How To Get Money To Start A Business

- Almost every fucking
day, I get private message

on Facebook, e-mail, or Instagram DM,

someone asking me, like no joke,

Dan, can you lend me $5,000?

Dan, can you loan me $10,000?

I'm gonna pay you back, I
need to start this business.

Or, you know, can you, it's
almost sometimes a handout.

(swanky music)

Now here's the thing:

Just because someone is successful,

they are not obligated to help you

if you don't even fucking help yourself.

By just looking at the request,

I know the level that you are at.

First of all, clearly,

you have not studied my fucking work.

Maybe you saw one post of mine

then you submit a request, Dan
give me some fucking money.

Here's the thing, if you study my work,

you know I'm all about adding value

before you ask anything in return.

So its shows me you have
not studied any of my work,

no wonder you're fucking broke.

Second is, you don't
approach a successful people

asking for something.

You approach a successful
person adding value,

giving them something first

before you ask anything in return.

And third is if you have no money,

just think about if I'm
betting on horse-racing.

You as a jockey, as
entrepreneur, you suck.

Because you never done this before.

The horse, your business,
your idea, probably sucks too.

If I was to bet on a horse,
why would I bet on you

when I am getting approached

by winning, award-winning jockey

with a track-record,
with a kick-ass horse,

and I turn down 99% of
those opportunities.

Then why, I don't even fucking know you.

Why would I give you money?

So it your fault.

So let me give you some
strategies, actually,

four ways that you can find money

to fund your business, okay?

Number one, you can find money,

the first group of people to
go to is what I call sharks.

Yes, sharks, they are
the people on Shark Tank.

They are the venture
capitalists in the world.

They are the professional
investors in the world.

Chances are, maybe many years ago,

they started just like you, like myself.

They were entrepreneurs and
now they're made of money,

they have a pool of money,

and they're looking for
wise, smart investments,

experienced entrepreneurs to invest in.

So they're sharks.

Now there's a reason why
they're called sharks.

Chances are they want to make more money.

They want to put their capital to work.

And they only usually invest
in proven investments.

They bet on prove award-winning
horses or jockeys.

They don't best on idea, they don't bet

on pie-in-the-sky kind of bullshit.

And that's why you see on these shows,

that people say, I've got this widget,

I've got this idea, I'm very
passionate, so fucking what?

You have idea how to win the race.

You don't know, you
have no business skills.

You have no business acumen.

The fact that you have none is the fact

that you need five, 10,000
to grow in business.

Believe it or not, that
tells people a lot.

So, sharks, when you're
dealing with sharks,

knowing that probably, you
could get money from them,

even if you could manage to convince them,

however, you will need to be prepared

to give a good chunk of the company.

Because they're risking
their money on you.

And usually sharks also have, chances are

they have a lot of experience in business.

They may ask for a big
piece of your business.

So sharks, dealing with sharks.

Second, and chances are if
you're watching this video,

99.9% of the people watching this video,

you're not gonna get money
from venture capital,

you're just not there yet.

Number two, it's what I call dolphins.

So the dolphins, they are
the financial institutions,

they are the banks, they
are the credit union,

they are institutions
where you can borrow money.

And banks, you can say banks,

the problem with banks
is you go to the bank

and remember I was trying
to, many many years ago,

even trying to get a line
of credit for $2,000.

$2,000, a line of credit!

They wouldn't give it to me.

They just wouldn't give it to me.

And now, my fucking bank
is calling me all the time,

hey Dan, do you need money,
I can loan you some money.

Do you need a mortgage?

Do you need more line of
credit, another credit card?

You need more financing for your deal?

I said I don't need money.

No, but you might, if you
need, let me give you a call.

Here's how usually banks work.

They loan you money
when you don't need it.

That's right, they loan
you money, dolphins,

they loan you money
when you don't need it.

They don't loan you
money when you need it.

They don't loan you money
when things go into shit.

They don't do that, because again,

bankers, dolphins, they
are very conservative.

Now although you may think dolphins

are kinda nice animals,
and they're kinda nice,

but don't be fooled by that, okay?

Dolphins can also bite your head off.

Their teeth are just as sharp as a shark.

So don't be like, I'm dealing
with dolphins, they're nice.

No, they are, they make
their money, dolphins,

on the interest, right,
the money they loan you.

They're a money lending business.

They want to protect
investments, no different.

So time and place, there's a
time and place for dolphins.

