Dharmesh Shah has some very sound advice in his post titled 4 Quick Tips on Raising Funding without a Plan or a Powerpoint. He’s quick to point out that when he says “without a plan” he just means without a written plan. And when he’s talking about funding, he means early stage seed or angel funding, not venture capital.
In summary, his tips are:
- Have a story – Read his description to get a picture of what your story might be.
- Demonstrate leverage – This may be about a competititve advantage, but more often it is about who you know or how your operation can be low cost. Dharmesh describes this as “…a disproportionate chance of not screwing this up completely.”
- Accept that your baby is ugly – Explain “why your baby is going to grow up into something that’s beautiful.”
- Dream big, but plan small – “The less cash you have, the more quickly you have to deal with the really hard things.”