Every investor wants to receive some certain income from their money investing that is why it is very essential to find the best ways of receiving money through the money investment, but to do it you will have to spend some time learning about different ways and kinds of investment and spend some time and efforts for it. So just keep reading it and find out all the answers to your questions.

Receiving income irrespectively of a situation in stock markets is a dream of any investor. At purchasing of funds of shares investors first of all are guided by cost growth and frequently forget about the second component of the income and that is dividends. When stock prices grow, dividend yield interest of very few people, but at recession, dividends can become one of few pleasures of the investor.

For the companies regularly paying dividends on off-shore markets there is a special term Dividend Aristocrats. The companies which pay the dividends increase every year. And those who stably increased the payments within last 25 years can get to this category. Company Standard and Poorss of 1992 leads a special index – S&P 500 Dividend Aristocrats.

If to address to results of work of this fund even in the heaviest 2007 – 2008 the fund has paid an order of 4-5 % in the form of dividends. Even in the beginning of 2009 when fund cost has fallen almost to 40 %, the fund continued to pay the dividends which size remained at level of 5 % annually.

Except the funds investing in the share of dividend aristocrats, there are a number of the funds also focused on reception of high dividend incomes. For example, fund WisdomTree Europe SmallCap Dividend (Ticker DFE) invests in the share of the small companies of Europe. For the last year the fund has grown on 59 %, and has paid still an order of dividends of 6 %. On a current data from a site Finance.yahoo.com, its expectation dividend yield will constitute to grow to 10,72 % annually.

More traditional sources of reception of regular payments are bonds and real estate. For example, mutual fund Templeton Emerging Markets Bond A QDis $, investing in government bonds of developing states. In 2009 fund has added the paid dividends at a rate of 9 %.

Entrance thresholds in such funds depend on the chosen method of investment. For example, to purchase shares of such funds it is possible through professional portfolios in the insurance companies or through foreign brokers.

Being guided by dividends paid by fund, the investor can provide the investments with an additional income. Besides, the history has shown that even in case of recessions in stock markets such investments will bring in the certain income.

It is very important that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a true helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other types of grants has become harsher. This is natural – more businesses need them. So before you start your fight for the small business grants, please make sure to check out this blog for more helpful tips about grant industry.

Many investors prefer to use market prices as a management for decision making in the security market. But it is an error. Market price is the last thing on what the investor should pay the attention. And the first on what they should look is fundamental characteristics of business.

Considering this or that business as capital investments place, it is necessary to look as business behaved in the past. Certainly, the past isn’t a guarantee of the future results. It is important to understand, how the company has come to current results and whether it can continue the business further.

As the person passes stages of the course of life and any business passes stages of the formation. If you are the owner of expensive racing car that costs some millions dollars I think, you won’t sit for its wheel some stranger.

Trusting the car or the capital it is necessary to produce an estimation of the person and same is with the business. Whether there are at it the operating permits, what experience of driving the person possesses, whether he got into serious road and transport incidents. After that you will allow him to test as the driver having established certain restrictions and a probation period. The same algorithm of actions it is applied at a business choice in which you are going to invest the money.

Having studied business history, it is necessary to specify what results it has achieved in the past. How it reacted to economic difficulties, how it solved tasks in view. Having looked at it, it is not necessary to put up all money in one business. It is necessary to specify a limit of means which will be enclosed in this or that business. And to increase quantity of the purchased shares gradually in the event that business behaves how just as you have assumed.

Any business passes stages of development in the formation. And at each stage the investor has a possibility to put up the money and to receive investment revenue. How you think, if you are the private investor at what stage you should start put up the money?

1. An investment in the business plan. At a development stage.

2. An investment in young business. At a development stage, less than 5 years.

3. An investment in steady business. At stability stage, more than 5 years.

4. An investment in public business. At a share placing stage at a stock exchange.

5. An investment in mature business. The large companies with long history.

6. An investment in leaders of industry. The companies from the exchange index list.

7. An investment in leaders of industry. At a stage of considerable decrease in value.

The times when governments have been flooding people with all sorts of grants are over. At least for some time. But that does not mean that you must forget the idea of getting small business grants.

Everything is doable with smart approach; small business grants including.

Go to this blog for more helpful tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants faster.

Bonds

Bonds are debt obligations. As a matter of fact, you give to the borrower, to the government, corporation, etc the credit. For using your capital the borrower undertakes to return together with an amount of loan also the saved up percent that should be in advance stipulated.

Because this kind of investments is much less brave profit of bonds also are lower in comparison with shares. The probability of non payment under accounts in developed countries practically is absent. Well and the companies under the charter are obliged to repay debts (in bonds or other form) under accounts. Therefore, bonds are less subjected to risk of loss of the capital and are accordingly less profitable.
Investment funds

What is Share Investment Fund?

Share investment fund is a set of shares and-or bonds. As a matter of fact it is the organization which raises money at group of people and puts them in the share, bonds or other securities. Each investor owns the part of fund that is the share. There are many kinds of it.

Share investment fund can be a good source of profit. Some of them reach annual profitableness in hundreds percent for a year. Share investment funds or mutual funds are a combination of shares, bonds, and other financial tools, collected for reception of the maximum result concerning requirements of the client. There is a great variety of kinds, each of which meets certain requirements of the client concerning risk, tools of an investment, the time periods, availability etc.

Buying a part (share) you add the money in a lump of money collected by fund at the same investors as you. The fund administration for the small commission itself decides where to put this huge lump of money. Thus, the main advantage of the given kind of investments consists in that you don’t have to worry about that as where to enclose: the fund analyzes and chooses financial tools for you.

Other kinds of investments: options, gold, Forex, futures, real estate, etc.

If you only start to comprehend the immense world of the finance you with ease will manage knowledge of principal views of investments: shares, bonds and funds. It is considered that to deep in additional kinds of financial tools as derivatives is not recommended to inexperienced investors since there as a rule is much higher risk (and the profit accordingly) and there is the certain specificity not inherent in the main kinds of investments. And we will talk about the following investment kinds:

an option is the right (but not an obligation) on purchasing or security sale (or the goods) at in advance stipulated price.

precious metals: even our grandmothers who didn’t know about financial markets, stored the capital in gold.

Forex is in the true value, it is trade in the international exchange market.
the futures contract is the agreement, obliging both parties to purchase/sell the goods at in advance stipulated price.

real estate.

There are more other kinds of investments: you can enclose in the business or invest in someone’s business, purchase gold or a company part, or to invest the capital still somewhere. But don’t forget the main rule of investment: money should make profit! Buy cheaply and sell expensively … and choose that financial tool which approaches you in your concrete situation.

The times when governments have been showering people with all sorts of grants have passed. At least for a while. But that does not imply that you should forget the idea of getting small business grants.

Everything is doable with wise approach; small business grants including.

Go to this blog for more practical tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This info will help you to get small business grants or any other grants in a more convenient way.

If you are interesting in starting your business but you don’t have enough of monetary resources so you will definitely need to find the investor. That is why first of all you should know al about investment kinds.

There is a set of investment kinds. At each kind the there are some advantages and lacks, but the main criterion is profitableness/risk. For each situation the financial tool approaches.

Principal views of investment tools include:

* shares
* bonds (obligations)

* Investment funds

* derivatives

Before you start reading about kinds of investments it is necessary to understand of what is investment and what for to invest in general. The given article is intended for acquainting you with primary groups of financial tools. It is not surprising that each kind of investments has a unique kit of characteristics which determines the given kind of investments approaches you or not. After all for 25 summer bachelors who earns above an average, the brave share market will approach and people on pension choose more conservative and reliable investments, as gold or bonds …

Shares

At share acquisition, the investor automatically becomes the co-owner of the company which share he has purchased. Thus, you have the right to be present at sessions of co-owners and to bring the word in the further destiny of the company. Naturally, the more your shares block, the more you can say. It is considered that 50 % and one share give a voice of indisputable right. But actually, in the developed financial markets for a casting vote it is enough to have 15 %, since ownership of greater part is really a rarity. But even if you own only one share (ridiculously, but it is also admissible) to you are obliged to send the invitation to session in which also there is a possibility to transfer the right of the voice.

Also, as the co-owner, you have the right to apply for the part of the income of the company, the so called dividends. Company owners receive the part and only in the event that the company has no other clauses of the expense of vital importance, for example, the further development of the company it can be used. Thus, young companies (for example, Google) seldom pay dividends and more mature companies, such as Fords, pay dividends more or less regularly.

It is important to understand that profitableness of this kind of investments consists not in dividends, but in price fluctuations of shares. Differently, shares change in the price, and at the expense of this difference it is possible to be enriched (but also to suffer a loss). Anybody can’t give a guarantee of growth of share price; the maximum that financial analysts can offer is the qualitative fundamental or technical analysis of the given share and the forecast.

It is very reasonable that government, despite this recession is not abandoning to help small businesses. And small business grants can be a true helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other kinds of grants is more fierce. This is logical – more businesses need them. So before you start your fight for the small business grants, please make sure to check out this blog for more helpful tips about grant industry.

The bank always produces the credit under the business plan; it should be assured that you soberly estimate the possibilities on credit cancellation. The Business plan demonstrates that you did calculations and represent a real pattern of the business.

Therefore each borrower makes the business plan for credit obtaining that is a bank indispensable condition. The Business plan for credit obtaining differs from the business plan for the investor the several moments:

* the business plan for credit obtaining should show need of the enterprise for financing at a given time and on exact a definite period;

* the potential borrower, wishing to obtain the credit under the business plan should prove to bank a utility for the enterprise of usage of extra circulating assets;

* the business plan for credit obtaining is oriented on showing to bank or other creditor high level of solvency of the enterprise, so – possibility to extinguish the credit and percent for its usage.

The bank, as a rule, won’t be interested in the details of the business plan which do not have the direct relation to solvency and level of liquidity of the enterprise. It will be interested, first of all, in presence at the enterprise of serious pledge or the guarantor.

If the first condition is fulfilled, the accounts payable question will be studied. It will be interesting to bank, and how many owe the enterprise, whether there is a delayed accounts payable and when the business was formed, a tendency to growth or to debts lowering.

The following question of the expert of bank will be about an enterprise debt receivable. The bank security police will sometimes inquire and try to learn what part from a debt receivable is doubtful to resetting.

To obtain the credit under the business plan in bank is normally enough durable procedure which demands preparation of the whole packet of documents, the big expenses of time and strong nerves. All this time bank demands one document behind another, requirements to the necessary documents can change even in the course of transaction design. At first it is necessary to deal only with the credit expert, then with the chief of credit department and in case the bank carries the credit to a category large and with a manual of separation of bank.

The total of the credit produced by bank normally makes no more than 40-50 % from cost of pledge which is defined by an expert evaluation. Advertizing conditions of obtaining of the credit normally strongly differ from the real. Often happens so that in the course of obtaining of the credit the bank “suggests” the enterprise to extinguish still some payments and additional collections for obtaining of the banking credit. Collections not advertized by bank for credit obtaining can make 5-10 % from the credit total.

It is very crucial that government, despite this recession is not leaving to help small businesses. And small business grants can be a true helper today.

But, surely, you should understand that today the fight for small business grants as well as for other kinds of grants has become harsher. This is natural – more businesses need them. So before you start your fight for the small business grants, please check out this blog for more
details about grant industry.

