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Do some research. Identify the most likely candidates by asking your accountant, banker and lawyer.
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Keep an open mind—potential investors may be anywhere. According to Success magazine, one entrepreneur found an angel investor among the motorcyclists he rides with on weekends.
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Surf the Web. Good places to start are www.nvca.org., the Web site of the National Venture Capital Association and www.mavf.com., the site of Mid-Atlantic Venture Funds, a venture-capital firm in Bethlehem, PA.
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Make presentations at venture capital forums or fairs. Your local university business school or Small Business Administration office should have information on such events.
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Check your library or the Web for such references as Pratt’s Guide to Venture Capital Sources and The Directory of Buyout Financing Sources, both published by Thomson Financial Securities Data at www.tfsd.com.
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Tips on Finding Angel Investors and Venture Capitalists
Writing a Business Plan for a Loan
- Begin with a statement of purpose. You should be able to explain your business in 25 words or less.
- Tell how your business will work and why it will be successful. List the owners.
- Fill in the business details. Describe its products or services, the customers, the market and the competition. List the managers and their credentials.
- Supply three years of projected financial statements. Include income, loss, and cash-flow projections.
- Provide supporting documents, such as references from creditors and potential clients and suppliers, evidence of insurance and the like.
Educating Outside Salespeople
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Put yourself in their shoes. For example, understand what a retail clerk selling your product needs to know to help a customer.
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Provide support materials. These can range from inexpensive fact sheets to videos that provide refresher training.
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When a product is complicated, do on-site training with sales associates.
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Make sure you or a knowledgeable member of your staff is available to answer questions from sales associates—via telephone or email.
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Get feedback from outside salespeople so that you can improve training as you introduce new products.
Home Office Deductions
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Take advantage of every legal opportunity to reduce your taxes. Recent changes in the law benefit business owners who use their homes as an administrative and management base but work at other locations—such as plumbers, general contractors and health-care professionals.
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Ask your tax professional to analyze your business regularly so you don’t miss important deductions.
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Document deductible items. These usually include such costs as computers and other equipment, telephone charges, furnishings, and pro-rated portions of rent, utilities, home insurance and homeowner association fees.
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If you are a homeowner, discuss with your tax advisor whether or not to take a depreciation deduction for the office space. Sometimes it pays; sometimes it doesn’t.
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For detailed information, visit www.toolkit.cch.com, the web site of CCH Inc., a business information services company based in Illinois. Or, go to the Internal Revenue Service Web Site, www.irs.ustreas.gov, and download IRS Publication 587, Business Use of Your Home.
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