Archive for the ‘revenue’ Category
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16
May
2010
The etheral qualities of a loan
Now that the partners understood the ethereal qualities of the two businesses, the next area of discussion concerned the material aspects. First we reviewed the differences that would help or hinder the partnership from an organizational structure perspective. Again I used a grid to help guide the discussion and enable the partners to view their organizations from a holistic perspective.
The last piece of information the partners needed to discuss before they could begin a formal strategic planning session was the external impacts on the partnership. This article lists the external issues the partners wanted to explore to ensure that they covered all the potential traps that might derail the partnership—before they spent time, money, and energy creating a strategic plan.
10
Jan
2010
Groups that help with credit and loan solutions
You may be thinking, “I’ll just go to a Venture Capitalist. Isn’t that what they do?” The answer is no, rarely, if ever, for you as a small independent inventor. Venture Capitalists are the big time. They invest big money, to be sure, but they want a virtual guarantee that they are likely to make big money on their investment in a relatively short period of time. Independent inventing is entirely too risky for most Venture Capitalists. They are not an option for most independent inventors.
Investment angels, on the other hand, may be a possibility. Investment angels can be found informally among the people previously suggested: doctors, lawyers, accountants and so on. Or, they may be found in formal organizations. For example, many communities have investment angel groups. You can find listings for such groups in your local business journals.
You can find links for several angel investment lists in Appendix B at the back of this book. You can also find angel investors by running a classified ad for them. Your ad should say something like, “Inventor seeks angel investor for patent-pending product. Small investment opportunity. (Your phone number).”
Classified newspaper or Internet ads that you find listing investment angels may or may not be legitimate! They are often “services” that promise to put you in touch with angel investors in exchange for a fee. It is best to find your own angel investors.
6
Jan
2010
A loan without putting up any collateral
If you want to get others to help you with the expenses related to your product development, you have several options. First, you could go to your local bank or credit union and get a loan. Often you can get a signature loan, that is a loan without putting up any collateral, for $2,000 to $3,000 if you have a good record with the bank or institution (no bounced checks, etc.). That may be enough money to launch your quest.
If that amount is not enough to fund the initial phases of your invention (this would likely only be the case if your invention were technical or complicated), you could get a larger loan by putting up collateral. Most often people use their homes as collateral for larger loans. This is a perilous proposition and not one we would recommend. We know that you believe that your invention is a sure thing and we hope that it is, but there are so many variables involved with inventing that no invention, no matter how good, is a sure thing. If you do not have a way to pay back such a loan without counting on potential income earned from your invention, don’t do it! No invention is worth risking your family’s financial security. We once heard from a want-to-be inventor who had done that very thing. He had mortgaged his home and had no way to make the payments when his invention failed to produce the income he expected. He was evicted from his home and found himself and his family homeless! Don’t let this happen to you!
The Small Business Administration is yet another possibility for obtaining a loan. SBA loans are actually loans you get through your local bank or credit union but they are guaranteed by the Small Business Administration. SBA loans are usually for between $10,000 and $150,000. They are most often given to small companies with a proven track record. They are seldom, if ever, given for something as speculative as an invention. Your best chance of obtaining an SBA loan will be if you have established a business around your invention or you already have a small business and are simply incorporating your invention into your business.