onsdag 19 december 2007

Cash Flow

CashFlow, Why?
I am sorry to say that many starting entrepreneurs today are naive businesspeople. They go around looking for capital without no cashflow history whatsoever. In my world, no cashflow equals no demand. And if there is no demand then why should I as the dealmaker find investors for these entrepreneurs at this moment?

What it takes
What it takes to get respect from any investor out there today is having positive cashflow coming in month after month. Having blue-chip customers so to speak.

It has never been harder to raise capital than today. Because there are millions of people trying out being entrepreneurs. Many of them aren't entrepreneurs by a long shot. They lack perserverance for a starters and secondly they lack the right focus. The right focus is that you gotta make positive cashflow. Try every conceivable way of making that happen (legally of course).

My role as the dealmaker

I care about entrepreneurs having negotiating power when speaking with investors. I really do. But as the great dealmaker Herb Cohen ones said: "I care, but not T-H-A-T much". It's still your job as the entrepreneur to create your own "luck".

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