Four Steps in Attracting Investors Into Your Business

Do you need more investment in your business but can’t seem to attract more investors? Have you resorted to asking family and friends to invest in your business?

Do you know that there are a lot of people who are seeking opportunities to invest in a lucrative business that can make their money grow without them having to do anything? If your business is profitable but just needs some cash to give it a boost, then you have a lot of potential partners waiting out there. You don’t have to grovel among family members to get them to sign up with you.

Here are some tips on how to simply attract investors into your business.

1. Make a business plan. Be ready to present your business to any interested investor at all times, and this should be done the professional way. The manner by which you present your business is sometimes more important than what you actually have to present. If your business is only just starting up and has not proven anything yet, you can convince investors about the potential of your business with the way you sell your business to them.

So how can you present your business the professional way? The first step is to prepare a business plan with all the details regarding your business, from its history, current standing, and your goals and strategies for the business’s future. The business plan should be written properly and presented in a clean format.

2. Give them all the information they need. Present the business plan together with other important information, such as market data and information about competitors. Most importantly, be honest about your financial status. Make it clear what you are planning to do with their investment? Is it going to fund any new equipment that will make the business grow? Is it for a business expansion? Present a clear and accurate financial breakdown.

3. Tell them what’s in it for them. Present all these along with a draft of an investor agreement so they can read through the terms and conditions if they do decide to invest in your company. This will give them an idea of what to expect and what they will likely get from the investment, and when they will get it.

4. Be confident. It is difficult talking to investors and convincing them to put money into your business. But there’s one solution to this: you have to be confident in yourself, your abilities, and in the potential of your business. You have to believe that you are a good manager, that you have the right skills and abilities to make the business grow, and that the business has a promising future. This is better than anxiously pleading with them or shyly asking them to make an investment. Do not let yourself think that you or your business do not deserve the financial aid that investors are willing to give. Just think that your business is an amazing opportunity and they’ll be making a mistake not to invest in it.

If you believe in all these positive thoughts, your belief will turn into action and behavior. Your investors will feel your confidence and will feel assured in your ability to lead the business well. They will be convinced of the potential of the business.

If you are having doubts, bombard yourself with positive subliminal messages to plant positive thoughts and beliefs in your subconscious. You can convince your subconscious that:

My business is an amazing opportunity.

I am a good manager.

I handle business well.

I am a smart and capable businessman.

I can make my business grow and my investors rich.

My business is worth investing in.

How to Calculate Liquidation Preference in a Startup Business Venture Capital Financing Term Sheet

What is liquidation preference?

Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that the company goes into liquidation.

The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may be less. However, the purpose of liquidation preference is such that in the event a company goes into liquidation, preferred shareholders will always get something back for their preferred shares before common shareholders get anything. In other words, they will always get more than common shareholders. It is possible that common shareholders will get nothing if the company does not even have enough assets to settle the preference amount.

Example A:

Venture Tech Ltd. has 5,000,000 common shares outstanding.

In a Series A financing, Investors A invests $2,000,000 in return for 2,500,000 Series A Preferred Shares (i.e., purchase price per share = $0.8).

The term sheet of this Series A round provides that:

In the event of a liquidation event, the preferred shareholders will be entitled to receive in preference to common shareholders an amount equal to 2 times the purchase price per share, plus declared and unpaid dividends (the “Initial Payment”). After the Initial Payment has been made in full, any assets remaining shall be distributed to the preferred shareholders (on an as-converted basis) and common shareholders on a pro rata basis.

NOW, Venture Tech Ltd. goes into liquidation and the sale price is US$6 million.

Assuming no declared and unpaid dividends, and all other senior debts, e.g., employees’ wages, secured debts, etc., have all been settled:

How much will the preferred shareholders get?

They first get US$0.8 x 2 = US$1.6 for every preferred shares they hold.

Therefore, the Initial Payment is US$1.6 x 2.5 million = US$4 million.

This gives US$2 million ($6 – $4 million) remaining, which shall be distributed to the preferred shareholders and common shareholders on a pro rata basis.

Therefore, preferred shareholders will get a further US$2 million x 2.5 / 7.5 = US$666,666.

