Is There Funding For New Ideas and Companies?

As a business consultant, I see more entrepreneurs not able to obtain funding than I see entrepreneurs obtaining the necessary money to see their ideas transformed into a viable business. This difference is very large. It maybe one idea is funded for every 10 that go unfunded but it may be as high as 1 is funded with 100 never obtaining a nickel. This kind of difference and the struggles of the entrepreneur who is frustrated by not ever seeing his idea transformed into reality and making him rich, prompts the question; is there enough funding for new ideas and companies? How one market’s the idea can sometimes be more important than the idea when it comes to obtaining venture capital.

The entrepreneur would quickly and resoundingly answer the question with a “no”! Many entrepreneurs have a hard time or are unsuccessful in getting money. Their idea is not the problem; it is that there is not enough funding available. The reality is that making additional money available to this group of entrepreneurs who have been unable to secure funding, will not create more companies and in turn more jobs. How can this be?

These ideas, that are not funded, whether for a service or a product, are really not “better mouse traps” or the entrepreneur is seen by potential investors as unable to successfully implement or allow the things required to be delegated to achieve a successful venture.

Most people do not appreciate how hard it is to provide a service or make a product, inform their target market about the product, get the product or service to the person who wants to use or buy this service or product and finally make a reasonable profit while doing and paying for all the previous mentioned tasks. Some entrepreneurs fail to factor in what capacity and talent would be needed to accomplish the launch of their idea.

Entrepreneurs become passionate about their idea, as they should, but they also need to be realistic. Just because you can produce a fuel for the combustion engine that is made from a renewable source, and will not cause pollution why would people pay $10 a gallon for it when they can get a petroleum based fuel for under $3 a gallon?

Would you invest your money into a company the produces a product that the consumer is willing only to pay $15 for and it costs the company $30 to make?

What about the entrepreneur who has a unique product everyone wants but the entrepreneur does not know how to delegate? He is brilliant and can do everything better than anyone else. No one else can do a task well enough to satisfy this entrepreneur! This entrepreneur needs to make the sales call, make the product, ship the product, and do all the administrative tasks. The company can make, sell, invoice or collect enough to make the company viable. This is an example of a great idea headed nowhere.

The entrepreneur’s … Read More

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When Funding Becomes Necessary

There may have been times when as an early stage entrepreneur or someone who wanted to start a business, but hadn’t, you’ve felt the need for some capital to help you get going. It may surprise you to learn this, but you’re in good company. Many people in various stages of their businesses have felt this way.

There are five standard ways in which businesses obtain the funding they need. In the recommended order, they are 1) Family, 2) Friends; 3) Banks; 4) Business Angels; and 5) Venture Capitalists. All of them share certain characteristics to a greater or lesser extent.

First, they’ll want to understand your business plan. That is, they’ll want you to convince them that if they invest with you, their money will be spent carefully and only on necessities; not frivolities such as new equipment or cars that could all be obtained second hand. Some will even object to funding your salary!

Families and friends probably won’t need a plan that’s as detailed as that which a bank or venture capitalist might want.

Second, they’ll want to minimize their risk, sometimes referred to as exposure. Some won’t expect anything from you except your promise that you’ll do everything thing you can to preserve what they’ve given you. Others will expect you to mortgage yourself to the hilt so that you will think twice about pulling out if things don’t work out as you had planned.

Third, they’ll want a return on their investment. The word Invest implies that the amount you’ve been loaned will grow beyond its current size. Friends and family will probably accept less over a longer period of time than the others. Venture capitalists can expect a fifty percent or more return on top of the loan within a few years. That’s one reason why investments by them aren’t made nearly as often as the other four.

Fourth, they’ll want an attractive exit strategy. That means that they’ll want to limit the time during which you will have their money. They’ll want you to pay back the loan with the extra they have earned in a reasonable amount of time. Some will be satisfied with that; others will want a seat on the board or even a share of the business. In that case, they’ll want to receive a percentage of the profits over and above their investment for a certain period after the investment has been made. The length of time they decide to retain their share will vary from investor to investor.… Read More

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New Small Business Lending Sources For Commercial Loans

It has become a routine occurrence for small business owners to be told by their current commercial lender that it will be necessary to seek another source for commercial loans and working capital. Although banks and other business lenders have made a pointed effort to portray themselves as lending normally, very few business owners are likely to agree that there is anything normal about obtaining financing from current business finance programs.

Because current commercial lending conditions have become so difficult, I published several earlier articles which addressed some of the problems that commercial borrowers are experiencing when they attempt to obtain working capital financing and commercial loans. For example, one of these commercial finance reports described the unfortunate possibility of firing your banker as one of several guerrilla financing techniques that might be required for a small business to survive in the face of extreme business banking conditions.

Certainly I would not advocate the guerrilla financing tactic of firing your bank and your banker if there were not suitable alternative sources for small business loans. At the same time, it would not be realistic to suggest that there are one or two obvious business lending sources that will solve the working capital needs for all businesses in need of help.

