Which of these forms of financing requires the smallest minimum size of the borrower?
Posted by admin on 24 Feb 2010 10:23 pm. Filed under Small Business.
Small Business
Archived Posts from this Category
Business Plans – How do I gauge a market?
Posted by admin on 8 Feb 2010 5:38 pm. Filed under Small Business.
yrba77
I’m attempting to put together a business plan for a taxi service. There is competition in my local area for such a service. What is the best way to “gauge the market”? I will need a source of capital for this venture and I want to be as thorough as possible when drawing up my plan. I think I have a good idea (this will not be your run of the mill taxi service) but I want to be smart about assessing the feasibility of the business model. How can I figure potential earnings or the demand for this service oriented business?
I’m attempting to put together a business plan for a taxi service. There is competition in my local area for such a service. What is the best way to “gauge the market”? I will need a source of capital for this venture and I want to be as thorough as possible when drawing up my plan. I think I have a good idea (this will not be your run of the mill taxi service) but I want to be smart about assessing the feasibility of the business model. How can I figure potential earnings or the demand for this service oriented business?
My wife and I would like to start a lounge/restaurant – how would we go about planning for this?
Posted by admin on 2 Dec 2009 1:12 pm. Filed under Small Business.
slosco
It has been a long time dream of my wife and I to have an entertainment/lounge/restaurant venue. We both come out of that world as employees and saw some of the things that we would do better if we had our own establishment….how do we get started? We don’t know the first thing about writing a business plan or how to raise capital for a venture like this……
It has been a long time dream of my wife and I to have an entertainment/lounge/restaurant venue. We both come out of that world as employees and saw some of the things that we would do better if we had our own establishment….how do we get started? We don’t know the first thing about writing a business plan or how to raise capital for a venture like this……
how do business loans work?
Posted by admin on 31 Oct 2009 1:03 pm. Filed under Small Business.
jnbill1204
I am looking to get a business off the ground. I have all of the equipment but need money for advertising. I would like to ask for 50K. My question is that I have projected that I will need at least 3-5 months to turn actually make enough money to pay for the loan. This is the time needed to let advertising kick in and get some jobs.
I am looking to get a business off the ground. I have all of the equipment but need money for advertising. I would like to ask for 50K. My question is that I have projected that I will need at least 3-5 months to turn actually make enough money to pay for the loan. This is the time needed to let advertising kick in and get some jobs.
are there loans that can be deffered for 6 months to get me off the ground or do I need to do venture capital and provate funding?
Businesses seek venture capital investment
Posted by admin on 13 Sep 2009 1:14 am. Filed under Small Business.
Joel Weaver
The downward trend of the economy continues. An old axiom in business says that the best time to start a business is during an economic downturn, but all indications point to the same downward trend in available venture capital.
It seems that most venture capital groups are sitting on cash, riding out the uncertainty that dominates the economy. It’s not that the money isn’t there; the groups are just unwilling to take a chance right now. Why is that?
The goal of most start-ups is to make it to initial public offering (IPO) or to be acquired by another company. The rate of failure in business start-ups is alarming. With the rise in fuel costs comes a rise in the cost of everything else, including capital equipment, labor and supplies, as well as construction and real estate. Companies that will not invest in their own business are very likely not going to acquire another company. With the high costs associated with starting a business, people are relying on initial profits fund their new business.
Unfortunately, these businesses that open on a shoestring are not surviving. Consumers simply will not spend money these days, the competition is high, and it costs too much to promote and advertise a new business.
How Venture Capital Helps Small Business Become Big Business
The influx of money in the initial phases of a start-up helps the business to acquire equipment, real estate, and anything else not associated with the day-to-day operation of the business. This type of investment helps the business to grow very quickly. Usually.
In this economy, consumer confidence is low. People are sitting on cash reserves and not buying new products… from small appliances to automobiles, they are either fixing what they have or doing without. Service industries have also taken a hit. More consumers are choosing to do it themselves rather than hiring a company.
