Where to Find Financing

[BusinessAdviser]

Financing: Where to Find It

Finding financing is a more complicated matter than during the dot-com years when money seemed to flow freely for any good idea that crossed the transom. Today, investors and lenders of all kinds are tightening standards, requirements, and criteria by which they judge business plans, entrepreneurs, and who gets the money.

To help you in your search for funding, we've rounded up some resources that provide sweeping overview of your options, and provide some good examples on how to secure the financing your growing company needs.

Financing and Where to Find It

[pentupentropy]

Glad you posted this. It makes me think that I didn't mean to set a bad example, but a note to all of the 20-30 year olds who may think that posting in a forum like this will find you something.

1) Expect to hear no at least 100 times before you even hear a "Let me see your business plan

2) If this is your first business plan and you wrote it by yourself, expect to hear at least another 100 "no's". If you're familiar with sales, you know that you're basically selling your idea to someone and the key is to have a sharp plan and hit the numbers.

3) Try every conventional avenue you can first. If you run out, go back and try them again. Then again. Then come here.

4) Don't EVER tell someone you are not sharing your business plan without a non-disclosure agreement as it will turn ANY investor off. Investors in general are not out to steal business plans. Does it happen? Yes. Often? No. They are there to make their own money by investing. Chances are they've already done the work they expect you're willing to do, made some money and now want it to work for them.

5) I don't care if you're opening a 1-900# that charges by the minute for Canadian squirrel porn (man, that was random =) ...) If you have a face to face meeting with anyone who might be a potential investor, be ready, and look sharp. They're looking at how you manage yourself as well as what you have to offer idea-wise.

6) If you don't have as much experience as you might need in the field of business you are interested in starting up in, find someone who does. Either write in a budget for a manager with a lot of experience, a consultant, or find an investor who may be willing to sweat some too that has prior experience in that field.

7) Be prepared to heavily weigh whatever terms an actual investor may come up with. Maybe you will get funding but only on the terms that you only own 30% of your company. Don't be insulted by this. Your business is nothing more than an idea to the investor and you haven't put an ounce of actual effort into it as far as most investors are concerned. At the end of the day, anyone who has successfully accomplished going from concept to funding without having a rich aunt to fund them understands how hard the process of attracting investors when you have very little prior experience is going to be. If you're in your late 20's, early 30's, accept that you may have to settle for less, but if you're an entrepreneur at heart, this will not be your last business venture, even if it makes you a millionaire.