An Innovative Approach To Raise Capital

Online, December 7, 2011 (Newswire.com) - United States of America: A new innovative medium allows access to capital through secondary market without the need of private placement.

In the wake of the recent credit crisis, small business enterprises have to be innovative about how they raise small business capital to finance operations. To be a success in running business, you need to have confidence. Sometimes you make decisions in a hurry. That is what running a business is all about.

Going public is of course a great idea, but will it work in the throes of recession? Some small family owned businesses have done it, and this has raised hopes for others to Raise Small Business Capital through equity.

What about getting loans through banks? The story is not encouraging either. Big banks have drastically cut back lending. The smaller banks fortunately still make a living off loans to individuals and small businesses. For them even in the current crisis business is as usual.

The market place to raise small business capital is always confusing. This is so mainly because of complaints by small business owners that loans have dried off. Bankers however have a different story to tell. "Small businesses are hardly applying for any credit these days. Very few of them are seeing business opportunities in this down economy", says a prominent member of American Bankers Association.

Those who do apply for loans are probably not creditworthy. "It is human nature to say there are no loans around when you are turned down", says a senior vice president of a bank.

So what is the solution to Raise Small Business Capital for any kind of start-ups?

Whether you are looking to banks, venture sources or secondary market investment, the sequence of actions is similar.

Find investors

Finding investors is the first step and for most part will take half the time, it takes for preparing a business plan. You can start within your family circles, your business contacts and acquaintances. Thereafter, you can approach institutions to raise finances and even the government. Sadly, many entrepreneurs fail to focus on this first step to Raise Small Business Capital.

The strategy

A good approach is to make the process of getting funds a win-win situation. This is the best way to reduce stress inherent while raising funds. Remember, the venture source is investing capital and you are raising funds. The mutual requirements of both needs to be fulfilled.

Presenting your business plan

No doubt, you are familiar with your business plan, but what about the investor? You must highlight the benefit of investing to your potential backers.

Handle objections tactfully

To Raise Small Business Capital has never been a cinch. You must expect objections to your business model, your strategies and even your product concept. As a businessperson, a good policy is to avoid being defensive and respond to the objection in a sincere way. Very often, the venture source is ill informed. Yet, you must have all the facts on your fingertips to backtrack the objection.

Even if all goes well, business loan applicants should expect to be closely examined. In particular, smaller lenders may shun formula based practices adopted by larger banks.

Finally, someone courageous can opt for newly announced model that allows access to secondary market of shares of privately held companies.

Contact:

Independent Stock Market
Phone Number
801.951.0420