In the market for a business loan to start or grow your new business? Well, this might be your first real business challenge – one that will make or break your company.
Accessing capital from traditional resources like banks and other financial institutions is almost out of the question these days unless you bring tons of assets and cash flow with you (some things that most new businesses or start-ups just do not have – or, if they do have them then they don’t need outside financing like business loans or working capital lines of credit).
So then, what is your business to do?
It starts with management – meaning managing the problem; just like you will eventually manage your employees, customers, suppliers, production, etc. The only real difference is that if you do this right in the beginning, you might not have to ever do it again.
Some simple tips to manage your capital raising process are:
- Understand your true needs. Don’t guest but know.
- Work with other parties who, in the end, want what you want.
- Utilize the resources and networks your already have – you just never know what you might uncover.
To see more detail on the above tips and better understand how your new or small, growing business can raise capital today, please see this Business Money Today article.
The Office of Advocacy, part of the Small Business Administration, has just released several new reports / studies regarding the current state of small business lending and its impact on these smaller firms.
Two of these reports follow:
“Bank Liquidity Pressures and the Availability of Bank Credit to Small Firms: Was the 2007-2009 Credit Crisis Different?,” authored by Joe Peek, finds that liquidity of bank assets became a factor in the financial crisis, as healthier banks tended to shy away from small C&I and small CRE loans.”
A copy of the report is located at:
http://www.sba.gov/sites/default/files/files/388tot.pdf and the research summary can be found at: http://www.sba.gov/sites/default/files/files/rs388.pdf.
“The Growing Impact of Credit Unions on Small Business Lending,” authored by James Wilcox. State and national data for banks and credit unions for 1986-2010 show credit unions may have provided extra business lending in response to reductions in bank lending.”
A copy of the report is located at:
http://www.sba.gov/sites/default/files/files/387tot.pdf and the research summary can be found at: http://www.sba.gov/sites/default/files/files/rs387.pdf.
If you are in the market for new capital, these reports could really save you a bit of time and a lot of headache by simply understanding the current issues around accessing credit and who is actually provide business loans to businesses like yours.
Thought I would pass this along to any entrepreneurs who are looking to start-up their businesses and are seeking a little guidance/mentoring or just an acknowledgement that they are on the right track. You just never know what might come out of a great networking event like this!
Calling All Entrepreneurs: Startup Open Registration
Deadline is Two Weeks Away
Startups contend for chance to win trip to UK for Global Entrepreneurship Congress or mentoring from Redbox Founders
The submissions deadline for Startup Open, a featured competition at Global Entrepreneurship Week 2011 that recognizes startups with high-growth potential, is now only two weeks away. Startups can register at until Sept. 15.
Entrepreneurs who have a “startup moment” between GEW 2010 and GEW 2011 (Nov. 22, 2010 to Nov. 20, 2011) are eligible to take part. A “startup moment” is anything that can be interpreted as the company is “open for business,” such as a business is incorporated, a first sale is completed or outside funding is secured.
By entering, startups will have the chance to be recognized as part of “the GEW 50″ — 50 of the most promising ventures from around the world. Of these, one winner will be selected to receive an all-expense-paid trip to Liverpool, UK, to attend the Global Entrepreneurship Congress in March 2012. A second winner will receive one year of mentoring from Redbox founding members and serial entrepreneurs Michael DeLazzer and Biju Kulathaka, courtesy of the Entrepreneurs’ Organization.
Applicants will be judged on concept, growth projections, and knowledge of their industry. Names of “the GEW 50″ will be announced on Oct. 15, while prize winners will be announced on Nov. 14 as GEW 2011 kicks off.
For more informaiton and how to sign up – visit www.startopen.com/register
