How to Fund Your Business - Even If You’re Broke and Have Zero Experience
What if we told you there was a way to start a business without putting your own money into the game?
It’s not as crazy as it sounds, in fact it’s one of the core principles we teach at The Foundation. We call it Pre-Selling and it’s helped hundreds of entrepreneurs start their own profitable businesses because one of the top barriers they face is the initial upfront costs. This is what makes Pre-Selling so crucial, because it allows you to prospect potential clients and sell them on your idea before investing the funds to fully develop your product.
But the best part about Pre-Selling is that anyone can do it. Not only that - anyone can do it without having to change themselves.
You get to be the awesome person you are and make money at the same time.
So we get to be ourselves, AND we don’t have to invest our life savings into an idea that hasn’t been proven yet? Where do we get started?
Well first, be prepared for a little rejection. Not every call you make trying to pre-sell will close...in fact when I first got started it was close to 1 in 10 calls were closing. But don’t be discouraged by that, the more calls you get under your belt, the more confident you’ll be and will start seeing those results improve.
But seriously, don’t get discouraged and do start constructing the offer that you’ll be using to close the sale. This is the part of the conversation where you will have shown your potential customer all the info about your product, they’re getting excited and the offer is the final “HELL YES!” that pulls the whole thing together.
We have to remember that these initial customers should be getting something for buying into your vision from Day 1 that no one else will. They are taking a risk in you and by investing in something that doesn’t even exist yet. Include everything you can to make the deal as sweet as possible.
Some ideas we’ve used are:
- Free Service for XX months
- Locked in low price for life
- Free implementation of the software in their business
The more you offer, the better the deal will sound to the prospect. Still, they might be wondering “what’s the catch?” and you should address that upfront in your offer. You’re offering all those killer benefits, but you’ll want things like testimonials, feedback and referrals in exchange. As a rule of thumb, we recommend making the benefits as long and awesome as possible and the catch short and easy for the prospect to accomplish. By framing this in a way for the person to feel like they’re in the power seat because they are part of a select group that is receiving such a great package for making this product happen.
Along your Pre-Selling journey you may have some prospects question your track record. Be prepared to point them to your past successes, but also recognize that having a track record isn’t a requirement to pre-selling OR starting a profitable business. If you don’t have anything valuable to show these doubtful prospects, a little bit of honesty and ingenuity can usually make up the difference.
So remember, when done correctly Pre-Selling your product gives you:
- Money you don’t have to build your product
- A customer base with low expectations so you can build the most basic version of the software
- A user test group to make sure the product is exactly what they want
- Customers who have bought into your vision from day one
- A bunch of testimonials and case studies before you ever start marketing to a large scale audience.
You will probably have a lot of questions now about how you can start implementing these ideas to fund the development of your product. You can comment directly and post your questions/comments/relevant stories. We’d love to hear from you!
Remember, this post is an overview of the process and by no means a conclusive report on how to conduct Pre-Selling. We want to share the opportunities and possibilities that become available when you are able to get others to fund the development of your product. In The Foundation Flagship course we dedicate an entire learning module with several hours of content specifically to Pre-Selling because it’s so important in starting any business. If you want to learn more about how we’ve helped hundreds of successful entrepreneurs find amazing business ideas and turn them into profitable businesses, then Apply Now to join The Foundation and start walking out your dream of freedom and financial security.