Fatal Flaws Red flags that make potential financing sources think twice
By David R. Evanson •
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Of the 800,000 or so new businesses that are formed each year,investment banker Robert Shuey of La Jolla Securities Corp. inDallas says only a tiny fraction successfully raise outsidecapital.
A quick look at certain benchmarks would seem to bear this out.For instance, last year there were about 700 initial publicofferings (IPOs)--a goodly number, but not when compared to thenumber of start-ups.
Then there's venture capital, a concept that gets a lot ofattention but, in reality, is not an option for the majority ofsmall companies.