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Getting More Finances for a Business
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Finding the necessary business capital to market a new business idea or expand an existing enterprise can be a daunting task. Likewise, meeting with bank officials or venture capitalists to obtain such funding can be quite difficult in itself. This is exactly why an entrepreneur needs to be thoroughly prepared before meeting with prospective lenders and investors.

Banks versus venture capitalists
Most banks and venture capitalists go through thousands of business proposals every year. Both are interested in a company’s potential success; however, most banks, large and small, tend to focus primarily on the financial prospects of new business proposals since it is indicative that the money loaned will be paid back. While large return on investments is very enticing to venture capitalists, they tend to concentrate their efforts more on the novelty of different business proposals, especially those in high-tech fields.

In order to satisfy the financial requirements of most banks, the entrepreneur needs to analyze the overall prospective financial performance of the company and provide estimated financial figures. These financial forecasts will enable the entrepreneur to convince lenders and investors there is a need for business capital and that their new company would indeed be a profitable venture.

Between the banks and venture capitalists, VC’s tend to take longer in the decision making process since they are involved in the profession of investing other people’s money. They are also known for having a very regimented due diligence process in which they utilize the help of hired professionals, who perform background checks on the company founders, in order to make a conclusive decision. VC’s also tend to invest larger amounts of money in a given venture compared to banks and are known for their investments in later-stage enterprises.

Government loans versus angel investors
An entrepreneur who requires only a small amount of capital can tap into the Small Business Administration for funds. Loan programs of the SBA are usually made through local banks and though competitive, can work in conjunction with other capital resources to meet startup requirements. In order to be considered for a government loan, the borrower must provide the prospective SBA loan program with their complete business profile, information on how the loan money will be allocated, descriptions on any collateral that may secure the loan, and personal and business financial statements. A formal written loan proposal must be presented, and the amount of a loan is based according to the SBA’s small business size standards.

If an entrepreneur seeks more startup capital, then they may opt for choosing angel investors to properly meet their startup needs. As with government loan programs, angel investors also expect a formal loan proposal describing the company at hand, the products and services offered, the amount of money requested, and the amount that the entrepreneur will contribute. This business proposal should be reviewed by professionals before approaching angel investors because a fine-tuned business plan will greatly strengthen the application, as well as influence a business investor to reach a favorable decision.

In addition, the entrepreneur should also have a flawless pitch when meeting with prospective investors. Before the meeting, the pitch should be perfected by repetitive rehearsal in front of an audience at all times. A favorable pitch can mean the difference between being rejected for angel capital or securing another meeting with investors. While the prospect of obtaining immediate funding may sound like an attractive option, angel investors will often expect ownership stake in a company, a seat on the board, and a large ROI in return for their invested money.

Conclusion.
An entrepreneur who is seeking capital resources for his/her startup or expansion of an existing business needs to show both the lenders and investors that his/her capital will be put to good use. Regardless of which single or joint funding option the entrepreneur chooses, s/he will need to convey to bankers and

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