The program for business plan drawing up allows facilitating life if it is necessary to prepare the project of the business plan of the investment project and if formation or experience in this business at you isn’t present.

In the market of programs for business plan drawing up it is not a lot of offers as it would be desirable.

Each program for business plan drawing up has the merits and demerits, however basically; nevertheless they are inaccessible to the majority of potential users. Basic reasons of it are the following:

first – the majority of the enterprises is used by the piracy software and this market for the present isn’t civilized and the enterprises prefer not to spend money at all for such things, as the program for business plan drawing up;

secondly – the program for business plan drawing up in most cases costs similarly to costs to order the project of the business plan at professional advisers;

thirdly – the program for business plan drawing up is necessary first of all to the people who are directly engaged in preparation of projects of business plans. Usual it is economists of the average and small enterprises, as a rule, not informed on availability in the nature of such things as the program for business plan drawing up, so it is simply no people to whom it can be recommended administration to acquire the program.

The most known programs for drawing up of the business plan are Project Expert and the Alto-invest from the home producer. About them it is possible to look for the detail information on sites of producer companies.

Program Project Expert is probably, the most known program for business plan drawing up; it almost completely automates drawing up of the business plan of the investment project.

Program Project Expert has the convenient intuitively-clear interface and big enough possibilities in adjustment. As a matter of fact, all work with program Project Expert consists in filling of the initial data for calculations and a choice of a suitable variant from what are offered by the program.

Project Expert has modular structure, in this program there is a possibility to enter that information which is already collected at the moment of work and later to fill up other data, however results in this case, as a rule, can’t be received, on what, in most cases, the program informs the user the message.

If in Project Expert all initial data necessary for calculations is entered, the program itself will calculate set of the basic investment indicators characterizing efficiency and other parameters of the investment project. Except calculation of indicators program Project Expert is able to draw set of beautiful schedules and charts, on an exit the ready printing variant looks solidly enough and attractively.

The days when governments have been flooding people with all types of grants have passed. At least for a while. But that does not mean that one must get rid of the idea of getting small business grants.

Everything is possible with smart attitude; small business grants including.

Visit this blog for more helpful tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This information will help you to get small business grants or any other grants faster.

The structure of the business plan of the investment project isn’t regulated by the legislation, therefore each firm develops own approaches and structure of the business plan which depend on a character of business and main objectives of drawing up of the business plan and requirements according to it.

So, for example, the production enterprise business plan will be essentially different from the business plan of trading structure, the business plan of bank department or the service trade enterprise.

The difference in enterprise scales essentially influences requirements to the business plan regarding volume of the information and level of its detailed elaboration; however the structure of the business plan doesn’t depend on it in any way.

The business plan structure, or its basic sections are identical and to both variants of representation of the business plan – the short resume or the developed and all-round variant. The difference between them is only in information volume – the resume, unlike a complete variant contains only the basic information and conclusions.

The business plan structure depends on the purpose of its writing, for what it is intended – for credit reception in bank, attraction of the investor or the partner, a provisional estimate of the investment project, carrying out of presentation of the investment project or for intra firm planning. In any cases some sections can be considered in more details/

Requirements to the business plan:

One of the basic requirements to the investment project business plan is its clearness; it should be written without difficult professional terminology, simple words. Appendices in the form of schedules and charts which do the business plan by more evident are also very desirable.

Business plan volume is an order of 20-30 sheets of the text on the one hand, but special demands to the maintenance and then the volume can reach 50 sheets and more. The Business plan should contain only the basic information, but any supplementary information also should be prepared for possible further review.

The investment project Business plan should be under construction on the basis of the real, unbiassed information received from accessible sources and contain references to documents, results of researches, reports and expert opinions.

In the business plan it is impossible to do doubtful or uncertain assumptions and conclusions which aren’t based on calculations and expert evaluations. (For example: ” in the next two years the firm will be in the leaders of industry…” Or “the Future behind our progressive technology…”). Such things are a sign of absence of professionalism.

Trustworthy information about risks from participation in the investment project on which the impartial analysis should be made should be resulted and variants of its avoidance or minimization are considered.

The days when governments have been showering people with all types of grants have passed. At least for a while. But that does not imply that one must forget the idea of getting small business grants.

Everything is doable with smart attitude; small business grants including.

Go to this blog for more practical tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This information will help you to get small business grants or any other grants faster.

The Business plan for attraction of the investor has its specificity. The primary goals in this case are to convince the investor of advantage for it investments in the investment project represented to him.

The Business plan for the investor usually has small volume, as a rule, it is 8-10 sheets and it has character of the short resume of the investment project. In it is the purposes of results of the conducted research of the market, the project essence, required and available resources, expected results from its realization, the basic indicators and short conclusions.

The primary goal of such resume of the business plan is to interest the investor and to force it to familiarize with the project more in detail. Investors are usual much occupied people also won’t spend the time for reading of detailed business plans for the sake of explanation of an essence of the project. And as at the investor can be a lot of offers, the first impression can appear solving. Therefore the business plan for the investor is usual written in the form of the short resume of the investment project.

If the investor will be interested in the business plan of the investment project presented by you, he would want to receive more detail information. The detailed business plan has great volume and describes all parties of the project. To convince the investor of gravity of the offer, the person representing the project, and first of all the head should show complete knowledge of all high lights of the represented investment project.

For success of presentation of the business plan of the investment project it is necessary to be prepared and try thoroughly ask a question of what you would do on a place of the investor, what questions you would set and after that find acceptable and fair answers to own questions. Besides, it is necessary to be psychologically ready to unexpected questions, the rigid criticism and the skeptical relation to the project, your competence and professional qualities.

Except return from investments of the investor the risk will interest at participation in the project and possible variants of its optimization and also possibility of the control of a state of affairs of the enterprise and actions of its management. It is necessary to consider in advance also all possible variants of participation of the parties in the project and to be specified with negotiating strategy.

And let’s mention some requirements to the business plan:

it should be written without difficult professional terminology, all should be clear and you should use simple words so everything would be readable and understandable to the investor and do not use any fancy phrases and words.

It is very important that government, despite this crisis is not leaving to help small businesses. And small business grants can be a real helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other kinds of grants has become more fierce. This is natural – more businesses need them. So before you start your fight for the small business grants, please check out this blog for more info about grant industry.

What is the business planning?

Business planning: why is it necessary?

Advantages of business planning?

On all these questions we are going to answer in this article that is why you should defenately keep reading it.

Business planning represents process of writing of the business plan in which two concerned parties can take part: the investor who wants to estimate efficiency of an investment of means, and contractors, on behalf of advisers or the enterprise personnel.

First of all, business planning is necessary for the investor as the destiny of its enterprise; for this reason it depends on it that business planning shouldn’t occur without direct participation of the investor. It would be incorrectly simple to order of writing of the business plan to the adviser or completely to entrust it to the personnel of the enterprise and to separate from the process.

The basic advantages which are given to the businessman by business planning:

* it gives the chance to consider and arrange accurately the ideas, to check up their viability on a paper on a settle way;

* such paper (virtual) variant of check of idea finally will save the businessman from set of errors and unnecessary costs, will help to safe additional money, time and nerves;

* it allows the businessman to understand much better is the mechanism of work of the enterprise and to act in the market environment much more effectively;
* when you finish process of a writing of the business plan it will serve you as the scheme or the card which exact following allows with greater probability to reach the planned purpose.

It is not necessary to think that simply enough to pay for drawing up of the business plan of the investment project as at such approach the customer can receive enough abstract and bad variant which will inspire neither the investor nor the administration and enterprise planning thus can’t give the maximum effect.

Business planning will originally demand great strengths, means, efforts and time on collection and information processing and the subsequent financial planning of the enterprise is much simpler as demands only timely periodic entering of additions and changes for the current plan and also timely reaction to a market situation.

Summarizing all above-stated, it is possible to tell that costs for business planning is the most favourable investment.

Writing the business plan independently.

Disadvantages and advantages

Disadvantages:

* you can not know how to write the business plan and not to possess sufficient vocational training and knowledge for preparation of the competent project or for you considerable costs of time and forces for self-education can be necessary;

* you can not have enough time on to deep in the correct logic of process and independent preparation of the project;

* Almost for certain there are doubts that you will make everything correctly.

Advantages:

* This variant is the cheapest one;

* you will have to understand all details of the project that will give the chance to you to understand very well the mechanism of functioning of the enterprise and will make a business management more competent and effective so for certain will bring also quite tangible results;

* you will know how to write the business plan.

The days when governments have been flooding people with all sorts of grants have passed. At least for some time. But that does not mean that you should forget the idea of getting small business grants.

Everything is doable with smart approach; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This information will help you to get small business grants or any other grants faster.

How to write the business plan it is possible to tell much and in detail, but nevertheless there are only three basic variants:

1. To order to write the business plan to professional advisers;

2. To set the task for the personnel to write the business plan;

Combinations of two variants are possible also. We will consider more in detail the basic advantages and lacks of them:

Ordering the writing of the business plan to professional advisers:

* Such variant is rather more expensive in comparison with others.

* the Involved advisers for business planning almost for certain don’t own knowledge of technologies and specificity of production processes of your or designed enterprise. It automatically means that time for them is required for understanding this question and most likely, attraction of technical experts from the party and consultation of technical employees and other workers of the enterprise for this purpose are also required to advisers.

* there will be a problem of trust of the customer to quality of work and vocational training of involved advisers. Workers of the enterprise will feel “under suspicion”. At the slightest possibility they begin to charge the invited advisers of incompetence, up to sabotage.

They will do it almost for certain and under the plausible excuse. Employees of the enterprise, incapable to write the business plan on own forces and they will think that can lose the work place because of a lack of vocational training and will try to blacken advisers that to remain in the opinion of a management “at decent level”.

Advantages:

* professional advisers know how to write the business plan, the probability to receive professionally made and competently arranged project of the business plan is high therefore;

* in case the investment project is for already working enterprise, its personnel will distract much less from accomplishment of the current and daily tasks;

* disinterest and impartiality of foreign advisers in results of an estimation of the investment project and possibility look at the project another’s eyes can help to reveal and eliminate lacks and weak places of the project at a design stage.

Setting the task of writing the business by the personnel of own enterprise.

Lacks:

* the personnel of your enterprise can not know how to write the business plan taking into account all necessary requirements and not to have sufficient preparation for development of the competent project of the business plan;

* workers of the enterprise can be filled up by current work and not to have neither time, nor desire, sufficient stimulus to write the business plan;

* the personnel of the working enterprise directly depends on administration and thus can quite have the own interests which are not coinciding with interests of the proprietor that for certain will affect objectivity of an estimation and the most important thing – on conclusions under the investment project.

Advantages:

* it is not required to bear additional costs in comparison with attraction of advisers, if the personnel knows how to write the business plan;
* the personnel of the working enterprise, as a rule, is well familiar with technological both other schemes and features of the enterprise.

It is very crucial that government, despite this recession is not leaving to help small businesses. And small business grants can be a real helper today.

But, of course, you should remember that today the fight for small business grants as well as for other types of grants is more fierce. This is natural – more businesses need them. So before you start your fight for the small business grants, please make sure to visit this blog for more
details about grant industry.

