When entrepreneurs look at debt financing, their credit score (FICO) plays an important role in being able to get a loan. Essentially, a person’s credit score is computed on five dimensions, each with a different weight.
Why You Need To Understand Your Credit Score Read More »
Conventional business advice is that in order to have a successful business you need to write a business plan. However, did you know that the simple act of writing a business plan can often lead your business to fail?
The Simple Truth Why Business Plans Cause Business Failures Read More »
Basically, there are two ways to fund a new business: debt and equity. Debt, commonly thought of as a loan, requires that the borrower/guarantor has an adequate cash flow or has enough unencumbered liquid assets to pledge as collateral. This collateral covers the debt’s principle and any liquidation costs and discounts in the event that
How to Make the Most of Equity Financing Read More »
Don’t look to our government as a model in understanding good vs. bad debt. Every day the media highlights another case of the government’s ignorance in the way money should be used. One side of the aisle says it is a revenue problem and we need to raise taxes on the rich. The other side
Is Bad Debt Destroying Your Business? Read More »
Several weeks ago, Sara Pope of ConsumerAffairs.com, reached out to me and asked if I could review a step-by-step guide to business loans and financing that her company had produced. My initial reaction was to just say no. My inclination to decline her offer was based on my experience with hundreds of nascent entrepreneurs. All too
A Step by Step Guide to Business Financing Read More »
Innovations and manufacturing businesses have different planning requirements than the more common support and local service businesses.
Why The Business Planning Advice You Have Received Is Probably Stale Read More »
The SBA has it wrong. A business plan is not always what you need. Financial planning is advisable to the extent that you have access to enough money or capital to conduct your first few experiments. However, small business counselors, mentors, and the SBA often encourage ALL fledgling businesses to write a business plan. This
Forget Writing A Business Plan Read More »
I teach a boot camp class each month for our local Small Business Development Center (SBDC). There is portion of this course that looks at the three ways to become a business owner. These ways include: buying a business, buying a franchise, and starting from scratch. As I discuss the option of buying an existing
Why Owners Sell Their Business Read More »
Most banks say that they are small business lenders. The missing part of that statement is how banks define small businesses and what banks will lend money for. From the bank’s perspective, a small business is an established business and not a new business. Banks lend money primarily for tangible assets that double as collateral.
How to Argue for Seller Financing Read More »
Traditionally, entrepreneurs had 2 options to raise funds to start their business. They could either get a loan or give away ownership to investors. Enter crowdfunding as a third option.
The Hidden Value of Crowdfunding Read More »
