subject: Venture Capital Investor Shares Tips With Business Owners Seeking Funding [print this page] Venture Capital Investor Shares Tips With Business Owners Seeking Funding
As a banker for 30 years, Mr. Lee Tabas has the credentials to provide advice. First, don't underestimate the value of having a well written business plan for what you want to do. Make sure that you have someone spell check the plan. If you're sloppy or lazy in spelling, it's a reflection on your attention to detail in your business. The length of your business plan is not an advantage. 10 pages maximum- nobody has time to wade through duplication and statistics that you copied from the internet. Everyone can see through a cut-paste job or copying someone else's writing. Make it concise. Make it your own. Make it real.
Don't skimp on paying to have an accountant or MBA or other financially capable person help you put numbers to what you are doing. What financiers look for is someone who can "do numbers". It does not have to be you, but you have to have access to someone who can do it.
Here are sources of funding in order of desirability:
Your local bank or bank in cooperation with the Small Business Administration- this will be the cheapest source of funds. However, you may not get all that you need, and you may not get it when you need it.
Private Loan or Investment from Friends and Family- Why not let others earn more than they could in the general market by backing you in your business enterprise? Bad Idea- Do not ask any relatives to co-sign! It is OK for them to risk their own money, but you don't want to get them involved in leveraging for you, or possible disputes with outsiders.
TABASFUNDING- we are more expensive than the bank, but we can respond quickly for amounts of $100,000 to $750,000, and we don't obsess over collateral.
Credit Cards- often for smaller amounts, borrowers can get money on credit cards quickly, and with no collateral. That has too be worth something in terms of the high interest rates that you pay.
Selling/ Pledging Accounts receivable to private lenders- this is an expensive type of funding that works in some cases and industries, such as the clothing industry, where such funding is typical.
Selling Stock- hard to do correctly. Either you do a public offering, which is tremendously expensive, or if you sell shares privately, you need heavy legal and accounting help. Without that you leave yourself open to lawsuits if things don't work out.
TABASFUNDING is located in Haverford, PA, right outside Philadelphia. They work with business owners who are growing. Banks don't have the flexiibility and vision of a venture capital banker. Businesses in Pennsylvania, New Jersey and Delaware can visit the website and fill out a simple 3-minute application to begin the process.
