The death of “THE DEAL” has been greatly exaggerated since the financial meltdown of September 2008. Yes, there has been a dramatic slowdown of deal closings for business owners seeking to raise capital or sell their business but the deal has never died. While few predict a dramatic pickup in deal volume any time soon, people are completing transactions and there are signs that deal activity is... 

Several months ago, I had written an article on raising capital from customers and fans. I thought now was the time to write a follow up about it because I have gained more information about this topic. Lot of people email me telling me that they want to raise capital for their businesses. The problem with many of them raising capital is they have unrealistic expectations. Many of them expect the... 

We asked several investors about what specific strategies entrepreneurs need to employ when raising capital for their business. Most people who sent in their responses were experienced investors who had invested in several businesses or experienced entrepreneurs who had raised financing for their businesses in the past. This is a list of some of the responses from investors. 1. Network, network and... 

Seed stage This is money that is typically invested when the business is in the idea or concept stage. The founders are still investigating an idea and require money typically for market research and developing a prototype. There are funds that focus only on seed stage companies. So, if you are looking for funds while in the seed stage, you need to weed out all the firms that do not focus on the seed... 

There are primarily two types of capital – Debt and Equity. Debt is capital that needs to be paid back. A personal or business loan is an example of debt capital. An individual or institution lends money to a business with an understanding that the money needs to be paid back. It is similar to a personal loan in that you need to make interest and principal payments on a regular basis. Debt capital... 

This is a basic list of sources of capital that most entrepreneurs use while raising capital for their business. 1. Family and friends Family and friends can be a great source of financing for the first time entrepreneur. If you have wealthy friends and family who can spare some money for you then they can be a great source of financing because your family and friends can provide for flexible terms... 

If you are financing a start up business, then the most obvious choices of capital are Family and friends Most start up businesses are started with help from family and friends. They are the ones who are willing to help get you started. They, however, may not be the best choice for you. So be careful and explore other options before you consider family and friends. Angel investors Angel investors... 

If you have already been in business and share a loyal customer following then your customers are a great option. Some musicians and film makers are going to their fans for financing. Australian musician Clint Crighton has set up a method to raise money from his fans. For 100 Australian dollars, he gives his fans special privileges, a lifetime free entrance pass to his live gigs and a few more perks... 

Before you start your search for capital, you need to do two things: 1. Write down your goals? 2. Stay focused on your goal till you complete the process of raising capital. For example, Raise $ 100,000 by Dec 31, 2010. You need to clearly define the amount of money you need for your business and the deadline. The deadline will create urgency in your search. Vinil Ramdev is an entrepreneur, business... 

Your business model A business model is a fancy word for “How are you going to make money?” Do not ignore the money part. Raising capital has a lot to do with the money part. An exit strategy When can the investor expect to get his money back. Is the management going to buy back its shares (ownership in the company) or is there going to be an IPO or are you going to sell the business and cash...