Here are 3 tools to help you with the startup’s almost never ending need for capital and funds—- good information but note the how-to included.
Excerpt……Whether you’re trying to grow a business or start one, securing the money to do it can be overwhelming. From traditional bank loans to crowdfunding, there are now many options to consider. To determine which ones are best for you, here are three online tools to consider:
Read full article…..via 3 Online Tools To Find Funding | Entrepreneur.com.
Small business need-to-know ……crowdfunding interests mean you need to dot your i and cross that t……otherwise, you will fail!
Excerpt……Interest in crowdfunding continues to skyrocket, thanks to the record-breaking success of campaigns like the Pebble: E-Paper Watch, and Double Fine Adventure. The recent passage of the JOBS Act and the popularity of websites such as Kickstarter, RocketHub and IndieGogo have only reinforced its popularity.
But for every successful crowdfunding campaign you hear about, many more have utterly and completely failed to meet funding goals. The reasons? Well those are plentiful
Read full article….via 6 Crowdfunding Mistakes That Can Kill a Campaign. From Mashable.
Here are insights and advice from a leading venture capitalist……. all entrepreneurs and small business owners need-to-know. Funding
Excerpt…….”The number one reason that we pass on entrepreneurs we’d otherwise like to back is focusing on product to the exclusion of everything else,” Andreessen told Stanford University students earlier this month, noting that Silicon Valley tends to “cultivate and glorify this mentality.”
Read full article……via Marc Andreessen’s Advice for Entrepreneurs : The World :: American Express OPEN Forum.
Great information for BEFORE you start your funding search…… these basics should help you plan and execute with more precision and success.
Excerpt…….Approaching investors for the first time is a daunting exercise for any startup. Regardless of whether you’re raising venture capital, approaching angels or still trying to figure out where to get started, it’s critical to stay level-headed about what you’re really pitching – and what it’s actually worth.
The best way to do that is to leverage the hard-won experience of real-world startup. So we asked a panel of eight successful young entrepreneurs from the Young Entrepreneur Council (YEC) about their startup funding successes (and failures) and the lessons they learned.
Turns out that while every startup is unique, they share some common difficulties in trying to find just the right strategies and tactics for funding their companies:
Read full article…..via 8 Hard-Earned Insights Into Raising Startup Capital. From Read Write Start
Important need-to-know for small business LLCs…….if you fit into these examples….or better yet, before you fit into these examples…….. get advice from your preferred CPA tax guru.
Excerpt………..As I discussed in two earlier blogs, joint ventures (JVs) need not—and often should not—be structured as tax entities (4/30/12), but if they are, a limited liability company (LLC) has become the entity of choice (4/17/12). In addition, internal JVs among group members make wholly owned operations tax efficient in some circumstances. Owners can step into LLC tax traps, however, when they fund their LLCs with debt. Preferred equity funding can achieve the same economics as debt while avoiding the traps.
Read full article……via Tax Traps in Loans to LLCs – Forbes.
According to the article….women have an advantage pitching to investors…….nothing wrong with that said me! Funding
Excerpt……..The following answers are provided by YEC Women. Co-Founded by Natalie MacNeil and Scott Gerber, YEC Women is an initiative of the Young Entrepreneur Council (YEC), an invite-only nonprofit organization comprised of the country’s most promising young entrepreneurs. Women entrepreneurs from YEC answer the question:
What do female founders need to know before pitching their company to investors for the first time?
Read full article..via Women 2.0 » 5 Things Women Entrepreneurs Need To Know About Pitching.
Here is another new funding source possibility if you meet the criteria AND are chosen.
Excerpt…….The program, dubbed “Mission: Small Business,” will provide small business owners with individual grants of $250,000. Firms that have been around for at least two years and employ fewer than 100 people can apply.
Consumers get involved by voting for their favorite businesses online. With each vote, Chase will add $5 to the grant pool, which starts at $1 million; the pool will be capped at $3 million
Read full article………via Chase & Living Social Offer New Deal to Small Firms « Inc. Wire..
Small business takeaways and of-interest …funding and cash management.
Excerpt………..Middle-market companies and leveraged buyout firms are returning to the recent past with a hybrid loan structure that simplifies the use of subordinated debt and may lower firms’ cost of capital.