Venture capital allows the start-up to buy the equipment and inventories necessary to grow quickly and begin making money faster than it otherwise would. It allows the new company to promote and reinvest, attract new customers and expand without spinning its wheels by making money only to immediately buy something it needs.
Helping the Economy
The importance of venture capital now is that many companies that have been successful in year past are no longer making money. They are stuck in neutral and not making any significant gains. Equipment wears out. Needed improvements to business infrastructure are constant. They need to compete in order to survive and to do that, they must improve their situation.
It’s not a trickle down or a trickle up theory; it’s a trickle out theory. The business buys equipment to make money by attracting more customers and keep people employed who build the stuff another company needs to supply the company… you get the picture.
It’s a web of economy. It’s one that needs to succeed in order for our economic system to succeed. Even the United State Government is getting involved by offering money to certain industries. Say what you will, no matter your politics, but the Federal government just became the biggest provider of venture capital in the country. Usually, venture capital groups do get some say in the decisions made by the start-ups they help finance. They get a seat on the board, they get stock in the company which gives them a say in how its run. Unfortunately, many companies in these key industries are not using this money to invest; rather, they’re using it to pay down debt.
Finding Venture Capital
Many venture capital groups exist, and are looking for ways to invest. An Internet search can provide small business owners with venture capital possibilities. Most groups will express interest in the start-up, rather than waiting, but usually, the business seeks out the capital. Most will require a presentation, including a detailed business plan. It is better in this instance to offer too much information about the business, the industry, the key players, the product, and most importantly, the pay-off to those who are investing.
The downward trend of the economy continues. An old axiom in business says that the best time to start a business is during an economic downturn, but all indications point to the same downward trend in available venture capital.
It seems that most venture capital groups are sitting on cash, riding out the uncertainty that dominates the economy. It’s not that the money isn’t there; the groups are just unwilling to take a chance right now. Why is that?
The goal of most start-ups is to make it to initial public offering (IPO) or to be acquired by another company. The rate of failure in business start-ups is alarming. With the rise in fuel costs comes a rise in the cost of everything else, including capital equipment, labor and supplies, as well as construction and real estate. Companies that will not invest in their own business are very likely not going to acquire another company. With the high costs associated with starting a business, people are relying on initial profits fund their new business.
Unfortunately, these businesses that open on a shoestring are not surviving. Consumers simply will not spend money these days, the competition is high, and it costs too much to promote and advertise a new business.
How Venture Capital Helps Small Business Become Big Business
The influx of money in the initial phases of a start-up helps the business to acquire equipment, real estate, and anything else not associated with the day-to-day operation of the business. This type of investment helps the business to grow very quickly. Usually.
In this economy, consumer confidence is low. People are sitting on cash reserves and not buying new products… from small appliances to automobiles, they are either fixing what they have or doing without. Service industries have also taken a hit. More consumers are choosing to do it themselves rather than hiring a company.
Venture capital allows the start-up to buy the equipment and inventories necessary to grow quickly and begin making money faster than it otherwise would. It allows the new company to promote and reinvest, attract new customers and expand without spinning its wheels by making money only to immediately buy something it needs.
Helping the Economy
The importance of venture capital now is that many companies that have been successful in year past are no longer making money. They are stuck in neutral and not making any significant gains. Equipment wears out. Needed improvements to business infrastructure are constant. They need to compete in order to survive and to do that, they must improve their situation.
It’s not a trickle down or a trickle up theory; it’s a trickle out theory. The business buys equipment to make money by attracting more customers and keep people employed who build the stuff another company needs to supply the company… you get the picture.
It’s a web of economy. It’s one that needs to succeed in order for our economic system to succeed. Even the United State Government is getting involved by offering money to certain industries. Say what you will, no matter your politics, but the Federal government just became the biggest provider of venture capital in the country. Usually, venture capital groups do get some say in the decisions made by the start-ups they help finance. They get a seat on the board, they get stock in the company which gives them a say in how its run. Unfortunately, many companies in these key industries are not using this money to invest; rather, they’re using it to pay down debt.
