Jeffrey Walker founder and CEO of Walgatti located here in Houston Texas wanted to bring you guys a quick video today on the topic of startup funding. There’s different ways of actually secure startup Capital but if you ever been to the Bank and you went to them and you said hey I’m looking to start a business I need working capital what are my options there’s a very high probability about 100% chance that they actually told you they cannot help you unless you have some really really expensive collateral that you can pick up put up that they can secure that long but if you’re just trying to start a business and you don’t have a lot of resources banks are not going to lend to you. It’s just not going to happen so what do you do where do you go how do you get this going well there’s different ways to do it but today we’re going to talk about one strategy and that is what I like to refer to as your Spear of influence your center of influence your warm Market these are people that you know in your life that know you like you love you and or or trust you they see that you’re an entrepreneur out there doing things and making moves in life and they want to see you succeed see a lot of times guys that were concerned to approach people that we know because you know we don’t want that we don’t want to ask for anything we don’t want to hinder the relationship but there’s a reason why we would not want to approach people that we know and there’s there’s valid points to all of that I’m certainly not disputing that we’re going to talk about that here shortly however from a bank standpoint Banks they don’t look at the person you know this isn’t this isn’t the 60s you know what they look at a profile and if you don’t match that profile to a T it’s an instant decline so you cannot go to a banker and say Hey you know we’ve known each other for years you know I do business here I need you to push this through because they simply cannot do it however people that you know when your life.
friends family members these people do know you and they are looking more at the person then they are the credit profile now obviously what is a downside to this strategy well these are your friends in your family and you do not want to ruin those relationships a mentor my always told me never lend money to a friend or family member that you’re not willing to lose because the relationship is often times more valuable than the money and if it’s a true friend then it is 100% more valuable than the money so that was the mindset that my mentor told taught me in terms of lending money to friends are family. However from a business standpoint if you have a game plan you have a strategy and a 10A a true idea that you can run with you be amazed if you put pen-to-paper how many people you know in your life that would actually support you now they may not come and give you $100,000 liquid cash but maybe they have really good credit and.
give me have some assets that they’re willing to do a co-sign for so the bottom line guys is start putting pen-to-paper these individuals that you have in your life we like to refer to these are the three or four Checkers these are people that have you know high-income whether they’re self-employed or they they work for someone else you know there’s a lot of W-2 employees out there that make a lot of money and so that’s one thing you’re looking for the second thing that you’re looking for is you know and you may not know this exact but you can kind of make a a good guesstimate on that an educated decision do they have good credit so do they have high income do they have good credit and you know maybe they have some collateral maybe if you know someone that has a lot of land that you know they’re constantly upgrading of expensive equipment these are all telltale signs that these people have good income to have good credit and if you have that bond that relationship and you’ve proven yourself in a relationship there’s a really high high chance that they will go to bat for you they will and they will help you.
the last thing that I’ll tell you on this note is make sure you have everything in writing make sure you have a contract make sure that everything is is done with an attorney that way everything is above board all parties feel comfortable and you have a deadline for your your funds to be repaid whatever that is in the agreement that you all agree upon so the bottom line guys is there’s various options for startups only a few though okay there’s not a whole lot of options but there’s a few and friends and family is a viable option for a lot of people lot of businesses have been started and successfully built with the help of a friend or family or friends or family members that have been able to go to bat for you.