| So you want to start a business and have some | | | | you invest in someone without proof that they can |
| pretty good ideas of what you want to do. There is | | | | succeed? You have to prove yourself first. The time |
| only one slight problem; you have not funds to get it | | | | when you just wrote a compelling business plan, |
| going. You figure, after gazillion years of relationship | | | | approached investors, and got money are long gone. |
| with your banker, it is time to cash in. Armed with | | | | And for the looks of it, it may never come back. |
| your business proposal you head out to borrow | | | | So you may be wondering, what can you do now? |
| funds. Oops, you find out the bank is not lending. So | | | | |
| you just wasted all those years building a relationship | | | | 1. If you do not have money or business training, |
| with your banker, which during tough times is pretty | | | | start with the lowest possible risk. Build a Virtual |
| much...meaningless! | | | | Business. Selling online affiliate products is probably |
| Well, you say, let me get a home equity line to get | | | | the best way to start a virtual business while |
| my business going. You fill out an application; submit | | | | reducing risk and building business acumen. |
| tons and tons and tons of documents. Wait for the | | | | 2. Set money aside before you start your virtual |
| appraisal to come in and...oops, you have no equity! | | | | business. Save enough to cover all your expenses for |
| And your credit is not as perfect as the banks now | | | | at least 3 months. This way you do not panic three |
| want it. Hum, you think, I have to get my business | | | | weeks into your virtual business venture because |
| going, what do I do now? | | | | you do not have money for your water bill. |
| So, you decide you are going to raise private funds. | | | | 3. Start small, build up. |
| Attracting Angel Investors sounds like a pretty good | | | | 4. Start on a shoe-string. Forget about the fancy |
| strategy. So you buy the latest "Business Plan" builder | | | | offices, or the latest phone system. Watch you |
| software, a few books on angel investment and | | | | expenses like a hawk. Costs have a funky way to |
| private equity funding and off you go. You spend | | | | get out of control when you are starting out. |
| precious weeks, maybe months aligning your | | | | 5. Use all the available free tools. There a numerous, |
| strategic documents to make a sales pitch to some | | | | powerful open source applications you can use to |
| deep pocket angel investor. You are absolutely 100% | | | | build and grow your virtual business. All you need is a |
| sure, he will open up his wallet the second he hears | | | | computer and internet access. |
| your wonderful business pitch. Time keeps on ticking | | | | 6. Once you start bringing money in, and as soon as |
| and no angel investor has gotten back to you yet. | | | | you can afford it, hire help and start delegating. |
| By now, months have passed and you still do not | | | | Concentrate in developing products for your virtual |
| have a business, or funds or really nothing but a | | | | business |
| burning idea. Your savings are depleting fast. Your | | | | 7. Bringing customers AND retaining them should be |
| credit cards are maxing out. Panic sets in. Reality is | | | | your number one priority at all times. |
| not looking good...now what? | | | | 8. Concentrate on working ON your virtual business, |
| Well, first of all, the biggest misconception out there | | | | not IN your virtual business. Build systems. |
| -- which I believe comes from outdated books and | | | | 9. If you have something that is patentable...go for it. |
| information from the era - is that no one will even | | | | Investors love patents. |
| bother to look at your business unless YOU make it | | | | 10. Once you have sales coming in and have proof |
| successful first. It does not have to be in a large | | | | that your virtual business has growth potential...then |
| scale. In all fairness, why should people risk their | | | | and only then, approach private equity investors. |
| money on you, if you have no track record? Would | | | | |