The panel, “Access to Flexible Capital,” was hosted by Pete Nardo of Chase, who spoke with panelists Sarah Meister of Indiegogo, Tom Chapman of Chapman & Company, Jud McGehee of LiftFund US, and Erika Hersh of PeopleFund. Here are a few tips that these experts offered to small business owners’ to assist with financial decisions.
Entrepreneurs Must Plan Ahead
Jud McGehee spoke on how his team at the 501(c)(3)nonprofit-organization LiftFund U.S. helps potential business owners work through their financials and projections. The important part is not to turn anyone away without offering them advice.
When It Comes to Equity, Less Is More
Tom Chapman supports McGehee’s statement that a large amount of capital could do more harm than good, and offers his personal advice on the subject. If you have no customers or limited revenue, opt for a smaller amount of capital in order to boost your valuation and retain more equity when you eventually ask for a larger amount. Chapman hopes to be your partner, not someone who “suddenly owns you.”
Crowdfunding? Know Your Timeline
When startup consider crowdfunding Sarah Meister’s at Indiegogo said there are many options. The biggest concern for an entrepreneur hoping to launch their campaign through the site can be summed up in a word, “timeline.” Campaigns that don’t have well-defined dates at which to follow through on their promises won’t see the same success as those that do, Meister explained. If you build it, they won’t necessarily come. They need a timeline before they’ll commit.
Consider a Loan From the Get Go
If you arrive at the decision to seek a small business loan after investing your own funds and running out of them, you’ll face a far greater uphill battle than if you turn to the deeper pockets of a business investor from the start. The ultimate issue is whether your project is in the red or black, Erika Hersh explains. Thankfully, panels like this one exist in order to raise awareness of the options available to small business owners and entrepreneurs of all types. Check out the entire video, available on Tech.Co’s Facebook page, embedded below.
Read all our coverage of Dallas Startup Week at Tech.Co. This article is part of a Startup Week content series brought to you by CHASE for BUSINESS. Startup Week is celebration of entrepreneurs in cities around the globe. CHASE for BUSINESS is everything a business needs in one place, from expert advice to valuable products and services. Find business news, stories, insights and expert tips all in one place at Chase.com/forbusiness. Read the rest of our Startup Week series.
