Now that it’s harder to get small loans to start a business or grow an existing venture, broadcast owners, or those who want to get in the game, need to think creatively about how to raise necessary funding. Here’s what not to do.
Tony Thomas, Managing Partner, SCI-Ventures, Inc., advises starting the groundwork and networking early. “People invest based on referrals and who they know. You’ll get a response, but not traction unless somebody can vouch for you.”
Acknowledging it’s tempting to trade equity in your company for services, but advises against that, because you get what you pay for. “You need to find the right person and pay for that talent.”
Nexstar Broadcasting Chairman/President/CEO said “Before someone invests in you don’t inflate your resume. They will do a background check.”
If you had a previous business failure be upfront about it, he advises.
They spoke at the recent MMTC Access to Capital Conference.