Dec 05 2009

Startup Funding

Money money everywhere,

                                                                                      

and not a cent to start with!

                                                                                               

     Sure there are all kinds of venture capital dollars and small business loans out there. There are also slot machine, blackjack, horse race, football pool and lottery winnings to be had.

     Forget ’em all! REAL entrepreneurs don’t gamble. They’ve also probably learned the hard way to not trust outside funding sources.

     Don’t believe — for even one minute — that you can waltz into a small business loan package deal, government SBA, bank or credit union, and waltz back out of it.

     First off, unless you really enjoy building productive partner-type relationships with the IRS or motor vehicle bureau (and those examples are just for openers), reality is any government -affiliated loan arrangement will leave you so tangled up in your underwear that your business will probably fold while you’re struggling to get through the mumbo-jumbo paperwork, acronyms and legalities.

     And don’t you just love that the daily lineup of eager-to-please loan officers require only that you put up enough collateral to cover the amount of the loan … like your home, your sister and your oldest child? Duh, if you had all that net worth in your closet, why would you need a loan?

     If you think it doesn’t seem fair, it’s because it’s not. Business is not fair. Neither is life, so say those who have failed because they couldn’t get the loans they needed to avoid bankruptcy and foreclosure.

“Yeah, but I’ve got a great, earth-shattering

idea that will make millions, billions even!”

     Good luck!     

     Of course there’s always the mafia. Can’t find any around? Drive to New Jersey (apologies to my former neighbors) and just ask. You could maybe even Mapquest it. Then, you need only be willing to give up your life in return. Hmmm, not a bad deal: business survives; you die. Oh well.

     Venture capitalists want 45-60% control ownership and immediate return on their investment. You’ll be amazed how fast 180 days go by, and wait to see how much fun it can be having to get approval for a printer cartridge purchase.

     Uncle Charlie? Maybe, but probably not a good thing unless everyone else in your family is already dead.

     So, what’s a bright up-an-coming entrepreneur to do?

     Sweat. Work hard long hours. Believe in yourself and your ideas. Be passionate about them. Have a burning desire to achieve them and be willing to pursue your goals at all costs. Keep your head down and charge.

     Never give up. And when you stumble, get up! Be the posterboy or girl for TRUST and AUTHENTICITY and INTEGRITY, and don’t let anything or anybody get in the way of that! 

     Be single-minded enough to not be side-tracked, but stay flexible and resilient enough to make adjustments along the way. Surround yourself with positive people and cultivate positive thoughts and attitudes. Take lots of deep breaths. Don’t take anything for granted. Work it yourself. Sell yourself, and earn enough to fund yourself!

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Reply Hal@BUSINESSWORKS.US (Subject: “Blog”) or comment below. Thanks for visiting. Go for your goals! God Bless You! Make it a GREAT Day!  Blog FREE via list-protected RSS email OR $.99/mo Amazon Kindle. Branding Line Exercise: 7Word Story (under RSS). GREAT GIFT: new Nightengale Press book THE ART OF GRANDPARENTING http://bit.ly/3nDlGF

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Nov 04 2009

BANK Bu$ine$$$$$$$$$$$$$$

Banking on your bank?

                                              

Don’t waste your time!

                                          

     The economy continues to hemorrhageOh no, that’s just not true, I heard that it’s not true on the news today:  The federal government says “we’re seeing many signs of things turning around.”

     I can’t imagine  what’s in some one’s line of sight that would prompt THAT statement. Also in today’s news, Microsoft just laid off another 800 employees. You connect the dots.

     The point is that when the going gets tough,  the average hard-working business leader thinks: The BANK. The BANK will bail us out. The BANK will lend us what we need. The BANK is the answer.

     One leading national bank  says they’ll even give loans to illegal aliens. Another says it will help customers who need help. Don’t you believe either one of them, or any of the other sleazy branding line enticements being offered out there in medialand. 

     You cannot depend on The BANK.  Period. Banks are tripping over themselves trying to outdo hospitals and the US Postal Service in the stupidity and low trust departments.

     Banks are at least 50 years behind reality  and –just like the hospitals and US Postal Service– think that slick, clever slogans, spiels, and marketing devices coming from empty suits and empty heads are going to make up the difference, the decades of incompetence.

     Credit unions offer a bit more comfort,  because they answer to their “members” not a board of directors and stockholders (but can also be a bit more risky for businesses because loan percentages, for example, can end up being higher than credit card rates if you’re not careful and alert).

     You think BANK  because the BANK has convinced you that it is your good neighbor, that because it’s been doing business in your town for a zillion generations, that it’s honorable and will loan you the money you need when you need it for a ridiculously low rate because they’re your neighbor.

     Good Luck!  A lot of businesses are failing because they naively trusted The BANK would support them in hard times. Reality Check: The BANK supports itself in hard times.

     What else is there?  Investors. Great, but guess what? Today’s investors want immediate gratification ROI and enough proof and collateral to guarantee it. Not much help if you don’t already have the money you need! 

     “Angel” investors  are getting tainted with skepticism, and are also requiring more than you probably have cause if you had it you wouldn’t be looking for it! Hmmmm. Barter. Right. Well, barter is great up to a point, but it rarely if ever produces money. Stockpiled merchandise and services have increasingly marginal value. 

     So, that leaves (ta-ta-ta-ta-tah-tah!):  SALES. Innovative, value-added products and services = SALES. SALES ALWAYS BEAT The BANK. How to boost sales now must be your number one (and perhaps only) priority. There is no greater or more important issue for you or your business to be dealing with right now, unless of course you own or run The BANK. 

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Input always welcome Hal@TheWriterWorks.com “Blog” in subject line or comment below. Thanks for visiting. Go for your goals! God Bless You! Make it a GREAT Day! Hal

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