by Adducent
Even in good economic conditions conventional bank funding can be difficult to get unless you have strong credit, a business record for them to rely on, provide personal guarantees and collateral. Current market and economic conditions are making things even more difficult for many business owners and entrepreneurs.
Without credit or collateral to get debt based funding for your business, the only avenue you may have is to try to raise capital by selling equity. If you have not done it yet, the best starting point to accomplish this for your business is for you is to get what you want to do down on paper. Developing your business plan helps you to make your dream a reality but only if you work at it to do the things necessary to reach your goal. A good business plan is something that funding sources and/or prospective investors are going to want to see so developing an investor-ready plan should be a priority for you.
A little story to illustrate this is in order:
I read once about how Benjamin Franklin lined up funding for the Continental Congress to continue the Revolutionary War. As the story goes, he managed to wangle several million dollars from France though he (and the Continental Congress) was not exactly in a position of power to bargain from. Instead of fighting what would probably have been a losing battle (so to speak) dealing and discussing directly with the French decision makers (all men) ... instead, at parties he spent time with the women (the men's wives) and became quite a favorite with them. His belief in his mission and purposeful need for the money resonated with them and circled back via the women to the men ... who agreed to loan the money needed. An oblique approach that worked.
I have sometimes seen that same oblique approach work when finding seed money or a key angel investor for businesses. It pays to "sow as many seeds" as you can and when you talk about your business, focus on your belief in the opportunities your venture holds.
As Ben Franklin was wise enough to know, sometimes those that you talk to have the "ear" of a decision maker that might just become interested in your company and want to talk to you further about it. Sometimes, contacts you make and discuss your business with; the conversations whether planned, inadvertent or indirect can lead to good results. So when you are speaking with people about your business or venture, speak with confidence, eloquence and belief in it and always in a professional way and manner.
You never know who may be "listening".
About The Author
Since 1983, Dennis Lowery has started up, funded, bought and sold a number of businesses; helped private and public companies grow and worked with private businesses going public; providing consulting services to over 352 clients. He is President of Adducent, Inc., http://www.Adducent.TV, and a Founding Partner of Wilshire Capital Funding Inc.
