The U.S. Small Business Administration and Investment Division welcome your interest in obtaining SBIC financing for your company. Since 1959, Small Business Investment Companies (SBICs) have supplied equity capital, long term loans and management assistance to qualifying small businesses....
By: Tim Porter, Director of Capital Resources for The Client Advocate Network, Information obtained from the SBA website
When the economy takes a turn for the worse, executives need to embark on two related courses of action. First, they should prepare their companies to ride out the economic storm. Then, they should get ready to take advantage of the recovery that will surely follow. This process requires seven essential steps...
By: Edmond Freiermuth, Vistage Speaker, Finance & Business Advisor
To raise money for your business, you must decide whether you want to borrow money or sell ownership interests to equity investors. Often, you may not have many options -- the person with money to lend or invest will obviously have a lot to say about it. But you should understand the pros and cons of choosing one over the other...
By: FORBES.com
Whether your business is doing well or taking a hit on the revenue side, just about everyone is seeing their costs of doing business go up. Even small and midsize companies whose sales and income have increased are being forced to tighten their budgets to deal with soaring expenses due to fuel and energy prices, higher taxes, and other outlays over which they have little or no control.
Luckily, there are other areas where you may be paying more than you have to, so you can cut your costs to keep your organization's financial status on an even keel. Many of these changes don't require a big sacrifice — and you might find yourself getting more while paying less.
By: Debra Littlejohn-Shinder, Author and Technology Consultant
In the first half of 2008, Congress passed several tax changes that will impact individual and business taxpayers. These changes were primarily driven by the meltdown of the subprime mortgage market, high gasoline prices, and the push for alternative energy sources. Here’s a quick explanation of the tax changes so far this year...
By: Ted Cohen, Vistage Member & Financial Advisor
To all the usual reasons that small businesses are put up for sale - personal problems and personnel squabbles among them - add economic woes this year. But even as for-sale listings rise around the country, so is buyer interest.
"When economic times get tough and people can't find a job, they will go out and buy a job," said Ronald Hottes, president of the Business Team, a broker in Torrance, Calif.
The problem for owners is that prices appear to be softening...
By: The New York Times
The 2008 presidential election will offer small business owners a choice of two very different approaches to addressing their top concerns - the cost of health care, energy and federal taxes.
John McCain's campaign says a key to faster economic growth is helping small businesses.
The presumptive Republican nominee released a "Jobs for America" plan recently that aims to make it easier for small businesses to grow because they create the majority of jobs in America...
By: Brian Tumulty, Gannett News Services
There is no doubt that banks have been hit hard by today's economic conditions. Some banks have been hit harder than others but only a handful will actually fail. Regulators do a good job watching over underperforming banks and are quick to arrange marriages between healthy and weak banks.
In the few but very visible cases when a bank does fail, depositors are protected through the FDIC. This article outlines FDIC insurance, how they are protected and to what limits...
By: Greg Arbues, Founder of Client Advocate Network Information gathered from the FDIC
Whittier Hearing Center Inc. has endured hard times before.
Eight recessions have come and gone since the hearing care company opened its doors in 1955. Even though the economy is souring again, the company's owners expect that recent investments in staff education and equipment upgrades could mean higher sales this year.
"We've been through these recessionary periods many times," said Mary Ann Gilbert, director of audiology and co-owner of the business, which offers tests, hearing aids and ear protection gear. "We survive by being very value-focused for the patients. That helps us because the patients trust us and we get increased referrals from them and the medical doctors in our community."
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By: Cyndia Zwahlen, an L.A. Times Reporter
1. Building the niche
All buyers of companies look for the seller who has carved out a powerful niche in which to do business. The focused niche player has strong margins, is more profitable, and has greater barriers to competitive entry.
A+ companies have overall profitability in the range of 18 percent plus, as a percentage of sales, and sometimes go as high as 25-30 percent. They are often dominant players selling their products in their particular focused market - and they usually offer some products no one else does. They typically have a defined business category which they understand well - and this gives them the ability to be first with the changing technologies and trends deemed desirable in their business segment.
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By: Deborah Douglas, Vistage Speaker and President of Douglas Group, a private investment banking firm
The Structured Sale is a method of selling capital assets--particularly real estate and closely-held business interests--in a manner that allows tax deferral as prescribed under the installment sale method of reporting.
The Structured Sale is different from a traditional installment sale because it draws on methods long used in the structured settlement industry to assure payments for the victims of catastrophic injury claims.
To read case study click on link below
Content provided by: Cliff Brown
Capstone Bay
Raising capital for your company may seem like a daunting task, but the challenge is less formidable if you follow some time-tested, effective dos and don'ts.
DO'S
1. Always raise more capital than you think you need. Raise enough capital to create true "dry powder" -- that is, money that goes beyond your immediate requirements. You should raise sufficient capital to meet your company's needs for 18 to 24 months. Actual capital needs are often greater than projected, and going back to the well is one of the most expensive ways to raise capital because it is usually done under less than favorable circumstances.
To read the rest of the DO's, click on link below
DON’TS
1. Minimize risk. There are two principal components to accomplishing this objective.
• Do not personally guarantee company obligations unless you absolutely have to do so. In most cases, if your company has a track record you won't have to guarantee capital commitments. If it is requested, keep looking. If you do have to extend a personal guarantee, negotiate up-front the conditions upon which the guarantee will be either partially or totally released (usually certain operating or financial benchmarks) at some point in the future.
• Never bet the ranch. No individual deal is worth jeopardizing the company. Limit and isolate risk to the extent possible.
To read the rest of the DON'Ts, click on link below
By: Brad Bulkley
Bulkley Capital & Vistage Speaker
This section addresses issues and topics related to the money side of the business; accounting, tax, banking, finance, forecast, investments, wealth management, etc.
This page contains an archive of all entries posted to Client Advocate Network in the Capital (Money) category. They are listed from oldest to newest.
CAN news, newsletters & announcements is the previous category.
Knowledge (Advice) is the next category.
Many more can be found on the main index page or by looking through the archives.