Loans/Lending is purely transactional for financial capital. What about relational capital that is often more readily convertible ro finances, resources, and branding? Private equity infuses the inrterests and the voices of shareholders. Relationships with shareholders can import into the company critical information sharing that can be used for strategic planning/management as well as for conversion into capital -- relational capital, financial capital, resource. Shareholders want the business to thrive. Hence, the intent of win-win, mutually beneficial relationships.


Elaine C. Bishop, Founder-CEO, GBIntel

Loans/Lending is purely transactional for financial capital. What about relational capital that is often more readily convertible ro finances, resources, and branding? Private equity infuses the inrterests and the voices of shareholders. Relationships with shareholders can import into the company critical information sharing that can be used for strategic planning/management as well as for conversion into capital -- relational capital, financial capital, resource. Shareholders want the business to thrive. Hence, the intent of win-win, mutually beneficial relationships.


Elaine C. Bishop, Founder-CEO, GBIntel

[quote=Elaine Bishop]
Loans/Lending is purely transactional for financial capital. What about relational capital that is often more readily convertible ro finances, resources, and branding? Private equity infuses the inrterests and the voices of shareholders. Relationships with shareholders can import into the company critical information sharing that can be used for strategic planning/management as well as for conversion into capital -- relational capital, financial capital, resource. Shareholders want the business to thrive. Hence, the intent of win-win, mutually beneficial relationships.


Elaine C. Bishop, Founder-CEO, GBIntel
[/quote]

Hey Paul,

Approaching any type of investor requires a message that creates interest & has a reasonable chance of working. Keep in mind Paul, that investors have many different opportunities for placing their funding & where they place it also depends on their objectives as well. In other words, your competing with others for the funding.

To have a realistic chance at convincing investors to invest in your idea or venture it's best to already have somewhat of a history complimented by an "idea" or "plan" that has supportable merit. Further, it's really important to have a customer or two since having a customer proves that you have a product or service that sells.

Having your business idea in the form of a B-plan or model vs. actually having something that already exists & is working is a huge advantage for attracting capital investment. So, if your still at the idea stage (development stage) it is best to approach the perverbial "friends, family & fool's sources.

Lastly, I'm not sure if you are aware of this, but the commercial real estate market is extremely depressed & new unit construction is almost unheard of in today's economy. Better check it out before risking other people's money and damaging your reputation.

In regards to Elaine Bishop's response (which I'm still trying to understand), lenders want your business to thrive just as much as investors, they too are part of the WIN-WIN club.

Good luck!

Tommy Jaye

tommyjaye@aol.com

Hey Paul,

Approaching any type of investor requires a message that creates interest & has a reasonable chance of working. Keep in mind Paul, that investors have many different opportunities for placing their funding & where they place it also depends on their objectives as well. In other words, your competing with others for the funding.

To have a realistic chance at convincing investors to invest in your idea or venture it's best to already have somewhat of a history complimented by an "idea" or "plan" that has supportable merit. Further, it's really important to have a customer or two since having a customer proves that you have a product or service that sells.

Having your business idea in the form of a B-plan or model vs. actually having something that already exists & is working is a huge advantage for attracting capital investment. So, if your still at the idea stage (development stage) it is best to approach the perverbial "friends, family & fool's sources.

Lastly, I'm not sure if you are aware of this, but the commercial real estate market is extremely depressed & new unit construction is almost unheard of in today's economy. Better check it out before risking other people's money and damaging your reputation.

In regards to Elaine Bishop's response (which I'm still trying to understand), lenders want your business to thrive just as much as investors, they too are part of the WIN-WIN club.

Good luck!

Tommy Jaye

tommyjaye@aol.com

I wanted to pass along a response to another post... that comes way before the approach...
See below...

There are many things that quite frankly get the door closed or lead to the inevitable "string along".

Raising money really is an art form, it is an art form because you have to know more than the buzz words, typical paths, etc... but you have to know the little nuances such as "how do you value a company that has no tangible assets, very little revenues, but has growing traffic, a niche market and a business model that scales?"

How much should you ask for and how much should you be willing to give up?
What introductions get meetings, and what introductions lead to investments...

Peter Ireland... you touched on one thing that is extremely important, "gaining trust and confidence".

Would anyone here invest in a perfect stranger over a longtime friend of colleague who they've made money with or have seen make money for others?

