Finance Your Small Business: So Much Money – So Little Time
by MaryAnn Shank
$47.4 million venture capital funded projects today. $86.4 million yesterday. $51.4 million the day before.
These amounts are not made up. They are actual numbers from actual reported
venture capital funding. I get these notices emailed to me day after day, rain or shine.
These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.
And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported
fundings, and millions more from the $16 billion pool that SBA has this year.
All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.
So how come you’re still looking for financing?
Perhaps you aren’t presenting your company effectively.
Or perhaps you haven’t located the right lender.
It’s also possible that your concept just isn’t very good, but I doubt that. The fact that you are reading this article means you are a serious entrepreneur, with a serious business.
So where do you go to find all these investors? Here are some starting points:
For standard business financing, talk with the local office of the Small Business Administration. It’s a different agency, with different programs and services, and lots of money to lend. Although much of the focus of the SBA is on minority business enterprises, the SBA still has a lot to offer all companies.
Also talk with your local banks. (That was plural “banks”, not singular “bank”.) Talking with a number of local bankers will rapidly bring into focus the wide ranging priorities of the various banks, and where your company fit in.
As for venture capital and angel investors, there are several options.
One option is to go to online sources. There are a number of online services, such as
VFinance, that sell the names and addresses of possible investors. It’s not expensive, perhaps $2-5 per name. The idea is that once the entrepreneur gets the list of 200 or 2,000 names in hand that he/she will contact each with a written executive summary or business plan, and then wait to hear from one of them. This is a very passive approach, roughly akin to throwing paint on the wall and hoping that something will stick. For most entrepreneurs, patience is not a strong suit, so sitting and waiting for a response is not quite their cup of tea.
Another option is to go to one of the many directories of venture capital firms. These directories typically include addresses, phone numbers and emails, along with the geographical areas of interest and the types of investment that each is seeking. Most businesses can narrow down their list of prospective investors to several hundred venture capital firms this way. And again the entrepreneur is faced with the prospect of sending out written material for each one, and waiting for a response.
A third option is to take a more proactive approach. Savvy entrepreneurs identify the best prospects themselves from a number of reliable sources. They get introductions where possible. They learn everything they can about their target investors, and then go after it. Typically a phone call is the first contact, not an anonymous executive summary.
Knowing that you are calling your best prospects, you know too that they are open to hearing from you. You have names, you have investment histories, you have everything in hand to make a real connection with the target investors.
Getting your company financed is one of the hardest things you will ever do as an entrepreneur. It can be hugely frustrating, disappointing and genuinely discouraging. But lots of entrepreneurs do it. And so can you. Get the “No’s” out of the way and go for “Yes!” The exhilaration of the handshake sealing the deal is unlike any other transaction in business. Go for it.
About the Author
Ms. Shank is founder/president of www.BusinessPlanMaster.com.
She has worked in business finance in good times and bad, and will rapidly tell you that good times are a whole lot better.
You may enjoy reading our article on Government
Ebooks on Personal and Business Finance
Budget Living: Tips and Tricks for Saving Money
- All the very best advice and information on budgeting in one inexpensive,
Plan Secrets Revealed - Find Investors for Your Business: Insider Truths About Raising Money Through Business Plans.
to Start and Run an Internet Business - Easy step-by-step guide shows how to put your business on the internet!
Art of Leverage - How To Start Or Expand A Business - With Little Or No Risk. Using Only The Power of Leverage!
Books on Personal and Business Finance
While we do our best to bring you the most accurate information
available, each country and company has different rules and
policies. You should always check the policies and procedures of
the companies you do business with before making important
decisions. We will not be held responsible for actions you take on
your own. If you are not sure what to do to help yourself, please
seek the advice of a licensed professional. Some links on this site are affiliate links where compensation is received when a sale is made.
Links Our Other Sites
Support Our Site
© copyright 2005-2015 ALL RIGHTS RESERVED