The investment project Business plan is a card of the enterprise. The enterprise business plan gives to the investor irrefragable answers on the most important investor’s questions: whether there is a sense to put the means in the investment project, under what conditions this project will exist and if it will be as much as possible effective taking into account admissible level of risks which are specified by the developer of the investment project.

Now, to obtain the credit in bank from the enterprise is required competently constituted business plan of the enterprise or the investment project. This requirement is the mandatory condition for bank loan reception. In case the borrower can’t fulfill such requirement of bank, it already speaks about management low level at the enterprise and complete misunderstanding of situation.

Banks don’t like to risk, therefore the credit expert of bank will estimate the request for the credit from such borrower, as operation with very high level of risk. So, the bank will increase at once percent on the credit and such credit for the borrower becomes expensive and unprofitable. Among other things, considering risk of a non-return of the credit by such borrower, the bank necessarily request more powerful guarantees – will increase requirements on pledge from such borrower. In that case it means serious and liquid pledge which not always is available is required to the borrower.

For the enterprise the internal purposes of business planning which are more accurately visible after drawing up of the business plan of the enterprise and the periodic current analysis of the business plan are very important and its accomplishment becomes standard practice in firm.

The Business plan for the internal purposes is a planning of business of firm, carrying out of personnel training of the enterprise necessary for understanding managers of a situation in which there is an enterprise, level of a market competition and real position of firm in the market. For achievement of the put strategic targets of the enterprise the great value has understanding of the market, knowledge of goods and services of competitors, their strong and weak sides, methods and approaches of work of competitors, strategy of development of the main competitors, all the strong and weaknesses of the investment project, its efficiency in various situations.

The Business plan, as the short resume:

The mandatory requirement for qualitative preparation of the competent director, the manager of any link, the head or the owner of firm is the ability to constitute the enterprise business plan. If you can develop the enterprise some good business plan, adjust current business planning in firm, you can make the business more managed, profitable and effective and also can easily predict a situation and quickly make competent decisions.

The days when governments have been showering people with all sorts of grants are over. At least for a while. But that does not mean that one should get rid of the idea of getting small business grants.

Everything is doable with nicely balanced attitude; small business grants including.

Go to this blog for more practical tips about grants, how to apply for grants, grant examples, ups and downs of the grants. This information will help you to get small business grants or any other grants in a more convenient way.

What is the business plan and what value it possess for the potential investor?

The Business plan is a document, the program of actions of management, the scheme and analytical calculation of realization of business activities and actions of firm which contains data on firm, the goods, their production, marketing, market outlets and the organization of effective operations.

The enterprise Business plan is the basic management tool of firm which determines efficiency of activity of the enterprise in concrete area and a concrete segment of the market. Development of the business plan of the enterprise it is also effective planning of business that allows to manage the enterprise competently and effectively.

What for to write the business plan, the purposes of drawing up of the business plan:

To survive in the conditions of a rigid market competition, the enterprise should be as much as possible skillful and react to all changes which occur both in the market and in the enterprise quickly. It is possible only when such conditions are satisfied:

the investor and enterprise administration are capable to estimate correctly and adequately the present financial position of the enterprise, an actual place of firm in the market and are also capable to trace and analyze tendencies of changes of market situations and the real reasons of these changes;
firm management accurately realizes strategic and tactical targets and also tasks to which achievement the enterprise should move;

the management and firm management correctly use business planning for strategy development of enterprise, skillfully determine the strategic and current purposes of firm, strictly supervise accomplishment by all structural divisions of each step of the business plan for achievement of the priority purposes;

the investor, the management and enterprise management understand an essence of processes which occur in the market, in firm and in an external environment.

The enterprise Business plan is constituted both for external and for the internal purposes. More often, it is known to do like this in the world of business, firms begin business plan drawing up in two cases: for the investment attraction and when it is necessary to obtain the credit in bank.

The enterprise or investment project Business plan is constituted not only for the external purposes. The Business plan for the external purposes is a justification of requirement of firm in attraction of borrowed funds or investments, it is demonstration to all interested persons who have resources and possibilities, business potential, it is presentation of the project and attention directing from investors and bank to the investment project, their belief in sufficient efficiency of such project and also in an appropriate skill level of management of the enterprise.

Each investor wants to estimate advantage of the investment project and to estimate a ratio of investment risks and the received profit on the project. The most simple and acceptable method to estimate the investment project is to study and analyze the investment project business plan.

It is very crucial that government, despite this crisis is not leaving to assist small businesses. And small business grants can be a real helper right now.

But, surely, you should remember that today the fight for small business grants as well as for other types of grants has become harsher. This is logical – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more
details about grant industry.

At development of the business plan it is necessary to give special attention to a risks assessment, connected with project implementation. It will be additional plus at dialogue with creditors or investors. Besides, it will help you to be more prepared in a crisis situation.

The thought over technique of struggle against consequences of brave situations will help to facilitate project implementation considerably.

The first stage at a risks assessment is determination of critical factors that is the factors capable theoretically to make negative impact on the project. They can be external and internal.

External factors concern: idle time because of suppliers of raw and materials, climatic cataclysms, demand pattern change in connection with any reasons, actions of competitors etc.

Internal factors concern: contractual delinquency from subcontractors, illness of key participants, hidden defect of technology etc.

At the risk assessment possible statistical way – carrying out the analysis of last indicators of other market makers in the given industry and it has similar parameters. The similar approach is simple enough; however, absolutely identical enterprises can’t happen.

More exact method is an expert evaluation. At the estimation not less than three experts is desirable. As those specialists in the given sphere of production, lawyers, specialists on credit questions, analysts can be involved. The choice of experts is necessary for proving in such a manner that it would be clear to the potential investor.

Experts determine probability of approach of each critical factor chosen by you, using five degrees of probability: 0, 25, 50, 75, 100. Accordingly, “0” is that the event won’t come, “100” is that event necessarily happens.

Further, by results of estimation all experts determine average risk probability. Each group of factors has a certain share of weight in summary project risk. Multiplying average probability on a weight indicator of the factor – we get a risk point. The sum of balls gives summary project risk.

The financial plan:

The basis of the business plan of firm is constituted by financial indicators together with the marketing plan. The financial plan allows judging how much given project or business is realizable.

Financial and economic positions of firm determine:

1) enterprise Assets;

2) the Basic production assets and capacities;

3) Quantity and cost of produced goods;

4) Number and geographical placing of production and sales departments and branches;

5) Degree of development of an infrastructure of the enterprise.

6) Security own raw-material base and energy sources, etc.

It is important to consider and analyze both demand, and the similar goods and services of this or that goods of the expected competitors.

Usual, starting production, the firm already has data on the future buyers with which are concluded the preliminary arrangement on sales and also on suppliers of completing items if it is necessary. Therefore the realization forecast constitute for three years forward, and it is desirable to conduct for the first year breakdown on months or quarters.

The days when governments have been showering people with all sorts of grants are over. At least for a while. But that does not imply that one must get rid of the idea of getting small business grants.

Everything is possible with nicely balanced attitude; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants in a more convenient way.

Let us tall few words about the bines-plan

What for the business plan is necessary and what it represents as a whole? In the given article you learn answers to these questions.

Any serious economic or the contract design isn’t considered, doesn’t affirm and isn’t performed without economic case and the program of events for its realization. The Business plan can be considered as validity in economic and in exact carrying out of operation. As the business plan helps to implement ideas on the chosen lines of business. It is necessary to understand that in the business plan the formality, how many the intrinsic isn’t so important. Nobody can force to constitute the businessman and to confirm the business plan.

Another matter is that in the presence of the business plan he will find partners more likely and will convince them to take part in the transaction, will obtain the credit. Certainly, those people from whom the businessman expects support, assistance, and the credit mainly thing have the right to take an interest in your operations, how much it is counted and thought over. They can ask and even to insist, that to them have shown the card, the passport of the conceived business. And also the business plan can inquire and official, state structures, without the permission which consent the businessman can’t perform operation project.

It follows from this that the business plan is necessary for the businessman and its colleagues, as it specifies that its beginning business is reliable, deeply thought over and systematically organized. Calculated and deliberate plan is created by the businessman with good background, both for himself, and for all people and the organizations with whom he should work.

As the business plan is the document and the firm property suppose extraneous persons do not need to read it and it is necessary to limit a circle of people and at acquaintance with the plan.

There is no necessity to constitute business plan on certain template adhering to the set form of the document, in particular it concerns carrying out of operations of small scale. And for the large-scale project more detailed business plan is possible.

And still it is necessary at business plan drawing up, to adhere to following sections:

1. The firm description.

2. The product description, the goods, the service, being a subject in this operation.

3. The analysis of a planned market outlet of the goods and services.

4. Events in the field of promotion of the goods and services.

5. The organization and production management, reception of the necessary goods.

6. Business activity financial provision.

7. The further plans and final conclusions.

And also it is possible to include additional criteria for yourself: data on competitors and risk and insurance.

It is very important that government, despite this recession is not abandoning to help small businesses. And small business grants can be a real helper right now.

But, of course, you should understand that today the fight for small business grants as well as for other kinds of grants has become harsher. This is logical – more businesses need them. So before you start your battle for the small business grants, please make sure to check out this blog for more info about grant industry.

Business financing: The analysis of monetary flows and financial indicators of the business plan for the potential investor. (part 1)

At the analysis of investment projects it is necessary to imagine well, what monetary flows go at the enterprise, their structure and what exactly they show. Those monetary flows of the enterprise represent also what financial indicators they are characterized, it is in detail and clearly told in the given article.

Kinds of cash flows:

All monetary flows of the modern enterprises are considered in a cut of three types of activity: enterprise main activity (it can be called also as operational or productive activity), investment activity and financial activity.

Cash flows of the enterprise for main activity represent receipts and uses of money funds providing accomplishment of functions of the enterprise according to a primary activity (production, trade, services, etc.). As enterprise main activity is the main source of profit, that, by itself, it should be also the key source of receipt of money funds. The main receipt of money funds on the enterprise is monetary sales proceeds commodity-material assets (works, services). If receipt of money funds as sales proceeds isn’t prevailing in a monetary flow, that, probably, it is necessary to consider what type of activity is at the core of the enterprise.

Among other monetary inflows it is possible allocate the following: debt receivable repayment in the monetary form, a receipt commodity-material assets, received on the barter, received from buyers and customers advances, etc.

The mainstream of an expenditure of money funds of any enterprise for a primary activity is a payment to suppliers and contractors for acquired at them commodity-material assets (works, services). It is no wonder: after all without raw and materials, and sometimes without purchased semi finished products realization of process of production basically impossible. The same concerns trade: that something to sell it is necessary to purchase it first.

The enterprises performing works and rendering services, acquire at suppliers equipment, expendable materials, the tool, etc. Among other account monetary flows on a primary activity it is possible to allocate the following: a payroll payment to workers of the enterprise, payments in the budget and off-budget funds, deductions on social sphere, payment of percent for using proceeds of credit, etc.

As to monetary flows on investment activity of the enterprise they represent receipt and an expenditure of the money funds connected with acquisition or sale of long-term assets of the enterprise and also with incomes from made before investments. It is necessary to notice that, as at a successful current of business the enterprise aspires to expansion and modernization of capacities, conducting investment activity that can result (and, as a rule, results) in time cash outflow of the enterprise.

