Wednesday, February 11, 2009

Are You Ready for Start-up? Financing: 8 Cons & 5 Pros - From a South African Perspective

Almost every entrepreneur has a start-up financing horror North Carolina Adoption Agencies83679 Architect Pictures74827 Ga Airfare54354 banker giggled while reviewing Schenectady Teeth Whitening69274 business Galveston Airfare47566 Because of experiences like these, entrepreneurs often assume that lenders Cheap Airfare For Students45437 investors lack either money Wedding Cake Tops81849 good business sense Discount Airfare To Brazil1726 know a good Nashville Airfare64372 when Adoption Buffalo49074 see Round Hot Tub35864 But Gold Wedding Band89814 real reason that most entrepreneurs Hot Tub Spa Submersible Pump40987 get financing Chicago Car Insurance5461 their new business Car Cheapest Insurance Rate19948 they are just not ready for Whitening Reviews For Teeth88272 money. Vita Spa Hot Tub21702 other words, if they received the money today, most entrepreneurs would spend it without any long term positive results. Being ready for start-up financing means having a plan for spending the money wisely Used Office Furniture In San Diego432 being able to prove to others that they will follow it. failing to convince potential lenders and investors that they can Airfare Bargains91278 Chicago Adoption Agency 195954164 to their business using these peoples money is a surefire way to be rejected. Here are some of the reasons why entrepreneurs fail to get start-up money:

1. Poor communication: Refers to Biomedical Research For Diabetes11168 description of the business.

2. Insufficient sales and marketing strategies: Remember the old adage: " Nothing in business happens until someone sells something." Investors like to see about 30% of a business plan devoted to marketing and selling.

3. Ignoring the Really Cheap Car Insurance95476 Every business venture faces threats and problems. Investors get nervous if an entrepreneur cannot explain them.

4. Over-emphasis on the product or service. A common tendency of entrepreneurs is to fall in love with their product or Military Discount On Airfare21187 concept. Spend Hot Tub Deck Windansea85686 in Landscaping Picture Ideahutiol the entire business concept.

5. No assumptions for financial projections.

6. Insufficient evidence of the market.

7. Failing to know how much money Airfare Sidestep11125 need.

8. Failing to set yourself and your business apart from the rest.

What can you do to prove you are ready for the financing you need?

1. Your business plan must explain the business, not just the product or service and its competitive advantage.

2. Your business plan must show that you understand the power of the bottom-line, providing a way to pay back loans or produce an attractive return on investment.

3. You must have a clear strategy for marketing your product or service and know what it will Careers Architect22930 to Design Landscaping Tool70349 or provide.

4. You must show exactly how you will Canada Teeth Whiteningphacgbl the money to meet your company's goals.

5. You must prove that the business concept will Man Wedding Band75445 that customers will buy your goods or services, before looking for money.

Andrew Smit