Small Business Capital

This is a follow up to last weeks’ post about “Capital Available for Business Growth” (10/18).   The attached article provides the detail from the Program.    Highlights include:

Relationships are Key – Get to know your prospective banker just as you would (or should) get to know your new customers, vendors or investors – the relationship is similar.

What Bankers look for in Borrowers – the “3 C’s” – Capacity, Collateral & Character

Advantages of Community Banks – flexibility and entrepreneurial spirit

Small Business Administration (SBA) Programs

Intermediaris Filling a Gap when traditional lending programs need a hand.

Importance of  Clean, Current and Correct Business Plans and Financial Statements

Action Steps

Things you can do to take action

• Review your business plan.  Is it up-to-date?  Update 1 section per week.
• Check your financial metrics.  Do you have them?  How are you doing?
• Look at your key ratios – is your revenue translating into profits in an optimal way?
• Find a community or small bank and schedule a meeting_ Go on the web and find your local Community Development department.  Schedule a meeting with the director, even if you don’t need to right now.
• Get an outside viewpoint on your business.  The right advisor(s) can help you avoid the myopia that hinders so many businesses.  Consider a board of advisors.
• Tap into other local resources, such as business consultants and other experts that can help you move your business forward.
• Take advantage of local business forums, such as the one described in this article, to network and learn from other business professionals.

These are the kinds of things we teach in the Post University Online MBA Program; and we help businesses directly through the Post University Institute.

Read the article & let us know what you think!   Roadmap to Securing Capital 10-09

Are You Leaking Revenue?

According to veteran business consultant Max Gregorich the majority of small business owners are losing 10 to 30% of revenues without even knowing it.     Why?  Because they are not measuring the performance of their business in the right way.

“I found that an average small to mid-sized company leaves an average of 15 percent of their revenues on the table but I’ve seen it as high as 30 percent. On average they earn approximately 10 percent or less in profit. The math is simple. Say a company has $1,000,000 in sales and profit of 10 percent or $100,000. Add 15 percent of the sales to the profit and you have $250,000. Knowing where to look for the cash leakage – and then know how to plug the leak – is of utmost importance for any business owner.”

In a recent program at the Post University Institute for Innovation & Entrepeneurship, Gregorich showed business owners how to begin a simple diagnostic to identify areas for improvement.    The process works well even when owners think they’ve done “everything” to manage costs.

This is just one of the tools that Post Institute Experts use to bring a fresh perspective and expertise  many companies need to get growing again.

For more information contact Douglas Brown (dbrown@post.edu) or check out Gregorich’s website at www.ceo1stop.com

You don’t have to go it alone.

Also reported in the Hartford Business Journal at this link

Max Gregorich, CEO, CEO1Stop | Hartford Business.