Black Swan Management, LLC

Investments and Strategies for the Future of Business

Archive for category business startup

Investors in Your Business – Are They the Best Solution For Your Funding Problems?

Sep 20

Posted by Lee Lister in business startup, venture capital/funding | No Comments

When looking for investors in a new business – I usually suggest that you go first seek out any grants or government assistance that your state, county or country offer – as this money is often subsidized and easier to obtain for a new business.

Your next stop would be the bank. They will be seeking to lend you money that is secured on some kind of collateral. A business loan is more usually for 2 – 5 years. A bank will not generally want to get involved with your business – just some confirmation that they will get their money back with interest.

The next port of call is an investor. Now these people are totally different to banks – in that that are actually investing in you and your business and they often want to get involved with your business as well. So let’s analyze this a little more.

What are investors looking for?
* In your business: They want a sound business or business idea with some kind of unique concept that they believe will rapidly move to profitability. They want a well thought out and credible business plan with realistic financials.
* In you: They want a hard working entrepreneur with good experience in the business area. They will look at your personality, your abilities and your past resume to see if your are the kind of person that can make a success of this type of business. Similarly they will want to feel that they can work with you – because they will be.
* From the loan: Investors will only want to invest in your business for a few years, often a low as one year. They expect to be able to obtain a good rate of return on what they see as a risky investment. They will also often require a share of your business as their security. If you are seeking a large loan – they will often request a seat on the board of your company so that they can exercise some kind of control on the business activities.

What they will bring to your company:
* Experience and Guidance: Investors often invest in areas that they know a lot about. They are obviously keen for your business to be a success as their return on their investment is dependant upon this factor. This means that they will often offer guidance and help to you as part of the package.
* Cash Injection and Cash Flow: Some times you can request a staged investment from an investor, subject to you reaching agreed deadlines. This not only concentrates the mind in your business development, but also ensures that money is available when you need it. Suffice it to say that cash is always welcome in a business.

Your business plan is very important. You need to prove that you meet all the requirements above, but you also have to include what is called an Exit Strategy. This basically answers and lays out in detail, the four questions that every investor will ask:
* What’s in it for me?
* How soon do I get my money back?
* How risky is it?
* How much will I make from this investment?

One last suggestion for you – if you do not have the experience of every part of your new business, I would consider bringing such a person onto your team. Good luck with your new business.

Author: Lee Lister
Article Source: EzineArticles.com
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The Truth About Upfront Fees Associated With Obtaining Business Capital

Jul 6

Posted by Jefferson Mesidor in business startup | No Comments

In business financing, upfront fees are monies paid in advance to any potential lender, investor or intermediary for performing due diligence related matters, such as business valuations, accounting or other professional services to help determine the viability or risks associated with your business project or company. It can also be applied towards the closing costs associated with your funding your business project or company.

To continue, upfront fees, is one of the most controversial areas of business financing. However, if you have ever purchased any type of real estate that required mortgage financing, you would know that the mortgage company requires you to pay for the appraisal reports, home inspections, environmental surveys, and all the associated due diligence fees “upfront” prior to closing. In business financing the concept is the same.

The reason lenders or investors require you to take on all the financial risks associated with investigating your business project or company, is because they don’t want to lose their money or time investigating your business project or company.

Yes, it is true that there are lots of predators out there waiting for the opportunity to prey on entrepreneurs and take advantage of their need for business capital by offering bogus services with no intent to provide the services that are being offered. However, in any legitimate business financing transaction, there are reasonable fees that you should expect to pay.

It’s important to note, that when dealing with institutional or private investors it does cost them money to properly investigate and research your project in order for them to make a decision as to whether or not they are going to fund your company or business project. These costs include attorney fees, professional fees, third party valuations, and more.

Stop and think about this for a moment. If you’re an investor putting up your money into any project, wouldn’t you want to have all of the information that’s available in order to make the best possible decision that you can?

Moreover, institutional investors and private investors see a plethora of projects every day, can you imagine what it would cost them to properly investigate and research every project that they may have an interest in? That is why the financial responsibility is passed on to you.

Furthermore, there is also that psychological factor. This serves as a safeguard for most lenders and investors. Meaning that, if there is something wrong with your project that you know will cause most investors to back off, you probably won’t put your money into doing all of the due diligence work.
Always remember, that the wise investor will always limit his cost in investigating your company or business project because in the end your project may not be as fantastic as it may appear to be and investors don’t want to lose money on propositions or proposals.

In my experience I have seen many entrepreneurs contact investment bankers or venture capitalists with the expectation that they will work for free. Imagine walking into an attorney’s office and asking them to do work for free? Just as your lawyer, your accountant and for that matter, your doctor charges you a fee for the services offered, an investment banker, venture capitalist, etc. is also paid a fee for the services that they perform.

