Every great business starts with a passion - is it enough to carry it through?
This entrepreneur is absolutely passionate about her business, except that the investors are not adding value. They just want a business that is already successful. I call that the banker's approach.
What they should have told her is, yes we won't fund you, but you can trademark your brand, your designs and try to license it to various manufacturers and retailers. THAT's how you TURNAROUND a passion into a possible cash flow, and then maybe a business.
For the $100.000, she put in, she should have spent it on legal trademark fees and on looking for licensees. She is not going to become a millionaire out of it, but she will certainly make it work for her as a founder, not as a business person.
That's my goal when I work with passionate entrepreneurs. I try to funnel their ideas and passion into a potential cash flow stream for them, before we explore the possibility of it being a business.
This entrepreneur is absolutely passionate about her business, except that the investors are not adding value. They just want a business that is already successful. I call that the banker's approach.
What they should have told her is, yes we won't fund you, but you can trademark your brand, your designs and try to license it to various manufacturers and retailers. THAT's how you TURNAROUND a passion into a possible cash flow, and then maybe a business.
For the $100.000, she put in, she should have spent it on legal trademark fees and on looking for licensees. She is not going to become a millionaire out of it, but she will certainly make it work for her as a founder, not as a business person.
That's my goal when I work with passionate entrepreneurs. I try to funnel their ideas and passion into a potential cash flow stream for them, before we explore the possibility of it being a business.
