    • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

      @Kaitlyn – You can get inventory on consignment… particuallary if you offer the vendor a fatter margin on sales. This is a great way to get inventory for “free” and to see what products move and which ones don’t.

  • http://www.ToiletPaperEntrepreneur.com Mike Michalowicz

    Check out this awesome blog response from Annette – the maker of the dog biscuits!!!

    http://bit.ly/BBL-TPE

    Now that is what I call leveraging PR.

    And no, I did not vomit from biscuits, I just play a vomiter on TV.

  • http://www.biscuitsbylambchop.com Annette Frey

    Hey Mike, I chose the last dog in the comic based your hair-do.

    His name is Fang, he only plays Mikey on the internet.