| Widget sales are booming - the competition is | | | | firms* New private investors* Other professional |
| scrambling, demand is up, and the books are finally | | | | service providers within your core management |
| treading water. Your core management team has big | | | | teamIf you developed a list of potential investment |
| ideas for the future of Widget Inc. Opportunity is | | | | partners prior to start-up, renew your contact with |
| abundant; but how will you fund that next big | | | | these individuals. By telephone or letter, convey the |
| leap?As your start-up matures, obtaining second- or | | | | success your product or service has experienced, as |
| even third-round funding may allow your business to | | | | well as your purpose for the post start-up funding. |
| expand and grow into new opportunities identified | | | | With a solid track record in hand, you may be |
| after your business was established. If your product | | | | surprised to find how many potential second-round |
| or service has proven itself in the marketplace, you | | | | investment partners you have.In addition, you'll be in |
| may be a candidate for an additional round of | | | | a stronger position during the negotiation process, |
| funding.Some possible uses of post start-up funding | | | | meaning you won't have to give up as much control |
| include:* Penetration of new markets, either by | | | | to achieve your desired result.Tips For Maximizing |
| industry or geographic location* Development of new | | | | Post Start-Up Funding* Don't commingle funds. Avoid |
| products or services that compliment your key lines | | | | falling into the trap of using new funds to level the |
| of business* Acquisition of competitors, staff and/or | | | | books. If you obtained additional funding for |
| facility expansion, or new equipmentDamage | | | | expansion, do not deviate from the plan. Address |
| ControlIf your company is struggling to make ends | | | | any cash flow problems or existing debt service |
| meet, post start-up financing is not an effective way | | | | independently from your company's expansion |
| to address red ink.Consider other methods of debt | | | | needs.* Learn from past mistakes. Undoubtedly, your |
| management such as refinancing, streamlining | | | | company's start-up phase was a learning experience |
| systems of production, and bootstrapping before | | | | unlike any other. Recall the lessons learned from |
| looking for additional funding. Investors will not be | | | | handling your initial start-up capital. Now that you've |
| interested in extending additional funds to companies | | | | established a strong working relationship, call in your |
| that have not yet established themselves firmly in | | | | management team to gather additional opinions on |
| the marketplace.Identifying Post Start-Up Funding | | | | the best way to disburse funds on each project.* |
| SourcesThe best source for post start-up funding | | | | Look for new opportunities along the way. As you |
| may be your original investment partner. However, | | | | implement your expansion plan, be on the lookout for |
| sometimes asking your investor-partner for additional | | | | ways to streamline and maximize the results of your |
| funds can be a lot like asking your parents for a raise | | | | efforts. Don't be afraid to upgrade your plan; |
| in your allowance. You're going to have to really | | | | remember that your business plan should be a "living" |
| prove a need for it, and even then, your original | | | | document, able to flex as the status of your market |
| funding source may have woke up on the wrong | | | | and the general economy change.Jim D. Ray is a |
| side of the financial plan.Should this prove to be the | | | | seasoned entrepreneur and president of Web |
| case, there are additional sources to consider, | | | | Presence, a national web design firm exclusively |
| including:* Lending institutions (banks)* Venture capital | | | | serving the small business market sector. |