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How does one transition from self funding your own enterprise to both building seed money and have your company start earning for itself?

Veteran

Kevin Strakal Des Plaines, IL

Rebranding my company. Site isn't 100% yet but if you want to look at the beginning construction view www.gecgroup.net

5 June 2016 5 replies Small Business

Answers

Advisor

John Gomez Rumson, NJ

Hi Kevin -

I have been involved in the investment world for a while, current I am an Executive Advisor to NexPhase Capital and also am called upon to perform due diligences for a variety of investment banks. Hopefully my background will help you and if you like, feel free to send me any questions.

I did checkout your website and it looks great. The challenge that you may encounter with seed capital, usually obtained through an angel or incubator, is that you are a services company. Services companies are typically more difficult to get funding for, as most investors want either a tech enabled company or product company. That said, you can try some of the following routes, which may help you:

-Small Business Loan backed by SBA. Just check with your local bank and tell them you are interested in an SBA loan. They will originate the loan.

-Investment Clubs: Check for investment clubs in your area - usually these are good places to make contacts with local investors and a good source for referrals.

-Friends & Family: I am not a huge fan of this tactic, but it is a channel to raise money.

Some key things you want to know -

-Your financial projections and their reality.
-Your exit strategy or that of your investors - they want their money back somehow.
-What % of control you are willing to give up and what that means?
-What type of partner you want to work with? An investor isn't typically a bank (unless you get a loan) and they will want a say in your business to protect their interests - make sure you can work with them when things go bad.

Check out the web site "Pitch Deck" it is a good place to build out your vision, financials and story.

Hope that helps - best of luck!

6 June 2016 Helpful answer

Veteran

Kevin Strakal Des Plaines, IL

I really want to thank everyone who replied to this post. I'm not sure how this site works but I only received a notification today and saw that I had these replies, so I apologize for not contacting anyone sooner. I am trying to answer everyone individually as each one of you have provided me with very valuable information. Not only that, you took the time to respond to my question and I really appreciate it. I have reviewed some of the sites and will take into consideration each and everyone's expert advice. Some things I have already done and some I have't researched. As far as investment, I appreciate the advice on loans and angel investors and honestly didn't know there were "incubator" areas. I would like to research those a little more but the goal I have is not to accumulate debt. My ultimate goal to launch my company into the stratosphere is really to become a protege to a company who would invest as a mentor or a sub-contracting situation, even a sustainable 1099 would get me started. I'm not opposed to working hard and I firmly believe in GEC, Inc. I have personally witnessed too many people and companies lose revenues, but more importantly find themselves in very precarious situations simply because they were not situationally aware while traveling or moving their family internationally. For whatever reason that only God can explain, I really enjoy this work, I care for travelers and it satisfies me to know end knowing that I affected a company or family or individual in a positive manner helping them move internationally. The second caveat to my company is I want to help veterans get a decent start after they transition to a civilian. I have to be honest, I miss the US Army, the brother and sister hood, the people I have become close with and if there is any way I can help them in civilian life, I will do. Once I contract with GEC, Inc., and can hire veterans, my second tier will be to find out their goals and really do things no different than the military where I can counsel and assist on building their careers. As it was said in the military, "I want to promote you out of your job, my goal is to do the same for those who work for me. I would love to be a functioning CEO with my company and build it to a very successful standard, not only because I want this to be my last full time job but to affect people for the better. Thanks everyone and once I figure out how to respond to each person, I'll contact you. In the meantime, if you're interested in contacting me, the easiest way is to hit the contact form on my website www.gecgroup.net, or email me directly at gcorprc@gmail.com. Take care!

Veteran

Eddie Starr Spokane, WA

Hi, Kevin.

Did you receive the assistance you were looking for? Has your company been able to meet the goals you set up for it, financially? How has business, overall, been going? Regular clients?

If so, have you looked into sources for factoring, merchant cash advances, and or selling your purchase orders, for funds?

I have some associates in the financial arena, who may be able to help. Feel free to drop me a line, and I'll see if I can help.

Advisor

Richard Connor Winnetka, IL

Hi Kevin,

I think you might benefit from reaching out to BunkerLabs (www.bunkerlabs.org) which is an incubator for veteran owned businesses. It is located at 1871 in the Merchandise Mart (12th floor). They can probably provide some guidance to you.

Good luck.

Advisor

Jerry Welsh Middleville, MI

Visit your local US Chamber of commerce. If you are still in, check out a Boots to Business workshop near you, they will also have contacts.

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