Lenders want to see personal commitment, especially if the borrower is starting a brand-new business. "Having nothing in your name will make a lender skeptical," says Wachovia’s Allen Brinkman. Putting up your own cash is more impressive than leaning on your rich uncle. Collateralizing your house speaks volumes, too.
Hew to standards that apply (theoretically, anyway) to bigger, publicly traded companies. Example: When choosing an auditing firm, make sure it doesn’t also provide your company with marketing or "aggressive" tax advice, as mandated in a new regulation by The Public Company Accounting Oversight Board. "This is one of those things that sets [borrowers] apart," says Donald Paris, a CPA in the Washington, D.C., area.
A nice suit and pretty pie charts only go so far. Disclosing the risks of your venture goes a long way toward building a strong relationship with a lender. "I will work to the end to help out, but the borrower who doesn’t communicate will likely have more problems," says Lakeside’s David Pinkerton.
A: To ensure confidentially and neutrality, Gateway has asked Forbes.com to select a panel of experts to judge the ideas.
A: First, is it a great idea? While this may be somewhat subjective, the judges will be looking for "head-turning" ideas that are unique, innovative and inspirational. For example, an idea to simply "start my own medical practice" is not as great as an idea that breaks the mold of what a medical practice actually can be.
Second, will the $100,000 make a difference? In other words, an idea for cold fusion or a fuel cell may benefit humanity but this is $100,000, not $100 billion.
Third and closely linked to the second criteria, what is the potential return on investment? How quickly will the $100,000 make a difference?
And fourth, how will the new Gateway convertible notebook give your idea the edge. We are looking for ideas on how small business people will utilize the new 14-inch widescreen convertible notebook and all the notebook functionalities to give them the edge.
A: Yes. In fact, Gateway, and all other Sponsors, will never even see your ideas as Forbes.com will be handling the judging. In addition, the experts on the judging panel will also sign an agreement not to use your idea. Please read our official rules.
A: The prize Gateway convertible notebook comes equipped with Intel® Centrino™ mobile technology, Microsoft® Windows XP Tablet PC Edition 2005 and Microsoft OneNote 2003 software. Intel and Microsoft are co-sponsors of the Gateway $100,000 Edge Contest.
A: This contest is for residents 18 years-of-age and older within the United States of America. Again, please read our official rules.
A: All online entries must be received by 11:59 PM ET December 24, 2005 to be eligible. Mail-in entries must be postmarked by December 24, 2005 and received by December 31, 2005 to be eligible.
A: A winner will be determined by January 31, 2006 with a formal announcement shortly thereafter. Winners should expect to be contacted within a few days of January 31, 2006. Visit our website for details on the announcement and for a list of winners.
A: Once you win, the money is yours to be used for business development and activities described in your application.
A: No, but we sure hope you'll be willing to share some details of your idea to any reporters that might be interested in telling your story.