It is very reasonable that government, despite this crisis is not leaving to assist small businesses. And small business grants can be a true helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other kinds of grants is harsher. This is logical – more businesses need them. So before you start your fight for the small business grants, please check out this blog for more helpful tips about grant industry.

What is “a pure monetary flow”?

The pure monetary flow is one of the basic indicators applied to an estimation of financial condition. It characterizes a difference between positive and negative monetary flows (receipt and an expenditure of money funds) and allows specifying in many respects financial balance and rates of increase of market value of the enterprise.

The pure monetary flow settles payments for a certain interval of time (accounting period).

Enterprise financial services are recommended to count a pure monetary flow not only at drawing up of business plans or in other obligatory cases, but also after each accounting period. It will allow supervising constantly situation and in due timing in appropriate way to react to those or other changes.

Project performance indicators:

One of the basic performance indicators of any project is the pure discounted income (Net Present Value, in abbreviated form NPV); this indicator sometimes is also called as net present value or the pure resulted income. It represents the saved up discounted effect in an accounting period. For calculation of the given indicator different techniques can be used.

One more important performance indicator of the project is the internal return rate (internal rate of return, in abbreviated form — IRR). This indicator can be called also as internal rate of discount or internal rate of profitability. It is such rate of discounting at which the pure discounted income is equal to 0.

At a project performance evaluation of such indicator, as a time of recovery of outlay of investments (payback period, in abbreviated form — PBP) is used also. This indicator represents the minimum period outside of which the sum of the saved up discounted incomes exceeds the size of initial investments. In this case the pure discounted income accepts positive value and further remains positive.

Speaking about project performance indicators, it is necessary to mention such indicator, as debt coverage ratio (debt service coverage, in abbreviated form — DSC).

It settles payments for each period of planning under the following formula:

The listed indicators are reasonable for analyzing not only at original conditions, but also to predict their dynamics at those or other deviations from rate, in particular — to estimate with their help possible risks.

Important rules of business planning

1. Create the review of tasks. Before to start attachment of tasks by concrete time try to see all picture entirely: tasks, terms and interrelations between separate tasks — further it will allow to plan more correctly them on time and under the relation to each other.

2. Place priorities. Having constituted the list of all tasks place them in decreasing order of the importance from the point of view of an object in view and include them in the plan taking into account this position — then even if you won’t have time to make everything then the most important execute.

3. Be guided by principles of flexible planning, remembering that the plan is not dogma and it can be changed depending on circumstances. Therefore it is important to hold such plan before eyes always to have possibility to carry out that task for which the opportunity was presented.

The days when governments have been flooding people with all sorts of grants are over. At least for a while. But that does not imply that one must get rid of the idea of getting small business grants.

Everything is possible with nicely balanced approach; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants easier.

The Business plan is a bible of the growing company. It would serve to show the companies value of workers, advisers, partners, clients and investors. Business plans are means with the help of which the company can be knocked on doors of investors.

The Business plan includes detailed crucial elements demanded for the majority investors:

1. The resume

2. The company analysis

3. Market research

4. The analysis of clients

5. The analysis of competitors

6. A marketing plan

7. The operational plan

8. Management

9. The financial plan

10. Appendices

Such business plan distinguishes the company from thousand other companies and shows to investors that the company soberly sees the matter and is ready to the further development. So let consider some points of the business plan.

The resume

The majority of investors simply loaded by business plans also do no more than the fluent review. Therefore it is the extremely important, that the first page – the Resume stimulated and motivated the investor to read the entire business plan.

The first page of the Resume should include the following:

* the Short description of business

* the Size of the market and market requirement for business

* In what uniqueness of the company and uniqueness of its service for the given segment of the market

The short description of business

Whether trust or not, after perusal of the first page of the majority of business plans, investors frequently don’t understand business in which the Company works! It is especially actual when the company participates in difficult, technological business. Much for you seems obvious, but not for the investor. It is important to remember that investors won’t invest in that they don’t understand. In the resume you should simplify determinations and give simple and clear understanding of business. Other business plan should contain a business complete description.

The size of the market and market requirement for business

It is very important to show to investors that the company is in the big and growing market and that there are accurate and convincing requirements for a product or service. It is important to give the data about the market and market requirement from authentic (including for the investor) sources.

In what uniqueness of the company and uniqueness of its service for the given segment of the market

When the investor understands business and agrees that there is a necessity for the market in the company and in its products and services, last step says that the company has “competitive advantage” in the market. Examples of advantages it is possible to include the management team, the patented technology, the unique software (developed for the company), long-term contracts with big clients, and also other successes at present.

Investors have various opinions concerning optimum length of the Resume. Some prefer the resume in volume in one page, and others consider that three – four pages of the resume are more reasonable.

Inclusion of these major elements satisfies requirements of almost all investors. After perusal of these pages, investors can finish reading of the resume or continue business plan reading.

It is very important that government, despite this crisis is not leaving to help small businesses. And small business grants can be a true helper today.

But, of course, you should remember that today the fight for small business grants as well as for other kinds of grants is more fierce. This is natural – more businesses need them. So before you start your battle for the small business grants, please make sure to check out this blog for more helpful tips about grant industry.

The financial plan of the business for the potential investors!

The financial plan explains how the concept is financially favorable to the investor. It is that section for which investors frequently spend most of all studying time.

Detailed plan of receipts:

The financial plan should present model of incomes of the company, including each site in which the company receives incomes. These flows of incomes can include, among the other:

* Sale of the goods / services

* Incomes of advertizing

* Sale of licenses / a royalty / sales charges

It is necessary to note relative importance and timeliness of each income; it will help investors to estimate the company better. For example, the investor can not trust that the company immediately will receive considerable incomes of sale of any assets, and it will be a problem. However, if the given sales constitute 2 % from total amount of the income the investor can also not give it value.

Financial statements:

The financial plan should show in detail history (if it is applicable) and predicted. Into the financial plan enters: the report on profit, the balance sheet, the cash flow statement. It is very important that the figures used in these reports followed from the analysis of each section of the business plan.

The resume of financial forecasts should be presented in a text part of the plan while complete forecasts (tables, calculations) should be in the Appendix. For the existing companies, in the financial plan it is necessary to note any essential deviations (for example, margin increase) between last and predicted result.

Check of the assumption and forecasts:

The financial plan should describe in detail the basic assumptions such, as change of the rates, acting privileges, taxes etc.

All Companies are unique; everyone has similarity to other companies. Reports and financial forecasts on the basis of these similar companies can confirm realism and a financial forecast maturity substantially.

Sources and funds:

The financial plan should describe in detail sources and uses of means. In financing sources first of all to include external investments and an operating income. Use of funds can include expenses with sale, personnel, developments of technologies, office accommodations etc.

Exit strategy:

All investors wish to see an accurate picture of an exit from the company, terms and methods thanks to which they can receive “cash” of investments and profit. The fine method is the description of the comparable companies which were successfully sold, or through acquisition, by merge etc.

Appendices:

The appendix is used for confirmation of the basic part of the business plan. Each business plan should have a complete kit of financial forecasts in the Appendix, with short conclusions of this reporting in the Resume and the Financial plan.

The times when governments have been showering people with all sorts of grants have passed. At least for some time. But that does not imply that you should forget the idea of getting small business grants.

Everything is doable with wise attitude; small business grants including.

Visit this blog for more practical tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This information will help you to get small business grants or any other grants easier.

Let’s consider the approximate contents of phases of life cycle of the investment project.

The first phase is before investment, previous the basic volume of investments cannot be advanced precisely enough. In this phase the project possibilities are developed, studied, preliminary technological researches are carried out, negotiations with potential investors and other participants of the project are carried on, suppliers of raw materials and the equipment get out. If the capital investment project provides attraction of credit in the given phase the agreement on its reception is entered into; legal registration of a capital investment project is carried out: preparation of documents, registration of contracts and enterprise registration.

The expenses connected with realization of the first stage, in case of positive result and transition to project realization capitalize and also it is a part of preindustrial expenses and then through the amortisation mechanism concern on product cost.

The second phase is investment when there is an investment or project realization. In the given phase the concrete actions requiring much bigger expenses and having irreversible character are undertaken, namely: the documentation is developed design-estimates; the equipment is ordered; industrial platforms are prepared; the equipment is delivered and its installation and balancing and commissioning is carried out; personnel training is conducted; publicity is led.

On this phase constant assets of the enterprise are formed. Some expenses, them still name accompanying (for example, costs for personnel training, realization of advertising campaigns, start-up and adjusting) can be partially carried on self-cost production (as costs of the future periods) and are partially capitalized (as preindustrial expenses).

The third phase is operational (or industrial). It begins with the moment of commissioning of the capital equipment (in case of industrial investments) or property acquisition or other kinds of assets. In this phase start-up in enterprise action is carried out, production or rendering of services begins, the bank credit in case of its use comes back. This phase is characterized by corresponding receipts and current costs.

Duration of an operational phase exercises a significant influence on a project general characteristic. The further time is its top border and is carried the more cumulative size of the income.

Essential to advance that moment on reaching which receipts already directly cannot be connected with initial investments (a so-called investment limit). At installation, for example, the new equipment term complete moral and physical depreciation will be such limit.

The general criterion of life expectancy of the project or the period of use of investments calls importance, from the point of view of the investor the money incomes received as a result of these investments. So, at realization of a bank expert examination about credit injection term of a life of the project will coincide with an indebtedness maturity and the further destiny of investments bank does not interest. Established terms approximately correspond to the payback periods which have developed in a given sector of economic activity or a reflexivity of long-term investments. However in the conditions of the increased investment risk average duration of projects accepted to realization will be more low than in stable economy.

It is very important that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a real helper today.

But, surely, you should remember that today the fight for small business grants as well as for other kinds of grants has become harsher. This is logical – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more
details about grant industry.

Errors in development of the business plan for the venture investor

Too often company wants to show itself as something unique, with total absence of a competition in the market. It has a negative shade. If it isn’t present or there is only few companies on the given segment of the market, it means, that there is no enough clients. Availability healthy (as it will sound banal) a competition is positive aspect as determines the big size of the market. And it gives confidence to the investor in liquidity of the company.

And what about excessive underlining of partner relations with the world famous companies. It certainly sounds remarkably to have Nokia in partners, but details of these relations are also important. The business plan should explain not availability of a loud name of the partner, but value of these partner relations. For example, delivery for Nokia of paper clips for 10 dollars a month isn’t valuable.

Development of financial strategy and company value assessment on the future results should coincide with its history. Planned results, they only are planned, and one of the best indicators in the future are indicators of last periods. It should be shown that the company has achieved that what they received when the basic events have occurred. The history gives to the investor confidence that the company at least will repeat it and in the future.

Too superficial review of key figures of the company can be also a problem: Besides working careers of team members, it is necessary to show their growth (professional and career) it is commensurable with the company. Even if they have appeared in the company recently, all of them equally somewhere grew and were improved. Business is done by people.

The requirement to confidentiality: The majority of investors, as a rule, are the open companies. They will refuse to sign the confidentiality agreement of the received data. If you insist on closeness of the business plan it means that at opening of your developments, there will be a loss of advantages; such business isn’t steady and attractive.

