P. Edronkin

How to organise a new group, company or association (VIII).

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"No matter whether you are working for a profit or for charity, you will still need to get cash, and that means that you have to sell or give something in exchange for your many, in the first place, and that you need to receive more than you give, in order to get a positive flow of money and resources.

If you are not selling, but depending on donations, you would still have to sell something, which is the idea or objectives in order to convince others to give you the money that you need.

If you are trying to develop commercial activities, the it is clear that selling your widgets is the only way to achieve what you want.

Selling, advertising and public relations are thus issued that you will have to address very soon after the inception of your new organisation, and you will have to target those activities towards one singe objective, which is to get a positive cash flow as soon as possible.

In short, you need money, and you will have to find it as soon as you realise that you have an organisation up and running. The money in question can be obtained from various sources:

1)-Own savings invested.


3)-External investors.

4)-Self support.

Options 1, 2 and 3 work only on the short run. These will give a breath of life to your organisation, but cannot and will not sustain it in the long run. Therefore, when you start using money coming from one of these three sources, you will have to do so not to spend it, but to invest it.

Options 2 and 3 will surely entail additional legal obligations for you, and in some cases, the loss of part of your corporate capital and power to the hands of the lender, venture-capitalist or whomever gives you the money."

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