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Casual Articles - How To Raise Finance For Your New Business
The identity statement should allow anyone to understand or recognize your business as you would like them to. Taking this one step further, it should also answer the question – Who Cares? … If you are having trouble with your identity statement, ask your spouse, friend or colleague to tell you what they perceive your business to be. This may help you assess if you have been clear in your description of what you do. (Taken from “The Ultimate Guide to Creating a Thriving Business”, Yvonne Weld, 2007).Simply put, your identity statement does precisely that; conveys to others what exactly your identity is. Your business name is a start to your iden
Your Current Position
All lenders will want to know your up-to-date trading position and to see regular management accounts. They will also want to look at bank statements and VAT returns. Balance sheets represent a one-time snapshot of the business. So lenders may dig deeper to find the real cash-producing capacity and the extent to which any liabilities might become real.
Your Accounts
The lender will also want to know the true rather than book val
Has this every happened to you? You have an account that owes your company a considerable amount of money. Everything goes well for awhile. The payments are made on time, the debtor calls you just because he wants to know how he can make your day better (hey, this is my dream!).Then one day no more calls and worse yet, no more payments. You, being the good employee that you are, attempt to call them and you discover that they have disappeared off of the face of the planet. So, you go back through your previous issues of Collection Advisory to look in the Skip Trace column to ensure your best possibility of finding your debtor. You begin your sear
Main factors
Poor management skills are the reason 80% of owner-managed firms go under. So this is the first thing that lenders will look at when considering you for a loan. Before they will lend you the money they will want to see that you have a good track record, the expertise and skills to adapt to changing financial and economic circumstances, a good product or a quality service, good financial controls and ideally growth prospects. Above all they want to know that you have the ability to repay the money.
The Business Plan
All lenders will want to see a business plan. You need to make sure that this is completed correctly as this will explain why you need the money, how much you want and for how long. Including cash flow projections to demonstrate how the loan will be serviced and eventually repaid. Both the business plan and the cash flow forecast also need to be realistic.
Be Careful
All lenders are sceptical of over-optimistic forecasts. It is better to be cautious. If an accountant has prepared your cash flow forecast, lenders know the figures will all add up. However, they will want to know that you have a real understanding of the rationale behind the figures.
Projections
Projections are based on assumptions, so you must say what these are. Lenders question everything, it's their job. Many business plans fail to impress lenders because they fail to consider all eventualities or come up with alternative strategies should problems arise. It is imperative that you look at all eventualities and have at least one back up plan.
Past Performances
Ultimately all lenders have to decide whether or not your proposal is viable, based on your past performance and their knowledge of the market. So if you are an established business, lenders will want to see your annual accounts (ideally for the last three years) to review historic trading performance and identify any trends.
Your Current Position
All lenders will want to know your up-to-date trading position and to see regular management accounts. They will also want to look at bank statements and VAT returns. Balance sheets represent a one-time snapshot of the business. So lenders may dig deeper to find the real cash-producing capacity and the extent to which any liabilities might become real.
Your Accounts
The lender will also want to know the true rather than book valu
Some interview questions are asked so frequently that they've become classics. Practically every interview you go on you'll be answering one or more of these seven interview questions.Why are these the most frequently asked interview questions? Probably because they give the employer a good idea of who you are and if you're the best fit for their company.** Tell Me About YourselfThis is an obvious open-ended questions where the interviewer is inviting you to give some background on yourself. But wait. Should you start revealing personal information about yourself? No. This isn't a beauty contest or game show.How to Answer: Th
The Business Plan
All lenders will want to see a business plan. You need to make sure that this is completed correctly as this will explain why you need the money, how much you want and for how long. Including cash flow projections to demonstrate how the loan will be serviced and eventually repaid. Both the business plan and the cash flow forecast also need to be realistic.
Be Careful
All lenders are sceptical of over-optimistic forecasts. It is better to be cautious. If an accountant has prepared your cash flow forecast, lenders know the figures will all add up. However, they will want to know that you have a real understanding of the rationale behind the figures.
Projections
Projections are based on assumptions, so you must say what these are. Lenders question everything, it's their job. Many business plans fail to impress lenders because they fail to consider all eventualities or come up with alternative strategies should problems arise. It is imperative that you look at all eventualities and have at least one back up plan.
Past Performances
Ultimately all lenders have to decide whether or not your proposal is viable, based on your past performance and their knowledge of the market. So if you are an established business, lenders will want to see your annual accounts (ideally for the last three years) to review historic trading performance and identify any trends.
Your Current Position
All lenders will want to know your up-to-date trading position and to see regular management accounts. They will also want to look at bank statements and VAT returns. Balance sheets represent a one-time snapshot of the business. So lenders may dig deeper to find the real cash-producing capacity and the extent to which any liabilities might become real.