It doesn’t concern the patented technologies. In the business plan it is not necessary to discuss confidential aspects of technologies, it is necessary to consider technology pluses comprehensively. In the way beginning on investment attraction the complete information about technologies isn’t required to the serious investor. Everything is good in its season. At the subsequent stages it is possible to consider signing of the confidential agreement, but in any way at a business plan stage.

At each investor the requirements to the business plan, familiarize with them because what is pleasant to one can irritate others. Show an individual approach to the investor.

The days when governments have been showering people with all sorts of grants have passed. At least for a while. But that does not imply that one should forget the idea of getting small business grants.

Everything is possible with wise attitude; small business grants including.

Visit this blog for more helpful tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This info will help you to get small business grants or any other grants in a more convenient way.

If you want to find for your business start up the investor which could invest some financial resources in your projects then you should know how to make everything properly and what kinds of investment there are so you should definitely know what exactly business plan and business strategy you should conclude for getting this very financial aid. That is why it will be interesting for you to read this article.

Realization of the purposes of investment assumes forming of investment projects which provide investors and other project participants with the necessary information for decision making about investment.

The concept of the investment project is treated doubly:

1. As the activity (event) assuming realization of a complex of any actions, definite purposes providing achievement;

2. As the system including a certain kit of organization-legal also and settlement-financial records necessary for realization or describing of actions.

There are various classifications of investment projects. Depending on the signs taken as a principle of classification, it is possible to allocate following kinds of investment projects.

Under the relation to each other:

* independent supposing simultaneous and separate realization and characteristics of their realization don’t influence against each other;

* mutually exclusive i.e. not supposing simultaneous realization. In practice such projects often carry out the same function. From set of alternative projects one can be only performed;

* the investment which complementary realization can occur only jointly.

It is also divided on realization terms (creations and functioning):

* short-term (till 3 years);

* medium-term (3—5 years);

* long-term (over 5 years).

Also divided on scales (more often the project scale is determined by the size of investments):

* the small projects, which action is limited to frameworks of one small firm implementing the project. Basically they represent plans of expansion of production and increase in assortment of issued goods. They are distinguished by rather small terms of realization;

* average projects – it is more often projects of reconstruction and modernization of existing production. They are implemented stage by stage, on separate productions, in strict compliance with in advance developed schedules of receipt of all kinds of resources;

* large-scale projects — projects of large enterprises in which basis is “the new idea” of productions necessary for satisfaction of demand in the internal and external markets;

* megaprojects – it is the target investment programs containing set of interconnected final projects. Such programs can be international, state and regional.

It is also divided on the basic orientation:

* the commercial projects which chief goal is profit earning;

* the social projects focused, for example, on the problem resolution of unemployment in region.

* the ecological projects, which basis are constituted by inhabitancy improvement;

* others

It is very crucial that government, despite this crisis is not leaving to assist small businesses. And small business grants can be a true helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your fight for the small business grants, please visit this blog for more
details about grant industry.

The investment can also depend on degree of influence of results of realization of the investment project on internal or foreign markets of financial, material products and services, work, and also on ecological and social conditions:

* the global projects, which realization essentially influences an economic, social or ecological situation on the Earth;

* the economic projects, which realization essentially influences an economic, social or ecological country situation and at their estimation it is possible to be limited to accounting only this influence;

* the large-scale projects, which realization essentially influences an economic, social or ecological situation in separately taken country;

* the local projects, which realization doesn’t render essential influence on an economic, social or ecological situation in certain regions and (or) cities, on level and structure of the prices on goods markets.

Feature of investment process is its associativity to the uncertainty which degree can vary considerably, therefore depending on risk size of investment projects and it is also subdivided:

* the reliable projects characterized by high probability of reception of warranted results (for example, projects fulfilled under the state order);

* brave projects for which high degree of uncertainty as costs, and results is characteristic (for example, the projects connected with creation of new productions and technologies).

In practice the given classification isn’t settling and supposes the further detailed elaboration.

Realization of any investment project pursues a definite purpose. For different projects these purposes can be various, however in the whole they can be united in four groups:

1. Goods preserving in the market;

2. Expansion of production volumes and improvement of quality of goods;

3. Release of new goods;

4. The decision of social and economic tasks.

The definite purpose can be reached different ways,

Therefore the most part of implementable projects has clashing character when different ways of achievement of the same purpose are studied.

Some common features are inherent in all investment projects, allowing them to standardize. It:

* availability of a time log between the moment of investment and the moment of reception of incomes;

* cost project evaluation.

The time interval between the moment of occurrence of the project and the moment of the termination of its realization is called as a project lifecycle (or a design cycle). The termination of existence of the project can be:

* commissioning of objects, the beginning of their operation and use of results of project implementation;

* achievement by the project of the set results;

* the termination of financing of the project;
* the beginning of works on entering into the project of the serious changes which have been not provided by an initial plan, i.e. modernization;

* a conclusion of objects of the project from operation.

The times when governments have been showering people with all sorts of grants have passed. At least for some time. But that does not imply that one should get rid of the idea of getting small business grants.

Everything is doable with smart approach; small business grants including.

Go to this blog for more helpful tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This info will help you to get small business grants or any other grants in a more convenient way.

Where to find financing? There are variants:

* Banks

* Venture capital trusts

* Leasing

* Etc. etc. etc.

But, pledge is required to banks; venture capital trusts don’t give 100 % of financing, etc. What to do? A direct way is refer to the private investor. Only where to find him this is a question. If there are acquaintances or relatives who can enclose in your business all is clear and if those are not present? It is possible also to wait when the investor will appear.

And try to think non-standardly. If you don’t know where to search for them, let them find you. Make a seminar (presentation) of your project. Your purpose is to interest these people to invest in your project.

It is not necessary to base your seminar on a theme: “give me money”. It is necessary to bring softly and correctly information to the investor that everything told by you at a seminar has under itself some soil for the investment and you are that person who understands a problem to the smallest details that is why for you it is necessary to entrust money under such remarkable idea.

And it shouldn’t be the seminar, under the name: “who has a lot of money come here!”. Show sharpness, don’t deceive people and show them a seminar theme in such foreshortening in which it will interest them. For example, it can consist of several parts: theoretical, practical, and concrete your project. The main thing it should be interesting, useful and you should over be competent.

That is what is necessary for a seminar:

* Time. Date and time should correspond to possibility to visit it.

* the Venue. All should be made in the standard traditions of carrying out of seminars.

* to Find potential investors. Where? First, there are many companies,a concrete personnel (that is – potential private investors of your project). Here they also should dispatch professionally prepared brochure of a seminar. Take the newspaper, magazine – give advertizing.

* to Create a packet for the investor – perfectly prepared printing copy of your seminar which will give out to listeners.

* Make business cards

* Make presentation (not on words), but use software solutions, for example, order a slide and screens. Create additional materials

Rejoice to questions. If there are some questions it means everything has passed not too badly.

Be afraid of questions, if you can’t confidently answer it is a complete failure for you.

And the main task of a seminar it is to trust in yourself and your own project.

Certainly, will come less people than you count, maybe, nobody comes. And so such wouldn’t happen, necessarily ring round and confirm participation of those to whom you personally dispatched invitations. In a week time make one more seminar, for new participants.

The times when governments have been showering people with all sorts of grants are over. At least for some time. But that does not imply that one must get rid of the idea of getting small business grants.

Everything is doable with smart approach; small business grants including.

Visit this blog for more helpful tips about grants, how to apply for grants, grant examples, ups and downs of the grants. This info will help you to get small business grants or any other grants faster.

Stages of business, task and financing

Let’s consider a way of working of a certain virtual business. We will specify each stage of a task which stands during this moment and also financing ways.

The family business:

* There is an idea and all. Nothing more isn’t present: there are no: business plan, market researches, experience of business dealing, the personnel, a command of managers, potential risks, tasks and finances management. At the best there is an experience of circulation with a product (the goods, service). The idea generator, the head, the contractor is one person.

* What it is necessary to make? To constitute the business plan, to estimate a market outlet, to study competitors, specify, how business will develop, to estimate its potential, to form a team having allocated obligations and to generate structure.
* Usual sources financing are less accessible. The risk level is too great and there is no definiteness in success as in general, and in time of achievement of results. Private investors, the personal savings, some micro credits can also accessible.

Beginning business:

* The business plan is developed. The command is collected. There is a certain structure of the company and the hierarchy is also created. Market research is conducted, clients (and already there are ready contracts and agreements). Preselling preparation of a product is produced.

* What it is necessary to make? Finish product that can be ready to sale to sale, to finish the business plan and marketing researches, to complete a command and to start the process.

* It is not interesting yet to the majority of investors. Only some venture capital trusts can show interest in the event that there is competently constituted business plan, professional command, potential, a know-how (if it is required and the proved ownership right). Search of means is the main task also will occupy from several months till 2 years.

The developing business:

* The Company grows; the product is claimed by the market. Clients are generated and their circle grows. The command is generated and works. The monetary flow is. Shortage of means for development is felt and the market allows developing.

* What it is necessary to make? It is necessary to increase a market share even to the detriment of profitableness, by performance improvement and reduction of costs, to construct the branched out structure and logistics system.

* At this stage the company is a tidbit for all investors and financiers, especially for venture capital trusts. For them it is the most preferable round of financing. Debt instruments are accessible, but they, at wrong planning can put an end to the company (during this period at the company an acute shortage of circulating assets).

It is very crucial that government, despite this recession is not abandoning to assist small businesses. And small business grants can be a real helper today.

But, surely, you should remember that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please make sure to check out this blog for more helpful tips about grant industry.

Small scale business grants: private investors.

Private investors or as them also call “business angels” is one of financing ways, somehow credit institutes, investment funds, etc. They are more passive and their investment possibilities seldom exceed 1 million dollars.

If you don’t have assets interesting to the creditor, there are no enough means to interest the institutional investor, a business angel, that is required to you to begin new (or to expand existing) business then they are the best choice at an early stage of business.

Let’s make the small classification of business angels:

The co-owner:

Basically it is departed from affairs, secure individuals. The investment is aim to earn money. It is usual acquire a certain part of business and prefer not to interfere with management

The businessman:

Usual it is successful businessmen (businesswoman) and owners of acting business. Unlike co-owners, are ready to incur more risk and to put more money as have a steady source of the income. Their main advantage consists in that they demand less and more freedom in activity allow remaining the observer if certainly all goes well.

The enthusiast:

Prefer not to interfere with managerial process, but with the big enthusiasm take part in strategy development. Basically interests new, earlier the heights not comprehended by them.

Director or the successful manager:

Proceeding from the experience, they believe that precisely know how to manage business. Active enough participants of process business, and at the same time useful, especially at an early stage of business as will help to avoid many problems.

The professional:

Professional investors are most useful at a stage of the development already constructed, business. As their participation in the project can often testify to possible success of the project though and it is not obligatory as their participation, can be considered as a step on a way to portfolio or to the strategic investor.

Financial aid for the small scale business: Sharing of risks

Speaking about prospects of a mass exit of banks on the market of crediting of the enterprises of a small-scale business, we can name two sufficient conditions. The first is the understanding of potential of this market and that circumstance that risks of crediting of a small-scale business is not extreme. They are quite operated by means of a diversification and application of competent technologies. By the way, share of the delayed credits of small enterprises — only 1,5 %. Therefore the will of a management of bank is defining.

