What Investment Do You Need?Read Now
by Bryan Hatfield
Thanks to shows like Shark Tank and The Profit people are constantly looking for Venture Capitalist to take their business to the next level. I love these shows just as much as everyone else but knowing the financing options that are out there I want to scream at the TV and reach through to choke some of these people giving away a percentage of their business. If you have learned anything from these shows it is that the Sharks and The Profit are getting richer every day.
That is why I ask the question what investment do you need? I think the first thing that comes to mind for most people is traditional bank lending. Thanks though to Government regulations traditional banking has almost become unavailable. Bob Hope said it best, “A bank is where you go to get money when you can prove you don’t need it”. If you have less than three years in business and your credit score is less than desirable then you need to figure out how much time you are able to waste. Pursuing banking is admirable but are there ways to better increase your odds of getting the loan you need.
A new form of banking is called behavioral banking. Buffering your banking account to always show a positive cash flow. This allows you to prove you can pay the loan and give you access to capital.
Knowing your margins is when you make sure that your margins are good for taking on partners. The biggest question most Sharks ask is what are your margins? I have worked with so many companies that have no idea how to figure out their margins. If you know your margins you will get a better deal from a shark or you will have better options to take on lending partners versus selling off part of your company. The biggest asset your company has is its Accounts Receivable. If you are in the B2B market these are true assets and you can use an Asset Based Lender to provide working capital to your company.
Cash is king. Probably the oldest saying but the more stuff you pay in cash the better. This will help you take advantage of discounts offered by your suppliers. These discounts allow you to be able to make more money and avoiding interest from loans keeps more money in your pocket.
If you ever have financial questions please do not hesitate to give me a call. My direct line is 843-277-6581 and I look forward to hearing from you.
President of Macto Business Alliance LLC
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