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November 10, 2004
Tips on Avoiding Common Financing Mistakes
StartupJournal offers a few sound tips on common financing mistakes in start-up ventures.
1. "Not raising enough capital". True, but I'll add a corollary: don't raise too much either, as it can lead poor spending decisions, over-commitment to overhead, and just general mischief.
2. "Risking everything you own". Very true! We wife and I had significant savings when I went into business in NC, which got us through a very up and down start-up period.
3. "Borrowing from friends and family". I generally agree with this as it can lead to rather uncomfortable Thanksgiving dinners! However, I have seen it work when the funds are relatively (no pun intended) small and the transaction is done in a truly business-like manner.
4. "Failing to keep good records". Amen!
Posted November 10, 2004 06:39 AM
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at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
