Monday, April 30, 2007

Good Advice When Seeking Capital

Seeking seed capital? There's some good advice in today's Wall Street Journal story, Early Options, that can be used by any small business searching for equity or business loans.
  1. Research Investors - learn in advance what kind and size of deals the investors or lenders are looking for that you are pursuing.

  2. Refine the Pitch - be able to tell and sell your story in five minutes or less.

  3. Learn the Business - know your entire business inside and out, not just how big the market is for your product.

  4. Ask for Other Types of Help - if you get rejected, ask for advice, referrals to others or office space. Perhaps the investor would agree to incubate your business.

  5. Build credibility - The Wall Street Journal tip is to do as much as possible on your own, though I'm not sure I agree. I think you build credibility by finding strategic partners (vendors, suppliers, potential partners) or building a board of advisors from respected professionals who have knowledge of your industry and product.
Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!

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