“Panel puts women entrepreneurs on path to investment capital”

 Nashville Business Journal, by Judy Sarles, July 22, 2002

Women entrepreneurs are increasingly seeking investment capital, but they often are not well-informed about the best way to go about financing their businesses.

Local women business owners received some insight during a panel discussion on how they can access capital, which was among the segments of the Economic Summit 2002: Women & Entrepreneurship, held today at Loews Vanderbilt Hotel. Congressman Bob Clement served as honorary conference chair at the summit, which was coordinated by The Public Forum Institute, a Washington, D.C.-based independent, nonpartisan, not-for-profit organization fostering public discourse.

According to statistics from the Center for Women's Business Research, presented at the forum by Laura Campbell, president and CEO of Laura Campbell & Associates, 44 percent of investors have seen an increase in proposals from women.

When searching for companies to capitalize, most investors are looking first for a strong management team and second for a superior return on their investment, says Campbell. Venture capitalists are also seeking businesses that will grow quickly and have the potential to go public within the next few years or to be acquired.

Yonnie Chesley, president & CEO of Gordian Health Services, says her company raised $8 million from 1996 to 1998, $5 million in equity and $3 million in debt. She says the initial fund raising took nine months.

"So it's not a very fast process," says Chesley.

From experience, she advises against paying up-front fund-raising fees. Instead, she recommends making any fees contingent upon dollars actually being raised. Her company once paid thousands of dollars up-front.

"And we didn't raise a dime," Chesley says.

Marcela Gomez-Heinlein, president of Hispanic Marketing Group, had several suggestions for women who are thinking about starting a business, including asking such questions as how do I want my business to be remembered by others and what have my competitors done.

During a question and answer session, Gomez-Heinlein gave her evaluation of how helpful the U.S. Small Business Administration is when entrepreneurs are seeking funding.