DROC is “Don’t run out of cash”.
You can’t wait until you have 3 weeks of cash left to get serious about raising funding. If you need Venture Capital, it takes 4- 6 months at best to close a deal and that’s only if you have an impending term sheet.
SBIR’s take several weeks to write and if you are awarded a grant, it takes three months for the check to arrive.
Even debt funding takes time for small businesses and you will have to go to more than one institution.
The time to raise capital is when you don’t need it. Desperation does not improve your chances. It shows you failed to plan for the next round of funding or that you misspent the capital you had.
You are always selling and you are always raising capital.
Blogging Gazelle is published daily by Shawn Carson
One thought on ““Your number one job is DROC” – Barry Goss”
So interesting to see this article today Shawn. I had my own post queued up to talk about getting lines of credit for a business and how the time to do so is not when you need it. It is before you need it.