Banks don't really "get it" do they? You stride into a bank with all the confidence in the world... and you slink away because they just don't want to put their money into your business.
That's no reason to give up. There are at least 3 other major sources of business capital available to you. Check this out:
1. Hidden Personal Wealth
If you really believe in your business – and you
[ By guest writer Micah Fraim, CPA ]
I’m a firm believer that every business can benefit from a certain amount of debt. Borrowing fuels growth, can get you through lean months and actually increases some measures of profitability.
Too much of a good thing, of course, leads to trouble. So how much is too much?
There are several ways to find out if your business is “over leveraged”,
As if managing your business wasn’t enough of a challenge, one day you wake up to find that your company needs a number of cars or trucks… and suddenly you are a fleet manager too. Buying a fleet is no small task and deserves some careful thought. Even having one car in the name of the business can trigger decisions and expenses you might not have imagined.
So how do you ensure
You may not know Edward Altman, but he knows whether your company will be bankrupt in the next two years. Altman developed a deceptively simple formula that calculates the financial strength of a business and accurately predicts the probability of bankruptcy more than 90% of the time. The formula, called Altman's Z Score, needs just 8 numbers -- and all of them can be found on your income
Employees won't wait for payroll and landlords don't want to hear about your cash flow when rent is due. Sure, cash is a problem. But if you have Accounts Receivable, you already have the keys to unlocking more cash. Here's how you can get the cash when you need it the most:
The Root Cause
The biggest cash problems are caused when we send expensive goods or services to our customers, and then
In my 40-year career I have met with 100’s of business people seeking loans. It is the fun part of what I do. But I've also seen some common mistakes that entrepreneurs make, particularly when talking to a banker.
Sometimes I think bankers speak a different language than entrepreneurs. Be very careful that what you say is what you want the banker to hear! For example, here are 4 of the
Ready for part 3 in my 4-part Business Tune-Up Program? By now you know what really drives your profits; you have a dashboard that helps you keep track; and you have fixed any cash bottlenecks.
Now it's time to magnify all the good things you are doing in your business and watch the profits multiply.
How? By adding a strong financial foundation. That means relationships with bankers, lines of
I've accepted it: Retirement is dead. Anyone still working today might never be able to retire.
So why are we all putting money into retirement savings accounts? Between IRAs, ROTHs, 401(k)s, SIMPLEs, SEPs and SOLOs, there's no shortage of ways to save for a day that may never arrive. And yet Morningstar reports that the average retirement account lost value last year! (Mine certainly
Whether your business is growing rapidly or just getting started, you need cash. But negotiating equity investments can take a long time – time you don’t have.
You need cash NOW... meanwhile, venture capitalists (VC) and other investors will spend months negotiating deal terms. And just when you think the terms are finally set, there's another committee that has to approve them. Most
Its amazing how complicated you can make bookkeeping if you try. Apply for a handful of credit cards, get two or three bank accounts, and carry arround a checkbook ... and you're on your way to a life of late payments and bounced checks.
There's a better way. In fact, keeping your books straight in a small business should be as simple as "Just Say One."
So next time you are asked...