First created in 2005, a unitranche facility is a faster way to borrow than the traditional structure that uses senior and mezzanine debt and that requires the direct involvement of multiple lenders. In a unitranche facility, a single lender, usually a specialist in business development financing, provides the entire credit and works with the borrower. Then that lender slices up, or “tranches,” the loan for other investors.
Read full article….via unitranche loan mezzanine debt buyout risk Monroe Capital Wynnchurch. From CFO.com
Another GREAT article for nonprofits from Stanford……..expanded information and takeaways for example nonprofit business models.
Excerpt……….For-profit executives use business models—such as “low-cost provider” or “the razor and the razor blade”—as a shorthand way to describe and understand the way companies are built and sustained. Nonprofit executives, to their detriment, are not as explicit about their funding models and have not had an equivalent lexicon—until now.
Read full article……via Ten Nonprofit Funding Models | Stanford Social Innovation Review.
Great article……..nonprofits expand their brand tools to benefit more than just fundraising.
Excerpt……..Many nonprofits continue to use their brands primarily as a fundraising tool, but a growing number of nonprofits are developing a broader and more strategic approach, managing their brands to create greater social impact and tighter organizational cohesion.
Read full article…..via The Role of Brand in the Nonprofit Sector | Stanford Social Innovation Review.
Another great article from Smart Business this morning….. we are still in a tight credit scene for startups and small business. The article lists money alternatives and descriptions. Funding and cash management
Excerpt…….In comparison, lenders like community development financial institutions, accounts receivable financers, merchant cash advance companies, micro lenders and others approved more than two-thirds of applications from potential borrowers. The data confirm that executives have to be resourceful and think outside the box to secure the funding they need to expand their small or mid-size business in today’s tight credit market.“Executives may be forced to restructure, cede market share or relinquish prime opportunities unless they avoid a short-term cash crunch by securing alternative funding,” says Eric Fricke, assistant professor of finance, Department of Accounting and Finance at California State University, East Bay.
Read full article……via How to secure the financing to grow your business in a tight credit market | Smart Business.
If you are considering crowdfunding…….then you need to read this article… Small business
Excerpt…….Crowdfunding of equity capital for startups is one of a handful of jewels in the crown of the JOBS Act that swept through the House and Senate in a rare and refreshing show of bipartisanship, and was signed into law by President Obama April 5, 2012. But the crowdfunding jewel is fool’s gold, and is inherently incapable of harnessing “people-to-people power” and the “wisdom of crowds” to “democratize access to capital for entrepreneurs” in order to “create wealth and make things happen,” as crowdfunding sites publicly proclaim. As a savvy tech entrepreneur told me the other day, “I love crowdfunding: it is cheap money for me. I know it is not good for the investors.” That is the problem: crowdfunding will at best be good only for the entrepreneurs and middlemen, paid for by unwitting consumers who simply cannot know enough about the highly risky ventures or the highly complex venture investing process to make informed investment decisions.
Read full article…….via The Road to Crowdfunding Hell – Daniel Isenberg – Harvard Business Review.
More today on the new law and what it means…… news-to-watch ..the SEC regulations forthcoming.
Excerpt…….With President Barack Obama signing the JOBS act in the Rose Garden on Thursday, the clock will start ticking for the U.S. Securities and Exchange Commission to come up with rules to regulate the nascent crowd-funding industry.
Under the act, small businesses can raise up to $1 million in equity funding over the Internet through portals and websites that will have to register with the SEC, which has about 270 days from the act’s signing to come up with rules for the industry.
Read full article…….via Crowd-Funding Industry Braces for Regulation – WSJ.com.
Very good advice for all small business as soon as it is feasible……Funding
Excerpt……….More than one-half of all small-business loan applications are being rejected by banks, according to the Biz2Credit Small Business Lending Index. In such a tough lending environment, companies in need of capital might find lenders more receptive if they invest in audited financial statements.
“We’ve had clients who needed these statements to even get the loan, and it can make a difference in the interest rate you get,” says David G. Barbeito, a principal in the Miami office of Morrison, Brown, Argiz & Farra, a large independent accounting firm.
Read full article…..via Looking to Borrow? An Audited Financial Statement Can Help | Entrepreneur.com.