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    0 Replies Latest reply on Aug 21, 2008 1:54 PM by rontowns25

    Big Business Financing Success

    rontowns25 Adventurer
      *Bank
      Financing.* The advantage of bank financing is that you retain 100% control
      of your company. The bank in essence is a silent investor who remains that way
      as long as you make your payments. The trick to bank financing is timing. It is
      best to obtain financing when you do not need it. In example, you can establish
      history with a bank with investments such as GICs or CDs. You then apply for a
      line of credit against the investment. As you pay off your loan cycle, you are
      building a good credit history with the bank. In time you would be able to
      obtain an increase in the amount the bank would finance. It's good practice for
      every business to establish a line of credit when things are good. In this way
      you have access to money when there is a need.

      Investors. Investor money is
      available to start up and established companies. Among the things that
      investors evaluate are the management team, the industry and opportunities for
      growth, the business idea and timing, and the execution of the strategy.
      Start-up companies will not have a history so it's important to have a team of
      experienced people with a track record of past success. Investors are not
      gamblers but calculated risk takers. When meeting face to face they are looking
      for knowledge of the marketplace and competition as well as fire in the belly
      and willingness to make sacrifices to achieve success.

      *Friends
      and Family.* Many businesses start with a little help from their friends. This
      "love" money can also help you access outside funding. Banks and investors do
      consider this in their financing decisions. After all if you cannot convince
      those closest to you to believe in your business, why would a stranger take a
      chance on you? When you and your circle of support make a financial sacrifice
      it validates your commitment to the business.

      Be Prepared. The key to successful financing is
      preparation. You should have a solid business plan with a good executive
      summary, power point presentation and a finely tuned elevator pitch. Be
      prepared with documentation to validate your position, including financial
      statements, patents and copyrights. A good website is also helpful.

      A business
      should plan for financing as diligently as they plan for business development.
      Develop mentor relationships with investors in advance of starting your
      business. This will enable you to receive free expert advice that will help you
      to fine tune your plans and presentations. Finally, seek financing from a
      position of strength not crisis. It is far easier to acquire funding when you
      do not need it.

       

      The key to business enlightenment here... www.readtheanswer.com/index.php?RTA=web2