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 … » Read more
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. … » Read more
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
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
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, … » Read more
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, … » Read more
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.
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.
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 … » Read more