Despite my pessimism over the possibility of bank credit based on receivables, one bank did come through with a proposal. Via the Michigan Strategic Fund - Capital Access Program, the bank was willing to give us a line-of-credit. The loan origination fee was a little steep and we did have to put up personal guarantees but access to capital through a large bank is another step out of the startup phase and into to world of business maturity and credibility.

Our loan officer, who is now one of my most favorite people in the world, said she liked the business plan I wrote and wanted to come out to the factory to see the operation. She liked what she saw: A functioning manufacturing operation with most systems in place. We were able to show how the raw material was received and transformed into the final product. We demonstrated how the final product was cleaned, inspected and boxed for shipment. We showed how we track customers, backlog and receivables on our data base. With a few keyboard clicks, I brought up backlog reports and receivable reports on the computer screen. We showed that we had a good grasp of what we were doing. This fact plus the fact that we had survived over 2 years showing continued growth enabled us to get our credit line.

Despite the stories of easier credit and "character" loans, the truth is you must show the bank that your ongoing business can repay the money they lend you. Good ideas and fancy business plans may attract private capital but only the guarantee of repayment will attract bank money. Also, be prepared to back your entrepreneurial skills and courage with your personal assets. The bank knows you will work as hard and as long as it takes to save your home and your new business.

On a different subject, I'd like to editorialize and daydream a bit about how the government could really help small business. One of the easiest things to get behind on when there are just too many things to take care of is the never-ending government paper work. Mostly tax returns. It seems to me that for "micro" businesses there ought to be some simpler means to satisfy the state and federal agencies. I don't have a solution but could envision a system that allows start ups (under a $million, less than 5 years old -- pick a definition) to forgo most of the tedium and do one simplified return per year -- no quarterlies. Company X had $Y sales and made $Z profit so here is $T taxes. Thank you.

If the government really wants to make it easier for new businesses to start and prosper, they should not only reduce the direct costs of doing business but should also reduce the complexity. Struggling startups do not have the money to pay outside services to handle all the paperwork. Pulling yourself up by your bootstraps is easier if you can use both hands. The only up side of all the tedium, detail and government forms has to do with the adage "that which doesn't kill me makes me stronger." Hopefully it will also make me wiser.

Since a simpler system is not likely in my lifetime, what I need is a large wall chart showing what form or return has to be filed when and with whom, etc. That way when I come in every morning, a simple glance at the chart would tell me if something is due soon. Now this probably sounds silly to a lot of people but they are probably more organized than me when it comes to non-productive tasks. I just have trouble keeping on top of things that don't help build and ship product. If someone knows of such a "reminder" poster, let me know.

I have received a little feedback on these columns and am glad that some people read them. If they help one entrepreneur solve one problem or give someone the boost needed to turn their idea into a business, they are worth they effort. If someone has a specific subject that they would like discussed in this space, please give me a call at 810-227-8281, or drop me a line at Technacraft, PO Box 1670, Brighton, MI 48116. Along the same lines, isn't it time this newsletter had a letters-from-readers section?