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Item Upon - 5 ways to Raise Capital for your Business
In earlier articles we wrote about the power of using hidden commands in normal conversation to increase sales, convince others to do something or to accept your ideas. This is often done by separating out a simple command or suggestion by pausing, stating the command in a different tone of voice, then resuming normal conversation.For example, when selling a car you might say, “This car gets 30 miles per gallon on the highway, which you’ll notice when you (pause) take it for a test drive. You’ll also notice that ….Another way to insert a command into conversation is to use what are called Weasel Words. These phrases are b
3. Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the pr
And no I am not referring to holiday cheer, parties, gifts and the like. And not even ringing in the New Year with its associated celebrations and resolutions. But, as all you bookkeepers and accountants are aware, year end for most companies is right around the corner.One of the first issues to be deal with no matter the timing of your fiscal year end is all those pesky payroll chores. W2’s to be prepared, proved and mailed. And let’s not forget our favorite year end chore – preparation of 1099’s. If you have been keeping on top of things through out the year, then these processes should not be too onerous.One thing yo
If you're thinking about getting outside or equity capital to help fund your business, there are some things you need to do first, that can make your business more attractive to investors. Follow these simple ideas, and you'll be well on your way to raising the money you need.
First, always talk to a qualified business attorney (not your family lawyer). There are a lot of laws pertaining to how equity capital can be raised from the public, and the laws change often. You need someone who understands not only these laws, but also how to make sure that any business contracts are written to protect you and your business, especially the fine print.
1. Taking your company public. Although security laws in the U.S. have made it easier for companies to go public, and offer stock as a way to raise needed funds, this is still probably the most risky choice. It is usually not a recommended option for very new or very small companies. Because of the number of legal issues involved, consulting with a knowledgeable attorney beforehand is vital. There is also a lot of stress involved in running a public company, and a considerable loss of autonomy and control. Before making this choice, be absolutely sure that this is the wisest course of action for your business.
2. Getting money from relatives. Yes, it can seem like begging, and it's a difficult thing to have to swallow your pride. Surprisingly, in a recent survey, almost 30% of entrepreneurs said that they raised all or part of the capital they needed through family members. If this is your choice, make sure that you have your attorney draw up a regular business contract. When approaching family members, talk to them about their investment the same way you would any other outside investor. Tell them about how much money they can make, not about how much you need their help. And make sure that you keep to your end of the agreement.
3. Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the pro
Henry Ford didn't invent the car. He wasn't even the first manufacturer of the car. In fact, when he jumped into the industry, there were more than 500 manufacturers building automobiles. That's a heavy market. It's what some call a red ocean, tainted by the battling competition. So, why is it that we think of Ford when we think of cars? Because he didn't sail that red ocean. He made a blue ocean strategy that not only built long-term brand equity, but brought the cost of a car down from $1,500 to $250 in a matter of a few years, sending him into uncontested market space.Not long ago, W. Chan Kim and Ren?e Mauborgne detailed the be
First, always talk to a qualified business attorney (not your family lawyer). There are a lot of laws pertaining to how equity capital can be raised from the public, and the laws change often. You need someone who understands not only these laws, but also how to make sure that any business contracts are written to protect you and your business, especially the fine print.
1. Taking your company public. Although security laws in the U.S. have made it easier for companies to go public, and offer stock as a way to raise needed funds, this is still probably the most risky choice. It is usually not a recommended option for very new or very small companies. Because of the number of legal issues involved, consulting with a knowledgeable attorney beforehand is vital. There is also a lot of stress involved in running a public company, and a considerable loss of autonomy and control. Before making this choice, be absolutely sure that this is the wisest course of action for your business.
2. Getting money from relatives. Yes, it can seem like begging, and it's a difficult thing to have to swallow your pride. Surprisingly, in a recent survey, almost 30% of entrepreneurs said that they raised all or part of the capital they needed through family members. If this is your choice, make sure that you have your attorney draw up a regular business contract. When approaching family members, talk to them about their investment the same way you would any other outside investor. Tell them about how much money they can make, not about how much you need their help. And make sure that you keep to your end of the agreement.
3. Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the pr
As a patient, we want to believe that our lives are in the hands of people who we can trust to do their job of medical billing without looking at the bottom line. But the sad truth is, it's the size of the claim and not the seriousness of your problem that gets the highest priority when it comes to crunch time.The biggest problem with medical billing is that it's still a business. The medical billing agencies get their money from getting a premium paid on each claim based on how much the claim itself is. If you're doing bulk business, this really ads up over time. The doctors are willing to pay for this service because they jus
2. Getting money from relatives. Yes, it can seem like begging, and it's a difficult thing to have to swallow your pride. Surprisingly, in a recent survey, almost 30% of entrepreneurs said that they raised all or part of the capital they needed through family members. If this is your choice, make sure that you have your attorney draw up a regular business contract. When approaching family members, talk to them about their investment the same way you would any other outside investor. Tell them about how much money they can make, not about how much you need their help. And make sure that you keep to your end of the agreement.
3. Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the pr
Every company needs a product to sell. It is also the same with internet home business. You need a product to start up a home based business and start to work from home. I categorized three different type of product.1. Digital Product. It is very easy to build and very popular among the Internet. We don’t have to keep product stock. We only have to create or pay someone else to create our product. Some product that we can describe in computer related product are e-book, software, picture, movie, song, audio, and web related product (web hosting, script, domain name, etc).2. Hard product. Hard product means that we can touch
2. Getting money from relatives. Yes, it can seem like begging, and it's a difficult thing to have to swallow your pride. Surprisingly, in a recent survey, almost 30% of entrepreneurs said that they raised all or part of the capital they needed through family members. If this is your choice, make sure that you have your attorney draw up a regular business contract. When approaching family members, talk to them about their investment the same way you would any other outside investor. Tell them about how much money they can make, not about how much you need their help. And make sure that you keep to your end of the agreement.
3. Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the pr
The following is the most comprehensive ever explanation to the most mysterious phenomenon of Capitalism – the Business Cycles. In order to ensure that the article can be read by any well educated reader, I have minimized the economics jargon and have added a short and simple introduction to the structure of the economy. Each and every one of us would be interested to know as to why we cannot have a paradise on earth. Why is it that we are often besieged by such painful downslides of economic activity such as Great Depression or the nerve wracking periods such as Stagflations? Why can’t we all be always happy with hundred percent employme
3. Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the projected return on investment (ROI). If you do end up financing your project using credit cards, make sure that you shop around first, and find the card that will offer you the best rate and gives you the most "bang" for your buck.
4. Venture Capital and Angel Investors. Before even looking for venture capital, look at your company from an outsider's point of view. Ask yourself these questions: Does your company have a solid track record? (Most venture capitalists don't invest in start up companies). Does your company have the potential of becoming very large in the next five to seven years? (People don't invest in your company out of the goodness of their hearts. They're looking for a return on their investment -- the larger the better.) Does your company own a good percentage of its market, or does it stand to gain a large percentage in the next 12 to 18 months? (Contrary to popular belief, your company doesn't have to be involved in high tech to attract venture capital). If you can answer yes to the above questions, your next step is to find a venture capital firm whose ideals and goals are in line with yours. Your next step should be to look at your "circle of influence" and see if you know someone who can give you a personal introduction to someone at the venture capital firm. (People invest in people, not just companies.)
5. Potential or Current Employees. Surprisingly, one of the most common ways (especially for new companies) to raise equity capital, is by inviting your potential or current employees the opportunity to become investors. With this method, not only do you get a really committed workforce, but many equity employees are also willing to accept a below-market wage in the beginning (especially if you do the same). There are other benefits, but this choice is not without its pitfalls as well. Again, before going this route, talk to your business attorney, and put policies into place that plan for potential problems. For example, what do you do if an employee's work becomes substandard? Or an employee quits and goes into competition with yo
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