Archive for

Business Loans Vs Angel Investors

If you are already in operation then you may want to seek a business loan instead. There are a tremendous amount of positives working with angel investors although you may be better suited for a business loan if your business is already in operation. How much equity you sell is up to the quality of your business, and if you are already in operation then evaluating whether or not you need an equity partner is imperative. In your business plan, you should always provide a complete analysis of the economy in its current state as both an angel investor and a financial institution is going to want to see this information.

Financial requirements vary from individual to individual as it relates to working with a private investor. There are a number of considerations that need to be made before you seek capital for your business, and you should have appropriate counsel in place in order to effectively advise you on this matter. SBA loans are fantastic alternatives to using angel investors. Your local bank may be able to provide you with some level of equity in addition to a loan if your business requires it on an ongoing basis.

As an alternative to seeking equity investors you may want to look into specialized lending programs that are available from private investors that have more of an interest in a recurring stream of revenue rather than an equity percentage. Within your business plan, you should always provide a funding source was a complete understanding of how you intend to use these funds as they are going to want to understand how their investment is to be used.

Negative economic changes should be discussed in your business prospectus when you are determining whether or not you need a business loan or funding from an angel investor. Capital always comes at a cost, and you should be prepared to pay a substantial expense for the financing that you are seeking.

As we have discussed before, loans from private investors are very expensive. As such, if you are seeking private financing then you should make sure that your profit and loss statement and cash flow analysis support the fact that you are able to repay a loan or royalty based investment on an ongoing basis.

Finally, and it cannot be said enough, you should always have a substantial number of professionals that can assist you with developing a plan that will give you the capital that you need in order to grow your business without having to undertake an extremely expensive capital burden.

How to Find the Best Home Based Business That’s Right for You

Are you looking to find the best home based business to start? Well, before we look at some great home based business possibilities, we need to make sure we’re on the same page here.

Now I’m going to assume that you’re not trying to start an accounting firm or law practice from home or something in those terms, requiring you to have a professional degree. Because if you are you probably already know what to do, as there is plenty of material out there that will teach you how to get clients, work referrals, etc. You are investing your professional time for money. There are a lot of pros and cons to this type of business, but that is another topic for another time.

Chances are, if you are reading this article, you were probably looking for ideas on the best home based businesses you can start and run from home without having to spend a fortune to start, meaning you are open to new ideas and suggestions. You are probably a just a regular person looking for some good advice and ideas of businesses you can start from home. One which you do not need a large amount of money to start.

Or maybe you currently have a job but just need something to supplement your current household income. Or perhaps you are unemployed and finally got the idea and motivation to start a home business. Whatever it is, you’ve come to the right place. I’m going to show you some good possibilities that can become a reality.

Here are a few things I look for when looking to start a home based business. Whenever I come across an interesting business idea, I’d weigh it against these guidelines and make sure it qualifies, having at least three of the qualities below, if not all four. Helps me to fight a winning battle.

Here are some questions to ask yourself when considering a Home Business idea:

1. How many products or services do you need to sell or how many accounts do you need to obtain before you reach your income goal? Can you see yourself getting to that number? Can you predict how long that might take with at least a reasonable effort? Be optimistic, but also be honest and a little conservative.

2. Does the product or service you are going to sell have residual characteristics? In other words, can it keep selling itself even if you are not constantly having to acquire new customers? Imagine not having to sell to new customers every month in order to profit, but rather, have customers keep returning back to you due to the nature of the business and or what you are selling.

3. Does the business require more than a couple hundred dollars to start? None of us want to take a risk and invest any money on a business that we have no control over. So unless you know you have a sure thing, a home business should not require much monetary investment to get started. You can always start with no more than a few hundred dollars and use the money you will make to further grow and expand the business. In the beginning, it’s more about your time and effort rather than some large amount of cash you don’t know what to do with. Picture yourself doing certain tasks that will directly result in revenue or profit.

4. Is it expandable? This basically means once you get the business going and start making some money, can you keep the business growing? Can you eventually hire someone to do most of the work for you and walk away while the money keeps coming in? Let’s face the facts, nobody wants to be stuck in a business that we have to devote the majority of our time to and cannot get away from, because we have created a situation where no one can do what we do. Perhaps you don’t know all the facts and details that are involved in the business yet, but do think in this direction and when the time comes, you’ll have created a business that you can expand even without you having to spend the majority of your time there.