Adrian Newman’s latest ‘e-Wealth Daily’ article is titled “Use These Strategies to Net More Money”. [Adrian Newman’s Article]


Adrian Newman’s latest ‘e-Wealth Daily’ article:

Use These Strategies to Net More Money

Even if you’ve scraped together enough money to start a business, it doesn’t mean your money-hunting days are over. While a successful business will sustain itself, most entrepreneurs could always use a little more money to help them get through slow periods, or to expand their businesses sothey’ll be more profitable. Fortunately, there are many strategies for getting more money for your business.

Suppliers: Suppliers are obviously invaluable for getting your product to market, but they might also be able to help you stretch your cash further. For instance, your suppliers might agree to extend your existing period to pay for the product — say, from 30 days to 60 days — so that you can hold onto your money longer and have more time to receive incoming cash flow to cover the payment. Additionally, many suppliers will lease equipment for a monthly fee, so that you’ll get to use the necessary equipment for your business without having to pay the total cost up-front.

Lenders: If your business has a proven track record, you’ll have a greater chance of securing a loan from traditional lenders, such as banks, credit unions, and SBA-certified lenders, than you would have while starting out. You also might be able to secure better loan rates, as lenders will likely consider your loan to be less risky because you have some experience under your belt. So, if you were previously turned down for a loan, don’t be afraid to try again — time could be on
your side now.

Investors: Just as banks will be more likely to send money your way once you have some experience, so, too, will investors, such as venture capitalists and angel investors. Investor funds might still be difficult to secure, however, since many investors are only interested in companies that have enormous profit potential. If you are interested in finding investor funds, you
can make the task easier by using an electronic matching service such as Active Capital. With electronic matching services, you’ll pay a fee to be listed on the web sites that investors use to search for companies to invest in.

Another option is to take on a partner who can bring money and expertise to your business. Many entrepreneurs opt to partner up with another company (or several companies) that
has similar goals, so that they can pool funds, share expertise, and collaborate in order to service larger contracts.

Keep in mind that, when you are seeking help from any type of investor, you’ll have to be prepared to give up some control of your company in exchange for financing.

Your Own Pocket: Although you probably won’t want to sink all of your personal savings into your business for fear of being placed in a tough spot should an emergency arise, you might have personal assets that can be used to finance your business. For instance, if you have equity in your home, you might consider taking out a second mortgage or refinancing your existing mortgage to secure a low-cost loan for your business. Most whole-life insurance policies allow the holder to borrow against the cash value of the policy. An additional benefit to this strategy is that, as you’re borrowing your own funds, you’ll be paying yourself back in the end — and you’ll profit from the interest on the loan payments.

If you’re really in a bind, you can use credit cards as a source of business capital. This is a convenient method, because the money is available immediately, but it can also be an expensive option compared to loans, unless you have low-interest credit cards.

e-Wealth Daily

About e-Wealth Daily

The e-Wealth Daily Bulletin brings you daily tips, advice and breaking news related to home businesses, small businesses and internet marketing. Our team of experts gives you the information you need to take your business pursuits to the most profitable level. Founded by Adrian Newman in 2003, the e-Wealth Daily Bulletin and www.ewealthdaily.com are a division of Lombardi Publishing with online newsletters reaching over 100,000 subscribers each month.

* IMNewsWatch would like to thank e-Wealth Daily for granting permission to reprint this article.

Sharing is caring