Guide to Creating Virtual Seed Money

Make Sales Job #1: make yourself known through the press

The best way to get money is to make sales. You can almost certainly start generating revenue before you think. The first thing to do is to attract attention: use the press.

I recommend: Make sure you start getting out the news. One good way that cost virtually nothing is to issue a press release. There's surely a news-worthy aspect to what you're doing. It may only apply to your specialist area and hence your trade press; or it may only be news in your locality, in which case your local paper or radio station may be the right media. You can also use a Web-based press release agency; an excellent free service is offered by Press Exposure or for a small fee, try PRWeb.

Make Sales Job #1: use your networks to build relationships

You certainly have contacts and you'll be using them, but you can become a member of networks to meet prospects. Remember that if you do use networking, you have to give as well as receive, so think about what you have to offer.

I recommend: If you're not already a member, join the local Chamber of Commerce and offer your skills; if you do not know your local chamber, you can find it in the directory at Chamber of Commerce.com - the site has lots of other useful information, as well. You can network via If you are not already a member of your trade association or the association of your target market, consider joining - you can look up relevant ones at the Trade Association Forum directory. There is BNI - the world's largest business referral association; you can look up your local chapter in the BNI directory. There are many other organizations in which you can participate: neighborhood groups, activist groups, special interest groups are just some of them.

Make Sales Job #1: prepare your pitch & presentation

You need to have your sales opening ready at all times. Do not play it off the cuff; rehearse like an actor.

I recommend: You have heard of an 'Elevator Pitch' - a 30-60 second way of seeking action from a prospect. make sure it's got a hook (way of getting attention), passion (through an energetic description of what you offer) and a request (ask for a meeting, a call, the person's business card or some action). You may not have heard of a 'Kitchen Table Presentation'. That is a fuller, but still brief presentation of your offer, perhaps supported by data or visuals. This is a 5-10 minute way of getting over your message. Both need to be well-prepared and supported, even by the simplest things such as a business card. Think about a business logo (none better than through LogoYes) with a telling tag line.

Make Sales Job #1: let every contact sell

Remember every contact your business has is an opportunity to sell. Through your accountant or attorney, when you send an invoice, on the telephone, meetings with suppliers...

I recommend: Everyone in the business has a sales role, but to some it may not come naturally. So help them. Your stationery should speak a message, have a website whether for direct sales or not, everyone in the business should have a business card and if they have no title - give them one. This does not cost a fortune if use 'do-it-yourself'. The best small and simple program for business cards is Visual Business Cards - it costs less than $20.

Get the Cash in On Time

Invoice quickly and make sure that you are paid on time. Very often billing is seen as a chore and an uncomfortable one at that.

I recommend: Be sure that your trading terms are clear at the point of sale. Show them clearly, avoiding faint gray ink and small print. There is nothing to hide. If your settlement terms are 30 days, get paid in thirty days. If payment slips to 60 days, remember that you will need double the cash to cover it and you are not your customer's banker. Take a look at good advice on the Entrepreneur website.

Use Low-cost or No-cost Bodies

There are many ways to get jobs done by people who are not on the payroll. Outsourcing is one obvious way.

I recommend: There are good outsourcing information sources on the Web (e.g., www.outsourcing.org). More frequently still, companies use outsourced payroll and bookkeeping services. Many so-called 'back-office' jobs can often be outsourced effectively. If you have large numbers of clients, for example, billing may be an opportune function for outsourcing.
You could try using a virtual assistant to save yourself hiring someone; they can do jobs you don't have time or the skills to do. This will help keep a handle on your cash. Try Virtual Assistants or Virtual Contractor.
Contact a business school or local college and see if they need internships. Having a business student work in your business short-term usually benefits the student by working on a 'real-life' project for their own learning and your business by avoiding a long-term commitment at modest cost. You can post internship opportunities at Career Builder and other websites.

Avoid high rents

Garage startups are a nice mythology and can often become real in ways that avoid taking on expensive premises, but not necessarily in a garage or your own home.

I recommend: Contact your local economic development organization. In the US you can go to Site Location Assistance, and look up your regional, state or local ones. Most major cities have them too. Consider small business incubators, because they often have subsidized rents and offer common services. Serviced offices can be advantageous, though most are provided by commercial property companies. Consider sharing premises with others. Look at disaffected buildings and see if you can do a deal with the owner. At all costs keep high fixed costs (like premises) to the absolute minimum. Think of lowering the water (keeping costs down) as well as raising the bridge (increasing sales).

Get All the Best Advice You Can - for free

In this Internet age, you can find a huge amount of free help, especially in the finance field. Time spent browsing for it can help you avoid searching for seed money, bu finding out how to do without it.

I recommend: There is plenty of research evidence to suggest that too much money creates as much of a problem to startups as not enough. If you are cash-strapped you are likely to find creative ways around the money problem. If you are awash with it, you may spend it too easily and spend time on spending rather than selling. So visit a place like Savvy Business Finance for ideas and follow the links to resources.