Plan B for Fund Raising

From Guy Kawasaki at the American Express Open Forum blog

Here’s how most entrepreneurs approach venture capital funding raising. I call it Plan A. It’s a plan and an outcome that no one talks about but happens all the time. I’ve been on both sides, so I should know.

As readers of this Open Forum blog, I want you to be open to another way. I call this Plan B. In this plan, you take very little if any venture capital until you need capital to expand, not create, your product. Here’s how it works:

Many readers of this blog are not tech entrepreneurs, but the merits of Plan B are the same for almost any type of business. You can try Plan A as long as you realize that the hard work begins after you raise venture capital, and you will need a bigger, faster miracle to make everyone happy. Or, you can just believe me: “Plan B, don’t leave home without it.”