“How can an entrepreneur starting out in business expect to raise capital in today’s down market when the banks aren’t lending?”  This was a question posed to me recently. First, expect is a passive and weak word. It’s important to choose our words wisely and train ourselves to be solution based rather than problem focused.

Here’s the down low from my experience raising $68 million dollars for my business ventures in three distinct industries.  The short answer is there is always money available for the right idea at the right time.

The trick is getting in front of the right people and not getting discouraged when you hear “no” a bunch of times.  Raising capital is a sales function which means it’s a numbers game.

It’s also easier to close deals with people who know your intelligence level, character and work ethic. By the way, make sure you have these before trying to convince others to invest in your company. You typically don’t get a second bite at the apple. If you lose someone’s money they might forgive but they definitely won’t forget!

Another tip is to share your milestones with those that can help you. If an investor sees you making progress over time the odds of investing in your company increase.  Remember, it’s the jockey people bet on not the horse.

I’ve always preferred talking with investors within the industry I am operating in. The battle is half won already. They get it. I just have to be convincing on the business plan, the management team and what’s in it for them.

I have always raised funds in a way that flows with the current economic cycle rather than against it. When IPO’s were hot I structured my business model from the start to take advantage of the trend. When I was active in real estate I leveraged OPM (other people’s money).  In today’s marketplace I  am experimenting with creative financing methods.

I believe in leading by example so I am showing my millionaire moms members that you use creativity, leverage and knowledge to raise funds. I once bought an investment house for $10.00 in earnest money and turned it into $10,000 in one month. This is just a small example.

Those who succeed are not always the smartest. For instance, school was the backdrop to my social career. Certainly many were smarter than me but few were as motivated or resourceful in accomplishing goals. To quote Cynthia Good from Pink Magazine, “The triumphant are those who don’t give up!”

My current venture www.millionairemoms.com is a wealth of information. I have asked dozens and dozens of ultra successful moms how they raised their funds? The answers have been fascinating. Women typically take a different approach towards raising money. They tend to want to self fund more then men and don’t typically consider venture capital funding at all.

Here are two examples of creative financing I’ve run across. One mom sent her business plan package to 30 CPA’s. She figured they’d know which of their clients would have an appetite for her type investment. She sent a letter asking they  review the plan and submit it to clients that might have an interest.  She followed up and got funded. A member of millionairemoms.com heard the idea and did the same thing. She got funded as well.

Another successful mom told me how she enlisted her local University to help her write her business plan. I thought this was a good idea. I tried it and it worked. The MBA students took on my project. I am now competing in business plan competitions with the school. The cash prizes range from $10k-$100k per competition. This will be seed money to grow my business. Venture capitalists will be in the audience. This will be a great networking opportunity. From this experience I will also be polished in pitching my plan should I ever seek outside funding.

Today, I read about how Tech billionaire Mark Cuban is offering “open source funding” for all entrepreneurs.  He details it on his blog www.blogmaverick.com. You post your business plan on his website and get comments and possibly funding. This isn’t for everyone but the point is, think outside the “have to get a bank loan” box. There is more than one way to skin a cat!

If you want additional insider secrets like how one of our millionaire moms invented over 100 products without spending money up front then sign up for my free weekly eZine at www.millionairemomssecrets.com for a free audio and written transcript detailing her journey.  She even landed a contract with K-mart for $1 million dollars without an appointment!

Always keep your ears open for opportunity and go with the trends, not against them. (Hint…I just offered you one!).

Carpe Diem!