The key to attracting money from private investors is presenting a professional business plan and model for success.
Every day I hear or read about entrepreneurs who hit the wall because they don’t have the capital to get their company to the next level.Ã‚Â The commercial banking system will continue to reel and we will soon feel the brunt of rising commercial defaults and further pressure on American small business.Ã‚Â So what is a small business person supposed to do for money these days?
The key to funding for small business is private capital.Ã‚Â These are individual investors who are qualified to invest in privately-held businesses.Ã‚Â As the commercial banking system struggles to find it’s feet, smart entrepreneurs are meeting and tapping private capital.
Which means if you’re in the game for capital, forget the banks for many months to come. Ã‚Â If you’re serious about raising private money, you need to learn the rules and meet the players in your community, industry, or endeavor.Ã‚Â If you’re someone with investment capital to risk, always consult a professional advisor on these matters, you need to build relationships with people who can introduce you to deals.
There’s a lost of mystery on both sides of the fence.Ã‚Â Business owners don’t always know how the game works.Ã‚Â And private investors don’t know where to find the right deals.Ã‚Â Which is why we will spend some time here in the WealthNet community of entrepreneurs discussing private capital.
Private funding through individual investors willing to hear your story and fund your company is a very viable way to start or fund a business.Ã‚Â But doing so requires that everyone involved do their homework and understand how to their homework and structure a suitable arrangement.
Your comments and questions are always welcome.
Clifford Jones, Founder
WealthNet Partners, LLC
“Discover The Art of Business Development”
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