Buy A Business And Expand It Almost Overnight With This Secret Not Taught In The Business Schools

If you are planning to buy a business some day, or if you already have one, and want to know a secret way to expand quickly without begging a bank or lender for the money, then this article will show you how.

I recently did an interview about buying businesses and a guy from Florida emailed the following question in:

“I have a small electronics business and am going through a huge growth spurt and need to figure out how to get financing to keep up with demand. We are growing real fast and can’t get money from our bank because they said our balance is too low. We are spending all our available cash on product purchase. We have a classic problem of too much success and no funding. We could lose some big sales for lack of capital. All our customers are large corporations like Proctor & Gamble, Hilton, Hewlitt Packard, et cetera. What can we do?”

My answer to him was simple and the only answer to his problem: The easiest thing to do on a deal like that is bring an investor in because…whether it’s a million, two million, five million, whatever the amount is…there’s either one person or three or four persons that will come in.

Again, this is not going to be a loan…it’s going to be equity financing. In other words, you’re going to give them part of your company.

But don’t let that scare or stop you. Because most investors — at least the ones I work with — don’t want to own common stock in your company. They want to own preferred stock.

If you own the type of corporation that allows preferred stock, you’re going to find they’re not in a voting position (except in rare circumstances). All of which means you still own 100 percent of the company. You just don’t own 100 percent of the cash flow.

This way of expanding doesn’t get talked about too much in the business schools any more. But it sure beats the pants off any kind of loan you can get at the bank. And as long as your numbers are good, you’ll have little or no problem getting investors to jump on board and give you all the expansion money you need.

Essential Tips For Starting a Small Business And Surviving Afterward

It is a well known fact that we need some essential tips for starting a small business in order for it is to be successful. We have the tangible points like writing a business plan, cost implications and the like but there are some very vital less tangible factors you have to take into consideration that makes the difference between failure and success, the difference between being good and being great at what you do.

Take the following into consideration and watch your business take off to a flying start:

Believe in Yourself

Starting a small business means you are your boss. The buck stops with you whether you succeed or not. You are responsible for your results as one of my mentors says. You have to believe you can attain the level of success you so greatly desired when you first decided you will launch a business. Another of my mentors wrote:

Belief fuels enthusiasm, and
Enthusiasm explodes into passion
It fires the souls and lights up the spirits.

So belief is the key to get your business moving in the positive direction you want. So take a few minutes at the start and end of each day to reiterate your belief to yourself. Tell yourself that irrespective of the current situation, you will achieve your dreams. It is amazing how this turns out to be true.

Be sure to engage in a business that has to do something you love

The most challenging time when starting a small business is when it is in its infancy. At this stage it is very vulnerable to existing economic conditions and as such it has to be nurtured very carefully. This period in any business is characterised by lots of effort and very little results. We can liken this time to laying the foundation of a building without being able to see anything on the surface. At times like this it is your love for what you do, that will pull you through to the next phase. It will keep you getting out of bed every day with a spring in your step until you can see the edifice of your business rising to the surface. Being enthusiastic about what you do also rubs off on your prospective clients in ways you may not necessarily be aware of, and you find that they are favourably disposed towards you and your business.

Be very clear about the goals you want to achieve and keep them in the fore front of your mind always.

Starting a business without having goals is like going on a journey without being clear of your final destination. The question then is – how do you know when you have arrived? Without clearly defined goals you will fall into the danger of accepting anything that comes your way instead of course correcting when you make a detour. So to achieve tremendous success in your small business write and regularly review your short and long term goals for both your business life and your personal life and make the necessary adjustments as and when required to keep you on track.

The issue of raising finance – alternatives to consider

Another essential tip for starting a small business that you have to bear in mind is the issue of raising funds. For most people the first port of call in raising finance to fund our business is by visiting their local banks. Some people may be successful this way but not everyone is and sadly they let their dreams die and fade away. In such instances thinking outside the box is absolutely essential in looking for alternative means of funding your business. Here are a few you may want to consider should you find yourself in such a position. Friends and family are one option that people do not capitalise on enough to fund their business. Another alternative is by joining your local chambers of commerce where you will network and hopefully meet and interact with local business men on a regular basis. From such contact, potential sponsors may be met to help fund your business venture. Of course other methods still exist which I will encourage you to explore.

Taking these points into consideration as you start your small business will help you lay a strong foundation as you look to build your business and achieve your dreams.

Key Steps to Survive in a Home Based Business and to Earn an Extra Income From Home

What makes it tick to survive in business, – not only survive but succeed and grow, is a subject matter for deeper analysis, within the vast arena of strategic and successful business planning. A large number of small business start-up strategies, have been postulated, but some of these are extremely useful in the planning process and offer the right keys to survive and grow in business.

Most entrepreneurs seem to make the start with a highly fanciful idea that has germinated in their minds, – ideas are welcome and undeniably the crux of any good business plan. What one needs is the precautionary steps to determine whether the idea meets a few practical requirements – if the new product/service is a clear step ahead of the others, if it will solve a prevailing issue/need better, plus if it will expand on the user circle directly or indirectly.

An in-depth analysis of the functioning of small businesses seems to provide some clear directions for survival and growth, the first being the power of the planning process, and the second the all important influx rate of capital to meet the bare minimum needs, as spelled out in the business plans. Very often businesses, which have survived for five years or more, have invariably shown marked strengths in both of the above.

Pulse of the market: Top in the order of importance, successful business planning requires measuring the real pulse of the market, as against complicated mathematical projections/estimates of sales and numbers. What one needs is the practical insight into whether the products cover a gap in an existing market, or the affordability of the targets, or even whether the customer has the right perceptions about the product.

The idea concept: Successful home based businesses also have to capitalize on the impetus from new ideas by reorienting their strategies to use them (ideas) effectively. Ideas and solutions should trigger positive customer response by establishing solutions, or by infusing recurring demand,  in effect improving the customer’s perception of contentment and satisfaction.

Business plans and Finances: Businesses that survive and also grow seem to have a strong armory comprising of a well-conceived dynamic business plan and the right mix of schemes for capital funding and financial inputs. While the business plan acts as the forerunner for the business, including the finances, an integrated outlook based on internal and external performances should ensure the proper environment for the successful functioning of the business. A plethora of funding agencies coming from governmental/non governmental sectors, chambers of commerce and trade associations offer various types of financial support to business enterprises, in the form of grants/loans and so on. What is needed is the right combination of financial planning with effective business strategies to meet what the business needs at the appropriate stages of start-up, development, manufacturing or marketing.

Core competencies: An innovative idea/product, coupled with a receptive market situation may not be enough for a business to survive, except when sufficiently equipped with the basic core abilities/competencies in terms of consistency in production, supply, the right mix of skills for buying, making and selling, apart from others.

Mentors: Successful entrepreneurs are not born, but made. Very often businesses that survive and grow, are run by entrepreneurs who are able to acquire the right solutions at the right time for many of their problems. Taking the clues from previous successes is an art, and successful business plans need to adopt from proven models, and tailor them to suit the individual business. Again, when entrepreneurs do not have the necessary skills, in special disciplines, the right thing would be to use the services of a consultant, or advisor or even locate a mentor, who could guide and support with their expertise on some critical areas, identify the plus and the minus and help him/her in the tools and techniques of successful business planning and ultimately continued successes in business.

Last but not least it is absolutely necessary to understand that adequate time and effort is allowed for planning, at the time of starting the business (formative stage), which is none else than the hard core of successful business planning.