There are many business finance professionals who advertise various services, such as raising capital and they are paid a contingency amount for successful funding. What that means is, they are usually agents or brokers, and if they find you the capital you require they are paid a substantial fee. That fee is usually between 4% and 10%. That is fine for an agent, but it is not fine with the lender or investor doing all of the work.

In conclusion, do not be naive in your entrepreneurial journey. It will cost you money In order to obtain the capital that you are seeking. Regardless if it is long distance phone charges, travel expenses, business valuations, professional fees, due diligence fees, etc.

Like the old saying goes, “it costs money to make money”. When starting or expanding your business, you can get a lot further by simply planning and budgeting in the very beginning for the costs associated with obtaining business capital.

As a young dynamic and energetic individual, I am an accomplished entrepreneur and executive, and writer. With a desire to make a difference and a passion to change the world around me.

Author: Jefferson Mesidor
Article Source: EzineArticles.com
Duty on LCD/Plasma TV

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How Can I Set About to Increase My Wealth?

May 12

Posted by Marty A Cohn in business startup | No Comments

As much as you may at first resist this point, it is imperative to understand it to accumulate wealth, and a wealth mind set.

Money is a servant, and you are the master. I suggest you read this statement again, and internalise it.

I am strong in my emphasis of the above, as this is half the battle to achieving a success with wealth building and creation. How many times have you inwardly thought that you are a servant to money and it is the master. You may be thinking the wrong way around, that you must work to pay your bills, and pay your way. Now, certainly, this is correct, in one sense, but we need to look at it differently, and thus, we’ll be more likely to attract the wealth we desire to ourselves.

You see, by telling ourselves that we must work to pay the bills, we are projecting a ‘survival’ mind set, that is just enough to get by, and we are essentially programming ourselves to just survive.

How unfortunate. Now what about changing the situation around as follows:

Start out by changing your attitude, and understanding that you are the master. You do and work at what you are good at, and know you will render service to others. By utilising your earnings, and placing them in circulation, even if it is the bank, your money is then loaned out to others to help them spend on worthwhile projects and so on. The money is not idle, or collecting dust. When you have money sitting, and not doing anything, you are effectively wasting it. Please, in no way, should you confuse the above with squandering your earnings either. I am not suggesting that at all, and highly recommend you have a plan for all your funds, both inwards and outwards.

I say the above, as it is fundamental to your ongoing success, in business, and personal life, when it comes to managing your wealth.

Wealth is about accumulation of assets and money, in the right way, to assist you to enjoy life to the maximum. Remembering this will help you to maintain mastery over your money, rather than the other way around.

You will also start to attract more to your self, as you practice the skills of giving, in terms of over servicing, and delivering more than you promise. I have experienced these results too often in my own life to ever question the validity of these points.

By understanding these points, and acting on them, you will see your wealth grow dramatically. As a final thought, I also encourage you to listen to your inner voice during quiet time. This si your intuition, or sixth sense, and I have found, as many of the world’s wealthiest people have, that it is worth listening to this voice. Often times, the best ideas are formed from these inner thoughts and feelings.

To learn more about the laws of wealth building, and apply them to your life with astonishing results, I have found the Six Minute Success Method works for me, every time, and I start every day with just six minutes to ensure I am on the right track for the day. It has worked for me, and countless others. You will see results too, both financially, and in other areas of your life. The sooner you start, the sooner you will savour the results.

Author: Marty A Cohn
Article Source: EzineArticles.com
Anti-angiogenic Food

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Catering Business Start Up – Simple Marketing & Growth Strategies

Apr 30

Posted by Munyaradzi Chinongoza in business startup | No Comments

Most people get sucked into the catering business because they need to make some extra money. Others may have been working in catering and quickly fall in love with the business and ultimately become very passionate about it.

Alright, so let us talk a little about how you can get started with your own catering business. Hopefully the first thing you will do before anything else is, write a solid business plan and this will cover most of the issues that you need to take care of. Once you have your business plan and got it reviewed you can now start worrying about how you can started. Try to concentrate your efforts on how to get your name out there and in the process gain yourself some much needed business.

Word of mouth is very important as far as this business is concerned. This is really the easiest way to build your business. Of course you can always go out and do some advertising but your main focus should really be on word of mouth. Knowing your target market is vital. This will help you figure out where to go to interact with your target market as well as how you are going to be able track them.

It is important that every event that you cater is done superbly to ensure that those clients go on to tell others who maybe in need of a caterer. Starting small is always a great idea it allows you to work your way up and also be able to perfect your product along the way.

One thing you should keep in your mind at all times is that catering is not just about food. In addition to the food there is also service and you need to be able to provide both of those well. There are many ways you can perfect your business. For example you can work for other caterers, work in restaurants, do things for friends and even in some cases volunteer to pretend cater event as if you were the actual caterer. That way you can easily get some valuable feedback.

