October 22, 2014

Small Business News: Invest-igation

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Investigating investment, we call it “invest-igation,” can be one of the most important activities for a startup small business owner or an entrepreneur looking to expand a small business into new markets. Always remember, however, to have a look at the changing economic and policy climate as well in order to figure out how available money will be when you approach investors or lenders with your big idea:

Finance

Big money for small business. In a sense, even some of the largest companies have started as small businesses, mere ideas or small business models in the mind of the entrepreneur. If a business cannot be bootstrapped, started with little or no backing and grown with cash flow, Venture Capital might be one way of getting started. WSJ

Think of your business as a restaurant. And your investors as the people who bring the produce. Venture capital investor Brad Feld relates the metaphor, potentially applying to any business in need of investment to create its products or services…the same way a restaurant uses produce to make its dishes. Feld Thoughts

Women owned businesses in need of investment. This post makes the argument that women who own 41 percent of private companies in the US have received a disproportionately small amount of Venture funds. The question left unanswered is how many have been unable to raise other kinds of funding and how this compares with their make counterparts though likely there remain disparities. The New Entrepreneur

Could education businesses be a natural fit for investors? This interview late last year with New York VCs suggests investment for online businesses centered on transforming education will be attractive to investors in the near future. Education related businesses, particularly online, will be attractive especially if they address the spiraling costs and perceived declining value of traditional education. A Facebook or Twitter specifically designed for education? Entrepreneurs take note. TheDeal.com

Franchises

Joel Libava asks the fateful question…? Is there a problem with banks not loaning more money to new franchise business startups? Actually, Joel, banks aren’t loaning to many startups at all, franchise or other wise. Some business leaders feel lack of credit is less of a problem for small businesses these days then lack of business, however. Imagine getting that big loan and then being unable to generate enough cash flow to pay it off. The question is how can franchises adapt to an economy where credit just may not be as easy to come by as it used to be? The Franchise King

Policy

Can entrepreneurship prevent dictatorship? Iraqi scholar Vivek Wadhwa insists that small, homegrown business can prevent another Saddam. “If we’re going to achieve political stability, people have to own the economy,” Wadhwa said. Bloomberg BusinessWeek

What does this mean for the future of the business environment? Reports from several online sources now have social security cash flow at negative and heading in the wrong direction. Will this mean even more federal debt on our way to massive tax increases or increases right around the corner stopping the economic recovery in its tracks? Beltway Confidential

Will fiscal conservatism win the day? The Tea Party may be taking over the Texas GOP. Despite criticism and dismissal from some sectors, the movement contains a strong fiscal conservative trend that could be very good for small businesses. MySanAntonio.com

Social Media

Business etiquette. Whether running a small business or seeking a new job, it’s imperative to have a grasp of the primary business communications of our day: social media. Here is an important list of “50 crucial rules” for social media use in the business world. No matter if you are an entrepreneur, small business owner or employee, these tips will help you using the new social media to your best advantage. Grace & Charm

Startups

Looking for a hot field for your new small business. Our own Anita Campbell has the goods with this rundown of the six top fields for small business startup or expansion, not surprisingly many of them in the tech field. But if you are planning to start a business or expand an existing one, first take a look at the list to figure out the most important directions for you to grow. Open Forum Innovation

4 Comments ▼

4 Reactions

  1. The information is true for small business owners. planning for the funds is the only way that can help in attaining the maximum from the minimum.

  2. “In a sense, even some of the largest companies have started as small businesses, mere ideas or small business models in the mind of the entrepreneur.”

    Yes, but one must not forget that there are a few great differences between small business and corporate. I think that the most important feature of a small business is the fact that it has an identity that can be related specifically to a person. When you think of great companies-and this goes for absolutely each and every company out there-there’s always a deficit in the company’s identity. I think this is normal: being big means more structure and less personal touch. Conversely, when it comes to small business, people relate to people and not to great, impersonal brands. This means that changing your investment strategy from small business to large business requires for a compromise in the specificity of your product/brand/image.

    Lloyd Burrell
    Publisher
    officedeskreviews.com

  3. I choose ‘Think of your business as a restaurant’. It makes sense and can drive small business owner to the right decision move on right destination.

  4. A recent small business that I found helpful is http://www.thetaxclubonline.com. I recommend it to everyone. Check it out!

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