The task of raising money for a business is not as difficult as most people seem to think. This is especially true when you have an idea that can make you and your backers rich. Actually, there is more money available for new business ventures than there are good business ideas.
A very important rule of the game to learn: Any time you want to raise money, your first move should be to put together a proper prospectur.
This prospectus should include a resume of your background, your education, training, experience and any other personal qualities that might be counted as an asset to your potential success. It is also a good idea to list the various loans you have had in the past, what they were for, and your history in paying them off.
Before you read further my tips on writing the proposal, I woul like to share with you part 1 of the video on the power of creating profil & income, our dream!
You will have to explain in detail how the money you want is going to be used. If it is for an existing business, you will need a profit and loss record for at least the preceding six months, and a plan showing how this additional money will produce greater profits. If it is a new business, you will have to show your proposed business plan, your marketing research and projected costs, as well as anticipated income figures, with a summary for each year, over at least a three year period.
It will be advantageous for you to base your cost on high estimates, and your income projections on minimal returns. This will enable you to "ride through" those extreme "ups and downs" inherent in any beginning business. You should also describe what makes your business unique---how it differs form your competition and the opportunities for expansion or secondary products.
This prospectus will have to state precisely what you are offering the investor in return for the use of his money. He will want to know the percentage of interest you are willing to pay, and whether monthly, quarterly or on an annual basis. Are you offering a certain percentage of the profits? Or are you offering a percentage of the business? Or are you offering a seat on your board of directories?
An investor uses his money to make more money. He wants to make as much as he can, regardless whether it is short term or long term deal. In order to attract him, interest him, and persuade him to "put up" the money you need, you will not only have to offer him an opportunity for big profits, but you will have to spell it out in detail, and further, back up your claims with proof from your marketing research.
Venture investors are usually quite familiar with "high risk" proposals, yet they all want to minimize that risk as much as possible. Therefore, your prospectus should include a listing of your business and personal assets with documentation---usually copies of your tax returns for the past three years or more. Your prospective investor may not know anything about you or your business, but if he wants to know, he can pick up his telephone and know everything there is to know within 24 hours. The point here is, do not ever try to "con" a potential investor. Be honest with him. Lay all the facts on the table for him. In most cases, if you have got a good idea and you have done your homework properly, and "interested investor" will understand your position and offer more help than you dared to ask.
When you have your prospectus prepared, know how much money you want, exactly how it will be used, and how you intend to repay it, you are ready to start looking for investors.
When most people think of Home-based business, what comes to mind is usually basic information that's not particularly interesting or beneficial. But there's a lot more to Home-based business than just the basics.
Is everything making sense so far? If not, I'm sure that with just a little more reading, all the facts will fall into place.
Before you go further to read my story and tips on financial freedom via home-based business, I would like to share with you a video on Dani Johnson interview with Tom Beal - Power of Live Events. I have seen Dani live in Australia at her first steps to success . You will definitely can tap into her systems and training sessions and you cannot go wrong
This article explains a few things about Financial Freedom, and if you're interested, then this is worth reading, because you can never tell what you don't know.
You may not consider everything you just read to be crucial information about Financial Freedom. But don't be surprised if you find yourself recalling and using this very information in the next few days.
Almost everyone needs or wants more money coming in, and with this desire most would like to start some sort of extra income producing project. The trouble is, not many of these people seem able to fit "a second job" into their time schedules.
I think it is right time to introduce a simple video clip on time management Part 1.
It's true that most people are busy, but extra time for some sort of home-based extra income producing project can almost always be found. It may mean giving up or changing a few of your favorite pastimes--such as having a couple of beers with the guys or watching TV--but if you score big with your extra income project, you will have all the time you want for doing whatever you what to do. Efficient time management boils down to planning what you're going to do, and then doing it without backtracking. Start by making a list of the things you want to do tomorrow, each evening before you go to bed. Schedule your trips to the store or wherever to coincide with the other things you have to do, and with your trips to or from work. Organize your trips to take care of as many things as possible while you're out of the house. take stock of the time you spend on the telephone---and eliminate all that isn't necessary.
Whatever chores you have to do at home, set aside a specific time to do them, and a specific amount of time to devote to them. For instances, just one hour a day devoted to yard work would probably make your property the envy of all your neighbors. Don't try to do a week's work in one big flurry. Whether it's painting your house, fixing leaky faucets, or mowing your lawn and trimming your shrubs, do a part of it, or one particular job each day, and you'll be amazed at your progress.
Take care of all your mail the day, you receive it. Don't let those bills and letters pile up on you. If you're unable to pay a bill immediately, file it in a special place that's visible, and note on the envelope the date you intend to pay it. Answer your letters the same day you get them.
Before you go on to read my story, i would like to share with the video clip on Time Management Part II
Once you start listing and planning what to do, and then carry out your plans, you'll find plenty of "extra time" for handling virtually any kind of home-based income producing project. People in general may not like routines or schedules, but without some sort of plan as to what is supposed to be done, the world would be mired in mass confusion. Laws, ordinances and regulations are for the purpose of guiding people. We live according to an accepted plan or way of life, and the better we can organize ourselves, the more productive and happy we become.
The secret of all financially successful people is simply that they are organized and do not waste time. Think about it. Review your own activities, and then see if you can't find a couple of extra hours in each day for more constructive accomplishments.
When you begin planning, and then when you really become involved in an extra income producing endeavor, you should work it exactly as you have organized your regular day-to-day activities---on a time basis. Do what has to be done immediately. Don't try to get done in a hour something that's realistically going to take a week. Plan out on paper what you have to do--what you want to do--and when you are going to do it. Then get right on each project without procrastination.
Finally, and above all else, when you're organizing your time and your business, be sure to set aside some time for relaxation. Be sure to schedule time when you and your spouse can be together. You must not involve yourself to an extent that you exclude other people--particularly your loved ones--from your life.
Taking stock of the time you waste each day, and from there, reorganizing your activities is what it's all about. It's a matter of becoming more efficient in the use of your time. It's really easy to do, and you will not only accomplish a lot more, you will also find greater fulfillment in your life.
That's how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.
Keep coming to this BLOG which will continue to give some free tips of setting SMALL businesses.
There's a lot to understand about Home-based business. We were able to provide you with some of the facts above, but there is still plenty more to write about in subsequent articles.