|03: CAPITAL Use customer and partner capital.|
Customer money is the most valuable type of capital. Unlike other forms of capital, you don’t have to pay it back. And it’s often takes no more effort to obtain. Build business models that can be financed by customers. Customer money is the best indicator of whether a new product is likely to be commercially successful. Find a customer with a strong need for an end result and sell the project to that customer. Partner money is almost as good as customer money. There are two ways to increase your ROI: (a) increase your total return, or (b) decrease your investment. Substitute your partner’s money for your own and your ROI will increase even after you share the return on the new money with your partner. Experiment with this simple equation and you will see the power of this strategy.