I.e., a total of US$4,666.666.

The common shareholders will get a total of US$2 million x 4 / 7.5 = US$1.333,333.

Total = US$4,666,666 + US$1,333,333 = US$6 million

Example B:

Following example A above, let’s say this time the sale price is US$10 million.

They will get a total of $4 million (the Initial Payment) + $6 million x 2.5 / 7.5 = $6 million

The common shareholders will get a total of $4 million.

Example C (company favored):

Let’s give it a twist. This time everything is the same as above except that the total amount the preferred shareholders will get for each preferred share they hold is capped at 4 times the purchase price per share.

In other words, they first get 2 times the purchase price per share in preference to common shareholders (i.e., the Initial Payment as in Example A and B). All remaining assets will then be distributed among them and common shareholders until the preferred shareholders have received 4 times the purchase price per share (plus unpaid but declared payment, and the Initial Payment). All remaining assets thereafter will be distributed among all common shareholders on a pro rata basis.

NOW, let’s do the math:

Putting aside the sale price, since the maximum total amount the preferred shareholders can get is capped at 4 times the purchase price per price, they in any event will get no more than 4 x $2 million = $8 million (however high the sale price may be).

What is the break even point for the sale price?

Let y be the break even sale price:

(y – 4) (2.5 / 7.5) = 8 – 4

y = 16

Therefore, the break even sale price is US$16 million.

Therefore, the sale price must be at least US$16 million for the preferred shareholders to get US$8 million. If the sale price exceeds US$16 million, they will still get only US8 million, since the maximum amount they can get is capped.

That’s why by setting a cap on the liquidation amount the preferred shareholders can get is company-favored.

Basic Steps to Set Up a Business in Dubai

Are you thinking of starting your business in Dubai? Congratulations, you have chosen one of the best business ecosystems in the world for your new endeavor. Dubai is more than mere a city of architectural marvels- it is one of the most fertile grounds for new businesses. This is just one of the many things that make the commercial capital of UAE the best place to live and work. And as for starting up a business here, there’s no question that there’s a lot of potential to be tapped here in Dubai. So, if you are eager to set up your own enterprise, this article will help explain what you need to know and do to get your company registered and off the ground.

We have equipped this article with necessary links to guide you about the process and documentation required. Take a good look at the below before you kick off the actual process- the good news, though, is that on average, if you are ready with all required documents, it takes less than 10 days to start your company in Dubai. So, let’s start!

But before you start your legal formalities, you need to consider some elements required in the process:

Know your business

The success of a great business venture depends on sound knowledge of the local region, thorough research into the viability and demand for your product or service and a credible business plan that is likely to attract investment partners.

Yes you have a great idea, but is there a demand for what you are offering? What does your competition look like and what puts your business offering a notch above the others?

Select a Location that optimizes suitability, convenience, and costsAnother important step in planning a business startup in Dubai is to determine the most suitable location for the business. Setting up a profit-based enterprise in the city wouldn’t do you much good despite the growing economy if you’re customers or clients can’t reach you.You need to set up your business in an area that is most profitable for your business or most convenient to your business. A location in the right city can be selected for a shop or an office is most known for the type of product or service you are dealing with.

If you are planning a Free Zone company then you must make the selection based upon the criteria of distance, costs and if it is suitable for your product, business model, and trade requirements.

A tenancy contract must be concluded. If you’re aiming to start a small-scale enterprise, then the basic amenities, like telecommunication, storage, and space inside the establishment is the basic concern that must also be satisfied. Other services available in the commercial property can vary greatly.

Financial viability

Once you business is registered, the Ministry of Commerce will require owners to show proof of financial investment. If you are new to the region and have no track record, you must be prepared to find your own financial resources through your bank or by other means rather than relying on local support.

Once you have established the validity of your concept, from a marketability stand point as well as financial viability, you can now look at the steps for turning your idea into a booming business.

UAE Commercial Companies Law and Federal Law define seven basic categories of business organization that can be established in Dubai and the UAE. The requirements for minimum capital levels, shareholders and procedures for incorporation will vary with the type of business structure.

