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    5 Replies Latest reply on Mar 21, 2010 12:29 AM by NOTESERVICE

    Finding Investors

    twallssr Wayfarer
      Hello Again,

      I posted before that i was doing my due diligence before starting my business, the business is starting a staffing agency. i have a question:

      With a great business plan in hand, with the free help of SCORE and SPARK here in Ann Arbor, I am wondering who would I approach about possibly lending me start-up money to fund my company?
      Should I approach it like a grant proposal, for example, wrtiting and submitting my plan along with what I need as far as start-up funding to a major corporation? Or should i just stck with searching out an angel investor?

      The only problem I have with angel, I want to maintain control of my business without giving a large part over to an investor. I would rather borrow it and outline plans to pay it back within a year with interest.

      What is your suggestions?

        • Re: Finding Investors
          bpfinance Adventurer
          Well, as you stated, an angel investor is going to want to take a portion of the profits of your business, and not just loan you money and get paid back principal plus interest.

          In order to assist you, here are the things we need to know:
          how much do you need
          how much have you put in
          at what point would you expect investors to break even (after how long)

          If you need assistance with this, feel free to contact me.

          Jeremy Barfield
          Chief Forum Response Correspondent

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          • Re: Finding Investors
            LUCKIEST Guide
            Finding Investors

            Who r u?? Go to Members page and share some info.
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            • Re: Finding Investors
              Meg2010 Newbie
              I'm in the same boat and completely understand the fear of losing control of your business. It is difficult to help without know more about you. Is the biz a "home" business? How much are you looking for? How fast do you need it. etc. Need more information in order to respond. I will say this...banks are not too eager to lend so if you have a major client I would go with the grant writing opportunity. Or better all that you can using all avenues.
              • Re: Finding Investors
                Uncle Leon Tracker
                Grants for "For Profit" businesses are found only in Fantasy Land. Conventional (bank) loans for start-ups are available only if you have readily-negotiable collateral to (far) more than cover the loan if you should default. Although this may be called a "business loan" it's really a loan on your collateral (boat, house, etc.)

                Venture capitalist (angels) may be another possibility.

                IF you have a product that an angel believes (strongly) has the potential to be HIGHLY PROFITIBLE, he may be interested in supporting your buiness. However, I can assure you that he ius not interested in lending you money at 12% interest. His interest is in acquiring a share of the business and prospering with the business. As to how large a share, it depends upon how much the business is worth at the time of his investment, how much capital you need, and the perceived risk involved.

                A start-up business is worth nothing (plus special patents, etc.).

                So, then...if funds are not available from those sources, or from friends & family (not a real good idea if it can be avoided), where, then can funds be acquired.

                Bootstraping, is the only remaining source. Bootstraping is practical for some type of businesses, but not others. Bootstraping is simply starting small, with what you have, and growing as best you can, - using profits to expand your business. Pulling yourself up by your "boot straps". It 'ain't quick" but it may be better than nothing.
                • Re: Finding Investors
                  NOTESERVICE Newbie
                  What kind of colateral,if any do you have?If you can get a Grant,go for it.I hear that the paper work is key to getting a Grant.You could consider Private Money Lenders,somebody you might know that has an SELF DIRECTED IRA that could help.Try all avenues.Success is never giving up!
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