Archive: October 2007

TABLE OF CONTENTS i. EVERY BUSINESS NEEDS CAPITAL i ii. A NOTE FROM THE AUTHOR ii iii. BUSINESS FUNDING – LESS THAN 3% FIND IT . . . WHY? iii I. PLAN FOR SUCCESS 1 Executive Summary, History, Stage, Structure . . . II. THE PLAYERS 3 Ownership, Management, Consultants . . . III. STRATEGIC POSITION 4 Nature of Market, Specific Niche . . . IV. MARKET STRATEGY 6 Market […]

If you don’t know where you are going and how you will get there, you are already lost. Market Position What kind of image do you have? Inexpensive ___________ Exclusive ___________ Customer service oriented ___________ High quality ___________ Convenience ___________ Fast ___________ List the features you will emphasize: What pricing strategy will you use? % Markup on cost ___________ Competitive ___________ Below competition ___________ Premium price ___________ Are […]

Assume that your reader knows nothing. Even if you know they are experts, remember that the Lenders or Investors want to see that you know more about the industry and your market than they do. Market Overview General industry definition Current size and demand Potential target market Potential market growth Market share of competitors Technical evaluation of industry Direction of industry Current condition of industry Market Approach Initial plan to obtain a market share Resources available […]

Funding Sources want to know with whom they are dealing. Personal Experience Lenders and Investors are both concerned with whether or not you have what it takes to be successful. Highlight information that demonstrates you have the ability to make this business a success. Detail your education, past successes or failures that made you stronger. Indicate how you started this business and why it will be a success. Character Who are you? Take a deep look inside. Character is not only about winning. […]

History Your reader needs a summary of how this venture came to be. Where did the idea come from? How did it evolve? Who is responsible? Be concise; give dates, background, etc. Paint a short picture from how you started, to where you are today. Mission Statement One sentence defining what the Company is all about. Think about it and "make it mean something". Don’t just write a bunch of flowery words. Stage Clearly identify what stage of funding […]

Capitalizing your business is a full time endeavor. Developing your business plan is the single most important step you can take toward your success. To maximize your potential to receive capital, it is vital that you develop a business plan that will guide your company and allow outsiders to picture where you are going and how you plan to get there. Take great care in preparing your plan, it is the road map that will lead you where you want to go. Lenders or Investors, which way do I go? They […]

The reasons businesses can’t find funding are: They don’t know where to look for the "right" funding source. They don’t know how to pre-qualify before they apply. They don’t know how to successfully present their request. They don’t know that "miss just one thing" and they will hear NO. They don’t know that "shot gunning" will kill their chances. Shot Gunning will kill even a great deal, and here is why! "Shot Gunning" is sending your deal to multiple […]

Successful businesses are well planned and well capitalized. Being well capitalized means having the ability to access capital when your business needs it. Being well planned is the first step towards being well capitalized. The Cost of Capital I have watched many entrepreneurs lose valuable opportunities because they thought the cost of capital was too high. They spent too much time negotiating over the cost of the money, while their window of opportunity closed. The cost of capital […]

Import export loans provides capital to exporters The SBA supports export financing to small businesses when financing is not otherwise available on reasonable terms. The program encourages lenders to offer export working capital loans by guaranteeing repayment of up to $1 million or 90 percent of a loan amount, whichever is less. The loans have: Guarantees of up to $1.1 million or Guarantees up to $1.25 million if it’s combined with an international trade loan A reasonable turnaround. […]