This is a great business. It is very rewarding and a lot of hard work at the same time. If you do all the work up front, once you get started and get your feet moving, you will just start rolling and have a profitable business.

Next, discover more FREE catering business start up strategies at our blog. You can find resources, tips and strategies you can start using today: http://how-to-start-a-catering-business.blogspot.com/

Author: Munyaradzi Chinongoza
Article Source: EzineArticles.com
Unix inter-process communication (IPC)

Franchising Information You Can’t Live Without

Apr 9

Posted by Chris Robertson in business startup | No Comments

Franchise businesses can be very lucrative. Perhaps you’re thinking of starting a franchise business in your area or another type of brick-and-mortar business. If so, here are some quick tips and franchising information to help you get started. Just like wealthy men such as Donald Trump, Warren Buffet, and Robert Kiyosaki, you too can realize success and build wealth for the future.

What It Takes to Start a Franchise

There are several requirements to start a franchise. Most legitimate businesses do require a start-up investment. You might be required to stock inventory, pay for landscaping, remodeling and advertisements, hire and train employees, pay for legal and insurance fees, and so forth. These are just a few of the costs you may incur. Also, consider the time it might take to make a profit. Sometimes new businesses can take up to a year or two before you can enjoy profits.

You also have to be a people person and be willing to learn from others who have tried and tested techniques before you. In a franchise business you can still be creative, but some methods of business and promotion have already been proven to work. You must be willing to follow in the steps of others on the path of success.

Franchise Success

To realize franchise success, you should also be willing to work hard and be consistent. Keep a steady cash flow so you will have enough capital to operate your business. Find creative ways to meet your business capital needs. Find an established accountant that can guide you through the financial process. You’ll need an accountant’s wisdom in more ways than one throughout your business years! The Small Business Association (SBA) can also be a great resource of capital.

Study Franchising Information and Sales Techniques

Study all the franchising information you can gather before deciding on a franchise business. This will help you understand how it works and be prepared for any unexpected bumps in the road. Also, study sales techniques related to your products or services. You can have a fancy building, place full-size ads in the local newspaper, place large, attractive signs and banners at your storefront, but you’ll need to know how to sell to the customers when they arrive. Your employees will also need to be trained correctly in sales.

Alternatives to Brick-and-Mortar Franchises

If you feel overwhelmed at the thought of starting a brick-and-mortar business, there are lucrative alternatives. With certain types of franchise opportunities, you can enjoy the success of a franchise business without all the hassles of owning a physical business in your local area. Business gurus like Donald Trump, Warren Buffet, and Robert Kiyosaki often readily reveal their secrets in step-by-step training materials to help you start and build your franchise. They benefit when you become a success and share your story with others. You benefit by gaining valuable knowledge from people who have already walked the path of success.

So before getting started, use the above franchising information to determine if you have what it takes to start your own franchise business and also which type of business will work for you.

Author: Chris Robertson
Article Source: EzineArticles.com
Provided by: Beading Necklace

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Catering Business Start Up – Simple Marketing & Growth Strategies

Jan 22

Posted by Munyaradzi Chinongoza in business startup | No Comments

Most people get sucked into the catering business because they need to make some extra money. Others may have been working in catering and quickly fall in love with the business and ultimately become very passionate about it.

Alright, so let us talk a little about how you can get started with your own catering business. Hopefully the first thing you will do before anything else is, write a solid business plan and this will cover most of the issues that you need to take care of. Once you have your business plan and got it reviewed you can now start worrying about how you can started. Try to concentrate your efforts on how to get your name out there and in the process gain yourself some much needed business.

Word of mouth is very important as far as this business is concerned. This is really the easiest way to build your business. Of course you can always go out and do some advertising but your main focus should really be on word of mouth. Knowing your target market is vital. This will help you figure out where to go to interact with your target market as well as how you are going to be able track them.

It is important that every event that you cater is done superbly to ensure that those clients go on to tell others who maybe in need of a caterer. Starting small is always a great idea it allows you to work your way up and also be able to perfect your product along the way.

One thing you should keep in your mind at all times is that catering is not just about food. In addition to the food there is also service and you need to be able to provide both of those well. There are many ways you can perfect your business. For example you can work for other caterers, work in restaurants, do things for friends and even in some cases volunteer to pretend cater event as if you were the actual caterer. That way you can easily get some valuable feedback.

This is a great business. It is very rewarding and a lot of hard work at the same time. If you do all the work up front, once you get started and get your feet moving, you will just start rolling and have a profitable business.

Next, discover more FREE catering business start up strategies at our blog. You can find resources, tips and strategies you can start using today: http://how-to-start-a-catering-business.blogspot.com/

Author: Munyaradzi Chinongoza
Article Source: EzineArticles.com
Electric Pressure Cooker

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