Perfect your pitch.
Before you seek funding you should ask yourself, do I need the money or can I run on what I already have? What is the risk of my business? What will the money be used for? How does the industry look? Does the need for money co-inside with my business plan? These are all questions a lender may ask you when you’re requesting a loan.
Types of Financing:
Most small or growing businesses use limited equity financing. Much of this money may come from friends, relatives, customers, or colleagues but the most common source of equity funding comes from venture capitalists (wealthy risk takers, government sources or financial institutions).
Banks, savings and loans, the Small Business Administration (SBA), and commercial finance companies are a few options for those seeking debt financing.
Information on Small Business Debt
Pitching your plan to investors
Before you pitch your idea to the venture capitalist or a bank you must have a well thought out process and plan.
6 Steps to the Perfect Pitch. Notes from Entrepreneurship class at Belmont University’s Scarlett Leadership Center.
Venture capitalists offer advice on what they look for-and what turns them off. (Wall Street Journal, July 13, 2009)
Local Venture Capitalists
Click on the image below to open a printable PDF of venture capitalists in the Nashville area
NCN is a collaborative initiative of Vanderbilt University, Nashville Technology Council, Nashville Health Care Council, and local investors, as well as local business and professional leaders. NCN strives to promote entrepreneurial education and economic growth by being the hub for early stage capital formation in middle Tennessee.
Nashville-based TTDC has contracted with Nashville Capital Network, the six-year-old firm that has attracted more than 50 local angels, for a five-month push to develop educational content and programs for investors and entrepreneurs statewide.
ACG links networks together through one source so that capital and resources can be efficiently utilized to best aid as many entrepreneurs in finding start-up and seed capital as possible and to provide investors with a diversified capital investment process to mitigate risk.
SBA provides a number of financial assistance programs for small businesses including 7(a), 504 and disaster assistance loans.
Information for new or small businesses interested in TNInvestco funding.
Pathway Lending offers flexible financing programs to entrepreneurs and business owners to spur economic growth in communities across Tennessee with an emphasis on underserved markets. Also, check out their small business resources.
Sources of financing for small business.