As the owner of a company the task of obtaining capital for your business can be quite intimidating. The reason most businesses are unsuccessful because they don’t have the slightest clue where to begin in the funding process. This is why seeking expert assistance is so important. Here are 5 compelling reasons your company needs a Cash Flow Strategist to obtain Capital.
1. Out of the 7 million businesses who apply for funding each year, 5.6 million don’t qualify at banks.
2. The Small Business Administration reports that 97% of business loan applications fail.
3. 80% of businesses fail in the first 5 years due to lack of capital
4. Lenders are placing more emphasis on business credit scores. The business MUST have three separat business credit scores.
5. Attempting to obtain business financing using personal credit can severely limit the amount of capital available to the business.
This is why many business owners turn to a Business Finance Consultant to help them create a funding plan, establish their business credit and navigate the business funding maze.
Shameca Tankerson, is a Speaker, Trainer, Author, and Cash Flow Success Mentor to entrepreneurs and service professionals. Using a proven system, she opens a candid dialogue about money that teaches her clients how to breakthrough to their next income level and expand into a cash flowing business with a new collaborative business model that is liberating, Inspiring and Powerful. To Get your F.R.E.E. “Spark Your Cash Flow Financial Success Kit” – Making Room For Money: 5 Financial Mistakes Entrepreneurs Make That Sabotage Their Cash Flow (And How To Avoid Them). Visit: http://www.MakingRoomForMoney.com
~ Sir Winston Churchill
~ Henry Ford
~ Elbert Hubbard
After the savings and loan crisis of 2007, I was forced to look for more cost efficient was to manage and run my business. I’d like to share my Top 3 CEO boostrapping secrets weapons.
In Business Bootstrapping means to start a business without external help/capital. Startups that bootstrap their business fund development of their company through internal cash flow and are cautious with their expenses.
Mail Chimp: This email marketing tool rivals anything like it on the market. Create e-zine capaigns and integrate with most social media and event programs.
ZOHO: CRM, Invoicing, sales tracking, collaboration, and more. If you have virtual assistants this program is an awesome all in one system.
Green By Phone: No monthly fees, check are verified by phone, Accpet checks electronically or over the phone and have the money deposited into the account in 24hrs.
The cost for each of these tools: FREE
The Slight Edge by Jeff Olson
Olson takes the concept of compounded interest to a whole new level. His premis: If you will just put a penny’s worth of effort each day towards your goals, over time you will achieve them. If you are to be a successful CEO, make the Slight Edge philosophy a part of your daily attitude. Making a business work takes a lot of time and effort. Your effort must be a little bit every day, and consistant.
Raving Fans by Ken Blanchard
Blanchards work focuses on organizaiton excellence presented in the form of “legendary customer service”What is a raving fan? The premis: “If you really want to ‘own’ a customer, if you want a booming business, you have to go beyond satisfied customers and create Raving Fans.” A raving fan is an advocate of your products or services in the marketplace and an integral part of successful businesses.
The 7 Habits of Highly Effective People by Stephen R. Covey
Habits are a matter of choice. In this book Covey dives into the depths of our attitudes (paradigms) and principles to help us identify “where we are coming from”. Once we can identify which of our paradigms are keeping us from interacting effectively with others, then and only then can we truly begin to work on changing them.
The E-Myth Revisited by Michael Gerber
Gerber’s book is all about why most small businesses don’t work. To me it is the very summation of the definition of insanity seen in the business world everyday. Don’t get caught in the rat trap and the lie of entreprenuership, thereby only creating a glorified job for your self. Discover the Five core leadership skils as defined by Gerber: Vision, Discrimination, Strategic Thinking, Commitment, and Inspirational Communication. A definite must read for CEO’s
Think And Grow Rich by Napoleon Hill
This is likely the book every most CEO’s have read as budding entreprenuers, or at least has been told it is a must read. Who wouldn’t want to learn how to just think about being rich and have it happen? Published in the 1930s, the personal issues Hill wrote about Like the thoughts and behaviors that hinder people’s success in acquiring riches are still relevant today.
Costly Mistake #10: Rushing Your Business Credit Profile!
Two Words: RED FLAG
Dun and Bradstreet Partners with the federal government to provide information on small businesses in America. One of the biggest components is fraud. There are certain activities within a business credit profile that will cause a company to get on D&B’s Radar. One activity is quickly beefing up a credit profile in a small time frame.