Finding Venture Capital
Many venture capital groups exist, and are looking for ways to invest. An Internet search can provide small business owners with venture capital possibilities. Most groups will express interest in the start-up, rather than waiting, but usually, the business seeks out the capital. Most will require a presentation, including a detailed business plan. It is better in this instance to offer too much information about the business, the industry, the key players, the product, and most importantly, the pay-off to those who are investing.
Venture Capital – Private Equity firms?
Posted by admin on 10 Sep 2009 4:11 pm. Filed under Small Business.
Maintaining proprietary information while seeking venture capital?
Posted by admin on 7 Sep 2009 11:37 pm. Filed under Small Business.
a little concerned
The business is a success, but in order to take it to the next level, we need two things…
The business is a success, but in order to take it to the next level, we need two things…
1) An idea of how to adjust the way we work in order to set us apart from the competition (we believe that we have this)
2) Venture capital to put the idea into motion (larger advertising budget, facilities, more people etc)
The problem is, how do we secure funding from a venture capital company without giving away the idea and intellectual property we have that we know will improve the business?
Once the idea is seen by others in the industry, they will start to replicate the idea, so we must hit first, hit hard and cover a wide area.
with a successful business, I wouldn’t be giving away 51% of the company for any amount of money…who would?
How long does it take to get venture capital?
Posted by admin on 6 Sep 2009 1:08 pm. Filed under Small Business.
ShadowD
Imagine if I were competing with Amazon, and I had a premium domain name like Store.com or something.
Imagine if I were competing with Amazon, and I had a premium domain name like Store.com or something.
I would need venture capital at the $10-20 million range for 10% of the company because this could obviously be a huge company (yes, I do have a very strong plan to “penetrate” the market despite Amazon’s name, reputation, and size)
I’m just wondering how long it would take to obtain the venture capital? If I already have the business plan, would I be able to get a check within a month after presenting this to the venture capitalists?
I need this done before mid-May for personal reasons.
Do you have a resource for the format for a 2 page business plan?
Posted by admin on 19 Aug 2009 8:36 am. Filed under Small Business.
Securing Venture Capital From China
Posted by admin on 14 Jul 2009 1:28 am. Filed under Small Business.
Erilson Araujo
I am charged with getting venture capital for our media technology company that focuses on next-generation home entertainment. This financial crisis has got me thinking about where to look. I was thinking maybe China. Any ideas? —E.S., Irvine, Calif.
First, the good news: “China does have a VC community, and…[it's a] source of liquidity and appetite for new investment, notwithstanding the current global financial collapse,” says Janet Carmosky, CEO of the China Business Network, a business information and networking Web site.
Bradley Haneberg, a securities lawyer for Kaufman & Canoles who has worked on direct Chinese initial public offerings, agrees. “In the last several years, China has seen the birth and exponential growth of its entrepreneurial class. The Chinese government adopted several policies (including tax incentives) to encourage the development of privately owned businesses. These entrepreneurial ventures, coupled with the privatization of state-owned businesses, have driven the Chinese economy to new heights,” he says.
Despite a blistering economy and an enormous spike in the number of businesses that require access to capital, bank debt is difficult to obtain in China because loans have traditionally been given only to companies that are politically connected. The lack of bank financing has contributed to the creation of Chinese venture capital groups, Haneberg says. Chinese investors have funded telecoms, Internet ventures, health-care firms, software development, green tech, water projects, airport securities, and social networking sites, says Robert Chen, executive vice-president and general manager of the ChinaTel Group, which provides WiMAX networks in China and other countries. “Next-generation home entertainment could be big here,” he says.
Focus on Chinese Companies
Despite the good news, however, there is a deal-breaker for U.S.-based startups seeking to tap into Chinese VC money: Chinese investors focus on funding Chinese companies.
