Funding Your Dreams
It’s all part of the American dream – come up with a good idea, borrow some money from the bank, and live comfortably on the proceeds from your own business. And with the recent downturn causing many ill-managed businesses to fold, the opportunities are plentiful.
Unfortunately, funding is not that easy to come by anymore. The number of federally guaranteed loans to Orange County small businesses plunged 34% to 128 loans in the first quarter of 2011 after the higher guarantees for lenders and fee subsidies for borrowers ended Dec. 31
All is not bad news through, while the number of new SBA loans has dropped, the average value of these loans have increased 19% to $495 thousand. So while it is harder to get approved, those that are have been receiving greater resources to help get their business running.
And the news is even better for business owners willing to look to venture capital for their funding. Venture firms dropped nearly $5.9 billion on 736 deals during the first quarter of 2011, a 14 percent increase in dollars over last year. But just like the SBA loans, the number of deals has dropped.
So, where does that put today’s entrepreneur when it comes to getting things started? Money is out there, and more abundant than any time since the 90?s, but the people controlling those purse strings are more picky about who is getting their help.
The best way to maximize your chance of approval? Get professional business consultants like Orange County based SUMATICI, Inc. involved at the start of your project – evaluating your funding options and helping to prepare an investment proposal tailored to your target and helping you sail through those first rounds of the funding process.