In reality the search for new commercial lending sources must start with an admission from a small business owner that they do in fact need to find a new source for commercial loans. Identifying the most likely alternatives can be accomplished in several ways but one of the most effective approaches will include detailed discussions with commercial loans experts that are experienced in nationwide business financing similar to what the business owner currently needs.

The best commercial finance solutions will depend on the business location, type of financing, kind of business, operating history and size of loan desired. Some of the most realistic sources for small business loans are operating regionally rather than nationally. A key point for business owners to remember is that there really are a number of viable and effective commercial lenders that are currently active in making commercial loans to businesses that are in desperate need of commercial financing.

In addition to the advice contained in this article, small business owners should not hesitate to review business finance resources such as The Working Capital Guide, a free online publication which focuses on working capital management strategies. Additionally commercial borrowers should quickly locate a commercial loans expert that is capable of providing appropriate help for their specific business financing situation.… Read More

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What Can a Cash Advance Online Offer You?

By now we’ve all heard about the famous (or infamous) cash advance online. You’ve either come across a website offering a cash advance, or you’ve seen or read a news report about them. More often than not, a news report features cash advance online borrowers who have abused the system and gotten into more debt because of their poor financial habits. Thus, these loans have gained a bad reputation.

The short term loan, however, is not as bad as those news reporters will have you think. By focusing on stories of people who can’t manage their personal finances and use the cash advance online not as it was intended, the reporters have hyped up the downside of this type of short term loan. Of course you could focus on the bottom of the barrel in any situation, and make any product sound like the worst possible product ever to hit the market!

We want you to know the true story, how a payday loan can help just about anyone, given the right circumstance. The people they feature in the horror stories on TV, showing how bad a cash advance can be, are the low end of the typical user cash advances online. These people apply for cash advances online without knowing whether they will be able to pay back the loan in two weeks. They don’t save enough out of their next paycheck to cover the loan when it’s due, and they roll over the debt, accumulating fees and interest. Any payroll advance website will clearly warn potential borrowers: make sure you portion out enough of your next paycheck to cover the loan when it’s due, or you will begin to incur interest and fees.

The people on the dramatic tv reports who make the loan look bad, also take out the loans when they don’t really need to. Again, most loan sites will warn potential borrowers that a cash advance online is for emergency cash. Car repairs, sudden medical expenses, utility bills and so forth count as cash flow emergencies. Shoe shopping does not! If you take out a cash advance online for an impulse splurge purchase, you are not using the loan wisely.

Unlike what those tv reporters want you to think, most people who take out a short term loan are responsible, and turn into satisfied customers. They need emergency cash, they take out the short term loan, and pay it back on time. Satisfied. After all, our website is full of customer testimonials attesting to this fact. Thousands of happy customers who greatly appreciate the service provided by our cash advance online company.… Read More

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Benefits of Personal Finance Management Software

Managing personal finance is a task that requires care and prudence to ensure that individuals prioritize their budget allocation to daily expenses such as credits bills and routine expenses on one hand and investment portfolio such as stocks, future securities, and retirement plans on the other hand. A good way to manage personal finance is by incorporating a finance software.

Although traditional methods of managing personal finance are still used, many people find them cumbersome, unreliable and time consuming. The development of customized finance applications has seen an increase in shift from traditional methods of managing finance to modern methods which employ accounting management software. These software and applications range from simple common spreadsheets to advanced professional software for businesses.

Budget Planning

First, this software will help you develop a realistic budget and allow you to make quick and better decisions regarding your money. This software will also enable you to set objectives on your finances. Basically, budgets are financial tools that reflect our money objectives whether in setting up investment portfolios or paying for routine investments. This software can help you prepare a detailed budget. You can use this software to prepare a budget based on the particulars of your income and expenses, cash records and registers and related accounting documents.

Management Flexibility

Web based financial tool will offer you a more flexible way of managing your budgets. Since they are based online,you can also access them remotely so long as you are connected to an internet terminal. In addition, you can update or modify data or make corrections without the need of creating different pages or altering the entire data.

Simple User Interface

If you have poor book keeping skills, this software will definitely help you create simple and reliable budgets without the need of enlisting the help of a book keeper. Some applications have easy to fill templates and you will only be required to enter details to a page. Some of the softwares have easy to follow guides and once they are installed, you can learn their features step-by-step.

Payment Schedule Reminder

This software is also useful in developing reminders of scheduled payments or expenses. Sometimes it is difficult to keep track of recurring monthly payments. You can develop a payment schedule and set a reminder that will prompt you of the impending payments if you are forgetful or committed to other things. This will give you the peace of mind and avoid unpleasant experiences with your creditors or lenders. Evaluations of Investment

This software is also useful in evaluating your investment portfolio. Some incorporate algorithms that help you determine profit ratio, potential earnings,amount of capital, value of stocks and assets. These calculations are very long and cumbersome using ordinary book keeping techniques however, with a finance software you can easily make calculations on your investment, get accurate results and make quick decisions based on the outcome. If you are not satisfied, you can redo the recalculate and compare the former and present results … Read More

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