Sourcing Venture Capital for production companies

When we bought Rockford Ball Bearing Corporation out of bankruptcy in 2006, the venture capital market in the money. This spring, we wanted another round of financing for our expansion. Venture capital is never easy to find, but especially in these difficult economic times, it is increasingly difficult. New strategies must be implemented to find capital.

There are several ways to prepare for interviews for VC funding. Three steps should be implemented out of the gate.These are verifiable and true options:

First, you explore your accounts, tightening of the ship. Cut out as many elements that are appropriate without overhead gutting your research and development budget.

Next talk to your employees, make sure that their advice will be heard by the management. VC firms will start by talking with your employees at all levels. They are more dependent on this feedback as your managers can be.

Last Review your business plans, take an objective look. Seeit through the eyes of your worst critic. What would you change it?

The founder of our company sold Joseph Malik Malik Bearing Company of The Harvey family in 1975. Malik camp was renamed Rockford Ball Bearings 1982, when Harvey's family had to the company during the prolonged recession of the reorganization of the 1980s. The due diligence was dinner and shake a hand. Today's VC firms spend a lot of time talking to investigative suppliers and customers, reading and analyzing industry reportsYour company with industry benchmarks.

The ball bearing industry is a tough business, so hard, the ball milling as we do. The margins are narrow. Venture capitalists looking for the highest and best return on their investment dollars, and it does not hurt the industry, they provide in their currency. Leverage is a friend of increasing returns of enterprises, but the enemy of players who are dealing with a manufacturing company as a casino. The Harvey family of leveraged Malik Bearing Company, and had to lower debtTo get back on a positive path again stable business development.

Venture capitalists know this story, and we worked hard to provide a better way for our business, they agreed to and funded U.S. $ 42 million for our expansion plans.

small business loans insurance lifel investment news