Changes to Foreign Ownership and Visa Rules Announcement

Anyone coming into the UAE as a professional or as an investor is typically granted a residence visa of two years, which is renewable. This has now been changed to a ten-year visa for investors and professionals in highly skilled fields such as engineering, medicine and science. Students will be given a special five-year visa, while those who consistently perform well and earn top grades will be granted a ten-year visa as well.

Another very significant change is in the ownership of companies.Businesses within the UAE are divided into two main categories: mainland businesses and freezone businesses.

At present, mainland businesses can be partially owned by expatriate entrepreneurs, but must have a UAE national as a majority shareholder in the company. Freezone companies, on the other hand, can have full foreign ownership and are subject to separate regulations depending on the freezone.

With the new regulations, every business, whether mainland or freezone, will be able to have 100% foreign ownership without the need for an Emirati partner.

Confirm your Visa eligibility and requirement

For a business startup in the UAE, a visa permitting you and employees to live in UAE is essential to run your business.

Visas are allowed for almost all businesses.

However, their number varies according to a variety of criteria such as the size of the office, nature of the business, the category of the employee or the investor.

Documents Required for LLC

Investor’s passport copy

Local Sponsor’s passport copy

Manager’s Passport copy

Registration application form from Economic Department

Trade name reservation

Initial approval from Economic Department Tenancy contract for the Office/warehouse or showroom attested by planning department and civil defence department of Dubai municipality along with location plan.

Memorandum of Association duly attested from public notary.

Documents Required for Professional firms

Parent Business formation certificate duly attested from the UAE embassy in the home country of the parent organisation.

Board resolution for establishing a branch and to appoint the manager for the same

Attested copy(from UAE Embassy) of organisation memorandum / articles of association

Financial statements for the last two years

Local service agency agreement duly notarised in the UAE courts

Passport copy of the local service agent

Passport copy of the Manager

Company profile

NOC letter in favour of the Manager from the sponsor, if he is a resident of the UAE

Company Registration in Dubai, UAE

Businesses of any category operating in the UAE must have a license for registering into the business network of the country. Company registration in UAE requires a trade license and permission from different law enforcement agencies and the state government for setting up your business. Company registration in Dubai for businesses like financial services, food, health services, printing and publishing requires a lot more clearance than any other business.

Company registration in UAE falls into following three categories depending on the nature of your business:

Company Registration in Dubai, UAECommercial License – This license is issued to those companies who are just looking for trading business activities.

Industrial License – This license is for those companies who will engage in manufacturing or other industrial activities.

Professional License – This license is issued specifically for different service providers, artisans, craftsmen and other professionals.

For the company registration in Dubai, the Department of Economic Development (DED) of UAE issues the required licenses.

Get a License Notification

There are many complex requirements associated with the issuing of the business license. The company registration in Dubai for financial services must need the approval of the Central Bank of UAE. The license for the manufacturing companies requires approval from Industry ministry of UAE. Similarly, the medical service providers require approval from the Health Ministry of UAE.Once the necessary documents are obtained and formalized, the initial application process will begin at the relevant issuing authority along with registering the company’s formal name. This crucial stage paves the way for clarification of the final fees and the final acceptance of the company’s proposed activities.

Hire a registration agent to take you through the process of business startup

Hiring a business advisory firm to register your business startup may be your best option.

These consultants will not only hold your hand right through the setup process but will also actually register the company for you. And will help with opening your bank account, arrange for an auditor, do your renewals and offer you nominee services.

You may find their expertise in dealing with the local government bureaucracy and with Free Zone Authorities to be of great help in planning and itemize your business startup costs.

In most cases, these firms offer a team of experts to plan out your company registration from scratch – this includes the strategies you need to follow in order to smoothly set up your business, itemizing potential costs, offering licensing and location options, coming up with solutions for potential business hurdles, and so on.

Also, they will take care of all the necessary requirements to help you to have your business registered legally with minimal problems on your end.

If you are looking for trading in any of these industries in Dubai or any other, then we can give you the best advice for your company registration in UAE. For more details visit: or Contact us: 971-558876440

Can a Market Research Company Increase Business Opportunities

Research can be used companies of any scale to build a strong foundation, understand their product, know their market segments. A Market research company guarantees them these benefits.