At the end of the day venture investors are money managers. They have investors in their funds that require returns through responsible investing...

The truth of it is, most startups never get funding outside of friends, family and maybe a loan/line of credit.

The key is to build a business that is sustainable, not one that requires $5 million in funding... if it requires that much money you better be talking clean tech, bio tech or infrastructure. I think the days are gone or numbered where web-based product startups without a ton of traffic or significant revenues get funding over $250,000.

DCalabrese@ETFVentureFunds.com, DCalabrese@SeventySixCapital.com

I wanted to pass along a response to another post... that comes way before the approach...
See below...

There are many things that quite frankly get the door closed or lead to the inevitable "string along".

Raising money really is an art form, it is an art form because you have to know more than the buzz words, typical paths, etc... but you have to know the little nuances such as "how do you value a company that has no tangible assets, very little revenues, but has growing traffic, a niche market and a business model that scales?"

How much should you ask for and how much should you be willing to give up?
What introductions get meetings, and what introductions lead to investments...

Peter Ireland... you touched on one thing that is extremely important, "gaining trust and confidence".

Would anyone here invest in a perfect stranger over a longtime friend of colleague who they've made money with or have seen make money for others?

At the end of the day venture investors are money managers. They have investors in their funds that require returns through responsible investing...

The truth of it is, most startups never get funding outside of friends, family and maybe a loan/line of credit.

The key is to build a business that is sustainable, not one that requires $5 million in funding... if it requires that much money you better be talking clean tech, bio tech or infrastructure. I think the days are gone or numbered where web-based product startups without a ton of traffic or significant revenues get funding over $250,000.

DCalabrese@ETFVentureFunds.com, DCalabrese@SeventySixCapital.com

You will enter into a contract with your partners. They and you will have to agree on your percentage. It will be small but if the marketing footprint is sufficient, you could come out extremely wealthy.
http://www.articlesbase.com/health-articles/extreme-brite-white-review-where-to-buy-1964003.html

You will enter into a contract with your partners. They and you will have to agree on your percentage. It will be small but if the marketing footprint is sufficient, you could come out extremely wealthy.
http://www.articlesbase.com/health-articles/extreme-brite-white-review-where-to-buy-1964003.html

I think loans would be a hard to get right now because of all of the banks not lending out any money. When I went to the small business develoment center hey had several ideas on how to get money for a business

I think loans would be a hard to get right now because of all of the banks not lending out any money. When I went to the small business develoment center hey had several ideas on how to get money for a business

With confidence and a nice business plan

With confidence and a nice business plan

This is strictly on my experience. Others may be different. If an investor likes your idea, you should be worried :). Approach your investors from the standpoint of a mutually beneficial partnership. Percentages can be negotiated. Off course a business plan. But most importantly, have a step by step plan on the details of the partnership. Demonstrate what year 1 through 5 will realistically look like and what each of your roles will be. Investors like to see that you've done your homework and understand the business. Detail roles and responsibilities of all the players and have your exit strategy laid out. No business will last forever, so investors want to see the cash out exit option.

Good luck,

Will Peters
The Anstad Group
www.anstad.com

This is strictly on my experience. Others may be different. If an investor likes your idea, you should be worried :). Approach your investors from the standpoint of a mutually beneficial partnership. Percentages can be negotiated. Off course a business plan. But most importantly, have a step by step plan on the details of the partnership. Demonstrate what year 1 through 5 will realistically look like and what each of your roles will be. Investors like to see that you've done your homework and understand the business. Detail roles and responsibilities of all the players and have your exit strategy laid out. No business will last forever, so investors want to see the cash out exit option.

Good luck,

Will Peters
The Anstad Group
www.anstad.com

At fair investment & funds,we give out loans at minimum interest rates to small
scale businesses and large establishments.we give out loans ranging
from 5,000usd to 5,000,000usd to accommodate any financial constraints
your establishment or business might be facing.You can send us a request at fairinvestment.funds@gmail.com

Regards
Flair

At fair investment & funds,we give out loans at minimum interest rates to small
scale businesses and large establishments.we give out loans ranging
from 5,000usd to 5,000,000usd to accommodate any financial constraints
your establishment or business might be facing.You can send us a request at fairinvestment.funds@gmail.com

Regards
Flair