The second condition concerns starting financing of small enterprises and the micro financial organizations. In this business, banks won’t manage without the state support in a kind of subsidizing of the rate and guarantees under given out credits.

It is very important that government, despite this recession is not leaving to help small businesses. And small business grants can be a real helper right now.

But, of course, you should understand that today the fight for small business grants as well as for other kinds of grants is more fierce. This is logical – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more helpful tips about grant industry.

Financing search is simple and difficult process simultaneously. It seems simple money it is a lot of them and they everywhere. Difficult is that it is necessary to convince those who have money to give it to you.
There are some ways of reception of financing. Some are difficult, others less difficult.

The core is in planning, this exact understanding of answers to three questions:

For what you will use money?

It is necessary to know precisely up to that where you are going to spend every cent.

How many money it is necessary?

It is necessary to know precisely when and how many it is required money. How many before start, how many in a month, in a year. Often business suffers crash, because of that the money in first month flow like river, and disappear, before business starts to bear fruit.

How you will return money?

Any investor interests not only that, how many he will earn, and how he will return the money back (plus that what he will earn). You should understand precisely how you will return the borrowed.

Financing sources:

You – you are the first source to which it is necessary to pay attention. Perhaps, disposal of the old unnecessary car and the ground area in 300 km from a city purchased on prospect and you will have the necessary money funds necessary for small business. Can cost to pledge in bank old apartment if there is a confidence of having success in business. Keep in mind that the majority of creditors won’t finance 100 percent of your idea so you should put up some money independently.

Your acquaintances – look back, maybe, your schoolmate perfectly feels and will be fast in notorious “gold billion”. It is possible to convince of genius plan to your friend.

The bank – If you have good credit history – then the bank is a place where it is necessary to go. Despite percent, probability to obtain the credit to the businessman with good credit history it is great enough and under quite acceptable conditions. As a minus, availability of restrictions on the sum of credits, requirements to pledge etc., etc.

Venture capital trusts – at venture capital trusts is a lot of Money, if the money have ended, know where to take. With expansion of globalization ever less the reasons to be afraid that at the successful business plan you don’t receive money because any fund has any restrictions, always there will be others. But, the venture capital comes not on long. Also that to receive from them money your business really should not only bring the income now, but also to be attractive in some years, attractive from the point of view of the goods.

The days when governments have been showering people with all sorts of grants have passed. At least for a while. But that does not mean that you must get rid of the idea of getting small business grants.

Everything is possible with nicely balanced approach; small business grants including.

Read this blog for more helpful tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants faster.

Special programs for the business start up

If business works already at least six months then there is a possibility to take a loan in other banks under the joint program from the European Reconstruction and Development Bank. Rates under such programs start from 17-20 % in a dollar or euro currency. If means are necessary on purchasing of the equipment, real estate and a car, it is necessary to bring to 30 % of advance. The maximum crediting period is till five-seven years, a credit amount — to $3-5 million or their equivalent.

Means are given by many banks, both on replenishment of circulating assets and on purchasing of basic funds. However, if in the second case it is possible to count on the maximum credit period for “injections” in circulating capitals banks give money only for a year-two.

Also in all cases it is necessary to provide the money received on credit with liquid pledge. And if the equipment, real estate or a car is on credit acquired, it can appear insufficiently and it is necessary to pledge something else — real estate or the car. Moreover and at that cost which will be exposed by the bank appraiser.

Bank’s severe selection:

For reception of the credit the businessman should give impressive quantity of documents: from the registration certificate and the inquiry on movement of funds under bank accounts to the reporting for the last half a year-year and the plan of financial receipts for the term of credit reception.

New or “developed” business it is even more difficult: the bank demands the developed business plan which will explain why these goods or service will be on sale is better and will make profit in a year-two. It is very probable that to the borrower beginning new business will suggest to finance on 25-30 % of the project for the personal means and the remained 70-75 % — at the expense of the credit. Will analyze cost efficiency of the project captiously — the decision depends on it. If the bank comes to a conclusion that profitability of the project won’t allow the borrower to serve the credit no credit will exist basically.

The estimation of mortgage property is conducted by bank and paid by the borrower. And it is quite probable that assessment value of apartment, office or the equipment will be essential below expected. So banks aspire to secure themselves in case of credit non-payment — that even at urgent sale of pledge on knockdown price money for its repayment has sufficed.

Some banks are ready to support the businessman-borrower — offer so-called “credit vacation” for using first year-two the credit. During this period the client can not repay the credit indebtedness.

The times when governments have been flooding people with all types of grants have passed. At least for a while. But that does not imply that one should forget the idea of getting small business grants.

Everything is doable with smart attitude; small business grants including.

Go to this blog for more helpful tips about grants, how to apply for grants, grant examples, ups and downs of the grants. This information will help you to get small business grants or any other grants easier.

Jack Danny got tired from constant change of a place of work and he has decided to begin the business. Living in suburb, he saw that in district all time there are faults with deliveries of the bakery goods. Here he also has decided to open a bakery. However, having constituted the business plan, Jack has understood: he can cover with own forces only 15-20 % of all costs. Therefore it was necessary to go to bankers.

In words all banks were ready to give money and as has reached business — in one have told” unpromisingly “, in the second they at all don’t credit such business branches and in another the bank agreed to borrow a maximum of 70 % of the necessary sum. Having thought, I have offered partnership to one of friends, and missing 50 % all of us took on credit. However, we will try to extinguish it as soon as possible because to give every year 35 % to bank — it is very unprofitable”, — Jack tells.

If it is necessary to receive pair of hundreds thousand dollars for a business “start”, really, it is necessary to work fairly for it. Someone from banks agrees to give the credit of the state of emergency, working exclusively in service trade and someone — under export-import transactions and someone — to only non-polluting business.

Besides, the bank will demand liquid pledge and will credit, most likely, under the high rate and also foreign currency credits are accessible only to those who already performs export operations.

Whom they give money to?

From the first thirty of banks small-scale business crediting is declared at least by half. But beginning businessmen in the ranks of the clients are ready to see only few of them. However, in the first case the specialist of bank has refused to name even rough credit conditions. All dares exclusively in an individual order, after project studying.

In one of the banks the credit is given both to start new business and on expansion of already working one. The maximum amount — 0,5 millions dollars can reach a crediting period of seven years. The rate is attractive enough: 11,75-14,5 % in dollars and euro. Unconditionally, pledge is required: the real estate, a car, the equipment, even the deposit will approach. Though, the kind of provision and definitive conditions all the same depend on that how much perspective credit managers will consider the business project.

Other banks agree to credit, if business works not less than one-two years, a minimum — half a year. By our estimations, in crediting of new clients today actively and purposefully are engaged no more than 10 banks. Business startups “only are interested to credit the majority in the event that the company and the businessman already have another, core business”, — the head of department on development of small and average business explains.

It is very reasonable that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a true helper right now.

But, of course, you should remember that today the fight for small business grants as well as for other kinds of grants has become harsher. This is natural – more businesses need them. So before you start your fight for the small business grants, please make sure to check out this blog for more
details about grant industry.

As a rule, the successful companies working in sphere development or in an occupational sector are interested in project financing of the average size. In the development sphere there is a financing of building of new trading complexes or office centers. That is curious, production enterprises often start to build trading companies which effectively develop business and in this connection make the decision on opening of a partial or complete cycle of production.

If to speak about a branch accessory of consumers of project financing it is possible to note a considerable quantity of developers and the building organizations, the companies which are engaged in production of construction materials, the thermal power station companies, and also the companies working in sphere of entertainments.

Nevertheless the chief of department of project financing of Credit administration of Open Society doesn’t consider that project financing is limited to only listed industries. This product can be interesting to any company which doesn’t have adequate security for credit reception in bank on financing of the projects, but there is an attractive project (business idea) which can be interesting to consolidated financing of bank and investors.

Experts have found it difficult to estimate volume of the market of project financing. The data isn’t published today as properly banks don’t show real structure of the transaction on project financing. Today many banks which declare availability in their portfolio of contracts of project financing, actually credit investment programs of the shareholders, naming it project financing.

Actually the bank in this case acts as only passive intermediary; it simply restacks a measure of responsibility for projects implementation and return of means for the shareholders, leaving for itself function of operational servicing of credits. While volumes of the market of project financing aren’t so great, though positive dynamics of growth is available. Project financing occupies an order 10 — 15 % from a portfolio of corporate crediting according to the statistic.

Project financing is a packet deal which is performed with application of different standard credit products (investment and tied credits, leasing, guarantees, letters of credit and etc. The kit of “standard” products as a part of project financing is determined by each concrete case. Unlike the usual credit, in project financing there is no “uniform recipe” and standard procedure, in each separately taken case all individually. The final rate and term of granting of financing are determined depending on industry in which the project is implemented by a railroad train of participants and degree of responsibility of each of them, credit history of the company which has addressed for project financing, and many other factors.

Experts notice that now to receive project financing for long term became where easier, than earlier: the companies have longer credit history, a situation in many industries became much more predicted and investment “horizon” became longer.

It is very reasonable that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a true helper right now.

But, of course, you should understand that today the fight for small business grants as well as for other types of grants has become more fierce. This is logical – more businesses need them. So before you start your fight for the small business grants, please visit this blog for more info about grant industry.

Now with a high share of probability it is possible to predict situation development in separately taken industry or a segment for the term up to 10 years. However while not all banks are ready to incur the risks connected with project financing, the large credit organizations of federal level are engaged in this business basically.

Let’s result the general requirements shown to the borrower by banks at project financing. Disorder of figures here rather big, as well as the list of requirements: in one bank the company will ask to make a team of professionals in that industry in which new business opens, in other will impose serious restrictions on economic activities of again created legal entity (firms, as a rule, prefer to implement new projects within the limits of the isolated affiliated structures).

Bankers demand from the client participation in project implementation by own means not less than on 25 %. The rate on project financing, as a rule is on 1 — 2 % above than in a medium-term credit on the investment purposes. Various banks have different restrictions on knockdown price of the agreement of project financing, the sums vary from several millions to several tens millions dollars. However, at projects implementation in regions the sum can be lowered, but it happens seldom enough. So considerable price of contracts speaks high costs which are born by bank by request and project implementation consideration. Term of granting of project financing at some credit organizations already now exceeds 10 years.

Risk of a non-return:

Unconditionally, project financing is more risky, than other forms of financing. Unlike mortgage lending, here not always there is a possibility of reception of adequate pledge. We take for an example financing of building of object of a commercial real estate. Here banks try to adhere to as much as possible conservative policy as, despite a great demand on real estate, developer projects, as a rule, are encumbered by some “national” features.

Among them legal risks: licenses and building licenses and ground area registration frequently turn out already after the building begins. Certain risks accompany also process of erection of real estate: the adherence to deadlines and quality control are required. Not to mention tenants or final buyers of real estate: Guarantees of returning of the enclosed means at the expense of a lease payment so, tenants and buyers also should be financially well-founded are necessary for bank.

In the light of last forecasts of analysts which expect decrease in value of erected habitation and objects of a commercial real estate because of falling of demand for them, the bank also demands certain guarantees of financial soundness of the borrower in case of sharp change of a market situation, for example, falling of rates of rent below the level pledged in the business plan.