Helping companies with how they conduct business:

A startup is smaller in scale and enters their market with the intention of positioning themselves as a unique name with a unique product or service. So, naturally they want to cater to a niche market. A good amount of research can be used to help build a product and get it out to that market. They can even determine why consumers may not want to purchase that product.

With relevant data, they can identify their target segments in a market. You see, start-ups know that a type of problem or need exists and that they can solve it. They are even aware that the service or products that they have will benefit people, but they aren’t sure who those people are. Research shows them exactly who it is that they need to cater to.

Big companies need to adhere to a product development phase that is much slower. Competitors can easily surpass them in the time that it takes to perfect a product. This reduces the differentiation that the company could have used to get ahead.

Research can help bridge this gap. They can use exclusive market research reports to evaluate where they stand in a market. With this viewpoint, they can understand how fast their product iterations need to be, if any. They can even focus on what’s more important to them and what needs changing, like pricing, derivative product offerings or if the product requires redesign.

Big companies and start-ups benefit from research in this way:

The main reason are the risks of loss. Startups always need to revise their product offering several times. It’s because they launch a product immediately, usually without the prerequisite research to define a particular set of customers. They don’t want to invest in understanding who their customer is, as it’s assumed that they already have buyers.

The general thought is that capital will be better utilized in building or developing the product and not business plans.

Bigger corporations do have plenty of capital, but don’t have the time to gather individual customer feedback, expert opinions – they use market research for that. They’ve also got a much bigger, commercial level market too and research agencies are the feasible approach.

To set long-term goals, prevent cash overspending and actually sell a product in the market, companies need to have plans – detailed plans, which can only be developed once they have the right data.

Unlike start-ups, they are focused on improving a product and price points and not on proving how many consumers they have for their respective products. Only detailed data, collected and assessed using precise parameters, enables them to do that.

Having the right market research partner can prevent costly mistakes or the failure of startups. It’s the tool that’s required for getting that game-changing business strategy that could make all the difference.

The Small Business Administration Can Help Small Businesses

Businesses will find a vast array of services available to help them get their operations up and running, or to help them develop and grow their existing business. No matter how much money is available to spend for consulting; for small businesses, these services are well worth seeking out. Examples of the various types of help available are marketing advice, loans and business plans, as well as help from the Small Business Administration, which is an agency that was developed by the Federal Government to aid and assist small businesses in their day to day operations.

The Small Business Administration offers most of these services under one umbrella. The one service that an entrepreneur will probably find the most helpful is the free online training through the Small Business Training Network. Online education is offered in starting a business.

You can find information on business planning and writing a business plan, business management, finance and accounting, advertising and marketing, e-commerce and website building, international trade and retirement planning. Each course generally takes about 30 minutes to complete and is self-paced. For small businesses that are just starting out, the knowledge offered by these courses is a necessity.

Loans and grants are available for small businesses and can be researched on the Small Business Administration website, located at “Sba”. In addition to a knowledge library, users will find a planner that allows them to plan everything from their startup, to their day to day operation, and even to their exit, regardless of whether they are selling out or retiring.

There are also links to sites that can assist the small business owner in selecting software for their new company, information about international trade and government contracts, making healthcare choices, choosing a payroll and tax service, and form development. Networking and advertising advice is also available. There is a link to a chat room, which offers real time advice for those in need of immediate assistance.

Many new business owners, not knowing any better, seek out information from a variety of different places, not realizing that not all advice is good advice. For small businesses that can be a very bad thing. The Small Business Administration is an alternative that is both reliable and trustworthy.

Not all offers of assistance from sources outside of the SBA are legitimate. All advice received outside of known reputable sources should be scrutinized carefully before acting upon it, to avoid possible repercussions for bad decisions.

New Business Loans Guide for Small Business Owners and Entrepreneurs

It’s not the easiest thing in the world for a new business to obtain the money it needs to help get started. New business loans can be difficult to get unless you have excellent credit and a good plan in place. If you can get approval, you’ll get the proceeds you need for things like working capital, equipment, supplies, machinery, inventory, advertising, or maybe even real estate construction or commercial building rental.

