Financing a Business

You are if you don’t have a business plan first.
Seriously: how can you boil it down to the core if you don’t know your basic strategy such as your identity, market, and focus? How can you set a scale to it without some idea of reasonable expectations in sales? How can you possibly talk about […]

If you’re thinking about starting your own business, any type of business, one fundamental will be expenses that you will need to cover before you open your doors, launch your website, or sell your first product or service. The timing of starting expenses is what distinguishes them from ongoing expenses that you track each month […]

You can be profitable and still be bankrupt. You must closely plan and monitor your cash flow to be successful and stay in business.
During the current 2008 financial crisis, even the largest corporations have had to face this truth, and more than a few have suffered the consequences.
Tim Berry, president and founder of Palo Alto […]

Cash flow is how much money is coming in to your business, generally sales, and how much is going out, as bills paid. Cash balance is how much money you have in your business checking account. If there is no cash in the company coffers to pay the bills, the payroll, or the taxes, you […]

A personal guarantee (PG) is requested by lenders in order to ensure that they get paid any debt issued to a corporation or LLC. The personal guarantee is signed by an individual typically involved in the business. In most cases it’s one of the owners, officers, or board of directors.
The National Association of Credit Managers […]

One of the most important tasks of a small business owner is finding capital for their business. Unfortunately, most business owners are clueless when it comes to finding money, and most self-proclaimed experts they may listen to are equally misguided.
The bottom line is you need capital for your business. Your capital needs will change over […]

I hate debt. I don’t like the feeling of owing anyone money. Though I was repeatedly taught in my youth to avoid debt like the plague, I didn’t listen very well — I was nearly $1m in debt at age 25! Some things are learned the hard way. As much as I dislike debt now, […]

In his book, The Seven Habits of Highly Effective People, Dr. Stephen Covey recounts a conversation with a man who hated attending out-of-town training events. The man explained that his wife calls and hounds him on every detail of the day, whom he dines with, etc., and that he felt imprisoned by it. He also […]

Asking for business capital from people you know is very different from putting in a loan application at the bank. The good news is that you already have a personal relationship, so chances are they won’t run a credit check or ask you to put up your home as collateral, and may even give you […]

You’ve developed a plan and submitted it to investors. You’re comfortable with the plan and the submissions process. Several investors have declined. Now what?
The investment process works as a filter, sorting business plans, pushing some to the top and others out of the way. This filtering process is a good thing for many entrepreneurs who […]