Monday, August 30, 2010

Does Your Business Deserve Financing?


Weeding Out The Poor Business Model
I listen to the average business man every day talk of the difficulty experienced in obtaining capital. In most cases I can see that the enterprise they are speaking of does not in fact deserve the financing sought. Continuing losses, bad business decisions, poor judgment, and a host of other reasons why funding is unobtainable. The market has a way of weeding out the poor business model.
So Few Find Needed Capital at the Prescribed Time
In some cases the needed capital sought is in fact deserved. But it is a rare thing indeed. For those enterprises the principal must endure days, months or even years to find the right financing solution. That is in fact part of the test. So few find the right match out of the shoot. So few find a steady stream of needed capital at the prescribed time.
Always Assess the Business Model
The rule of thumb is to always assess the business model. If it is not profitable after a year or so then either adjust it to profitability or move on. Not every idea can become a successful enterprise. Not every business model can be profitable. Not every opportunity can be converted into a going concern. Not all of us are meant to run our own business. Put it all together and you need to asses not only the model but yourself. The two must fuse perfectly in order for the model and you to thrive. Analyze, assess and examine all the factors before you continue your quest to run you own show.

Mr President – Your Government Should Leave Well Enough Alone!


AUGUST 30, 2010 BY GEORGE LOVATO JR
The Guiding Minds of Corporate America Have Done a Solid Job
Recently we have seen much comment on the fact cash harbored in corporate America is at an all time high. We have also heard how the government is pushing big banking to lend to small business again. In both cases there is a lesson in the news. First cash being at an all time high is in fact a good sign. This in simple terms means that at the appropriate time corporate America will reinvest in itself. The mood, tempo and general indicators of the economy will be right and the capital to exploit the economic condition of the nation will be present. This is a sign of recovery. Corporate America has done a pretty good job of judging the right time in a number of areas. Have there been mistakes and false starts in the past? Certainly. But by and large the guiding minds of corporate America have done a solid job.
The Government Has Made More Mistakes Than American Enterprise
Let’s speak for a minute on the governments comments. First they have played banker in the recent past. They have made what I consider some very controversial decisions in that regard. They helped the weak to survive and intervened in a manner not fitting American enterprises number one rule – survival of the fittest. Now after we have stopped the bleeding of the biggest economic banking hemorrhage in human history, the government wants to tell banks what to do. The government has made more mistakes than American enterprise. They have attempted to change the basic rules of business governance. Now before the timing and condition of the economy is ripe for regenerating the lending cycle again, the government wants to push where pushing is contradictive to its warnings to Wall Street and the financial community at large.
Dear Mr. President, leave well enough alone. Business and the financial community will be its own best judge as to when, where and how it will begin to fuel the rest of the economic recovery