One thing many lenders will expect you to do is determine your personal equity. How much of it will you be able to bring to the table? Lending institutions tend to require that you are able to bring 20% – 40% of the total loan amount you are requesting.

In the 21st century, there are many more options available for start-ups than the traditional loan from a bank. However, before you apply for any type of funding, you must prove that your company qualifies as a small business. Small businesses are usually measured by factors such as number of employees, number of years (under 2) in operation, number of employees, generated income, types of assets and their value, revenue, and so forth. Most traditional lending institutions require that you put of collateral and a guarantee that you will repay.

Your Credit Score and New Business Loans

If your personal credit score is very high, you might want to look into getting a credit card to use towards your business. The line of credit might not be enough to cover everything you need, but it’s a good start. There is no rule that says you have to get all of your funding from one source. There are a variety of microloans for which you might qualify, such as those offered by the SBA and other non-profit organizations. These types of new business loans can be used for the purchase of inventory / supplies, furniture, working capital, etc.

As for alternative start-up business financing options, such as grants and crowdfunding, you’ll want to put more of a focus on our business model as opposed to your credit score. These types of funding are worth looking into if you have poor credit. However, in order to impress crowd-funders, grant organizations, angel investors, etc… , you’re really going to have to come up with a great message and marketing campaign.

Once you get all of your documentation, files, financial records, financial plan, etc. together, you can start checking for new business loans at US Business Funding. This organization has 95% approval rates and offers flexible terms and payment options.

Write a Great Business Plan Now

You need to write a great business plan because a mediocre one just will not do. Not any more. Not in this turbulent financial time.

Banks are stingy. Venture capitalists are stingier. And angel investors are probably the stingiest of all. Approaching any one of these entities without having a great business plan in hand is absurd. It just won’t fly.

So what makes a business plan great?

Well, starting at the beginning, the basics need to be covered. These are the items you will find outlined on every business plan site in existence. These items include:

  • Biographical information
  • Financial information
  • History of the company
  • Identifying your market
  • Credit reports

But if your business plan included all of these things, it still has less than a 10% chance of being funded.

What are you missing? Pizazz.

Pizazz means more than filling out an outline and handing it in. Pizazz means presenting yourself and your company as the absolutely best choices on the market. It means you have the ability to navigate through tough times. It means you have marketing skills beyond the ordinary. It means you can use the tools of the web world to capture more business than other businesses in your field.

More than anything else, you need the ability to take the tools that are available and make them your own, much like a great actor makes a role his own. Everybody sees the same words, but some people have the ability to see beyond the words.

And it means that you can present all of this with style and grace.

Well, we never said that writing a great business plan would be easy. It is not.

But all the work is definitely worth it. A strong business plan opens doors than would otherwise remain slammed shut. Even if a particular bank or venture capitalist or angel investor is unable to fund your project, with a strong business plan in hand you are far more likely to get the referrals that you need to succeed.

Going through the process is half the battle. Researching, writing, re-writing, honing your message… all of these are essential to really examining yourself as an entrepreneur, and your vision for your company. A “vision statement” just doesn’t cut it. Your vision will be presented throughout your whole business plan. The style, the outlook, the growth pattern, the people involved all contribute to defining your vision.

And once you have gone through the process, having the skill to put it all into a concise, persuasive sales tool called a business plan is the other half of the process. And, yes, it is a sales tool, not a declaratory statement.

The payoff? You can stand proud when you stand in front of your banker or your angel investor, knowing that you have indeed done your homework. And you are the best.

The House Cleaning Business Startup Manual – Part III


Spread the word. Let friends and family know that you have started your own home cleaning business. Ask them to spread the word at work and wherever they go. Personal referrals can help at this level to get the first customers. Serve the first customers as good as you can. These customers can be the make or break foundation. If you treat them like king they might refer you to their friends. Word of mouth is the most successful form of advertising for small businesses of that kind. “Word of mouth” can carry your business further and also help to cut down on marketing expenses.

