Archive for category Business
Writers Should Promote American Ingenuity and Write About US Innovation and Invention
Posted by admin in Business, Inventors, Writing and Speaking on March 30, 2012
Not long ago, I talked to a serial inventor and innovator, not a man of talk and hype but a real engineer in his late 60s. He suggested that I write more articles on America’s innovation, and that we need more writers promoting real innovation and spurring on more invention.
You see, we have a challenge right now with the number of individuals in our society going into the fields of math and science. By finding more science writers, and those who will propel interest in engineering and research it will help keep our nation on the leading edge, keeping us strong as a nation well into the future.
My acquaintance said; “Write about great future prospects in America because they are going to happen.” He is a true believer the future of the United States, and indeed I guess I am too. The question is are you? That is to say, you are a writer, and it’s important that you enlist yourself in this cause. Why not write a few extra articles each month promoting technology, math, science, invention, innovation, and the future of this great country?
Over the years, I’ve written a number of articles on this topic, and I believe you should too. My acquaintance reminds me that “Each region of the US is going after something,” and you know what, he is correct. So why not do your part, why not promote technology in your region as a writer. It’s the least you can do. Okay so, how can you help you ask?
Well, why not get involved in your area and find out what’s going on, scan the local news, attend an inventor’s club once a month, and get on a first name basis with the local college and university science departments, and their PR folks. Also contact the school newspaper, and see what they are writing about, because you can make a difference as a writer in assisting in this noble cause.
Am I suggesting that you use propaganda tools or hype the new and latest local technology? Oh heavens no, you don’t need to do that. Rather, you should just write an article or two each month to help your area, or technology in general. My acquaintance says that things are happening all over the country, and yet when we read the news, or view it online, it often doesn’t appear that this is the case. Maybe you can join with me and others and educate the masses and set the US on a new beginning for our technological future.
Finding Investors for Your Business
Posted by admin in Business, Entrepreneurialism, Group Investors on March 14, 2012
Typically, the hardest thing about raising private capital is that you need to find investors for your business. Initially, the best way to go about doing this is to become a member of your local chamber of commerce. There are typically wealthy individuals and local business leaders that frequently make investments into small businesses that within their geographical area. Most angel investors like to have their small business investments within fifty miles of their homes. If your business is already in operation then you should most definitely seek to find private investors within your local area. If you are able to do so effectively then your ability to retain a significantly amount of control over your business will increase substantially.
One of the other ways that you can locate capital for your business is by beginning your search on the internet. However, finding angel investors on the internet can be a tricky process since there are many sites out there do not provide the results that they promise. As such, you are going to want to focus your searches specifically on angel investor networks that hold themselves out as professional investment groups. These organizations consist of wealthy investors that band together in order to provide substantial amounts of capital to small businesses. Most importantly, these groups can provide you with additional rounds of capital if your business is growing very quickly. There is usually a managing member within an angel investor group that is able to screen deals on behalf of their organization.
Finally, you can directly approach venture capital firms that can provide you with the capital that you need for your business. However, most venture capital firms and private equity groups only seek to make investments with a face value greater than $5,000,000. As such, if you are not seeking this much capital then you may want to turn to using a small business investment company. These middle market firms seek to bridge the gap between angel investors and venture capital firms in that they provide capital injections ranging from $250,000 to $3,000,000. Additionally, many of these firms are licensed by the Small Business Administration and they may be able to provide your business with a fixed rate loan rather than buying a portion of your company. In fact, many small business owners initially received their capital from these types of firms in a hybrid fashion. A portion of the capital they received came as a debt investment while the remaining funding was through the sale of shares to these aggregated groups of investors.
Investor Networks and Capital Investment
Posted by admin in Business, Group Investors, Small Business on March 14, 2012
If you are having trouble finding angel investors you may want to work with a capital syndication firm. These companies will source angel investors on your behalf, but it is an expensive process. If you’re going to have a private placement memorandum created, then you’re most likely going to need to have a business plan included within this document as it will need to be seen by any type of capital syndication firm. Angel investors do not usually provide loans, and this fact should be made aware of right away when you are seeking private funding. For large deals, you may want to seek a syndicated group of investors as discussed above. Your CPA can assist you with calculating the anticipated ROI for your business, as this is an important part of working with private funding sources especially if you have had difficulty in regards to this matter,
Group investing lowers the risks associated with putting money into a new venture. You should showcase, within your business plan, how you’ll deal with an economic recession and other issues that may affect your business. Private equity firms may be a good fit for your business if you have had difficulties finding angel investors. Dividends should not be provided to your private investor unless you need to as part of your overall negotiation with a private finding source.
Debt capital almost always requires a guarantee, whereas investment capital does not and if you are working with a private funding source you may want to offer dividends in order to sweeten the deal. Neither small business investment companies nor angel investors expect that their investments will undergo an initial public offering. Large investments may be more appropriate for a venture capital firm that can provide you with large sums of capital for your new or expanding business.
Hard money mortgages are becoming a very popular method of generating a very high return on investment for private investors if you can secure this type of financing against your inventory, real estate, equipment, or other tangible assets.
When presenting to an angel investor, you can create a table at showcases all of the available assets that can be used as a security for the investors that you are seeking.
If you are looking for angel investors then you may need a private placement memorandum. The current economic climate has made lending very difficult. Large scale businesses may be better of working with a private equity firm. Angel investors are the life blood of small business investment. It is difficult to find private investment. You may want to take a look at the SBA definition of a small business prior to working with any type of outside financing your business especially when working with an angel investor or private investment firm.
Preferred shares typically do not allow angel investors to have a say in the ongoing management of your business, and they provide a significant return on investment for private funding sources. This may be a good alternative when you are thinking about selling a portion of your business to a third party. Your certified public accountant should be involved in any transaction that deals with the sale of preferred shares to an investor.