steps to build a successful virtual business even when the bank says no

So you want to start a business and have some pretty good ideas of what you want to do. There is only one slight problem; you have not funds to get it going. You figure, after gazillion years of relationship with your banker, it is time to cash in. Armed with your business proposal you head out to borrow funds. Oops, you find out the bank is not lending. So you just wasted all those years building a relationship with your banker, which during tough times is pretty much…meaningless!
Well, you say, let me get a home equity line to get my business going. You fill out an application; submit tons and tons and tons of documents. Wait for the appraisal to come in and…oops, you have no equity! And your credit is not as perfect as the banks now want it. Hum, you think, I have to get my business going, what do I do now?
So, you decide you are going to raise private funds. Attracting Angel Investors sounds like a pretty good strategy. So you buy the latest “Business Plan” builder software, a few books on angel investment and private equity funding and off you go. You spend precious weeks, maybe months aligning your strategic documents to make a sales pitch to some deep pocket angel investor. You are absolutely 100% sure, he will open up his wallet the second he hears your wonderful business pitch. Time keeps on ticking and no angel investor has gotten back to you yet.
By now, months have passed and you still do not have a business, or funds or really nothing but a burning idea. Your savings are depleting fast. Your credit cards are maxing out. Panic sets in. Reality is not looking good…now what?
Well, first of all, the biggest misconception out there — which I believe comes from outdated books and information from the dot.com era - is that no one will even bother to look at your business unless YOU make it successful first. It does not have to be in a large scale. In all fairness, why should people risk their money on you, if you have no track record? Would you invest in someone without proof that they can succeed? You have to prove yourself first. The time when you just wrote a compelling business plan, approached investors, and got money are long gone. And for the looks of it, it may never come back.
So you may be wondering, what can you do now?