You don't need funding, you need to sell!!!

You don't need funding; you need to sell your product.

I'd like you to hear me out. Selling before applying for funding is crucial for entrepreneurs. You rarely receive funding for a product or service that hasn't been validated. How do you validate your product? No, not by selling to your parents and friends.....obviously they'll buy. Even if means buying it to throw it away, they'll do it. Here are some tips to help you validate your product or service before seeking funding:

• Define your target market: Clearly identify your market so you can test your product or service with them. You have to test with people who actually need and will use your product. Funders want to know that there's a market for your product, and above that, you need to understand your market in order to service it properly.

• Proof of Concept: Selling your product or service demonstrates that there is demand in the market for what you're offering. It validates your business idea and proves that customers are willing to pay for your solution. This is essential for funding, as it shows that your business has real-world potential.

• Revenue Generation: Generating revenue through sales provides your business with a source of income. This income can be used to cover operating costs, invest in further product development, and demonstrate your ability to generate profits. Companies that generate revenue are attractive to funders, as it shows that your business model is viable.

• Reduced Dependency on Funding: Selling before seeking funding allows you to become less dependent on external capital. By generating sales early on, you can bootstrap your business and fund its growth organically.

• Valuation and Negotiation: Selling your product or service before seeking funding helps establish a baseline valuation for your business. When negotiating with investors, having a proven sales history allows you to negotiate from a position of strength and potentially secure a higher valuation. Funders are more likely to invest in a business that has already demonstrated its value through sales.

• Market Insights and Feedback: Selling your product or service allows you to gain valuable insights from customers. By interacting with customers directly, you can gather feedback, identify areas for improvement, and adapt your offering to better meet market needs. This feedback can be invaluable when preparing for growth and making your funding pitch more compelling.

In summary, selling before applying for funding as an entrepreneur provides proof of concept, organic revenue generation, and reduces dependency on external funding. These factors increase your chances of securing funding and building a successful business. Remember, without a sale, there is no business, so that's a good place to start: - Sell!!