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Thread: Small Business Financing

  1. #11
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    I have borrowed in better and worse ways, mainly to get through a tough stretch. Luckily I am able to make up the difference fairly quickly. I have never borrowed from friends or family, other than very short term. Never took on equity financing either. Just loans. Hate to borrow money, but it's better than running out of cash.
    Brian Satterlee - Satterlee Group, Inc. - Blog - FreeLeadsExplosion.com

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    Quote Originally Posted by Harold Mansfield View Post


    Thinking that i would get a loan just because I had a good idea. That's a big lie that has been perpetrated for a long time and it gives people a false sense of how things really work.
    I couldnít possibly agree more with all of Haroldís comments! So many inexperienced wanna be entrepreneurs have no idea of what they are doing. Many think there is a simple ďformulaĒ to raising capital and starting a business. Have an idea, write a boilerplate business plan and get money. There are already 100ís of relatively useless guides for raising capital.

    Banks have absolutely NO INTEREST in startups! That is reality # 1. They are in the secured loan business, not the risk business. Real investors know how to assess risk and reward. They are typically not interested in meager returns with risk in common run of the mill businesses.

    New entrepreneurs are at a great disadvantage primarily because they donít know any real investors. There are many of them BUT if you canít find them what good are they. They usually donít even consider proposals from unknown people. It usually takes an introduction to even get a meeting. They often see hundreds of proposals a year and discard 99% of them. They often make an investment not only on the idea, but on the person running it. Without a track record of success chances are slim.

    There are of course friends and relatives, but, as Harold mentioned, it is a very touchy situation. You can get lucky sometimes, but that is the exception to the rule.

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