by With compound annual growth rates (CAGR) ranging between 18%-70% is it any wonder that the diversion of dollars from print and broadcast media to the online market is getting so much attention?
You are browsing the archive for Financial Management.
If you have purchased my business planning book, Tips and Traps For Writing an Effective Business Plan, you know that I offer a companion spreadsheet to help you prepare a proforma financial plan for your business.
The financial section of your business plan is likely the most challenging part of the process of writing a business [...]
I got an inquiry over the weekend from a entrepreneur who located a business that the existing owner listed for sale. The question I was asked was how much is the business worth? How do I come up with a price?
A Deal with Some Hair On It
The important part of the inquiry is that the [...]
Via WaytoGrow.com Mary links to a post at MarketingProfs.com by Nick Usborne How to determine the best price for your product. It offers another perspective on the pricing issue. I recently linked to an article titled How to beat your competition at the pricing game which points to The Price is Wrong by Tom [...]
Should you use retirement funds to start or buy a business? According to a 2004 article at Entrepreneur Magazine you shouldn’t and the article makes some good points. In the USA there have been some changes to tax law to allow you to ‘borrow’ from your 401(k) account.
The keyword here is ‘borrow’ the money [...]
Truth is you cannot convince any investor, bank or VC to provide financing for any business that is not viable or ill conceived.
Here is my own list of what to do to get the attention of a VC:
Format: At the early stage some VC’s will prefer to see a PowerPoint presentation. Some are accepting [...]
Have you ever wondered what your break even point is? Well wonder no more. You can edit this spreadsheet and add your own numbers! Try it, the spreadsheet will recalculate immediately. For more information scroll down to read the notes below the spreadsheet.
Break Even
The break even analysis depends on four specific variables:
The fixed [...]
This is a great question. I recently helped a client deal with this issue. Let me share what we learned.
Raising money from VCs is much different than private investors.
Private money is usually friendly money. They know you and are investing because they trust you.
VCs, on the other hand, are more concerned with [...]
New Commercial Business Loans from the Small Business Administration (SBA)
If you are seeking a loan guarantee from the SBA, there are other aspects of the SBA 7(a) Loan Program you should know about.
You should be aware of the general terms and condition to expect if SBA is involved in the financial assistance. While the [...]
A line of credit is a flexible lending instrument secured by assets.
As an example, you are approved for a ceiling of say $100,000. It allows you to run up a $100,000 “over draft” in your operating or corporate checking account. Then, when you make your bank deposit the line of credit is repaid.
This provides a [...]
