ForumsFinancing Tips

I work at a company that has a capital development division, and we help find funding for start-ups. I've seen how the process plays out, and quite often I do see people "kidding themselves" unfortunately.

I don't know your entire situation, so I can't tell you how viable I think your project is, but I will help you answer the question yourself.

1) Do you have strong credit?
2) Will you be bringing at least 20%-30% of your own money to the table to invest?
3) Do you have a decent amount of collateral?
4) Do you have a strong background in whatever endeavor you are pursuing?
5) Do you or your husband have any past bankruptcies?
6) Does your business plan properly express your vision, along with a clear plan to pay back the loan?

If you feel pretty good about the above then you are heading in the right direction. We are living in very uncertain times, and banks are taking every precaution they can.

Regardless, I wish you the best of luck. If you feel very passionate about your idea, and truly believe it will work, then don't stop until you see it through!

now isnt that the truth..I am gonna keep pushing on, something has got to give..right? i just want this so bad and am so scared to hear no.

Another way you should look at this is like this:

Walk into a bank and say: "Will you please fund me I really need your help", and the bank will find you desperate and potentially a dangerous investment risk.

Walk into a bank and say: "Here is why you want to fund me, and this is how I will succeed", and they will take you more seriously.

If they decline you, find out specifically why, fix the problem and walk into another bank and say "Here is why you want to fund me, and this is how I will succeed".

Confidence will always trump desperation.

Mike(intechspecial)

InTech, you make an excellent point here!!!

When I first started looking for serious funding I 'ASSUMED' that everyone would automatically 'get it'. If they 'got it' they sure did not 'act like they got it'.

My mouth got me funded since I could not shut up and talked to everyone, finally a friend stepped up and asked if I could use X amount of money. Stupid me I nearly turned it down until my tech guys said NO!!! take whatver you can get..lets get started. We did and the rest is soon to be history.

In addition to no one getting it. I was just bad. Terrible. I was scared and it showed. No one wants to fund a scardy cat. I was always upbeat and confident when I talked to my friend and could always answer whatever quesion(s) he asked me. I had been to Garage.Com bootcamp for startups and had bought the Alex Ramsey stuff, I was still bad.

My confidence as a leader has been learned on the run, as the team came together and I realized that I was responsible for not only the domain, but the people..the team. While we have existed on our programming funds, I have had to cash in retirement accounts as well. It's all a part of the job....the person with the idea is the responsible one...that means for computers, software, travel, meeting expenses, you name it. I have been fortunate to be able to get the zero percent financing for all of our computers and software and fortunate that I HAD retirement accounts to cash in. That does not mean it has been easy...everyone is sacrificing to make the launch. Team members collectively have more stock than I do. My key people have credit cards so that they are able to purchase what they need. No one has abused them.

The bottom line is that wailing about "Am I ever gonna get funded", is not going to make funds appear. Entrepreneurs have to start walking and talking. You better be ready to know exactly what you are going to do with the money once you get it. Decisions my friend are for people that don't know what to do. Before the start of any new direction, I always have Plan A, B, C & D as well as the back up 20 and punt plan. That way, depending on what life dishes out...I have the answer.

DomainDiva,

I applaud your spirit and willingness to commit your retirement funds to the project. I hope it works out for you.

I'd like to expand on your initial point I 'ASSUMED' that everyone would automatically 'get it'. Although you didn't say it, I've encountered many an entrepreneur (especially in Silicon Valley) that then beleives the problem is that they need to find investors that do "get it" - rather than refine their message.

CaptialCoach, I so agree. However I was just bad. just plain bad. My presentation(s) were awful, I was awful...it was horrible. Really. Trust the Diva on this one.

I was so bad that if someone did get it (which one did and is still trying to steal the idea based on what not how), then they tried to take advantage of me by having me sign a bad contract. Others told me I needed to get rid of the technical team, financial and legal advisors I was using and use their people instead. I found VC's that did get it...but I was so bad that when they tried to take advantage of me, I would always refuse. But of course they had to try becasue I was SO BAD and the assumption on their part was that I was stupid and would do anything for money.

The VC/funding world is a brutal one...we are fortunate to be where we are now with the team and the product. Our Board calls the shots...not an investor. We are open all of the time to outside investors, so far we have not found one that is willing to be a part of a team. We have our angel and that is what we have. We are going to market.

So there VC people.

While a good impression is important, I never approved a loan based on a good presentation alone. A lenders decisions comes down to the facts: good credit, cash into the deal, and cash flow generated by the deal will make or break your loan request. Startup are always lacking at least the cash flow part, which is why the other 2 are so important. If your credit stinks and you have no money to put into the deal, you really are better off waiting until you can rectify those issues.