Entrepreneur Series Lesson 1: Being Undercapitalized

It’s always exciting to think about the idea of having your own new start up. You hear about stories where entrepreneurs started with just $300 and a cardboard box and then turned their business into millions. In reality, having worked with many types of business owners, the first mistake made by most is simply not having enough capital or access to capital while growing your business. Undercapitalization really involves the language used when a person cannot sufficiently fund their business venture. An idea alone will not lead to business success. This lack of capitalization not only includes the initial outlay to get the business up and going, but really miscalculating the operating expenses in the business—especially in the first year of operation. Here are three smart things to be thinking about so your new entrepreneurial venture doesn’t fall short financially. Lines Of Credit. Whether it is a true banking relationship or you have set up an arrangement with family and friends, ...

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10 Mistakes That Entrepreneurs Can Make

There are 10 Mistakes that Entrepreneurs make that can prohibit them from creating a very successful business.  By learning how to avoid these mistakes you can get your business started up quickly, draw top line revenue, and be able to create a very profitable entity for yourself.  So here are the 10 mistakes that business owners and entrepreneurs make. Mistake #1 – Undercapitalization –There are many businesses out there that simply don’t think about how they are going to growth the business from a financial point of view.   Do you have the right lines of credit?  Are you going to equity out part of the company?  Or, are you going to try to fund your growth through the cash flow each month knowing you may sacrifice your own pay?  Have I assessed the appropriate pro forma analysis to figure out my real profit and loss in the business?  Should I lease or buy equipment? Essentially, what is the best way ...

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Entrepreneur Series – Lesson 1- Being Undercapitalized

It’s always exciting to think about the idea of having your own new start up.   You hear about stories where entrepreneurs started with just $300 and a cardboard box and then turned their business into millions.  In reality, having worked with many types of business owners, the first mistake made by most is simply not having enough capital or access to capital while growing your business. Undercapitalization really involves the language used when a personal cannot sufficiently fund their business venture.   An idea alone will not lead to business success.   This lack of capitalization not only includes the initial outlay to get the business up and going, but really miscalculating the operating expenses in the business especially in the first year of operation. Here are three smart things to be thinking about so your new entrepreneurial venture doesn’t fall short financially. Lines Of Credit –  Whether it is a true banking relationship or you have set up an arrangement with ...

Read More →