What Angel Investors Look For in a Company

December 6, 2009 · Posted in Angel investor · Comments Off 

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In order to consider investing, angel investors must believe that the company has great potential to achieve a liquidity event, and one that enables them to earn a significant return on their investment. The following factors imply that a company has this potential.

The first criterion is scale or the potential for the company to achieve significant annual revenues. If a company expects to raise venture capital after the angel round, it must have the potential to earn annual revenues of $50 million to $100 million within five years.

Conversely, an angel investor, when no follow-on capital is required, might be willing to invest in a restaurant or website that has the potential to generate hundreds of thousands or a few million dollars as long as a clear path has been laid out regarding how they could get a sizable return on their investment. Read more

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Poor Credit Loans – Four Ways to Help You Reduce Cost

November 8, 2009 · Posted in Eco Friendly Loans, Green Business Loans · Comments Off 

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Poor credit loans are becoming more prevalent, simply because more and more people find themselves with poor credit records. The credit report may be disastrous due to stolen identity, foolish choices or poor business practices. Regardless of what causes the poor credit marks on your credit report, if you have the need to take out a loan, you should take the time to find ways to reduce the cost of the loan. Numerous tips and tricks have been put forward to help you get a better loan overall. Take advantage of any or all of them when you are looking for a satisfactory borrowing experience.

Shorten the Term

Poor credit loans can often be more expensive than others because of the higher rates. You can reduce the cost of the loans by shortening the term of the loan. Instead of taking out a 4 year loan, for example, reduce the loan term to 42 months or 3 years and you will see a significant difference in the cost of the loan. Even if the interest rate remains the same, you will pay less money during the course of the loan because the term of the loan is shorter.

Borrow Less

Another way to reduce the cost of poor credit loans is to borrow less money. Don’t be tempted to borrow more money than you require for the project you are contemplating. Not only will you find it difficult to repay the additional funds, but you won’t get as good a rate when you borrow more money. Read more

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Business Financing – What’s the Secret Formula Banks Use to Predict Business Success?

October 16, 2009 · Posted in Start Up Business · Comments Off 

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When starting a business, one of the first things you need to consider is the method for financing your business. You need cash for business and other licenses as well as for incorporation expenses. If you’re going the franchise route, then you’ll need to ante up thousands of dollars to buy in. Then there may be training requirements which require the investment of time and even more dollars. All this cash outlay probably happens before you make your first dollar.

Once you’re up and running, you will need to buy supplies, pay suppliers and meet payroll. All of this before the first invoice is generated. In addition to the start up costs, businesses need working capital and cash to survive until they get paid for their goods and services. A big new contract is wonderful. It could really catapult your business t greater success and profit. But do you have the Cash Flow to survive? Read more

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Business Loans For Every Income

October 8, 2009 · Posted in Eco Friendly Loans, Green Business Investments, Green Venture Capital · Comments Off 

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If you have ever thought about opening your own business but never found the needed funding for doing so, you may have put your hopes on the back burner. Owning a business can be a very powerful step in life – becoming your own boss can literally change your life. Even though some lenders are very hesitant to loan money for new ventures, there are many lending institutions that do business online that are willing to loan you the money to start your new business.

Online Competition Yields Big Savings

Because of the competitive online world of finance, you stand a better chance of getting approved for your new business loan by utilizing the services of an online lender. Read more

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Making Our Money Greener

October 7, 2009 · Posted in Business Strategy, Green Business Investments, Marketing · Comments Off 

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As consumers we have the power to encourage banks and other financial institutions to be more socially conscious and green. The recent financial collapse has shown that the way banks have been working must be flawed. Now that the banks are “looking in the mirror” so to speak and trying to sort out what went wrong we have the chance to help guide their restructuring. Now is a good time to let them know that we want businesses that care more about the earth and those of us who share it.

This is not as foreign a concept as you may imagine. A recent study discovered that when asked 43% of American bank customers would rather deal with a bank that appears green. Unfortunately for many banks that appearance of green is something they have exploited as a way to forgo an actual social and environmental contribution. Read more

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Venture Capital For Small Business Growth

August 14, 2009 · Posted in Venture capital · Comments Off 

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In past years, attracting venture capital interest might have been considered to be a relatively unchallenging feat by most successful entrepreneurs and small business owners. With a sound business model and a good growth strategy, it seemed fairly straightforward to obtain the financial investment and support which was needed to boost the business to the next level. However, recent months have certainly changed the face of venture capitalism, and it is important to fully understand the most effective means of approaching investors in the light of the economic downturn.

There are many small business owners who have shied away from the concept of venture capital in recent times, for three main reasons. The first reason tends to be a general uncertainty as far as the economy is concerned. With global financial institutions and national banks collapsing in ruins as a direct result of risky or foolhardy investments, how is it possible to find a good, solid investor? The last thing any business needs is an investor promising the finance and then failing to deliver. Read more

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Business Finance Options For New Start-Ups

January 7, 2009 · Posted in Green Business 101, Green Business Investments, Green Venture Capital · Comments Off 

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There are various business finance plans open to a new start-up, but they all fall into 2 major categories, namely, owner financing and borrowed business finance. Each of these 2 major categories has an upside and a downside that every entrepreneur seeking business finance should be aware of. The key to success in business finance would then be finding ways to exploit the advantages of one’s chosen financing option, while also mitigating against its downside.

The first major business finance category is owner financing. Owner financing refers to money that the entrepreneur and other promoters of the business contribute to start it. In most cases, owner financing comes from the entrepreneur’s savings. Read more

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Beware, Beware, Beware of the Big Green Business Bubble Burst

December 16, 2008 · Posted in Green Business Basics, Green Industry, Starting a Green Business · Comments Off 

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Most folks are completely behind the “green movement” and have found a new interest in alternative energy. Most of this has to do with the Global Warming motif and huge amount of media coverage on CO2. Now please understand that in the spirit of full-disclosure I am not a Global Warming Alarmist and do not buy into the theory that mankind’s CO2 is heating up the atmosphere.

Okay, let us discuss the Dot Com Bubble and the Bubble Burst that ripped through Silicon Valley like a Category 5 Hurricane. Venture Capital firms flush with cash were doing deals with companies, start-ups with interesting ideas for website, without any way of ever making any money and no similar business models that had ever proven to be successful. Read more

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