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Casual Articles - Do Not Shortchange Funding Needs - Too Little is Worse Than Too Much
Put T-shirts or polo-shirts in to Google and dozens of suppliers will be returned, but how do you decide who to buy from?Generally speaking, it’s best to stick to the products from tried and tested manufactures. Companies such as Hanes, Fruit of the Loom and Gildan are all proven distribution outlets and you can view their catalogues online.You don’t have to take the online route to managing your suppliers. But there’s no doubt that the convenience of being able to order when its convenient for you, day or night, can be very useful.Make sure that you’re working with an established wholesaler or distributor. There are plenty of web sites that offer cheap T-shirts but the absence of a telephone number, hastily written content and di
Seeking a number in excess of the amount needed to successfully launch a startup is equally disastrous. Investors are not seeking to build a Taj Mahal before the first dollar of revenue is generated. Here are a few tips for building expense assumptions that will withstand withering investor scrutiny.
Salaries
Investors do not want entrepreneurs to starve. They also do not want to
I was purchasing a camera for my business at a well known warehouse store when I presented my American Express card along with my associate’s membership card. The associate was standing next to me at the time.The clerk brusquely declared I couldn’t pay for the item with my card because it wasn’t my picture on the membership card. Of course, I have had no problem doing the same thing in the past, which made me wonder if this rule was being selectively enforced.An instant after barking out, “Please call your manager,” and receiving a shrug from the clerk, I said, “Better yet, let me have my credit card back. I’ll try another line.”Sure enough, twenty feet away, I entered a line manned by a clerk who probably has heard about “rules”
Think of investment capital as fertilizer. If a farmer applies too little he harvests a poor crop or worse. Too much fertilizer and the harvest will likewise be disappointing. Experienced, successful farmers know their fields, their climate, crop planting patterns and their equipment. They will apply every pound of fertilizer needed to maximize their harvest. Investors handle their capital in exactly the same way.
I review many business plan submissions each year. It is amazing how many entrepreneurs can not identify, quantify or justify the investment requirements they describe in their business plans. This is an absolute eliminator in terms of creating investor enthusiasm for funding a project. This is one of the largest reasons so many plans never receive a thorough reading.
Often, the entrepreneur woefully understates the obvious funding level a new enterprise will require. The justification, stated or not, is usually that they are attempting to keep the needed investment number very low in order to create interest. They do not understand that there is no too high or too low investment number if the need for capital can be demonstrated, qualified and narrated. Investors want a crystal clear look at the use of funds and how they will earn an appropriate return on their invested funds.
Seeking a number in excess of the amount needed to successfully launch a startup is equally disastrous. Investors are not seeking to build a Taj Mahal before the first dollar of revenue is generated. Here are a few tips for building expense assumptions that will withstand withering investor scrutiny.
Salaries
Investors do not want entrepreneurs to starve. They also do not want to
Even though Factoring is an extremely common business practice in Europe, many American business people have never heard of it or used it. Factoring has been practiced for centuries; the Romans sold promissory notes at a discount and the Pilgrims journeys to America were financed by advances from a Factor who provided the funds to pay for the journey. The Pilgrims repaid the money with earnings from America. The word "factor" comes from Latin, the language of Rome. It means "to do" or "to make."Even the United State Congress acknowledges and supports factoring with the passing of the Assignment of Claims Act, (31 U.S.C.3727) which states that “Contractor or its assignee may assign its rights to receive payment due as a result of performance”
I review many business plan submissions each year. It is amazing how many entrepreneurs can not identify, quantify or justify the investment requirements they describe in their business plans. This is an absolute eliminator in terms of creating investor enthusiasm for funding a project. This is one of the largest reasons so many plans never receive a thorough reading.
Often, the entrepreneur woefully understates the obvious funding level a new enterprise will require. The justification, stated or not, is usually that they are attempting to keep the needed investment number very low in order to create interest. They do not understand that there is no too high or too low investment number if the need for capital can be demonstrated, qualified and narrated. Investors want a crystal clear look at the use of funds and how they will earn an appropriate return on their invested funds.
Seeking a number in excess of the amount needed to successfully launch a startup is equally disastrous. Investors are not seeking to build a Taj Mahal before the first dollar of revenue is generated. Here are a few tips for building expense assumptions that will withstand withering investor scrutiny.
