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
The ABC reality TV show “Shark Tank” is incredible. Each week, contestants are offered millions of dollars for a piece of their company. They have about 30 seconds to say yes or no. It looks simple, doesn't it?
Behind the scenes, it is anything but simple — and the business owners are the most likely to be the least prepared. I suppose that’s why this is called the Shark Tank.
At lunch yesterday, I had the guilty pleasure of hearing “war stories” from a group of lawyers, accountants and bankers. Sometimes lunch with this crowd is yawn-inducing, but these guys were on a tear and each told of an unlucky client who had accidentally lost millions in a business transaction.
My favorite story was of a guy who bought a small company. The seller and he had agreed to
I've been doing a lot of negotiating lately: Contracts, pricing, sales. And I've discovered a super-power that I did not know that I had... the power to say NO.
NO has saved me from making huge mistakes and has earned me countless thousands of dollars. When a prospect asked me to reduce my bid price by half, I said no. When another wanted twice the service for the same price, I said no.
You've been carefully nurturing an equity investor and now he’s threatening to walk away from the deal. Despite an endless number of presentations, term sheets, meetings with partners and expensive legal documents, it looks like the negotiation is going to unravel. And that could unravel your business too.
What’s an entrepreneur to do?
You might think that good negotiating strategy
Even today, when everyone says "credit is tight", borrowing is still the best way to go: rates are low, community lenders are eager to create jobs, and there are a growing number of government programs like the SBA loan guarantees.
But actually closing a loan can be difficult. Banks expect a business plan, financial forecasts to justify the loan amount, and even a personal guarantee,
I'm thrilled to introduce a guest blogger today. Michael Sinsheimer is a serial entrepreneur and angel investor specializing in med tech. (See "MedTech Catalyst") This guy knows what he's doing, so I'll let him explain valuation. Here's Mike:
When an entrepreneur sells stock in his company, he's got to come up with a price. This is called the "valuation" and it reflects the value of
Before you venture out to raise money for your small business, get hip to the lingo. Don't wait until its too late to learn the difference between your Cap Table and your Capacity... between a Ratchet and a Warrant.
Whether you're looking for a loan or angling for an angel, know the ropes. Nothing kills a money-buzz faster than finding out you just signed over your
For most entrepreneurs, selling a company is the ultimate goal.
Often it's a nice payday and a great opportunity to relax, catch your breath and re-focus your life on some new priorities. When I sold my business I took a trip around the world.
But for some people, the selling a company can be a complete let down.
I've had "Seller's Remorse" more than once.
Yesterday I tried to give you some quick and dirty guidance on monetizing patents. I got a lot of feedback from that -- people asking detailed questions.
So today I'm reprinting a 2004 article I wrote for Entrepreneur magazine about turning an idea into a patent and then licensing your ideas. I spoke with both lawyers and entrepreneurs about this topic, including Nabeel Hyatt, a serial