Business Referral Program: I already mentioned the “word of mouth” advertising. Taking this a step further can really help your business to take off. Implement a referral program. Pay customers if they refer new customers to you. This can be in form of cash or free house cleaning services

Start advertising in local newspapers: Concentrate on the smaller local community newspapers and less on the large metro area newspapers. Pricing will be much more affordable. A local news paper in the area where I live gets distributed to about 75,000 residential customers (not households). A business card sized ad in a reasonable location costs around $95.00 per week. You can also just work with classified ads. These ads run anywhere from $10.00 per week to around $45.00 per week. If you can – don’t choose the weekly run, but go for a monthly or quarterly deal. Don’t try to put too much information into a classified ad. Keep it short, but easy to understand. Example: “Affordable house cleaning services. No job too small. Free estimates. (123)-555-1234”

Magnetic Signs or decals for your Vehicle: If you drive a decent looking vehicle use it for advertising. If you drive an old, rusty looking piece of the 80’s – skip to the next section. Car advertising can be very effective if you follow some basic rules. It has to look professional. The message has to be short and easy to understand. Do not drive like a maniac when having advertising for your business on your car. Magnetic signs can be purchased for around $75.00. Decals are available starting at around $25.00. Look at other cars that carry an advertising message to get ideas of what to do.

Flyers: You could print nice looking flyers on your home computer, but I recommend to rather spending a little money on professional printing. Design a flyer first. Then talk to local print shops for pricing. You can also check out Internet printers like 1,000 (color print) flyers at will set you back around $125.00 + shipping. Try to beat that with your home computer. Paper, ink, time, and wear and tear will cost you 2 or 3 times as much. How to distribute the flyers? Start with hanging flyers on bulletin boards in supermarkets and coin laundries. Ask store owners in your area if they are willing to show the flyer in their store somewhere (if appropriate).

Do not put flyers on car windows at local groceries stores and businesses. You might violate local laws or property owner’s permissions. Rather spend a morning in large residential areas and walk from door to door and place the flyers at the front door (bring plenty of scotch tape). You can even go a step further and ring door bells and drop of flyers in person and mention that you are expanding your services to that area to see if people are interested. DO NOT put flyers into mailboxes – that is against federal law.

Have you ever seen those advertisement door hangers? Pre-printed door hangers are pretty much an extension of hanging flyers at front doors. They are already shaped with an opening for the doorknob so that they can easily be put on a doorknob when walking by. Scan the Internet for best pricing or talk to local print shops. We do not endorse a specific shop, but we have seen prices for about 5,000 door hangers for $189.00.

Business Cards: Business cards can be a very effective marketing tool. Check out different websites on the Internet. Often these websites (like or have online tools to design your business cards on their website. Always carry business cards with you and use them frequently to market your business. Keep in mind – it is a little more cumbersome reaching a large group of people with business cards compared to using flyers.

Internet: Get a good domain name and have a website build for you. More and more people search for service providers online. It starts when being in need of handymen and does not end with finding a reliable house cleaning service. A website and an email address also leave a good impression on your business cards. Statistics show that a lot of working women shop for services around their house online while at work. Purchase an online listing in your local yellow pages. The Yellow Pages are still a great way of advertising your business. The online version on the Internet is gaining more popularity compared to the print version and a listing online will help you to get more customers.

Business Planning – Fail to Plan – Plan to Fail

All businesses start with brilliant ideas. Most of these brilliant ideas sound great, too, and you may be excited to take the plunge into entrepreneurship.

Hold on- you need a business plan.

“Another report? More paperwork?” Yes, indeed, and the need for a business plan is well worth the time and effort it takes to write up.

But a business plan isn’t just another report. A business plan is your ideas, vision and goals on paper. It’s where you want to be and how you are going to get there. A business plan shows who your competition is, what obstacles you might face, and how you plan to overcome them.

A business plan shows that you’re serious about your ideas and have a clear path from A to Z. It shows that your ideas are viable ones for a business that earns money. It also helps you determine whether it’s worth putting energy into your ideas or making investments in your visions.

