Archive for

Getting Business Finance Through Your Business Plan

When it comes to business start up the one aspect that shouldn’t be overlooked is your business plan. This key document is the roadmap for future development and when applying for a new investment or capital. It is crucial in gaining the attention and interest of potential investors and lenders.

If you want to gain outside financial help when starting up a business, which is more than usually the case, then you will need a clear and precise business plan that outlines everything about your business, including your financial forecast. It is essential that you are honest and open when it comes to describing your financial forecast; you should also avoid being overly ambitious and it is important that you don’t ignore financial difficulties as there is a chance you might be able to come to some arrangements.

Your plan helps you to understand your vision and goals for your business and how you are going to spend the invested or borrowed money and how this will benefit the business as well as potential funding providers.

Before you present this highly important document to any investors it is important that you:

o Check that the help you are applying for is still available – you may no longer qualify

o Back up any assumptions in the plan with thorough research

o Get someone to read the plan to spot spelling and typing errors and to ensure that it makes logical sense

If you want the best possible chance at gaining business finance through your business plan then you might want to consider seeking the help of a professional business advisors or accountant. By doing this you are ensuring that the financial information is presented correctly and that key areas stand out.

The financial aspect of your business plan is used to compare your businesses performance against the industry benchmarks. It should include major expenditures and the reasons behind any changes in the working capital such as stock, debtors and creditors. You should also include your businesses balance sheet and explain any profit or loss within your business.

The financial forecast of your business within your business plan should cover a period of three to fives years and should explain how a loan can be repaid or how an investor will get their money back.

Investors or lenders are unlikely to risk their own money if you are not prepared to risk yours. This is a fact that new business owners should take on board. This is because if you are expecting to gain outside financial help you have to be prepared to invest your own money and assets into the business before you start to seek outside help. People are more likely to help you if you are risking your own capital and assets to make the business work. You need to be able to show the extent to which you are committing your own resources. If you do this you are giving yourself more chance of gaining the business finance that you need and want.

Beat the Bad Economy With a Home Based Business

More and more people are getting involved with home based businesses as a way of supplementing their income in a bad economy. With the internet opening the market for anybody, anywhere, to offer up a product or service for sale, a home based business has the potential to be very successful. However getting any home based business off the ground takes a lot of work, dedication and-this a rare word you hear in business anymore-passion. Luckily there are a few tips that can help you:

Have a clear vision of what your home business is going to be before you begin – A home based business should be something you have clearly mapped out in your head before you ever begin. You should know what service or product you have to offer, and why it will be profitable. Furthermore, a home based business should be something you are passionate about, enjoy doing, and are willing foster and promote until it gets off the ground.

Research the industry that matches the interests of your home based business – Once you have a clear vision of what service or product you wish to offer, do some research to see which industry coincides with your interests. If you like fitness and working out, take a look at the personal training industry to see what home based opportunities there are. If you like making holiday cookies, candies and the like, do research on that industry. By becoming familiar with an industry that coincides with your interests, you familiarize yourself with the marketplace. This is important if you hope to make the right moves later.

Have clear goals for your business – It’s important to have a firm grasp of why you’re starting a home based business. Are you starting your business to supplement your income? Or is your home based business something you eventually want to work with full time? Knowing the answers to such questions is crucial; the amount time, effort and money you invest in your home based business depends entirely on your reasons for getting into it. Have a clear idea of how much profit you want to make each month, and invest only that much effort needed to get you to your goal.

Be realistic – Take a long, hard look at the product or service you want to offer. Will people buy it? Is it profitable? These are the questions you need to be asking yourself before you ever jump into the market. If you feel like you need some outside opinion, pitch to family, friends, or even a few trial customers. Were they interested? Be sure your business at least has the potential to succeed before you get wrapped up in it.

Make sure your business is in good hands – Once you find a product or service that you feel is perfect for your home based business, make sure that the company that owns that product, or is providing a service for you, is legit. Is the company financially solid? Reputable? Ethical? Will they be active in helping stimulate your business, or will they leave you to do everything on your own? The best companies will always have a solid system in place to help you succeed. Do your research.

Know how you will be compensated – Seems like a no-brainer, however too many people jump into home based business ventures without understanding exactly how they will be compensated. If you are working for a larger company, know exactly how the company plans to pay you, how often you will be paid, and what share of the profits you are getting. Have a contract clearly stipulating the terms of your compensation. If you are working on your own, have a secure payment system (i.e. Paypal) that will guarantee your profits make it straight to your pocket.

Be flexible – New opportunities are springing up everyday in the home based business market, so don’t be too rigid. You might find that a product or service offered by another home based business is something you are actually more passionate about, or may be something that could work in conjunction with your own product or service to help push sales for everyone involved. Be open-minded, and be willing to think outside the box.

Agreement for Deed and Other Questions – Part I

Part I

Can a second mortgage holder force a foreclosure? This is a question you might be asking yourself if you are in the situation! The answer to that is: Certainly. Now of course it certainly cannot hurt the first mortgagee’s position but they can certainly force a foreclosure. In fact, I have done it myself and actually do it quite often.

Here is the next question you are probably wondering.

Does a private lender resist being in second position? Most of them do if they are in the business of lending money. However, individuals that you go to will make you private loans as long as you explain to them that the loan to value ratio is the same. If you take into consideration the first and add their second to it, the two combined is their loan to value ratio. The good thing about putting people in second position is it usually a much smaller amount of money, therefore reducing the risk as well.

Think about it-in reality, they are really lending to you and the property is just collateral. They are expecting you to pay it back and I know quite a few people who actually break the rules on second mortgages (and borrow more than I’d like to see them borrow but as long as it gets paid back it doesn’t much matter). What does this really do? It gives people a place to put small amounts of money and get a good rate of return on it. It is very difficult for them to find in other places with those small amounts. With that being said, this is exactly what should be clear to you. Now here’s another question for you. Would you ever put someone in a house or a land contract if they had less than 10%? I would have to say yes, but that is going to hinge largely on what state you live in. Say for instance you live in the state of Georgia. With Georgia, the answer is yes except it is agreement for deed. Fortunately, that is one of the fastest reclamation states there is! You can ask anyone in the business and they will tell you the same. You can literally have somebody kissing the curb 30 days after you start the process up there on an agreement for deed.

In part two we will continue our scenario with the agreement for deed.