Why Capital Is Not Your Growth Problem

  Growth is one of the most crucial factors entrepreneurs face throughout the life cycle of their business. Many business owners experience stagnation and turn to the securing of capital as a remedy. However the lack of cash is not the cause of their stagnation but simply one of the symptoms. Do you find yourself constantly reacting to cash flow shortages? Does your productivity always require an increased effort in order to grow? Sustainable growth depends upon a scalable business structure and operation that will continuously improve profit while avoiding costs and input increase.   Plan your growth As a business expands its footprint, more and more opportunities present themselves but they are not necessarily the right ones for any given time. Also entrepreneurs are creative people by nature. Every day, before noon, they have probably come up with dozen of ideas for a new service or product. This kind of constant demand and creativity can distract them from their bread-and-butter business. The solution? Planning! Business planning is a comprehensive process for determining a business future and how it can best achieve its goals. It audits the full potential of a business and explicitly articulates the business’ objectives, the actions and resources required to achieve them. Desired outcomes come from intentional vision, intentional actions and intentional planning.   Make adjustments Making a few key adjustments can improve the scalability of a company. Reviewing business processes is a good way to ‘trim the fat’ by reducing unnecessary redundancies and increasing efficiency. The employees executing these tasks may provide interesting insights to improve the current processes. In a business providing services...

How to Weather the Coming Economic Downturn

In this political climate with no clear choice, it is time to insulate yourself from the pending economic downturn. Why do we believe this is looming? Based on the rhetoric, the bantering, the posturing, the hyperbole and most important the recent Jobs Report. These are all signs that the economy is not in growth or recovery, but in fact downward spiral. When they announced the Jobs Report it was the most dismal for the last 3 years and it had already been revised downward and we still missed. There were three factors to blame according to the media, however; the one that garnered the most as the reason was Trump. His blabbering about trade indifference, Mexico, etc., has created a fear in the economy and businesses. Here is our prediction of how it will play out with either Trump or Clinton becoming President. Donald Trump: If Donald Trump becomes President we will experience a severe economic crunch, because in his first 100 days he will cancel a majority of the social programs. No gradual or cutoff dates, just immediate. What does this mean? So even if these people are receiving income without earning it, the money still flows into the economy. With a cold turkey approach of canceling these resources, means less money in circulation. These people will seek employment, but we already see that businesses are starting not to hire. This will create a cash crunch, which means businesses will struggle, which in turn; banks will tighten their lending criteria even more, making it difficult to acquire funding for growth, starting a business, inventory, etc. Our prediction is...

5 Keys to Getting Your Company Funded

One of the most difficult times for entrepreneurs is when they realize that in order to succeed they are going to need more money than their business can generate. What will it take to get your company funded? There is no shortage of money! For the right opportunity, there is someone willing to invest and put their money to work for an increased return. Here are the 4 Keys every bank, family, friends and investors are looking for: Who are you? What is your product or service? How much money do you need? When do I get my money back? Even though there are only 4 things people are looking for, I have added an additional key which is often overlooked but extremely important. Let’s profile each one to give you insight and perspective. First, my bonus key to getting funded: the framing of your opportunity. It does not matter whether you are seeking money from a bank, family, friends or investors you cannot leave it up to them to see the potential. You must hold their hand and guide them to the promise land. Often times they lack the vision and understanding to see the opportunity and potential. The second key is: Who are you? Remember they probably don’t know you, so they are investing in your ability to execute. Sell yourself! What is your experience, track record, especially failures and how you learned from them? Think if someone you didn’t know asked you to invest, what would it take for you to give them money? The third key is: What is your product or service? What is...