Specialists of bank should consider all factors influencing project implementation: capabilities of management which will perform this project, reliability of the conducted market researches, predicting it is sold offered to production (tenancy of premises), and correctness of drawing up of financial calculations.

Besides check of all given documents, insurance of objects of pledge, entering in board of directors of the company of the bank representative with functions of the financial controller, tracing of dates of performance of the project can become additional method of decrease in risk for bank.

The days when governments have been showering people with all types of grants are over. At least for some time. But that does not mean that one should forget the idea of getting small business grants.

Everything is doable with smart approach; small business grants including.

Go to this blog for more practical tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This info will help you to get small business grants or any other grants faster.

In case of availability of positive credit history to take the subsequent credit it will turn out much faster, in many banks and also will be provided soft terms and reduced interest rates. The packet of necessary documents depends on the required sum and accordingly more inquiries it is necessary to give. A standard kit of documents is documents of main activity (contracts with suppliers and buyers, the lease contract), constituent documents, and accounting records.

Often enough banks demand credit provision (pledge) is there can be an equipment or property (real estate, a car, the transport which is in the property of firm or belonging to the creditor). Also credit security can be the goods in turnover.

In most cases banks conduct pledge estimation independently. The pledge sum should cover the size of the credit and percent for all term. Thus the bank takes into consideration liquidity of pledge and a beret for a basis a maximum of 70 % of its assessment value more often.

Besides, conventional banks make the demand – to insure mortgage property. It is connected, including that according to the current legislation, in case of bankruptcy of firm situations when due to the law to bank assets can’t be collected from businessmen – proprietors of business. The property under pledge arrives on auction, and the bank has on it no preferential right. Experts advise not to be afraid of similar conditions, after all in the event that the borrower brings in time monthly payment he won’t have nay problems afterwards. Many banks give the loan to the client who leaves pledge in a form of, for example, machines, considering such the decision as more proof of gravity of the client.

Some banks have entered restrictions in issue of credits by the nature of activity and don’t give loans to the organizations which are engaged in extraction and realization of minerals, a gaming. Banks willingly credit production and service trade. But nevertheless there is one more circumstance is an unwillingness of banks to work with beginning businessmen. For credit reception the demand that the enterprise functioned not less than 6 month – year of work more often is needed, after all the most part of bankruptcies happens in the first year of work of firm.

But to receive start capital nevertheless is real. For example, in the event that the proprietor of the company is the skilled businessman, or having functioning at the moment of a capture of the credit or having experience of successful business dealing in the past. The decision for “beginners” the no-purpose consumer loan or the private loan can become optimum, it will be possible to address in bank later and to use small-scale business credit programs.

It is very reasonable that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a true helper right now.

But, of course, you should understand that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please make sure to visit this blog for more info about grant industry.

Project financing as a method of creation of business

If you want o start business and don’t have enough money for it so here I want to tell you about another great way of business financing so I hope that this article will be very interesting for you. What the companies should do if for realization of the new project there is no enough financial means, and for attraction of a bank loan there is no adequate pledge? One of possible exits is project financing, but this product while is poorly extended, but it bears in itself high risks for banks.

Recently many companies implement scale projects on expansion of business, its modernization and reconstruction of the enterprises. Some of them for the purpose of a diversification of the business aspire to open the divisions working in industries new to firm.

Along with own means and investments of strategic investors for realization of all these projects business uses the resources involved from financial markets (IPO, release of debt obligations, bank loans). But to place shares or bonds at a stock exchange presume not all: it is rater long process and needs a lot of resources, not to mention that the company should have serious enough credit history or occupy a considerable market share in the segment.

As to a bank loan here all is standard enough and conservative: as repayment sources monetary flows from acting business are used, and as provision of borrowed funds assets of the enterprise available prior to the beginning of project implementation or the guarantor serve. But what to do if business is started from straight? It is improbable that the average bank will give financing exclusively under the enterprise business plan even if the borrower is rather solid company, for example, woodworking industry which has decided to be engaged in building. The risk of a non-return in this case will be rather great: the company never worked in developer industry, doesn’t possess corresponding experience and the personnel.

And still it is necessary to recognize that building commercial and a residential real estate is now rather profitable business. Therefore some banks which are having counted all pro’s and con’s, even more often agree to finance similar projects. This direction of risky lending rather new to the bank business is usual project financing.

Today the companies who are decided to be engaged in business can receive “longer” money — and under more low interests, than 2 – 3 years ago. Dynamics of growth of the given direction is rather big as it testifies to growing interest of the companies to this service — for last year the volume of a design portfolio has increased more than in 3 times.

The days when governments have been flooding people with all types of grants are over. At least for some time. But that does not mean that one must get rid of the idea of getting small business grants.

Everything is possible with smart approach; small business grants including.

Read this blog for more helpful tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants in a more convenient way.

How to prepare for conversation with the venture investor

1. Test the idea in advance

The director for investments of fund of business angels AddVenture recommends before a meeting with the investor to talk with a great number of experts and potential customers, for example, at branch conferences. It is necessary to test the ideas. It is impossible, sitting in a tower from an ivory, to think up a wonderful product.

2. State project essence clearly and understandable

Before the investor would like to list through the multipage pages of business plan if it is available, it is necessary to explain an idea essence in briefly. At the same time to realize idea more accurately. Determination should be clear, short and clinging. Examples: “CatTube — YouTube about cats”. A’Insales is the system of construction of Internet shops in two cliques”. “Easyfinance.com is an on-line-control system of the personal finance — your personal financial officer”.

3. Speak particularly

From mere allegations like “we will earn on advertizing” investors for the last years have got a bit tired. Before convincing the investor in the potential of the idea, calculate “on fingers” on what it is possible particularly to earn. Some experts advise to prove figure analytics, similar projects (“We will have 5 million users, 1 % from them will purchase the expanded account for $10 a month, it will provide $50 000 revenues in a month”).

Don’t ignore world experience. It is necessary to tell that is already made: whether there is a prototype, preliminary arrangements with partners. Otherwise the presentation will look as project or the imagination torn off from the market. References to conversations with the guru in the given theme or heads of the big companies are important too.

4. Tell about a command

Any bright idea grows dim, if there is no command which is capable to embody it. Convince the investor that your command is like this. The managing director of fund notices that in a command should be not only specialists in one field, but also the person that understands component of business. So, if you open Internet shop, it is quite good to have in a command of the former manager of a retail network or supplier company. Necessarily refer to the previous experience of team members in business, in promotion of startups, in industry. He advises also to show that the command with a head has dived into the project, having put up the personal money, having left from the previous work, were spending nights at office …

5. Trust

The general director of fund DST the owner of few companies, advises: the businessman on interview to the investor in no event shouldn’t speak about an exit from business. Whether the investor will believe in your idea if you already start planning how you will throw this business?

It is very important that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a true helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other types of grants has become harsher. This is logical – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more info about grant industry.

Small-scale business crediting

Today many banks assert that small-scale business crediting and it is one of their priority tasks. But in practice this statement is not implemented, after all to take the credit for a small firm is a very difficult task.

In a similar situation each party has arguments and explanations. Banks are confused with small scale business that makes difficult a real estimation of its fortune, besides; frequently there is no mortgage provision. Owners of small-scale business very often have no possibility to use credit programs of banks because of the overestimated interest rates at incommensurably short terms of repayment of a loan, and procedure of reception of the credit is difficult and long.

In addition, they don’t have start up capital or representatives of small-scale business don’t reflect a real financial situation in the reporting that considerably reduces probability of reception of money for replenishment of circulating assets or production modernization.

Unconditionally, present conditions of bank crediting of small-scale business are far from perfect. The authorities, understanding complexity of a situation, try to meet half-way business. In many regions government programs of crediting of small-scale business are already implemented. How much such support is effective the time can show. From the city budget the part of the expenses connected with reception of the credit in bank – in particular is compensated to businessmen, also is practiced partial subsidizing of the interest rate. Thus, small-scale business has possibility to receive means with smaller costs.

That fact isn’t called in question that first of all at registration of the credit the borrower pays attention to price parameters – the interest rate, term of repayment and the greatest possible credit amount, and also consideration term of application. The average rate in sphere of crediting of small-scale business constitutes 12-15 % in dollars.

Unconditionally, the rate size has regional features – percent on the country can differ on 1-3 points. However specialists notice that the tendency to equalization of credit rates in the market recently was planned. By the way, experts predict also general decrease in rates. So, according to Association of the banks, with 2002 for 2006 the mid-annual credit rate has decreased from 26,6 % to 16,2 %. The sum of crediting of small-scale business varies from 5 thousand to 1,5 million euro for the term from 6 months till 7 years.

Besides, it is necessary to consider about accompanying payments – the commissions which can increase monthly payment. Banks which specialize on crediting of small and average business can grant a delay of principal payment for the term from a month and about to one year, but don’t release from repayment of current percent. Before to take the credit, it is necessary to estimate the possibilities and problems with money return.

The times when governments have been showering people with all sorts of grants have passed. At least for some time. But that does not imply that one should get rid of the idea of getting small business grants.

Everything is possible with smart attitude; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This information will help you to get small business grants or any other grants easier.

If you want to start you own business and you don’t’ have enough monetary resources for it there is always a way out from it as you can always refer for help to the state and get the state grant, but if you wan to get it you will need to have a successful business idea and business plan and you business should be also well organized that is why I wan to help you and teach you of how to plan everything correctly and keep it all under control.

In 1979 L.Graner has allocated five stages of the organizational development, divided by crisis intervals:

1. The stage of development based on creativity. The stage begins at the moment of origin of the company and covers the period of product development, studying of its market outlet. Thus the organizational structure of the company has more likely informal character. Necessity of application of new knowledge, the weak internal control become the reason of the first crisis.

2. The stage of development based on a management. Overcoming of crisis of leadership transfer the company in organizational growth. Here work is accurately planned, professional management is involved. However the bureaucratic structure limits creativity of an average control link that becomes the reason of the second crisis.

3. The stage of development based on delegation. Structural adjustment gives the chance to expand “a power interval” average and first levels. It increases company potential, stimulates its development, but also becomes the reason of the next crisis.

4. The stage of development based on coordination. Control crisis is overcome through coordination of functioning of divisions of the company. During the given period the strategic divisions having high degree of independence at the rigid control from the center are allocated. It gives a new impulse to development, but gradually leads to growth of contradictions between strategic divisions and other structures (crisis of internal border).

5. The stage of development based on cooperation. The great skill of psychologists and the higher managers for overcoming of interpersonal conflicts is also required. Collective consolidation is under construction on the basis of a generality of interests, uniform values. The cycle of development of the company comes to the end with this stage, then because of psychological weariness (all are tired to work as a uniform command) there is a requirement for the first stage — developments of new types of activity, personal contact and an informal management.

Necessity of changes for the organization arises irrespective of ideology of its development. However character of performed changes essentially influences duration of separate stages of development, efficiency of activity of the company. Experience shows that the organization can exist without strategic management. In this sense strategic management acts as a stimulator of activity of the company.

The times when governments have been showering people with all types of grants are over. At least for a while. But that does not mean that one must forget the idea of getting small business grants.

Everything is doable with nicely balanced approach; small business grants including.

Visit this blog for more practical tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This info will help you to get small business grants or any other grants in a more convenient way.