Sometimes, people have great ideas but when they start to write them down, they see that the long-term predictions aren’t that attractive. They may uncover points they never considered or reveal a major stumbling block that will take thought and careful planning to overcome. They may discover new opportunities or a simpler way of earning money.

There are other reasons for writing a business plan, too. Banks and investors want to know what your business is all about before they will offer loans, grants or funding. You may need to take a loan to buy equipment for your business startup, but if a bank can’t see that you have the potential to pay back the money, chances are they won’t lend it to you in the first place. A good business plan shows a bank that their risk involved in lending you money is very low.

You can use your business plan to, as a way to concentrate on what you need to do to reach your goals. It’s very easy to forget important steps when you’re new in business or stray from the path of your main objectives. Another good idea is to remove the financial information from a business plan to leave a guide for employees that helps them to know what your business is all about and to maintain focus as they work.

A business plan is generally about ten pages long. These ten pages cover topics such as:

Your business description

The operations of your business

The marketplace and competition

Sales, marketing and promotion

Financial information

The first half of your business plan is all about your business in the physical aspect. What does your business do? What is its past, its present and its future? Who are the major competitors? Where do you predict your business to be in five years? How will you get there?

Sales and marketing is an important part of your business plan. What is the price of your product or service? What is the cost of goods sold? How will you promote your business and increase your client base? How will you make sure that customers buy from you and don’t go shopping from the competition?

This is important. It isn’t good enough in business to know where you are now and how you’ll make money now. You have to be a little bit of a visionary and try to see down the road. With a clear plan of where you’d like your business to be and what you need to do to reach that point, you have a better chance of success – and attracting investors!

The second half of your business plan is all about the number crunching. This is where you’ll need to put in facts and figures, where you’ll need to lay out your financial information, your current situation and the health of your business, as well as your predictions for its future health.

It’s very important that your numbers show solid backup to all the information you’ve provided in the first half of your business plan. Do the numbers reflect the business you’ve described?

There are plenty of free online tools to help you build a solid, well-constructed business plan. It’s vital that you take the time to write up your business plan, too- don’t wait. You never know when you may need to produce this written document, and if you don’t have it handy, you may end up missing out on opportunities.

Various Types Of Loans Available For Business Startups

Getting financial help can be difficult for small businesses. So, loans are a great way out. Some of the loans are beneficial for startups whereas others are better suited for well-established companies.

There are various kinds of loans available these days, which we shall discuss below.

Bank Loans

For owners of small business who require a considerable amount of cash flow, bank loans are an excellent option because they usually have lower rates than any other type of financing. If any business owner is planning to avail loan from banks then they must provide complete financial information, a good business plan, and a guarantee. However, smaller local banks have easier underwriting for loans. When you are planning to take financial help from a bank, then you must take into consideration the processing time taken by banks.

Credit Cards

Many small businesses have been established with funding available from personal credit cards. This is because it is readily accessible cash, and moreover, personal credit cards are easier to get hold of than a business loan from a bank or elsewhere. This does not imply that it is the best choice for your startup or business.

When you are considering the merits of various types of loans you can avail, you need to think about interest rates which would apply. Credit cards naturally have a higher rate of interest than loans. What’s more, is making use of personal credit to support a business is dangerous. If at all the business you started fails, then you would be damaging all your credit and you will be left nothing much for your future.

Lines of Credit

Most of the banks which offer loans also offer lines of credit. The advantage of this type of funding for small business is its flexibility. It is good for additional cash flow when a particular business opportunity awaits you and you require funding. They can be easily availed in the form of credit card. By using a line of credit for various business expenses, you can keep track of the accounts used for business and for personal purchases.

Alternative Lending

You will find new players in the territory of lending funds for small business. They are called as alternative lenders. Alternative lenders provide loans to the owners in the type of quick and flexible funding.

Unlike banks alternative lenders use borrowed capital and make a broader range of advertisement like comments on social media sites, online reviews, and so on. This enables funding to be easily accessible, and most of the business owners will find out in no time if they are accepted. Borrowers usually pay a higher rate of interest in this type of funding. But, it is more advantageous for a business owner who is in need of quick cash.

So, if you are in need of funds to start your business, various types of loans can be what you can resort to.

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