How You Found Cash to Start and Grow Your Companies
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The breadth and depth of your answers to an emailed question in July blew me away. I asked PMA members, “How and where do you raise capital?” More than 40 publishers responded. It should have come as no surprise to learn that you are as creative financing books as you are designing them.
Most of your experiences fit into three categories:
Starting on a shoestring.
A small but impressive number of publishers have never borrowed a nickel. You tapped hard-earned personal savings and kept your day jobs. You found success cautiously, growing your companies by reinvesting revenue, working hard, planning carefully, and finding titles that sell.
Borrowing, selling, and allotting capital. Many found cash in conventional ways–bank loans and credit lines, mortgage loans, stock sales, IRA and 401K liquidations, presales, credit-card advances, gifts from family, inheritances.
Publishing on the edge. A few of you appear to be over your heads in debt, struggling to fulfill your dreams, perhaps weary of the effort, and somewhat discouraged. “I am going into debt big time and my heart is in my throat,” one publisher told me.
What You Said About Sources of Money
Loans and lines of credit. Loan officers at most banks don’t understand book publishing. Try explaining returns. Small loans can be more difficult to get than big ones, unless you find banks that special…IBPA Members – Click here to view the full article (login required).
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