July 22, 2008
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Consultant Business Plans,
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Venture Funding Hits the Skids
Reports are flowing fast and furious about
the cut back in venture funding for the first half of this year.
Not only has there been less money invested, but the money that has been
invested has been going primarily to existing companies, not start ups.
So what's a new gal to do?
Well, you've got several choices.
First, position your company as an
"established" company that is ready to grow. This is actually a
good strategy, no matter what the economic climate. Promote your
successes to date, not what you have yet to do. Start making up
your list, and you will be amazed at what you have accomplished.
Second, look to "venture
lending" rather than venture investment. It likely won't be as
much money, but it will be more likely to garner the hands on support of
your venture firm.
Next, look to other funding sources as
well. There are a lot of options through the
SBA and through
angel investors that will
get the show on the road. You can do a whole lot of preliminary
growth on moderate financing. Then, when you are ready, go for The
Big One. The wait will be worth your while. You will be in a
much stronger bargaining position than you are now.
If your company does have income, check
out cash advances.
It's a good way to generate funding fast, when you need it.
Or consider
bootstrapping. Real respect
comes to those who can muster the money and guts to start a business
from scratch.
Getting financing is about more than
getting money. It is also about using ingenuity and planning to
get to where you want to go, even if it is not via a straight route.
Here's where you can really let your business smarts shine.
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