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