Your Accounts
The lender will also want to know the true rather than book val
The first concern of business is the bottom line. Progressive employers have begun to see that their bottom line is increasingly linked to the visual health of their workers. Color Vision Deficiency, no less than eyestrain suffered by significant numbers of the workforce who sit for long periods at a computer screen, can impact negatively on productivity and the bottom line.Responsible employers should be aware that a number of their staff will have a color vision deficiency. Depending on the nature of their business, they will need to consider carefully whether visual testing of employees is worthwhile:whether more soph
Be Careful
All lenders are sceptical of over-optimistic forecasts. It is better to be cautious. If an accountant has prepared your cash flow forecast, lenders know the figures will all add up. However, they will want to know that you have a real understanding of the rationale behind the figures.
Projections
Projections are based on assumptions, so you must say what these are. Lenders question everything, it's their job. Many business plans fail to impress lenders because they fail to consider all eventualities or come up with alternative strategies should problems arise. It is imperative that you look at all eventualities and have at least one back up plan.
Past Performances
Ultimately all lenders have to decide whether or not your proposal is viable, based on your past performance and their knowledge of the market. So if you are an established business, lenders will want to see your annual accounts (ideally for the last three years) to review historic trading performance and identify any trends.
Your Current Position
All lenders will want to know your up-to-date trading position and to see regular management accounts. They will also want to look at bank statements and VAT returns. Balance sheets represent a one-time snapshot of the business. So lenders may dig deeper to find the real cash-producing capacity and the extent to which any liabilities might become real.
Your Accounts
The lender will also want to know the true rather than book val
Most employers will weigh out if hiring a virtual assistant is actually worth the time and effort that it actually takes to find the right one that can accomplish what they need done. The other more obvious things in a virtual assistants favor are that a employer never has to come face to face with them, never has to pay for any of the office equipment used by the virtual assistant, and they can be more relieved at not having to do all the work themselves.So Do I Get A Paycheck Or What?When working as a virtual assistant your salary comes to you in a different form that a typical employee. You can get your “paycheck” through such website
Past Performances
Ultimately all lenders have to decide whether or not your proposal is viable, based on your past performance and their knowledge of the market. So if you are an established business, lenders will want to see your annual accounts (ideally for the last three years) to review historic trading performance and identify any trends.
Your Current Position
All lenders will want to know your up-to-date trading position and to see regular management accounts. They will also want to look at bank statements and VAT returns. Balance sheets represent a one-time snapshot of the business. So lenders may dig deeper to find the real cash-producing capacity and the extent to which any liabilities might become real.
Your Accounts
The lender will also want to know the true rather than book val
Outside of their recent ‘no late fee’, everyone's 'local' video store has initiated a few 'new policies'.I recently went to my local (albeit a nationwide conglomerate) video store to get a game for my son. This is certainly not an unfamiliar occurrence as he has had a game console before he could walk. As usual, I walk up to the counter to provide my video rental card (although everyone behind the counter knows me) and lo' and behold I am told that they need a 'major' credit card on my file to rent the game. What?! As it turns out (and not surprisingly) that this new policy is in place due to the fact that an undisclosed number of people are not
Your Current Position
All lenders will want to know your up-to-date trading position and to see regular management accounts. They will also want to look at bank statements and VAT returns. Balance sheets represent a one-time snapshot of the business. So lenders may dig deeper to find the real cash-producing capacity and the extent to which any liabilities might become real.
Your Accounts
The lender will also want to know the true rather than book value of all your assets, should it become necessary to consider a forced sale. Notwithstanding your budgets and cash flow forecasts, lenders will use some basic tools to assess your plans, such as a simple break-even analysis. At the very least, you should be able to provide a rough figure for overheads and other fixed costs, and an assessment of the gross margin expected on sales.
Lenders concerns
Lenders worry about over-reliance on too few suppliers and/or customers, often a major problem for small businesses. This is where a late payment of a big invoice could destroy your cash flow. And a key customer going bust is often fatal. If this is your situation, your business plan should show how you intend to rectify this weakness.
Security and Commitment
Security is an important aspect of a lending decision although it is never the main factor. It is there to provide a guarantee of repayment should all else fail. Some lenders feel that a director's guarantee supported by personal assets is enough.
Investment and Capital
Lenders like to see owner/managers invest their own money in their businesses. It's also a fallback against potential losses. However, while this may show commitment, it's no substitute for adequate capital resources. Insufficient capital or under-capitalisation are also major contributors to many business failures. So asking for too small a loan may be counter-productive.
Looking at Your Debt Sensibly
Many small businesses rely on an overdraft when they might be better off with something more structured, like a term loan. A lender may even suggest you do not need to borrow at all: factoring invoices, hire purchase or leasing may be better ways of releasing cash.
Lenders' Favourite Tipple
Every lender will look at seven key areas before lending: CAMPARI:
• Character: do you give the impression you will make your plans a reality?
• Ability: do you and your people have the right skills and experience?
• Means: what are the business's and your own perso
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