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ProjectionHub

Archives for June 2012

ProjectionHub App Aims to Help Entrepreneurs Predict the Future

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06/07/2012 – ProjectionHub has a big vision.  Utilize data to help entrepreneurs, banks, and investors predict the future success of a company.  Currently ProjectionHub is focused on creating the best way for entrepreneurs to create financial projections.  The U.S. Small Business Administration requires a 12 month profit and loss projection to be included with each SBA loan application.  ProjectionHub is already simplifying that process for loan applicants.

Co-Founder Adam Hoeksema says, “If we can improve the accuracy of financial projections for small businesses, we can help banks and investors make better funding decisions.”  He went on to say, “right now there is a disconnect between the over optimism of small business owners when it comes to the potential of success of their business, and the ultra-conservative mindset of the traditional banks who don’t want to take another risk.  A business owner’s personal credit is not always the best predictor of a potentially successful business, but a data-driven set of financial projections can help banks and investors uncover potentially successful businesses.”

With mountains of new small business data being released by giants like Quickbooks, it will become increasingly easier to predict the future success of a small business based on the past financial data provided by similar businesses in their geography and industry.  Aggregate data on millions of small businesses will make it a simple task to estimate expenses for small businesses, and better project sales based on how similar businesses have performed in the past.  ProjectionHub aims to capitalize on this trend and make a positive impact for small businesses looking to secure a loan.

ProjectionHub is a web-based application that helps entrepreneurs create financial projections without the need to have a PhD in spreadsheet modeling.  For more information contact Adam Hoeksema at adam@projectionhub.com.

Innovative Financing for Small Businesses – On Deck Capital

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By Adam Hoeksema

Financing a small business is still a huge challenge, but I love to highlight innovative companies that are helping to change the game. The last 5 years have seen some major innovations including peer-to-peer lending and crowdfunding take root as a major player in how small businesses are financed now and in the future.

On Deck Capital is an emerging innovator in the space of small business finance, and I believe they have the potential to further disrupt the traditional bank.

Who is Eligible?

So far On Deck has provided 5,000 businesses with financing, totaling over $200,000,000.

It looks like you need to have at least $200,000 in sales in order to be considered, but the good news is that On Deck does not turn you down based solely on your credit score. Straight from the On Deck website:

“On Deck May be Right for You if: You’re a small, healthy business with a lot of transactions from a broad customer base
You have steady cash flow
You are conscientious about paying your bills (you may miss occasionally but you always catch up)
You need a loan quickly”

It seems that On Deck is filling a major gap that most banks try to avoid by looking at the health and stability of your business rather than merely looking at your credit score.

Additionally, if you have a low credit score an On Deck loan is a great way to build your score back up because they report your payments to the credit agencies.

What Makes On Deck Special?

On Deck is special in a number of ways, but there are 2 things that really stand out as innovative.

First, they pull a small loan payment from your account every day instead of once a month. This is incredibly important because a monthly loan payment can really hurt a business when it is coming out in $5,000 payments, but a $150 payment each day is much easier for a small business to manage.

I imagine that the smaller daily payments along with the shorter loan terms (12 to 18 months), drastically reduces the number of loan defaults for On Deck.

A second thing that makes On Deck unique is the fact that they truly look at the health of your business. They are looking for businesses with a large number of small transactions from a diverse customer base.  Some examples would include:

  • Retail stores
  • Restaurants and Cafes
  • Doctor Office
  • Small Grocery Store

On Deck is bringing some interesting new financing options to businesses who are just out of reach of traditional bank loans, and I think they are going to truly change the world through this new unique, common-sense lending model.

About the Author: Adam Hoeksema is the Co-Founder of ProjectionHub which helps entrepreneurs create financial projections without the need for a PhD in spreadsheet modeling.

ProjectionHub Releases New eBook on How to Create Financial Forecasts

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ProjectionHub, a company that helps entrepreneurs create realistic financial projections without the need for a PhD in spreadsheet modeling, has announced the release of a new free ebook titled, “How to Create Financial Projections for Your Startup” ProjectionHub Co-Founder, Adam Hoeksema, explained, “You have probably heard the statistic that approximately 50% of businesses fail in the first 5 years.  You may also know that according to the Angel Capital Education Foundation, only 1 to 4% of angel investor applicants successfully raise angel investment.  I believe that the primary cause for both of these stats is a lack of understanding when it comes to creating a realistic set of financial projections.”  Adam went on to say, “the purpose of this ebook is to help entrepreneurs understand how to develop bottom-up, data-driven financial projections rather than simply handing them a spreadsheet and telling them to fill it out.”

The new ebook works in conjunction with the ProjectionHub web application which will empower entrepreneurs to create their own business forecasts. ProjectionHub is a web application that helps entrepreneurs create financial projections for their business without the need to be a PhD in spreadsheet modeling.  For more information visit http://www.projectionhub.com or email me at adam@projectionhub.com