Revenue vs dilution

0:03 Welcome to business purpose and clarity with petri I'm your host we talk about startup life insights practical tips mistakes failures and everything between sales revenues and diluting your capital but I think you should ask it a bit more I've seen it many times it even makes me a bit frustrated to see that founders who already have a company going they have some kind of a product to sell so they have means to actually generate revenues get customers get paid and if your burn rate is not that high make it to happen with your revenues you go.

1:10 Fundraising and you dilute your company in places where the money is not exactly on tap so outside of u.s many places in europe and other parts of the world angel investors and vcs are not that easy to in your company and invest on you it takes a lot of massage takes a lot of meetings takes a lot of and convincing you're doing sales but you're not selling your product you're not advancing the company by focusing on the customers or potential customers learning about the market learning about product market fit having a dialogue with the real users of your you putting your focus on investors people who are not your customers.

2:15 And this way postponing the evitable the thing what you need to do anyways which is to find customers and sell in order to gain revenues in scale well it's not that simple obviously I understand death cases where you need to focus on r d doing sales might be if you have high growth targets so this not any magic polite downloading your company is neither in any case investors are always interested what are your numbers what's your how do you get that well you do that by the hard part is obviously to get sales to the level that you are but if you think about it this way if.

3:19 You can crack the deck if you can make your company cash flow you have more liberty you have more freedom and I'm quite positive that you're more in your business as well and if you're in that position maybe you build a better company as well maybe you are more sensitive and can take pets risks and look things from a different you are not in a position to chase for money because you know that cash flow is running low downloading your company is something you will see at the end too many cases the founders when doing when the exit happens do not get as much as they wish they would have when they started.

4:21 Or how much effort and work they have put into the company so keep this in mind maybe you the shortcut and put your effort more on the sails and make the push where you can float you have a bit of float in your cash flow as well in your bank account in my other podcast talks with petry we've been discussing in at least a few episodes visas are chasing you when you don't need the money the tables turn they will start to knock on your door and you can choose you can leverage the situation and get the.

5:24 Growth money the growth funds needed to accelerate the good stuff things which are already working that's a really good position to be the most complex the most difficult things are done in the beginning it's getting easier at least less risk each and every day each and every time have accomplished and clicked those tasks and de-risked your company good luck building a company non-diluting your capital.