Salaries
Investors do not want entrepreneurs to starve. They also do not want to
Follow the rules when submitting a resume for consideration by a possible employer or job-bank. Address prospective employers through the resume submission channels and in the formats that they request. Those aspects of resume submission will usually vary employer by employer and by job site. Don’t be creative with their processes. Many of us are tempted to embellish and send five references – when the employer only asks for three, as one example – or, as happens frequently, a job candidate will submit their resume to an employer in a document file format that doesn’t match what the employer uses, so no one at the company can read it. Follow procedure.Sometimes you will be instructed to send your r?sum? in the body of an email, and not as a fil
Often, the entrepreneur woefully understates the obvious funding level a new enterprise will require. The justification, stated or not, is usually that they are attempting to keep the needed investment number very low in order to create interest. They do not understand that there is no too high or too low investment number if the need for capital can be demonstrated, qualified and narrated. Investors want a crystal clear look at the use of funds and how they will earn an appropriate return on their invested funds.
Seeking a number in excess of the amount needed to successfully launch a startup is equally disastrous. Investors are not seeking to build a Taj Mahal before the first dollar of revenue is generated. Here are a few tips for building expense assumptions that will withstand withering investor scrutiny.
Salaries
Investors do not want entrepreneurs to starve. They also do not want to
The one thing that bugs me most about our industry is those dream stealers. Those are the people that give you all the reasons why you should NOT do something, or tell you all the reasons WHY it won't work, yet they have never succeeded at anything themselves.Don't let any one or anything steal your dreams. Dream big and make them come true. You can do it. Don't let anyone tell you different.Just this past week, I ran into a very old friend that I had lost touch with and had not seen or talked to in many years. We talked for a while and she was flabergasted to hear I had left the corporate world years and years ago. I shared with her what I was doing, and she was stunned to hear that it was "network marketing". We exchanged ph
Seeking a number in excess of the amount needed to successfully launch a startup is equally disastrous. Investors are not seeking to build a Taj Mahal before the first dollar of revenue is generated. Here are a few tips for building expense assumptions that will withstand withering investor scrutiny.
Salaries
Investors do not want entrepreneurs to starve. They also do not want to
Morris has been a Texas Ranger for 15 years. This officer would go on patrols and respond when an emergency occurred. Having lived in Houston while growing up, it was easy to do the job.One night, Morris met a friend who left the force 4 years ago. This person now had a private investigator service in the city. Business was good and it was time for it to expand.The friend needed experienced people who used to work in law enforcement or have a military background to also work for the firm. Feeling that Morris gave a lot of years to the state, a reasonable offer was given so that this individual can move on and get rich.Less than a month later, Morris was already working as a private investigator for the new employer.Houston
Seeking a number in excess of the amount needed to successfully launch a startup is equally disastrous. Investors are not seeking to build a Taj Mahal before the first dollar of revenue is generated. Here are a few tips for building expense assumptions that will withstand withering investor scrutiny.
Salaries
Investors do not want entrepreneurs to starve. They also do not want to fund the lease on a BMW 745. Salaries should be based on sustenance requirements. Most investors I have worked with want their management teams to make enough salary to pay their bills and not place untoward strain on personal finance and marriages. Comfortable is fine, but they will not fund luxuries. Be very realistic.
Staffing
I often see plans with a list of proposed employees that resembles the list of animals on Noah’s Arc. Keep this area very lean. Use outside contractors, consultants, and part-timers to fill every post possible. Employees add high fixed costs to the budget. Salaries, benefits, training and equipment can be too heavy a burden for startup projects to absorb. Another no/no is a squad of vice-presidents. These are red flags that scream excess and will all but eliminate any possibility of receiving funding for a new business opportunity.
Facilities
Plan on renting needed office space on a short-term basis. If growth happens as planned it is always easy to find bigger premises. You do not want to obtain a larger space than initially needed to run the business in the most efficient manner. You will be using too much of your precious capital for an underutilized asset.
This may seem obvious, but you should read the business plans I do. Many entrepreneurs try to replicate the surroundings they enjoyed when they were corporate employees. Recently, I reviewed a cash flow projection that included an office expense for a daily delivery of flowers, and this was not a floral business. Investors are totally put off by expenditures such as this.
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