Can you imagine having 300 shareholders? With recent legislation and new portals on the Web, it's entirely possible, perhaps for the first time for small businesses.
Friends and family will likely not expect the same level of sophistication on the business model and financials as a professional investor, but they do expect to see certain things. Here is a summary of some key items to think about as an entrepreneur before approaching friends, family, or even fools.
In combining two concepts close to her heart—dressing women well for little money and collaborative consumption—Tracy DiNunzio has built a successful, sustainable and innovative business.
In order to be able to obtain a loan, SBA or conventional, you must meet the basic financial institution risk rating, which is known as the "5 Cs of Lending."
It's not uncommon for me to see a startup business plan "mission" to be the "premier brand" for their product, yet their marketing budget in the financials is trivial. This combination will almost certainly get your plan tossed by potential investors.
Don't charge the hill until you are "ready." This probably seems obvious to military types, but I see entrepreneurs violating this rule all the time. They approach key potential investors way too early.
Some businesses are built around a single idea. And sometimes that idea is just too small a slice of the big picture to be interesting to investors.
There's never been a more exciting time to be a small business owner. Whether you are a sole proprietor or have a team of employees working for you, never before have so many innovative tools been available to improve your business.
Investors love it when entrepreneurs draw little or no money from their startups. It extends the cash available for research and other necessary fixed costs and gives the fragile, young company more "runway" to get to breakeven.
One of the first challenges new entrepreneurs face is finding a way to finance their businesses. You have a great business idea but little money to implement it; and, like every entrepreneur before you, you try to scrounge enough money to launch your startup—your dream.