How to Get Funded in Tough Economic Times

How to Get Funded in Tough Economic Times

Many people ask me if it is possible to boost capital inside the traditional sense currently. Everyone knows and knows that lending practices have tightened and lots of VC firms have gently (and occasionally not too gently) refused to take any further submissions. But is it impossible to boost capital? Of course not, it’s just even harder now. That’s not to say that raising capital has have you ever been easy, it has been a challenging process. If it was an easy process, there wouldn’t be companies charging money to hunt down investors and business coaches priming you on your journey ahead. Keep this in mind, no one can ever guarantee that you will get funding. It’s impossible to ensure, and illegal to create these claims.

What do investors need to see within you? It’s certainly not 30 pages of a long-winded business strategy, especially should it be a poorly written one. It’s not an unsolicited phone call from you to adopt 45 minutes of their time when you wax poetic about your organization or idea. The same logic saying to maintain your resume short is the identical logic you ought to decide to try approach investors along with your business. There are some questions that investors need to be answered, and then for any entrepreneur answering them must certainly be in a lot more concise, with verified details supporting your organization claims. Some of these questions might surprise you, especially if you just aren’t geared up to handle investors.

1. What is your company pitch? In one sentence.

This sounds simple, but a lot of capital seekers end up grasping on a response to this. What is it that you simply do exactly? Why is it exceptional?

2. What is the competitive advantage?

So you built a mouse-trap. How can it be a lot better than other mouse-traps? How do you intend to overtake the present mouse-trap on the market right now?

3. Define your market.

Who are you selling to? This asks you who your web visitors are, who they will be inside the future, how big is this pool of consumers is, and when its pool will grow inside the future. You will need to manage to elaborate on your answer.

This is the list not exhaustive, there are several more queries about your marketing and purchases strategy that need to be answered, preferably in less than a few sentences.

To raised position yourself to get funding, you need to take the feet and set them inside the shoes of the audience. Many entrepreneurs end up deeply entrenched in the information on their business, they forget that this audience isn’t psychic, or prepared to fill inside blanks themselves. Don’t help it become hard so they can get these answers. Investors generally are not happy to pull answers away from you; the onus is you to give them what they want and require to listen to, preferably quickly plus a self-explanatory manner.

These questions are just a small …

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How To Decide If Financing Receivables Is a Solution for Your Working Capital Funding

We call it the R R factor. And we are not discussing rest and recuperation! The R R factor gives you a sense it’s once again time to take into account whether a newer, popular way of financing receivables will be your working capital funding solution.

We’re going to supply you with a quick but easy and powerful tool to discover if the earnings challenges need to be addressed more positively. It’s the receivables to revenue ration – hence the word R R. First, require a year-end balance of A/R, which is, of course, your uncollected sales revenue at that time soon enough. Then determine how weeks of sales to display. Calculate this ratio historically along with an approach to determining whether your cash flow and dealing capital requirements are changing.

So what makes business address the challenge of working capital funding when it’s as challenging as always to borrow. Many companies are assessing factoring or financing receivables. It’s a simple process that is made complex and difficult once you do not understand the pricing, how it works each day, or perhaps the important should align yourself which has a partner that provides and matches your organization’s financing needs.

The process is quite easy — On a daily, weekly, or monthly basis – it’s your choice, you sell your receivables. So what happens next? Simply the day you generate that sale there is fast cash for those receivables. Therefore the Canadian business proprietor and financial manager are creating an authentic ATM out of the investment the business has in accounts receivable. Readers will likely commence to immediately appreciate they may have just found the ultimate cash flow solution, because should they sale they have instant cash. So what’s the catch?

We believe there are 2 catches when the business proprietor understands and addresses them the receivable financing solution becomes much more clear and sound judgment.

The first ‘ catch ‘ may be the cost. The typical Canadian cost of financing a receivable is 1.5- 2% / month. The firms providing the service usually do not call an interest rate, they refer to it a reduction fee. You sold something, for cash, i.e. you’re receivable, plus it was discounted by 1 or 2% with the privilege. Is expensive. Absolutely… maybe! That is because most business people don’t recognize the fact they are in effect carrying those receivables already, that is a cost that is certainly often not intuitively calculated through the small business owner. Secondly, the term ‘ opportunity cost ‘ will come in to try out, since the reality is that in case your firm can generate a fantastic return you can use the cash flow from the receivable financing to create higher profits.

So why isn’t factoring or receivable financing a choice of every Canadian business for working capital funding? The truth is, which can be a surprise to many people, that these largest firms in Canada utilize this financing. They simply have a stronger ability, because of their …

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