THE NEED

Like any state, Texas was founded on small business.  Even today most people think that large corporations are the ones supporting the tax base and employment of the state's economy.  The facts could be further from the truth. Small businesses provide more than 80% of all Texas employment, but receive less than 10% of any measurable bank financing!  In most states it is less than 7%.  Of the 380,000 businesses corporations filed within Texas 91.8% are considered small businesses with 80% of those having fewer than 20 employees, and 65% of that figure with fewer than 10 employees.

On average 55,000 new companies will start each year in Texas.  Institutional lenders will traditionally finance 5,500 of those. This year, like any other year, Texas will be the target of approximately 380,000 to 400,000 new start-up companies wanting to do business in Texas.  Like any state, Texas doesn't lack the opportunities to gain new companies, or industries.  What the State sorely lacks is the methods to help those small industries, or rural communities find adequate funding to start and stay in business and grow.  

This year more than 320,000 new start-up and small business companies targeting to do business in Texas, will be lost due to the lack of funding.  Improving businesses’ access to capital will have a major positive impact on Texas and other states, and the United States economy.

SMALL COMMUNITIES

While small communities are struggling with the loss of both their population and tax base, the rural communities are in dire need of new industries.  Industries that will move in, provide jobs, support the tax base, and last but not least bring in new families for the community to grow. 

Its a crap shoot for most small towns. Most will have an Economic Development Corporation, one full time employee, supported with a highly qualified board of directors, but still can't seem to find that one magical company that will move in, provide jobs, and help build and support their community. What few Economic Development Corporations realize, they don't know how to target and start a new business for their size town.  They wouldn't know how to finance a new company, even if they were chosen as a possible site.

Large companies normally don't ever consider moving into small communities.  So while most economic developers are looking to land the big company that will save the day economically, those company's could care less about moving into a small community. And if they did move there, your community, county or city, would have to give them the farm to land them there, and pay through the nose to keep them.  

There is a Better Way to find and attract New Industry! Let TCC help and advise you on all of these matters.

CAPITAL FINANCE & EQUITY PARTNERS

J.C. Mathiews, President of TCC  was one of  the eleven original member/founders of Texas Association of Director Offering Specialist commonly known as T.A.D.O.S.  And this new network of brokers grew quickly from the eleven founding members to over 1,300 broker/dealer members across Texas.(Ta~Dos) T.A.D.O.S. was formed in early 1998, and started for a very special reason.  To help find a sound way to fund new businesses while also helping small rural communities gain capital to fund new, often small, startup businesses.  It was so successful that two years later a national organization was modeled and formed from the successful Texas model, which was named the National Association of Direct Offering Specialist, or N.A.D.O.S. (Na~Dos)

Mathiews was one of the eleven original founding members of T.A.D.O.S., which drew from well over 1,300 fully licensed State Security Broker/Dealer members across the state.  The concept behind T.A.D.O.S. was for any small community or group, to fund a new start-up business needing up to a maximum of $10M in capital.  Group meetings were held in various cities and special accredited investors were invited to attend those meetings.  Business proposals were sent into the T.A.D.O.S. board for review.   A screening process was conducted and only the most qualified projects were reviewed by accredited investors at the  T.A.D.O.S. meetings.   The goal behind T.A.D.O.S. was to review up to a total of 8 new projects  per meeting with a maximum funding needs of up to $10 Million each, for either investment bank funding or joint venture partnerships, and have them fully funded within 72 hours. 

T.A.D.O.S. originally planned to have one meeting every quarter each year with each meeting held in a different place each quarter.  First scheduled meetings where to be held in cities like Dallas, Fort Worth, Austin, Houston, El Paso, Lubbock, Midland, Oddessa, and Amarillo, Texas. However, the T.A.D.O.S. concept was so successful, meetings were held every month to accommodate the needs of both the investors and the project communities.

Texas was once highly recognized as one of the largest base of investor capital and investment money.  Fascinating as it is, the state of Texas ranked 11^th among world countries , not states but countries, for funding new investment growth. Texas & Midwestern Consultants Company (TCC) not only works with investors and investment companies regionally, but abroad as well.  In the USA, besides Texas, there are basically three major investor regions for new investment start-up companies.  Primarily they are: California, New York/New Jersey, and Florida.   However Atlanta is fast becoming a new leader for start-up investment companies.  Find out how Texas & Midwestern Consultants Company (TCC) can help you with your project and your funding needs. Call today!