“There are many reasons for [investing inside China]: Among the top: lower labor cost, big China market, and most importantly, the VC can keep an eye on the project,” Chen wrote in an e-mail message. In addition, Chinese VCs rely heavily on what’s known as guanxi (BusinessWeek.com, 11/8/07), Chen says. “When a person has good guanxi with the Chinese government or with a VC, that means they have a good relationship and might refer the company or individual to get a license approved or refer the person to someone in the VC community that will review the company’s business plan and may or may not invest in the company.”
Carmosky confirms the importance of the personal relationship in Chinese business, in contrast to U.S. venture capital culture, which tends to focus less on relationship and proximity and more on forecast ROI and exit strategies. “Our system of capitalism is so impersonal that it’s often called ‘OPM’ or ‘Other People’s Money,’” Carmosky notes. “It calls for high degrees of transparency and accountability, and exists within a framework of mature, scalable markets.” In contrast, risk is evaluated by Chinese VCs based on proximity, local relationships, and calibrating how well-attuned a company is to government policy.
There are also stringent foreign exchange rules in China that make it difficult for firms there to engage in foreign exchange, Haneberg says, and Chinese venture capital firms have a hard time competing for quality investment opportunities in developed countries where there are already so many established investment firms.
I am charged with getting venture capital for our media technology company that focuses on next-generation home entertainment. This financial crisis has got me thinking about where to look. I was thinking maybe China. Any ideas? —E.S., Irvine, Calif.
First, the good news: “China does have a VC community, and…[it's a] source of liquidity and appetite for new investment, notwithstanding the current global financial collapse,” says Janet Carmosky, CEO of the China Business Network, a business information and networking Web site.
Bradley Haneberg, a securities lawyer for Kaufman & Canoles who has worked on direct Chinese initial public offerings, agrees. “In the last several years, China has seen the birth and exponential growth of its entrepreneurial class. The Chinese government adopted several policies (including tax incentives) to encourage the development of privately owned businesses. These entrepreneurial ventures, coupled with the privatization of state-owned businesses, have driven the Chinese economy to new heights,” he says.
Despite a blistering economy and an enormous spike in the number of businesses that require access to capital, bank debt is difficult to obtain in China because loans have traditionally been given only to companies that are politically connected. The lack of bank financing has contributed to the creation of Chinese venture capital groups, Haneberg says. Chinese investors have funded telecoms, Internet ventures, health-care firms, software development, green tech, water projects, airport securities, and social networking sites, says Robert Chen, executive vice-president and general manager of the ChinaTel Group, which provides WiMAX networks in China and other countries. “Next-generation home entertainment could be big here,” he says.
Focus on Chinese Companies
Despite the good news, however, there is a deal-breaker for U.S.-based startups seeking to tap into Chinese VC money: Chinese investors focus on funding Chinese companies.
“There are many reasons for [investing inside China]: Among the top: lower labor cost, big China market, and most importantly, the VC can keep an eye on the project,” Chen wrote in an e-mail message. In addition, Chinese VCs rely heavily on what’s known as guanxi (BusinessWeek.com, 11/8/07), Chen says. “When a person has good guanxi with the Chinese government or with a VC, that means they have a good relationship and might refer the company or individual to get a license approved or refer the person to someone in the VC community that will review the company’s business plan and may or may not invest in the company.”
Carmosky confirms the importance of the personal relationship in Chinese business, in contrast to U.S. venture capital culture, which tends to focus less on relationship and proximity and more on forecast ROI and exit strategies. “Our system of capitalism is so impersonal that it’s often called ‘OPM’ or ‘Other People’s Money,’” Carmosky notes. “It calls for high degrees of transparency and accountability, and exists within a framework of mature, scalable markets.” In contrast, risk is evaluated by Chinese VCs based on proximity, local relationships, and calibrating how well-attuned a company is to government policy.
There are also stringent foreign exchange rules in China that make it difficult for firms there to engage in foreign exchange, Haneberg says, and Chinese venture capital firms have a hard time competing for quality investment opportunities in developed countries where there are already so many established investment firms.