In my experience, mid-market firms are financed by smaller local or regional banks with whom the owners have built relationships. Certain industries, such as any where the firm has government receivables, are bankable almost immediately, but others are not. The latter give us the stories — that never seem to caution the listener to mind survivor bias — of would-be entrepreneurs scratching together high-risk initial financing with credit cards, borrowing from family, or second mortgages. None of these involve going to Wall Street.
The way to winning over business owners is to make a business case. In Thomas J. Stanley’s The Millionaire Next Door, he makes the case that the typical American millionaire gets there by starting a small business and then playing good defense, that is limiting outflows by not living extravagantly as the stereotypical wealthy in popular literature. This defensive mindset also plays in operation of their firms. Business owners deal constantly with people who want more: suppliers, competitors, regulators, the tax man, employees, spouses, kids, brothers-in-law. The noise floor is high.
Rising above the noise floor means doing the hard work of showing your proposed model actually works and is not merely yet another visit from the good-idea fairy. Business owners value relationships. Building relationships takes hard work. Connect motivated people from difficult backgrounds — from which many business owners themselves come — with mentors who will see and nurture the spark. Demonstrate that you are helping to provide a hand up, not a handout.
The way to winning over business owners is to make a business case. In Thomas J. Stanley’s The Millionaire Next Door, he makes the case that the typical American millionaire gets there by starting a small business and then playing good defense, that is limiting outflows by not living extravagantly as the stereotypical wealthy in popular literature. This defensive mindset also plays in operation of their firms. Business owners deal constantly with people who want more: suppliers, competitors, regulators, the tax man, employees, spouses, kids, brothers-in-law. The noise floor is high.
Rising above the noise floor means doing the hard work of showing your proposed model actually works and is not merely yet another visit from the good-idea fairy. Business owners value relationships. Building relationships takes hard work. Connect motivated people from difficult backgrounds — from which many business owners themselves come — with mentors who will see and nurture the spark. Demonstrate that you are helping to provide a hand up, not a handout.