How much does it cost to start a business? This is a very common question for first time business owners, the problem is this is a complicated question with no direct answer. Since I know you are probably looking for someone to give you an exact dollar amount, I will list a few of the […]
Archives for July 2012
3 Financial Ratios Your Banker Will Look at in a Loan Application
New entrepreneurs, or business owners who have never dealt with a lending institution before often think that securing a business loan is as easy as demonstrating that you have generated a profit in the past, and your business plan “shows” that you will increase your profits if you get a loan. Unfortunately, it is not […]
Why You Should Keep Your Day Job When Starting a Business
If you are bootstrapping a business on the nights and weekends while you keep your day job you are probably trying to find a way out of your job. Hold on! Before you do that, let me explain why an alternative source of income is critically important if you want to secure a loan for […]
What Investors Are Looking for In Your Financial Projections
If you are trying to raise angel or venture capital investment you have probably been asked for a detailed set of financial projections from your potential investors. There are 3 areas that you really need to focus on as you build your forecast. 1. Market Potential Narrative – Investors want to know that you are […]
The Difference Between a Budget and Pro Forma Financial Statement
You might be a little bit confused about the difference between a budget and pro forma financial statement, so I thought I would try to explain a couple of the small differences. Let’s start with the definitions: Budget – According to Investopedia a budget is an estimation of the revenue and expenses over a specified […]
ProjectionHub Picks 5 Microlenders to Help Improve Loan Application Process
In early June 2012 the ProjectionHub team announced an opportunity for 3 microlenders from around the country to apply and win the chance to create a custom financial projection tool for their loan applicants to create their financial projections. There was such a great response that the team felt the need to choose 5 microlending organizations. […]
Indiana Innovation Showcase Elevator Pitch
Today we are hard at work preparing for the 2012 Innovation Showcase on July 12th. Trying to figure out how to put together a decent exhibitor display on a shoestring budget isn’t easy! The most difficult thing about the entire event is probably the 1 minute elevator pitch. We only get 60 seconds to pitch […]
Use Quickbooks to Create Future Financial Projections
If your bank has asked you to create a set of financial projections for your loan application, and you are hoping to use your Quickbooks data to help project your future financials, I have 2 things to say: You are out of luck You are not alone Unfortunately Quickbooks does not have a decent solution […]
Is your Startup 98.82% Likely to Succeed? If Not, No Loan for You
The Washington Post recently reported that delinquencies for business loans are now down to 1.18%. In my opinion, this is truly incredible! Only 1% of businesses with loans from banks fail to make their loan payments on time. This means that you must convince your lender that you are 99% likely to make your loan payments. Based […]
Software Development Loans – Impossible to Find?
Banks don’t give loans for software development, it is simply too speculative. If the software has not been developed yet how do you know whether anyone will be willing to pay for your product? How do you know what a potential customer is willing to pay? How does the lender even know if you actually […]