This is the first article in a two-part series on how to maximize your chances of success when approaching an investor for your business.
One of the modern marketplace myths mouthed by talking heads and politicians is that small businesses don’t have enough access to capital. You could write a book about what these people don’t know about small business.
It’s true that capitalizing a startup isn’t easy. Here’s some non-breaking news: funding a startup is supposed to be hard. But if you have a viable business model, a performance track record, can justify future performance, and are creditworthy, capital sources will come and play in your backyard. But remember the Marketplace Golden Rule: “He (or she) who has the gold, makes the rules.”
Before we go further, let’s identify the four primary sources of small business capital: