When VC Funds Not Likely, Consider Bootstrapping

Ilana DeBare tells "San Francisco Chronicle" readers two ways that they can start a business with no cash through bootstrapping: 1) time-shifting your payables into the future, 2) bartering for services that your business can provide now in exchange for goods or services you need right away.

Fundraising Advisor Helps Zoe Foods Prez

Zoe Foods founder and president Tori Stuart tells Entrepreneur magazine readers how she is staying focused on running her business by outsourcing the fund raising process as she seeks $3 million to fuel the growth of her $2 million natural foods company. "As a small company owner, I find raising capital is a big time-sink," Stuart says. "And nobody's going to do my job if I'm raising money." Patrick Vaughan of Triarch Capital Partners concurs with Stuart: "It's a significant distraction to raise money yourself. Once you publish your numbers to a prospective investor, they'll start tracking how you do. That's the wrong time to stub your toe." An investment banking advisor can help a small business owner complete or polish a "deal book", create a "data room", help decide whether the money raised should be equity or debt, and help price the deal.

Angel Investing Explained at Wharton Club Event

Angel investors want entrepreneurs to demonstrate that they can "build someting and sell it," Ellen Sandles, Executive Director of the Tri-State Private Investors Network, told the Wharton Club of New York. Angel groups are more forgiving (than venture capitalists) of a not-filled-out management team, but would rather pass on a deal than invest in a company that is at risk of running out of cash before breakeven is achieved.