I have a friend who is pursuing a new direction with his business and was looking for some advice. His existing business has been operating for many years and he has been boot-strapping his new venture. It looks like he was able to get validation for the idea and even has a few paying customers. He has used the cash from his operating business to bootstrap this new venture and it looks like he really has a shot at bringing a very innovative (and disruptive) solution to market. His challenge is to figure out when he should seek financing to support the opportunity. He could probably continue to nurture the business along and do well however to really capitalize on the opportunity he needs to pre-pay the expenses that come along with capturing a market.
It’s an interesting question/challenge he poised. I told him to Continue reading