The dilemma of aspiring entrepreneurs has always been the seed money to get things going. Usually, the need is due to insufficient, if not zero cash, to set up a business or put in motion a viable business idea. Business proponents often end up disappointed. The reality is that obtaining the needed capital is not easy.
Even if the feasibility study or financial projections are fairly handsome, do not expect lenders and funders to extend financial assistance without a security or guarantee in return.
That is the typical problem most startup businesses face. Fundraising is the most challenging process. However, it pays to have a partner that fully understands the workings of setting up new businesses and guiding them to achieve their business objectives.
What are the qualities of the ideal partner?
1. Looks at the business potential, not the collateral
Prospective small business owners, in particular, are hard-pressed to present collaterals or assets to secure bank loans. In truth, the requirements are so stringent that it hinders the business rather than jumpstart it.
The ideal partner looks into the potential earnings of the business and the ability of the business owner to manage for the long term. It’s true that requiring collaterals mitigate the risk and offers a second way out should the business falter.
However, the success of any business venture would depend on the first way out. It means the income generating potential can far outweigh the need to require a loan security. An ideal partner will give more weight to the strength of the business rather than the collateral.
2. Supports and ensures a smooth take-off
In any investment proposition, funders of small businesses are generally interested in the financial viability of the proposed business. Apart from the product or service offerings, the approach to win over the market a proponent wishes to serve is crucial.
The advocate should also be able to demonstrate determination, confidence, and perseverance to turn a business plan into reality. An ideal funder would know when to shoot down a business proposal or when to make funds available. Essentially, many small businesses succeed because these funders are experts providing valuable advice and guidance to ensure the business flows smoothly right from the starting gate.
3. Can make funding available for expansion and further growth
The best funding partner will not stop at the start-off phase. Once the business has taken flight, business owners can rely on the group for additional funding support. Businesses that continually generate income and create more are likely to be supported when the time for expansion comes.
An Avenue for Small Businesses
The horizon is bright for hopeful entrepreneurs if they can find the suitable partner who can address funding concerns. Since banks are generally unaccommodating when it comes to business loans, the option is to link up with an established institution that empathizes with the needs of entrepreneurs.
PDM Capital is the avenue for small businesses. Its’ roots are founded on small businesses and how they can flourish. Visit http://www.pdmcapital.com/ to find out more about the several financing schemes designed to set the right direction for new and existing businesses.