Finance Your Small Business: So Much Money – So Little Time

by: MaryAnn Shank

$37.4 million funded from venture capital today. $86.4 million funded yesterday. $51.4 million funded the day before.

These numbers are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day after day, rain or shine.

I’m not personally looking for business financing – but the entrepreneurs who read my website are. These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.

And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported fundings, and millions more from the $16 billion pool that SBA has this year.

All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.

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 your company financed is one of the hardest things you will ever do as an entrepreneur. It can be hugely frustrating, disappointing and genuinely discouraging. But lots of entrepreneurs do it. And so can you.

No one knows when this incredible window of opportunity will close Spruce up that business plan and go for it -- now.

MaryAnn Shank
http://www.businessplanmaster.com
http://businessplanmaster.blogspot.com

Top 10 Rules for Small Business Success

by: Brian Grinonneau

1. Target

You are not all things to all people. Decide on your niche--narrow your focus and broaden your appeal.

2. Be Different

If your competitors are doing it, don't. Stand out from an overcrowded marketplace where so much of the advertising and products look the same.

3. Build a Team

Don't hire an employee to fill a position. Employ a person to be part of a team to build your business.

4. Be Fast

Time is the most precious commodity. When delivery is expected Friday, show up Thursday afternoon. Return calls and emails now.

5. Say Thank You

A lot. Tell your customers and employees how much you appreciate them. Better yet, do it the old fashioned way: take pen to paper and write them a note.

6. Be Consistent

Make sure your business has a consistent look and feel. A customer must get the same flavor from everyone within your organization. Always.

7. Smile

Throw out the reasons you think people buy from you like price, product quality or your warranty. They buy because they like you.

8. Fanatical Optimism

The glass must always be half full. Attitude will always win out in the end and infect all of those around you.

9. Sell Soft

Don't ever hard sell. Solve problems. Satisfy wants. Do what is truly best for your customer.

10. Leave Your Comfort Zone

Never accept the idea that this is the way you've always done it. Never accept that a new idea or technology could never work for you.

Marketing a New or Small Business on a Budget

by: John Sheridan

There are almost as many opinions and views on marketing as there are companies to market. The big names and multinationals will have an extraordinary amount of funding set aside in which to convey their marketing message to the masses.

The process will involve an inordinate amount of people, multiple marketing agencies, countless ‘creativity’ meetings and thousands of work-hours. From television adverts to full pages in the newspapers and glossy magazines, brand names and logos jump out at us and are instantly recognisable - such is the power of advertising on an extremely large budget.

Easily missed then in this marketing free-for-all are the smaller or new businesses. After the usually costly process of setting up a business with its requisite equipment, possibly an office or other type of premises, there is usually little or no funds available for marketing or advertising.

From the first trading day of a new business enterprise, the going is tough. It is small wonder therefore that most new businesses do little or nothing about marketing because of what they see as prohibitive costs.

There are instances of course where new businesses have originated from someone’s hobby or part-time occupation; in these cases, the market is usually already there and forming a company was the next logical step, immediate marketing was obviously not required to generate the first customer.

There are many advertising agencies that say there is no need for small businesses to spend a fortune on marketing. This is totally true, but what money a small business does have to advertise should be spent wisely and not just thrown at an agency that might end up failing to deliver. There are far cheaper and more effective ways to get a business on the map.

A website is essential to any business these days and will certainly be an asset. However, your site will be one amongst many millions of others and will not be of immediate use due to the nature of search engines and the way the Internet works in general; therefore you will need to look to other methods.

One of the most important things to bear in mind is not to run before you can walk.

Start small, start local. Unless you already have contracts from further afield, there is no point in casting nationwide for business when a vast amount is already likely to be on your doorstep.

Depending on what type of business you run, leaflets and flyers to other businesses or homes are a good way to get yourself known.

Always carry a business card with you they are invaluable, you never know when you are going to meet someone who wants printed contact details – hey presto! - Instant advertising.

If you have access to a computer, join an online business forum. They are an excellent source of information help and advice from people in the same situation as you. Even those in the same line of business as yourself will usually be happy to offer their help – don’t be afraid to take it, you can always return the favour.

Contact your local Chamber of Commerce for practical sound advice on any aspect of business. They are there to help and are extremely knowledgeable and friendly people.

Business breakfast clubs are normally held once a week in most towns and cities and are another rich source of information and a great place to make contacts, again, don’t forget to take your business cards with you.

The methods I have mentioned are by no means the only ways to market on a budget and have no doubt been written about before, and although they take lots of effort and are very time-consuming, they do produce results.

New and small business owners can often be the most innovative and creative marketers there are. They don’t have the huge budgets of the corporate giants; they don’t have large teams of creative designers, advertising executives, brainstorming committees, PR agencies or even a tea person! However, enterprising cash-strapped individuals are constantly striving to invent novel and cheaper methods of marketing their businesses, often with varying degrees of success. What must be reiterated though is that marketing and advertising need not cost a fortune, but can still be very effective depending on how you approach it.

This article is the property of the author and may only be reproduced in its original form.

International business for small and mendium companies

by: Augustas Aleshiunas

Small business and medium size business. What can they do, and where can these businesses expand to? Is it real to go to international business stage? How it's possible? What regions are best for foreign investors? I will try to explain you everything.

Our company works with small and medium size companies which are interested in expandig or starting new activity in other countries.

Mostly, there is general opinion, that it's possible to start international business only if you have millions of dollars or very good personal contacts. Well, of course in this way everything goes easier, but there are more ways. From our practice, I can tell that our smallest client succesfully invested only 5000 dollars to other country in Eastern Europe, and now, they have own company there. So, it's really possible.

What you should? > Before starting some actiions in other countries, you must find all information about specific country market, business sphere which is interesting for you, all advatages and disadvatages.

How can you start? > Most succesfull way is direct contact and partners search, this service we are offering to almost all our clients. The main advatage is that you look for usefull business contacts by your self, so there is no need to pay for consulting agency or brokers.

Which regions are most interested for investors? > If we're talking about today's situation on all markets - new-joined countries in EU and Eastern regions, also Russia, Ukraine and so on are mostly interesting for investors. Why? Becouse the very simple reason, all investments will get back at maximum short time, if we are comparing with for example Western Europe or America.

Why should I work with other countries? > If you don't want, then you shouldn't. But very high growing markets are really interesting for serious investors, doesn't matter what size they are. Also, good relations with foreign companies are one of most important things in business.

Where can you get more information about international business? > There are a lot of ways, but we recommend some of this:

Emmbassies, Europe Information Centers, Chambers Of Commerce, Departaments, Our Business Portal.

It's possible, that there are a lot of more good information sources, but these, named above, are already tested, everybody knows, that they can trust on these organizations.

When can you start? > Actually, right now. Visit our international business portal - http://www.business-trader.biz, and start your international relations.