Understanding Demand and Finding Money to Grow

“Finding the Money to Grow Your Business” was presented on Tuesday, Oct. 28, 2014. The third in series of presentations for the Rural Entrepreneurship Initiative program. This segment focused on how to define your business and revenue model and how to raise capital.

Featured presenters included Jeff Reid, founding director, Georgetown Entrepreneurship Initiative; Deb Markley, co-founder and managing director, Center for Rural Entrepreneurship; Susan Corbett, CEO of Axiom Technologies; Todd Gentry, founder and CEO, InnoLabs; and Dave McCann, business lender, Natural Capital Investment Fund.

“For many fledgling start-ups, rapid-growth companies and more established organizations alike, outside funds are needed to fuel growth,” said Dr. Lisa Benson, AFBF’s director of rural development. “This webinar will address some of the unique challenges faced by rural entrepreneurs as they source money to grow their businesses.”

To be successful in a business start up you need to understand supply sources of capital in the ecosystem.

Potential sources of capital are listed below:

• Microleaders
• Crowdfunding (locally and nationally)
• Credit cards 
• Family and friends.
• Personal loans
• Guarantee programs

Need to have a range of talent matching to the right kind of capital. Steering to the right kind of capital can have matchmaking challenges.

Capital readiness on the part of the entrepreneur

• It is not about the money, you need skills. 
• When it really is about money, it is hard to navigate and understand the capital ecosystem. 

Capital gaps in the ecosystem

• Missing parts of ecosystem; particularly in rural places, missing some of the less traditional, non-bank sources of capital such as start up capital.

Creative Financing - How to navigate through the financial world and survive

• Create a business plan with feasibility studies
• Keep lists up to date
• Budget
• Proforma
• Profit & loss statement
• Balance sheet
• Three years tax returns (business, personal)
• Who is our competition
• Outstanding loans (payment balances)
• Personal financial statement
• Inventory (assets)
• Life Insurance Policies
• Articles of Organization
• Operating Agreement

Relationships

• Who is out there? Get to know is is who in economic development organizations, state, regional and local funding resources.
• Who are non traditional lending organizations?
• Volunteer for boards/committees in other industry sectors. 

Tell your story Again, Again, Again and Again! Show your enthusiasm and to help bring Capital to your new and growing business!