There are more ways to raise money for your business, project or organization than ever before. There are more angel investors, more online sites, more VCs… it’s true that the local bank has largely abandoned this responsibility, but the web keeps reminding us of the opportunities.
Here’s the key thing you have to understand before you ask your mom or your friends or the local VC for an investment:
There’s a huge difference between spending money on expenses and spending money to build an asset.
Ice at a picnic is an expense. Once it melts, it’s gone. Your electric bill, rent-these are costs of doing business, and you should rarely if ever borrow money to pay them.
More details: Sethgodin.typepad.com