Entrepreneurs Heart Hartford — LootScout
This blog series, posted in partnership between HYPE and reSET, offers a platform to showcase the commitment that Hartford Entrepreneurs have for their work and this city. It will examine how entrepreneurs have chosen their work, and provide examples of the ways in which they are having an impact in Hartford. In this edition, we interviewed Anthony Price, chief loot officer at LootScout.
Tell us about LootScout.
Prior to founding LootScout, I earned my undergraduate degree in Business Administration and Management, and my Master’s in Organizational Behavior. I then went on to work with entrepreneurial ventures, most recently at the Hartford Economic Development Corp. (HEDCO). But really my expertise has been in helping small businesses, in both early and mature stages (under $1M in revenue), access capital (debt, equity, etc.) allover the state.
When I started working there, my ambition was never to stay forever. Some people want to work for the same organization for their whole career, and that’s great. I just don’t want that for myself. I want to experience more and to have control over what I work on. So I guess I always knew I would one day want to go out on my own. But it was the connections I made there that made my recent move possible. I also launched LootScout as a result of all the innovation I saw happening with capital. Because of the level of risk that’s inherently associated with small businesses, banks have pulled back on lending post-recession. Furthermore, those that are still lending don’t want to give loans in the $50-200K range because of the underwriting that’s involved and because larger loans are more profitable for them. So entrepreneurs have had to think out of the box as of late and they’ve succeeded. There’s a ton of opportunity in this space. However, I’m not alone in seeing this. Other new entities are starting to serve the market too. The thing is, some are doing this in in a good way while others aren’t.
But the real issue with finance is that it’s complicated to a lot of people. Most business owners get involved in a certain industry because they’re passionate about it. For example, people who open up a bakery do so because they love to bake. Finding capital (public or private) is similar to working with an insurance agent, accountant, or attorney…businesses outsource things they don’t know a lot about. So what LootScout does is help businesses source capital and scale to the next level. What I think makes me different is that I really try to educate my clients about what’s out there and what might work well for them. I’m basically like an old-school doctor. I meet with a client, assess their needs, and provide recommendations. I’m not pushing any one product like many lenders. And ultimately, my clients make the decision on where they want to go. Once they decide that, I can help with the paperwork, make introductions to the people with whom they need to talk, and tweak their business plans and financial models.
Why did you decide to start your business in Hartford?
I get asked that a lot and I offer that the premise of the question is rather negative. Connecticut can be full of doubters. For whatever reason, a lot of people who live and work here want to be somewhere else. We’re the little engine that thinks it can’t. And as that narrative has gained traction, it has negatively impacted our thinking. But I say, why not start a business here? These days you can run one from just about anywhere. There is no Shangri-La place for business. If you have the right mindset, you can be successful wherever you are.
For me personally, the cons of Hartford are worth it. I have a lot of contacts here. There’s a vibrant business community and a high standard of living. And it’s small, so you can get to know people quick. We’re also conveniently located between NYC and Boston, so entrepreneurs like me can tap into those markets whenever they’re ready to expand.
How does your business impact the community?
My business empowers funders as much as it does entrepreneurs. If investors are looking to support businesses that they think will be the next Google or Apple, they probably shouldn’t look for opportunities here. But if they want to support local commerce and earn a modest return, then they can make a world of difference here.
What words of wisdom would you give to aspiring entrepreneurs who may be hesitant to take the plunge into entrepreneurship?
I think the main thing is to surround yourself with good people and to build a strong team. It doesn’t have to be a team of paid people. People who’ve been successful in business can work for you as volunteers and mentors. The bottom line is that you must understand you can’t do everything alone and listening to different viewpoints is crucial.
What is it like being an entrepreneur in Hartford? What difficulties or challenges have you faced?
I seem to do really well with urban businesses and I have four deals closing in the next few weeks. One is a restaurant in Torrington, one is a food manufacturing business starting up in Hartford, and another is a barbershop in Windsor. So those are my current success stories.
In terms of my greatest challenge, I think it’s the same as the one many small businesses struggle with. There’s only one of me. If I could clone myself, I could get a lot more done. Alone, I have a real bandwidth issue. I need to be constantly bringing in new businesses, but it’s just as important to see through the business that I already have and to do that well.
What is your vision for your business over the next five years?
In the short-term, I want to help businesses find financing and to host capital-raising conferences to educate business owners about the plethora of capital available. New companies are innovating in this industry, which has led to better products that meet the needs of the small- business market.
I want to democratize capital and make it available to the small-business market. Down the road, I want to build a platform that’ll help my clients access information and grow their enterprises. I haven’t seen a lot of this out there. But you know what, sometimes you don’t have to reinvent the wheel. If you’re an aspiring entrepreneur, chances are a lot of people will tell you that the market can’t bare anything else. But the companies that innovate are the ones that are able to come forward and shake up an industry. For example, look at what has happened to the burger industry. It used to just be McDonald’s and Burger King. Now there’s Shake Shack, Five Guys, Bare Burger, and no shortage of local entities.
When he’s not working out of the reSET Business Factory, you can find Anthony at:
https://www.Linkedin.com/In/PatientCapital
SPECIAL NOTE:
Anthony will be hosting the 2015 Hartford Capital Summit: Raising Capital for Your Business on October 1 at the Hartford Marriott Downtown. The half-day conference will educate and expose startups, business owners, and social enterprises to the myriad of debt and equity capital options available today. The keynote will be delivered by Michael Chernow, co-founder of The Meatball Shop and founder of Seamore’s, both located in New York City. John Katovich, president of Cutting Edge Capital, will also present.
