Innovators Secret Ingredient for Success
I recently spent the day at a conference which focused on the merger of the food and technology industries and heard many lively discussions on the future of the food industry and the benefits technology is bringing to that space.
We all know that the speed in which technology is moving is changing every aspect of how we live, conduct business, achieve healthy lifestyles, work from remote locations, and more. As with all change, some people will be resistant while others will find opportunities that didn’t exist before.
I’ve worked with entrepreneurs in both the food and technology industries and have heard many interesting stories. Financial executives leaving high level posts to pursue their passion in opening a microbrewery; An app that manages food programs for cancer patients; College roommates starting a granola business out of their college kitchen; Roommates who created an edible cup business; Apps that manage food companies purchasing systems. The opportunities for entrepreneurship are at an all-time high and more people are fulfilling their dreams of owning and developing a business where they can realize their passion.
However, as most entrepreneurs soon realize, financing that dream is not as easy as they had hoped.
Some try traditional financing routes such as bank loans, but are turned away because their companies are too young. Others pursue equity financing and realize they don’t want to give up a high percentage of equity when they are just starting out.
When I mention using receivables financing, possibly partnering with purchase order financing, and how these types of transaction financing can grow their business, the reaction is almost always one of surprise and intrigue. I can almost see the light bulb go off above their heads. “Why didn’t I know about this type of financing?” many ask. Though it’s a financing vehicle that has been around for decades, it’s still new for many entrepreneurs.
As I discuss details with them, they excitedly nod their heads, ask more questions, smile, and realize they have finally found the right financing partner to help them on their journey to successful entrepreneurship.