Starting a new business is an exciting and lucrative opportunity. There are many factors to consider, regardless of the entrepreneur’s economic situation. Securing funding to launch or sustain a new business is both a critical and sensitive step that requires careful planning; identifying the right type of funding specific to your business model and takes time and research.
Bootstrap funding is when an entrepreneur funds the business with very little capital. Most of the money raised comes from personal savings, credit cards, or other assets such as personal investments. As the sole beneficiary of this operation, the entrepreneur maintains total control of the business. There are no equity investors to pay. All proceeds remain with the entrepreneur.
Entrepreneurs can seek traditional funding from banks and other financial institutions to achieve business goals. Financing can range from debt financing, equity financing, to borrowing against retirement and insurance policies. Traditional lending processes are inherently strict and can work against the entrepreneur if the processes are not understood and followed correctly. Understanding the processes and procedures will maximize the chances of success. There are many free resources on the Small Business Administration website, the U.S. Business Advisor website, and at the U.S. Consumer Information Center. Entrepreneurs maintain total control of the business, equity, and proceeds. Continue reading “7 Ways to Fund your Business”
Dragon’s Den is the reality TV equivalent of asking a private investor for some money to expand or start a business venture. Of course, it’s not identical to the situation that most business owners or entrepreneurs will find themselves in – as they’ll usually be pitching to bank managers or small venture capitalists – but the lessons are the same.
One key lesson involves valuation. It’s also the thing that most visitors to the Den get wrong, and probably the number one reason that they don’t get an offer from the notoriously picky Dragons. Continue reading “What is My Business Worth? Business Lessons From Dragon’s Den”
Running your own business can seem an attractive option these days. Plenty of people have a dream of running their own business, and sometimes, when that offer of a redundancy package comes along, it can present an opportunity to realise a long held ambition.
It doesn’t have to be a redundancy package that sets you off on your entrepreneurial adventure, of course. It could be spotting a gap in the market, a lucky chance or a perfect storm of opportunity blowing your way that inspires you. Before you know it, you’re the proprietor of your own company and may be considering employing someone to help you – but the implications of employing someone (or even several someones) can be quite scary.
What do you need to put in place to keep you on the right side of the law?
Essential Documentation for the Small Business
In addition to public liability, employer’s liability and professional indemnity insurance (consult your insurance broker about these essential items), there are certain other essential documents that you need to put in place. Continue reading “Employment Legislation and the Small/Medium Sized UK Business”
The BBC’s Dragon’s Den, now into its fifteenth series, is a mainly excruciating yet sometimes a very informative and completely entertaining show. As would be entrepreneurs bring their money making ideas and businesses to five self-made business giants, the dragons dig into their business models for future profit and ultimate return. The attraction is obvious for the pitchers, an investment and just as importantly, influence from somebody who has already trodden the path to major wealth.
The excruciating part of watching this show is all too obvious. For the vast majority who do not receive the investment they are looking for, it is usually as a result of a lack of essential business acumen. The dragons know this and it creates for great entertainment watching them tear apart their unsuspecting prey and leaving a ravaged business model to hobble away and find a place to die. Can this be avoided however? Can the business hopefuls actually prepare better to leave with some dignity when faced with rejection? Here is a look at some things to consider for those who are willing to brave the Dragon’s Den. Continue reading “Dragons’ Den Guide To Seeking Investment”