So how come you’re still looking for
financing?
Perhaps you aren’t presenting your company
effectively.
Or perhaps you haven’t located the right
lender.
It’s also possible that your concept just
isn’t very good, but I doubt that. The fact that you are reading this article
means you are a serious entrepreneur, with a serious business.
So where do you go to find all these
investors? Here are some starting points:
For standard business financing, talk with
the local office of the Small Business Administration. It’s a new agency, with
new programs and services, and lots of money to lend. Although much of the
focus of the SBA is on minority business enterprises, the SBA still has a lot
to offer non-minority companies.
Also talk with your local banks. (That was
plural “banks”, not “bank”.) Talking with a number of local bankers will
rapidly bring into focus the wide ranging priorities of the various banks, and
where your company fit in.
As for venture capital and angel investors,
there are several options.
One option is to go to online sources. There
are a number of online services, such as VFinance, that sell the names and
addresses of possible investors. It’s not expensive, perhaps $2-5 per name.
The idea is that once you get the list of 200 or 2,000 names in hand that you
will contact each with a written executive summary or business plan, and then
wait to hear from one of them. This is a very passive approach, roughly akin
to throwing paint on the wall and hoping that something will stick.If you are
like most entrepreneurs, patience is not your strong suit, so sitting and
waiting for a response is not quite your cup of tea.
Another option is to go to one of the many
directories of venture capital firms. These directories typically include
addresses, phone numbers and emails, along with the geographical areas of
interest and the types of investment that each is seeking. Most businesses can
narrow down their list of prospective investors to several hundred venture
capital firms this way. And again you are faced with the prospect of sending
out written material for each one, and waiting for a response.
A third option is to take a more proactive
approach. Identify your best prospects yourself from a number of reliable
sources. Get introductions where possible. Learn everything you can about your
target investors, and then go after it. Typically a phone call is the first
contact, not an anonymous executive summary. Knowing that you are calling your
best prospects, you know too that they are open to hearing from you. You have
names, you have investment histories, you have everything in hand to make a
real connection with the target investors. Then go do it.
Getting