Remember organically a company builds good business credit in about 3 to 4 years, so, if a start-up or young company initiates the companies profile and has 5 or 6 new vendors reporting every week, that activity will seem suspicious. Once a company has been red flagged by D&B it is very difficult to obtain business credit.
Costly Mistake #6: Thinking that a Strong Business Credit Score Has No Effect on Successful Business Negotiations
Many entreprenuers don’t realize that companies and agencies that want to do business with you (government contracts, joint ventures, or any kind of bidding, may check the Dun and Bradstreet Profile and Score of your company. This may be the deciding factor on whether they choose to do business, partner, or even recommend you.
The Real Importance of Your Dun and Bradstreet Profile!
Before the current economic crisis, 100 people could go into a bank to get a business loan and 90 would get approved (shameca’s statistical model). The point is if you were breathing five years ago and had a half decent business idea you could get capital. If you were turned down for a straight forward business loan the bank employee would steer you into something else, a second on their house, a personal loan ect.
Today there are more than 20 million small businesses in America. Each Year more than 8 million seek funding and more than 5 million of the companies seeking funding DO NOT QUALIFY with banks. Here me on this: THERE IS MONEY TO LEND IN THIS ECONOMY!
Costly Mistake #5: Thinking Your Company Has a Great Business Credit Profile Because You Have Been in Business for 7 Years!
Some people have been in business for 7 years or more, they’ve been incorporated for 7 years, They’ve paid all their bills on time AND they still may not have a business credit file developed. The main reason is they do business with vendors that do not report their good payment activity to D&B. Most business owners believe that since they pay their bills on time that will be sufficiet and the vendors will report. That is not what happens. Think about it, do you take the time, labor and effort to report to D&B all the clients that owe you or work with you? Probably not! Usually venfors report bad credit before good credit BUT in most cases they DO NOT REPORT at all!
Tip: There are thousands of companies that offer credit to businesses but only a small percentage report to business credit bureaus. You want to do business with the vendors that report to the major business credit bureaus.
Costly Mistake #4: More Costly Mistakes Made with Your Business Credit Profile!
What are some of the other mistakes business owners make if they decide to build their business credit profile themselves? Most of the areas mistakes are made are in regards to a business license, phone number, and some very important things they usually don’t know matter.
If you’re not listed in 411, your business number is’nt verifiable. A lot of Entreprenuers we deal with say they don’t have to be listed in 411. Consider this: If you are not listed in 411, if the address on your business license is different than the address with the Secretary of State, If the list of officers don’t match when your company representative is called and asked who are the officer of the company, and in some cases, if your company does’nt have a website it will be noted and could result in a BIG FAT DENIAL stamp on your application.
Costly Mistake #2: Giving up Ownereship of Your Company to Ventrue Capitalist as the Only Way to Raise Money!
When you go to a venture capitalist to get funding, 6 months later they could own your entire company. This option is not a favorable option for most Entreprenuers. A good merchant account cash advance or micro lending company is similar to a venture capitalist in that you receive money according to the strenght of the cashflow (ability to make money) of the business, but with venture capitalist there is always the possibility of being bought out. Merchant account cash advance companies and micro lenders invest in their customer’s success without the possibility of take over.
Case Study: A customer with a Restaurant and he wants to attach a patio area restaurant. It is going to cost him around $50,000 and he qualifies cash advance for $50,000. He will pay back $65,000 for the money recieved, but once that $65,000 is paid, he still owns the entire restaurant.
The hottest sources in lending today are based on cash-flow. The types of businesses who are succesful at getting $50k to $150k in business capital have distinct characteristics. Businesses in these targeted industries can expect to easily get bank loans, unsecured business lines of credit, working capital, and trade credit.
- Small, Growing businesses on Main Street
- Have Walk-in customers, many transactions
- Steady cash flow and a small cushion for unplanned needs
- A desire to grow, and a plan on how to do it.
You can achieve a 90% probability of getting a $20k loan with:
- $25,000 per month in credit card volume
- $10,000 average daily bank balance
- FICO Score 640 or higher
- Revenue of at least $300k
Industries that Can Get up to $150k in as Little as 2 Weeks:
Restaurants, Medical & Dental Offices, Retail Stores, Franchises, Consultants, Warehouse/Distribution, Manufacturing, Small Grocery, Contractors, Commercial Janitorial, Staffing, Automotive Parts Shops, Automotive Repair Shops, Florist, Dry Cleaners, Pharmacies, Salons and Spas, Pet Care, Apparel, Furniture Stores, Gift or Novelty Store, Small Gas Stations