Starting up a small business is one of the joys and terrors of many entrepreneurs.  We love the idea of working for ourselves, or not working as the case may be, or managing others to work, instead of working for others.  Implementing our ideas is one of the terrors that so many new entrepreneurs face. 

It is that fear of  implementation that keeps us from striking out, moving into our own.   I know, I have been there.  Many of the ”big wigs” seem to have gotten there so easily, or perhaps they are so far out of our stratosphere that we don’t understand or believe they went through tough times or were afraid.  Well, I know that as a small business owner, and one who has thought about starting so many companies, or had so many good ideas that I was afraid to implement, that stepping into my own space as a professional businesswoman, becoming a successful entrepreneur is one of the BEST things I have EVER done for myself.  I would like to share some of that advice with you.

Some companies believe that helping clients develop business plans and raise capital from “angel” investors, corporate entities and venture capitalists requires a tremendous amount of work, but it can be done.  They will happily charge you for all the “hard work” that it is going to take.  Others of us believe that it just takes know how and tenacity.  There are lots of secrets to raising capital out there, but most companies won’t share them with small businesses that are trying go raise capital.   Why?  I really don’t know.  Perhaps they are afraid people will see it is easier to raise money than consultant companies want business owners to know about.  Perhaps they are stingy with information in general.  Here are some quick tips about raising capital  that you can use.

A rule to consider for raising capital is: You will find an “angel” when you least expect to, many investors are very picky about the type of the investing they will get into, they are usually looking for the least risk and greatest gain.

Venture capitalists can be challenging, remember, they are highly skilled at the entire process, in most cases they’ve done it hundreds of times before. So, you are in their arena and you better do your homework properly (market size, revenue projections, cost of sales, marketing plan) and/or consult with a consultant, attorney or “angel investor” to give you guidance.

With venture capitalists or corporate investors, don’t be so desperate for capital that you agree to turn over the reins of the company if you don’t meet specific performance milestones based on a first or second round of funding.   There are too many variables in the marketplace for you to control.

In today’s economy there are many projects looking for funding, whether looking for funding for yourself or client, remember there are hundreds of others with a similar situation, set yourself apart from the others.

You must be absolutely committed to the project, going into the “angel” investor or “VC”, your passion for the project has to shine through.  Believe in the project, so that the “angel” investor or “VC” can believe in his investment.  Remember, tenacity is one of the keys.  Make your decisions and follow through with them.  I found some great resources at Raising Capital Secrets that have been helping me fund my latest business ventures.  Wherever you find your resources on how to raise capital for your business, good luck, and keep working on it.

Sincerely,

                   Robin Cross