How to Get Financing from Early Customers

As you begin a new business, you might face two issues. The first issue is to find a product to sell, while the second is to find someone who is willing to finance you. Here are some tips on how to get your customers early.

 

Listen to Client

 

One way to really enhance your customer relationship is to listen to your client. Even if you think that you know what your former employee wants, be careful about assumptions. Make sure that you trust the person that you’re working with and that they are as skilled in business as you are.

 

Build Trust

 

Doors are more likely to open to you if you have a level of trust with your customers. Work closely with your clients in order to receive discounts and financing outside of the norm. Before you start, make sure to have a long-standing reputation.

 

Set up Annual Contracts

 

Building your team or product is easy when you are able to get paid up front for the year in new contracts. Contracts allow for your business to grow without having to raise the equity capital or your debt. If you’re an entrepreneur, then upfront payment is important.

 

Be Transparent

 

Don’t lie to your customers from the start. Most clients want honesty in their customer relationship. If you don’t have all of the latest equipment, you should never pretend like you do. It’s not better to think that you’re an already established business. To be transparent is also to be trustworthy. Most clients look forward to someone who is known for being completely honest. This is why transparency is one of the keys to success.

 

Try Out Consulting

 

Some customers are more likely to pay for your time then they are to pay for a product. In a workday, set aside about 10 to 20 percent of your time and use that time to consult with customers. This gives you a chance to get to know each one and to gain a little extra money.

 

When it comes down to it, it can be difficult to get the necessary funding to start a new business. However, once you know the type of business that you run and understand the ins and outs of the rules, may become easier. The advantages of customers financing the debt are far more considerable than other options. Your customer relationship is important but so is ensuring that you have the right funding.

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