Entrepreneurs advised to seek the funds they need now

Business owners are being advised to seek the cash flow they need now as opposed to waiting for better economic times to return.

This week, Business Week magazine offered some pointers for entrepreneurs in need of startup capital. The report noted that venture capitalists were more cautious in their investments this year, which fell nine percent between the third quarters of 2008 and 2007.

"Please do not think that because the economy's bad it's a bad time to start a company if you have the right idea," venture capitalist Mike Goguen told Business Week, also noting that "the entrepreneurs who have the moxie to walk through your door in tough times tend to have better ideas."

The magazine advises startup entrepreneurs to demonstrate that they can create a lean and effective company, and those that can already demonstrate revenues will have a better chance of securing more funding.

Some companies are also reportedly holding off on seeking working capital if they can afford to, preferring to spend the current time focused on long-term goals like developing closer ties with new customers and those who could be investors in the future.

Overall, entrepreneurs with a solid and innovative business plan don't have to fear the current economy. Funds may have slowed somewhat from traditional financing sources, but there are also various capital alternatives that can be explored as well.