BUSINESS SENSE
Introduction - Week 1
Nancy Larsen, Enterprise Facilitator of SEFP

Successful businesses are well planned and well capitalized.  Being well capitalized is having the ability to access capital when you need it.  Being well planned will help you to be well capitalized.  This series of articles is designed to help you plan and then lead you to become well capitalized.

Many entrepreneurs lose valuable opportunities because they thought the cost of the capital was too high.  They spent too much time negotiating over the cost of the money, while their window of opportunity closed.  You should try to cut yourself a good deal, but the cost of capital should only be a consideration of the function of losses sustained by not having it.  Simply, if it costs you one dollar in order to make two, are you ahead or behind?

Libraries and bookstores are full of financial “How to Books” (I highly recommend you read as many as you can).  What this series of articles includes are the following topics:

• What information to present to Lenders or Investors
• How to package your request to get noticed
• The format the presentation package should take
• Where to find the Funding Sources to provide the capital

The Small Business Administration statistics show that within three years 60% and more of all new businesses close for a variety of reasons; i.e. lack of total management team, accounts receivable, too much inventory.  Remember, “Failing to plan is planning to fail”. 

Next weeks topic is: "Plan for Success"

[ back ]