Life is like a ten
speed bike. Most of us have gears we've never used.
Charles Schulz,
creator of the Peanuts gang
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Minority Business
Loans -- Other Groups
For a minority business loan,
the SBA defines "minority" as groups or individuals who have
experienced prejudice.
The definition by default includes women, blacks,
Native Americans, Hispanics, and many other minorities. There is also a
process whereby someone may "prove" they he/she has come from an
economically disadvantaged background, and thereby be eligible.
But what does a homosexual
entrepreneur do to obtain a minority business loan?
I don't have an answer.
Setting aside the SBA issue, how
about bank financing, angel investment, or venture capital?
As for bank financing, you know
your community and your banker better than I ever could. If you don't know
him/her now, get an introduction. Scope it out and use your best judgment.
As for venture capital, THERE I
have an answer for you.
Throughout this discussion on
minorities I have advised that the minority be forthcoming on his/her minority
status, and weed out the narrow minded venture capitalists who wouldn't do
business with them anyhow.
Well, unless your small business
caters specifically to the gay community, I have different advice for you:
DON'T BREATH A WORD OF IT.
With the possible exception of
pro football, there probably isn't another industry on the face of the earth
that is so testosterone-driven as venture capital. The "deals", the
cigars, the back room banter, the hype -- everything shouts, "I am
successful... I AM SUCCESSFUL."
And all of this is kept in an
undercurrent, with a veneer of respectability laid on top.
A puny freckled-faced redheaded
youngster has a better chance of influencing a venture capital firm than an
experienced homosexual entrepreneur.
I don't speak out of disrespect
for the venture capital community. That's just how it is. Neither you nor I
are ever going to change it.
So what do you do? Well, there
are a couple of things that might help.
Focus your efforts on venture
capital firms in more liberal regions, such as San Francisco, or those that
make a point of including women (I know of none that make a point of including
homosexuals). Not all venture capital firms are narrow minded, and you might
have better luck in the more liberal minded regions. However, since venture
firms prefer working with local companies, this may entail relocating your
business.
Work your networks like your
professional life depended on it, for it probably does. Find out where others
have been successful, and talk with them.
Follow advice presented
elsewhere in this web site about your online business plan, advisory boards,
incorporating, and formalizing agreements. In short, present your company as
professionally as possible, no matter who your targeted clientele base is.
