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You have a track
record. Now pay less for the money you need to grow your business. You can
position your business from strength if you know how it compares to others in
your industry. Add an on-going business valuation. Add a clear analysis of your
financials. Back it up with managers who can do likewise, and your business
model really begins to work for you.
Again it is
important to repeat: The more you know about your financials (and the more you
can interpret about your business), the more equity you'll keep in your
business in exchange for the largest amount of capital infusion.
Angels.
Angels provide bridge loans as well as equity capital. Consider the listings
provided by AceNet, now located at California State University - San
Bernardino. It is the oldest listing around the USA.
Meet one
entrepreneur who relies on an angel rather than a bank for her working
capital. Auntie Anne's story is
especially worth the review; go to the Case Study Guide and learn about an
angel that takes on her debt; he is a farmer. Also, review the show called,
We'll show you the
money. Then, meet the consummate angels in California's Silicon Valley.
They have so much audacity they call themselves,
The Band of Angels.
There are angels in your backyard. Remember our story where we found an
unlikely angel in Huntsville,
Alabama.
Venture
Capital. We discovered
Woodside
Fund when we did the episode about The Enterprise Network. There are now
venture capital groups in every part of the country. Just insert "Venture
Capital + "(insert your closest big city)" and you should find some
local people.
Again, review "We'll Show You the Money." Be
careful. Venture capital can be expensive. It can rival an IPO in expense and
in dilution of equity.
If you wuld like
some help to do more research, these sites have been doing venture capital
research for years:
Although some
people say you should be looking for no less than $1,000,000, we believe you
should be looking for at least $5 million (sometimes we even think $10M is the
best starting point) before you consider venture capital. Anything less is not
worth the effort of the venture capital firms and it is not worth percentage of
the dilution of your equity.
There are no two
business owners who are alike. No one formula works for every one and
ultimately the decision rests on the abilities and leadership of you, the
founder/owner and chief executive officer. Your board of advisors can help, but
the decision is yours.
Please review the
show that we did about Staying
Power, especially the case study guide
Have a great
story to tell? Does it teach us something more about one of these ways of
raising money? Let us know and we will publish it here.
As we continue to
add capabilities to this site (see the
Future), these could become hot
pages. Eventually we will schedule events so you can meet investors and drop
off into individual chat sessions. We are just beginning this project. Help
out!Send
us a note. |