Almost every day, I get a private message on Facebook, e-mail, or Instagram DM. Someone asked me, like no joke, Dan, can you lend me $5,000? Dan, can you loan me $10,000? I’m gonna pay you back. I need to start this business. Or, you know, can you, it’s almost sometimes a handout. Now here’s the thing: Just because someone is successful, they are not obligated to help you if you don’t even fucking help yourself. By just looking at the request, I know the level that you are at.
First of all, clearly, you have not studied my work. Maybe you saw one post of mine then you submit a request, Dan give me some money. Here’s the thing, if you study my work, you know I’m all about adding value before you ask anything in return. So it shows me you have not studied any of my work, no wonder you’re fucking broke. Second is, you don’t approach a successful people asking for something. You approach a successful person adding value, giving them something first before you ask anything in return. And third is if you have no money, just think about if I’m betting on horse-racing.
You as a jockey, as a businessman, you suck. Because you are never have done this before. The horse, your business, your idea, probably sucks too. If I was to bet on a horse, why would I bet on you when I am getting approached by winning. Award-winning jockey with a track record, with a kick-ass horse, and I turn down 99% of those opportunities. Then why I don’t even know you. Why would I give you money? So its your fault.
So let me give you some strategies, actually, four ways that you can find money to fund your business, okay? Number one, you can find money, the first group of people to go to is what I call sharks. Yes, sharks, they are the people on Shark Tank. They are the venture capitalists in the world. They are professional investors in the world. Chances are, maybe many years ago, they started just like you, like me. They were businessman and now they’re made of money. They have a pool of money, and they’re looking for wise, smart investments, experienced entrepreneurs to invest in. So they’re sharks. Now there’s a reason why they’re called sharks.
Chances are they want to make more money. They want to put their capital to work. And they only usually invest in investments. They bet on prove award-winning horses or jockeys. They don’t best on the idea, they don’t bet on pie-in-the-sky kind of bullshit. And that’s why you see on these shows, that people say, I’ve got this widget, I’ve got this idea, I’m very passionate, so what? You have an idea of how to win the race. You don’t know, you have no business skills. You have no business acumen. The fact that you have none is the fact that you need five, 10,000 to grow in business.
Believe it or not, that tells people a lot. So, sharks, when you’re dealing with sharks, knowing that probably, you could get money from them. Even if you could manage to convince them. However, you will need to be prepared to give a good chunk of the company. Because they’re risking their money on you. And usually, sharks also have, chances are they have a lot of experience in the business. They may ask for a big piece of your business. So sharks, dealing with sharks.
Second, and chances are if you’re watching this video. 99.9% of the people watching this video, you’re not gonna get money from the capital, you’re just not there yet. Number two, it’s what I call dolphins. So the dolphins, they are the financial institutions, they are the banks. They are the credit union, they are institutions where you can borrow money. And banks, you can say banks, the problem with banks is you go to the bank and remember I was trying to, many many years ago, even trying to get a line of credit for $2,000. $2,000, a line of credit! They wouldn’t give it to me.
They just wouldn’t give it to me. And now, my bank is calling me all the time, hey Dan, do you need money. I can loan you some money. Do you need a mortgage? Do you need more lines of credit, another credit card? Do you need more financing for your deal? I said I don’t need money. No, but you might, if you need, let me give you a call. Here’s how usually banks work. They loan you money when you don’t need it. That’s right, the loan you money, dolphins, they loan you money when you don’t need it. They don’t loan you money when you need it. They don’t loan you money when things go into shit. They don’t do that, because again, bankers, dolphins, they are very conservative.
Now although you may think dolphins are kinda nice animals. And they’re kinda nice, but don’t be fooled by that, okay? Dolphins can also bite your head off. Their teeth are just as sharp as a shark. So don’t be like, I’m dealing with dolphins, they’re nice. No, they are, they make their money, dolphins, on the interest, right, the money they loan you. They’re a money lending business.
They want to protect investments, no different. So time and place, there’s a time and place for dolphins. And chances are, maybe, if you’re starting from scratch, you’re starting, you are, this is your first couple businesses, you don’t have a track record, very difficult for you to borrow money from dolphins. The third is what I call fish. Fish is your family and friends. Right, your relatives, your brothers, your sisters, your mum, and dad. Your vendors, your suppliers, chances are, not to put you down, those are the people who are dumb enough to loan you money. They will be dumb enough and say, hey, you know what, you’re a good guy, you’re a good girl, you’re hard-working, I believe in you. Knowing that you’re probably gonna lose it, but you know what, I’m betting on you because of the relationship.
Not because of your track record, not because you’re skilled, but because of relationships. You know what, here’s $5,000, here’s $10,000, I would invest in you. Chances are, I remember I borrowed money from my uncle to start my business. I lost all his money, he was a fish, right? So I’ve done all of that, but the best way to find money to fund your business. That I believe, that I’ve used my entire career is you get the money from your customers. You get the money from your customers. How do you get some money? You go out and you sell some shit. You get some sales, it is the easiest way to get it. You don’t come to me and say, hey Dan, give me ten grand, good luck.