Release Date: 04.14.09 | Location: All Metro Atlanta | Organization: SCORE Atlanta
Learn How to Obtain Funds for Your Small Business
Business loans, venture capital & innovative financing to be discussed at SCORE's April 21 Atlanta workshop
Workshop -- "Crisis or Opportunity Financing - Your Small Business"When: April 21, 9:30 a.m. to 12:30 p.m.
Where: SCORE Atlanta, 233 Peachtree Street, Ste. 1900
Details: Online at tinyurl.com/cydufq or call, 404 331 0121
Learn How to Obtain Funds for Your Small Business
By: Jerry Chautin, SCORE volunteer, business
columnist/SCOREing small-business success
"Truth be known, finding private capital isn't as difficult as it would seem," says Steve Bloom, angel venture-capitalist, entrepreneur, former mortgage banker and a dynamic workshop presenter. He conducts the financing workshop for SCORE, "Counselors to America's Small Business."
The workshop will provide insight into the keys for success and how to secure financing when banks say, "no." You will learn how to think creatively to increase your chances of getting funds and also reduce the amount of money needed.
When dealing with lenders or venture capitalists, even the best salespersons forget the skills they use to sell products or services. In reality, they are the same. Accordingly, you begin by understanding what the funding source needs.
Lenders are not in business of taking entrepreneurial risks. If the business succeeds, all they get is return of capital with interest. On the other hand, venture capitalists gamble on getting an outstanding return on investment if you grow quickly and do well.
"The investment opportunity must be of a scale where the business can grow significantly, the business plan supports an unmet need in the marketplace, has a significant rate of return, is concentrated in the information technology world, bioscience, or is so unique that an early exit strategy can be obtained," Bloom says about venture capitalists. Additionally, venture capitalists look for a management team and advisory board with the experience to make fast growth probable.
Venture capitalists want a liquidity event such as selling out, merging or going public within three to five years. Further, a projected return of ten times the original investment will get their attention, according to Dan Miller, president of Sarasota, Fla.-based Startup Florida Ventures Inc., an investment group of angels. By comparison, "bank financing lends itself to companies that may be more stable, with more controllable growth predictions, and have significant operating track records," he says.
In fact, banks analyze income and expense projections substantially different than venture capitalists do. They look at your historical financial statements and near-term projections for adequate cash flow after operating expenses and debt service payments. More specifically, bankers want a cash flow cushion of 20 percent to 30 percent depending upon the perceived risk.
You can learn more about how bankers underwrite loans and improve your presentation to them at tenonline.org/sref/jc1.html.
You can find some local venture capitalists at sePrivateEquity.org. It lists investors that attended private equity conferences in Atlanta to meet entrepreneurs seeking venture capital. For more information, call Karen Rands at 1-888-569-0464.
Meanwhile, Bloom, SCORE's workshop leader, says, "Your ability to network with different community, business and religious organizations where friends and acquaintances can provide introductions to potential investors is very important." He will discuss the details at the workshop.
Other Information:
About SCORE:
Since 1964, SCORE "Counselors to America's Small Business" has helped more than 8 million aspiring entrepreneurs and small business owners through counseling and business workshops. It is a nonprofit resource partner with the U.S. Small Business Administration. More than 11,200 volunteer business counselors in 370 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses. The Atlanta chapter has 100 volunteers in conveniently located branch offices.
Note to media: Photos of the SCORE counselors quoted and interviews are available upon request. For interviews with SCORE business counselors or SCORE small-business clients, contact SCORE's chairman, Jeff Mesquita: e-mail, scoremarketing @joimail.com, cell: (770) 713-1702. You may use this article in part or in its entirety and distribute copies with credit to SCORE Atlanta www.scoreatlanta.org.
The columnist's CV is online at: tenonline.org/sref/jc1bio.html
About SCORE:
Since 1964, SCORE "Counselors to America's Small Business" has helped more than 8 million aspiring entrepreneurs and small business owners through counseling and business workshops. It is a nonprofit resource partner with the U.S. Small Business Administration. More than 11,200 volunteer business counselors in 370 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses. The Atlanta chapter has 100 volunteers in conveniently located branch offices.
Note to media: Photos of the SCORE counselors quoted and interviews are available upon request. For interviews with SCORE business counselors or SCORE small-business clients, contact SCORE's chairman, Jeff Mesquita: e-mail, scoremarketing @joimail.com, cell: (770) 713-1702. You may use this article in part or in its entirety and distribute copies with credit to SCORE Atlanta www.scoreatlanta.org.
The columnist's CV is online at: tenonline.org/sref/jc1bio.html
Contact Info
Contact Name: Sandy Perkowitz
Company: SCORE Atlanta
Phone: 404-331-0121
E-mail: scoremarketing@joimail.com