And chances are, maybe, if you're starting

from scratch, you're starting, you are,

this is your first couple businesses,

you don't have a track
record, very difficult

for you to borrow money from dolphins.

Third is what I call fish.

Fish is your family and friends.

Right, your relatives, your brothers,

your sisters, your mum and dad.

Your vendors, your suppliers, chances are,

not to put you down, those are the people

who are dumb enough to loan you money.

They will be dumb enough
and say, hey, you know what,

you're a good guy, you're a good girl,

you're hard-working, I believe in you.

Knowing that you're
probably gonna lose it,

but you know what, I'm betting on you

because of the relationship.

Not because of your track record,

not because you're skilled,

but because relationships, you know what,

here's $5,000, here's $10,000,
I would invest in you.

Chances are, I remember I borrowed money

from my uncle to start my business,

I lost all his money,
he was a fish, right?

So I've done all of that, but the best way

to find money to fund your business,

that I believe, that I've
used my entire career

is you get the money from your customers.

You get the money from your customers.

How do you get some money?

You go out and you sell some shit.

You get some sales, it is
the easiest way to get it.

You don't come to me and say, hey Dan,

give me ten grand, good luck.

What can you do for me?

Offer your service, offer your
skill, offer your expertise.

You make the money, show
me you can make money.

Show me that you can add value.

Go to your customers, my whole life,

yes I have done business with dolphins,

I've done business with sharks,

but ideally, go to your customers.

Sell something; let's say
you're a digital marketer.

You wanna start a digital
marketing business,

you wanna help people do,
I dunno, graphic design.

You don't need a lot of
money, you don't need

to borrow a ton of money,
print business cards,

create all this fancy
shit, go sell something.

Get your first client,
that's how you get the money.

There you go, you get the money

from your customers, make that sale.

Oh but Dan, I don't know how to sell.

That's why you don't have money.

So you have, you don't
have money, you don't know

how to make a sale, what makes you think

you would know how to sell
when I give you more money?

When you get more money?

It makes no sense, right,
so if you don't know

how to swim in a swimming
pool, what makes you think

you know how to swim in a lake?

What makes you think you
know how to swim in an ocean?

You'd be drowned, you'd be dead.

You can't even fucking,
do the fucking little kick

in the swimming pool, you can't even float

in a fucking, you know, the top.

Jesus Christ, right, that's
what I'm talking about.

Also, you can also get money

from your customers in many other ways.

Maybe it's paid in advanced,
get them to pay in advance

before you even make the damn thing.

Like a Kickstarter, you have an idea,

you're gonna pitch it, you're gonna get it

out in the marketplace,

and you'll see if people likes it.

Have your customer fund your business.

It's the best because
there's an invested interest.

Or even a subscription model.

Have them pay on a monthly basis,

which is, I love that model, paid events,

subscription, Kickstarter,
all of those ways

you can your customer funds your business.

And you get that going first.

And you prove your model.

Once you have a proven
model, then you can take it

to the dolphins or even the fish,

and say you know what, I've
got a good thing going on.

I've done as much as I
could with my ability.

I've got it to this point.

But now I've got the proven
thing, I want to scale.

Now when you talk to the sharks,

when you talk to the dolphins,

they're more likely to listen to you

and say, hey, you know what, hmmm.

You've got a good thing going on.

You've already got revenue, they love

to see, before they even
make the damn thing,

you're making money, before
you even do anything,

you've got reoccurring
coming in every single month.

Hey, this guy, not so bad after all.

Maybe he's a decent entrepreneur,

maybe he's got half a brain.

Maybe let's bet on this guy.

That's what I'm talking
about, that how you--

It's never about the money.

Money goes to the people
who don't need it.

Money goes to the people
who know how to multiply.

It is not lack of money, it's lack of,

it's your, it's you lacking of
the ability to attract money.

I'll say that again, it's
not about lack of money.

There's so much money out there.

Banks, investors, they are flooded

with cash, they want to
put their money out there,

because every single bit of money

that's sitting in a
bank, they're not putting

to work, it's costing them money.

They want to invest in good deals

and good entrepreneurs, but the problem is

they're so few of them out there.

There're so few of them out there.

When you approach them, when
you have the right mindset,

the right skill, they
would fund your deal.

Your customers would fund your deal.

This just makes sense, comment below.

So don't be telling me,
I don't have the money

to expand my business,
I don't have the money

to start a business, because
you're a lousy business person,

that's why, so think about that.


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