If you want to start you own business and are looking for the money capital you should know that state gives grants only to the perspective business and those that can be useful for the state, too. That is why you should be a well acknowledged organizer you make a great business plan and organize everything so it looked perfect for your investors.

The company is concentrated on the strengths and exclusive features, but in a separation from tendencies of development of an external environment that leads to falling and destruction.

D.Miller (1990) has formulated four trajectories of organizational development getting the organization in a situation of “effect of Ikara»:

* Designers — the organization builds the activity on exclusive engineering-design achievements, develops strategy of improvement of quality and economy on costs and is imperceptible for itself sooner or later starts to ignore opinion of the clients concerning issued goods.

* Builders — the companies, having gifted leaders and well organized personnel, develop strategy of expansion and appear involved in such business sector where they have weak idea. It leads to inefficient wasting of their internal resources.

* Pioneers — the organizations having strong research divisions and the advanced kinds of a product, developing only the strength. As a result appear hostages of futuristic projects of the chief designers and inventors.

* Direct-sales representatives — the organizations with the developed marketing capabilities, a wide market outlet and a known trade mark. Are concentrated on development of the named qualities therefore lose the purpose of the existence. Quality of goods inevitably suffers, and all functioning is concentrated round servicing of orders.

Decisions, basic for the enterprise, it is possible to find by means of technology of a benchmarking. This concept has come from sphere of ground measurements where bench-marks (benchmark) name a point from which lines of heights are counted. The benchmarking in management is a loan of experience from other spheres of activity. Henry Ford has offered an assembly line of cars after acquaintance to technology of works on the Chicago slaughterhouse. In 90th firm management Boeing has conducted research of systems of the organization at the enterprises of the best manufacturers of techniques worldwide. As a result of elimination of separate elements of own organization the firm has reduced a cycle of assemblage of planes with 18 till 8 months.

The modern benchmarking is revived by firm of Xerox which has entered this concept for comparison of management methods, product output and rendering of services. The benchmarking is performed by the analysis and comparison of product samples of own enterprise with goods of others.

Modern strategy of development should connect following factors reasonably:

* knowledge of external possibilities and dangers,

* knowledge and development of internal potential,

* search of ways of achievement of a demand of possibilities of the company,

* aspiration to change the external environment.

The times when governments have been showering people with all sorts of grants are over. At least for a while. But that does not imply that one must forget the idea of getting small business grants.

Everything is doable with nicely balanced attitude; small business grants including.

Read this blog for more helpful tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This info will help you to get small business grants or any other grants in a more convenient way.

If you want to be the successful businessman, but you don’t have the sufficient capital to start it, you can’t always count on the state grants and financial help of the rich investor, but still you have to know of how to convince them to give you that money and get you business started. So you need to have intelligent and creative thinking.

The future is undefined and will not be such as the present. Strategic decision demands switching on other rules of the analysis. It is actually necessary to “rise” over the present and “to change a point of view”.

Any attempt to base the actions only on a current condition is economically inefficient. It does not mean that it is necessary to refuse from strategic planning. Practice has confirmed necessity and such approach; however it is necessary to try:

* to anticipate possible consequences of current events;

* to plan certain events in the future;

* to consider variants of possible risk.

The changes generating future state, it is possible to find out only by regular search. Between basic opening and their consequences the time interval lies, but for concrete areas of production of a consequence are predicted.

Basically the manager is occupied by the decision of private tasks with the limited kit of influencing factors. Strategic decision demands instant switching on other rules of the analysis and development of variants of the decision.

Neither results, nor resources do not exist in the organization. It is not so easy to see from within, for what the firm receives money. It is necessary to try to look at the business from outside. The attention of the head aimed only in the organization, will not give effective results at accepting of strategic decisions. In itself the organization does not give profit, there are only expenses.

Profit gives the market and consumers. It is possible to find the finance, the new equipment and materials only outside of the enterprise. Some doubts can arise concerning knowledge and it is the major resource. But also with reference to the given area it is possible to notice that escalating of knowledge is connected with attraction of additional specialists or personnel training in other organizations. Besides, it is necessary to remember that knowledge is a public resource and them it is impossible to keep long time in a secret.

Thus, results of business depend from external in relation to the enterprise of sphere, resources and the possibilities involved from the outside.

It is possible to reach results with the use of possibilities, instead of the problem resolution. The problem resolution is usual provides restoration of rates of activity. At the expense of it the head at the best reaches removals of current limiting restrictions. Strategic results are provided with use of the casual or prepared possibilities. The found out possibilities should be used immediately, having concentrated in the given direction of resources and efforts. The manager should distinguish in time the arisen chance and to concentrate attention of workers of the enterprise to this line of business.

It is very reasonable that government, despite this recession is not abandoning to help small businesses. And small business grants can be a real helper right now.

But, surely, you should remember that today the fight for small business grants as well as for other types of grants is more fierce. This is logical – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more
details about grant industry.

Where it is possible to find money for development of own business?

World financial markets revive. In I-st quarter of 2010, according to Ernst and Young, in the world there are 267 bargains IPO (initial public offering) by total cost of $53,2 billion whereas for a relevant period of last year as a result of 52 bargains have involved $1,4 billion and have been concluded. But in domestic companies of an investment great investment reborn is not observed yet. Before crisis investors often shut eyes to absence at the audit companies and opaque structure of the property.

Some foreign investors in the beginning of 2008 have earned hundreds percentages of profits because of their investment in the foreign enterprises. But among investors there are a lot of those who has lost the capital in the foreign market and not only because of crisis.

And still foreign investments and credits today actually unique essential source of the capital for many companies. Manny foreign investment companies from the beginning of 2010 have declared about new enterprises where there can be invested money. The majority of the domestic enterprises are prepared to IPO in 2011. But there are also the companies planning a share issue at a foreign exchange in 2010.

It is remarkable that to IPO in 2010 basically prepared agro industrial companies. Now foreign investors are interested in this branch of economy: it is considered that the agrarian industry is one of the most perspective sectors. And while the choice for portfolio investments in our agro enterprises is insignificant: at the European stock exchange this number is constantly growing.

However, the companies which have postponed IPO till the best times, much more, than the enterprises, ready to take places already in 2010-2011. In the conditions of crisis it has been decided not to spend means for preparation to IPO, and to direct them on manufacture development.

Emitters and investors should consider a world market conjuncture: at first sight, crisis comes to an end, but at any moment in the financial markets there can be next cataclysms. For the company preparing to IPO, it involves capitalization loss: the placing sum can appear below planned.

Not a lot of the companies ready to publicity: after carrying out IPO top management it is necessary to keep in contact regularly with investors and to try to avoid occurrence of negative news in a press.

Alternative and basic platforms of the London stock exchange (AIM LSE and LSE), the Frankfurt stock exchange (FWB) become the basic platforms for placing of actions in many companies. Probably, agro industrial companies will become interested in placing at the Swedish stock exchange OMX: the platform specializes on placing of actions of the agro enterprises.

It is very crucial that government, despite this recession is not abandoning to help small businesses. And small business grants can be a real helper right now.

But, surely, you should remember that today the fight for small business grants as well as for other types of grants is more fierce. This is natural – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more info about grant industry.

The capital for business: not enough resources, but they still are!

For some reason beginning the business are in minority though almost each inhabitant of a planet dreams of it. According to many people all rests against the starting capital, and without money there is not sense to begin the business. However biographies of many great businessmen testify – before to get to the first lines of ratings of billionaires of a planet, they did not have starting capital either. But there was an idea.

For idea can pay the state: State grants.

Having armed with idea and the business plan it is possible to address for the help to the state. In this case your way will lie in Fund of Support of Business. To receive the microcredit there is a possibility at working business and at beginner businessman. The main thing that your offer has convinced expediency of workers of establishment which by competition carrying out will solve, what sum to give out to you or to refuse in general.

However, besides original idea to obtain the state grant it is necessary to have the property. Though workers of fund of support of business disapprove this obligatory point as consider that this condition only frightens off potential borrowers wishing to use the help. To open business for these means, certainly, it is not absolutely probably. It is the help of the state to the businessman. In a priority of reception of this credit those who will open new workplaces and the regions, where the big unemployment. And also to business which will be engaged in manufacture.

Under the law which has been accepted many years ago, the government and local authorities are obliged to put annually in budgets and to allocate for business support the concrete sums, however, unfortunately sometimes it happens not annually. And at local level very often happens so that on reception of money from the local budget depends on personal relations of the head of regional fund with the power. If they good the power allocates.

With that the state not always registers in the budget a line about financial support of businessmen. However, the present management of committee is not interested completely not in the help to small-scale business.

The state enterprises establishments should manage to have in their budget necessary sum for the business developments and especially for those businesses which carries the purpose of state development, like for example, agriculture sector. Yes it is not enough! But still it should help those business sectors which really need state grants and financial aid form the state if they can not get money from anywhere else and they depend only on the state help.

It is very crucial that government, despite this crisis is not leaving to help small businesses. And small business grants can be a real helper today.

But, surely, you should remember that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please visit this blog for more info about grant industry.

How to organize the business with a minimum of expenses and capital investments? Few businessmen who begun business about one year ago, have told about business start, how to do it on minimum expenses and also why in work of the new companies they use Internet services and what of them are most useful.

The first company is the analog of Foursquare — defines a site of the user by data from a mobile phone or the computer and allows sharing this information with friends. If there is no information from the companion, positioning on a mobile network or signal Wi-Fi is used. One of founders says that its company in all critical business processes is necessary in Internet services because Internet infrastructure clouds works obviously better, than the self-made decision. The startup needs to grow very quickly, and there is no time and money, for example, on purchase of servers: it is always better to direct available assets on operational expenses.

The basic resource of its company is programmers who by working out create the design documentation and exchange it. For work ordering, and also tracing of a course of projects and problems at first began to use system Basecamp, and then partially have passed to more difficult Acunote which approaches for management of processes in the company.

For management of internal documents system Confluence is used. Instead of purchase of expensive servers it is possible to rent capacities at hosting-service Amazon Elastic Cloud. It raises also reliability of all system that is especially important — after all large corporate users make very high demands to reliability. Service Amazon allows increasing necessary resources during short time, expenses do not exceed $2000 a month, and thus it is not necessary to buy the equipment and to operate a difficult infrastructure. For the adjustment of Internet services one manager, but also the non-staff employee all the same is necessary.

The second company is travel agency which offers the services only in social networks. The general director says that business is based on ability to present a tourist product so that the client could choose only that is necessary to him. In total in the company there are six persons whereas at the office two managers work, the uniform platform in the Internet therefore is necessary. The director already had an experience with Internet service which helps to organize work of employees, and also allows storing contact information of clients and electronic copies of contracts.

At creation of own company the habit has worked — at once have decided to use internet product and now at the repeated reference of the client of any of managers can easily use the personal data for fast registration of the order. Employees plan here the working day and holiday time, and still system co-ordinate is used for marketing, advertising and for company development. For example, in it special projects for management of group Face book and Twitter are got, and also there are problems on search of new employees. There is a statement of budgets and work forward planning. Six working licenses of system stand less than $50 a month. So now you see that you don’t need a lot of money to do your business.

The times when governments have been flooding people with all sorts of grants are over. At least for some time. But that does not imply that one must get rid of the idea of getting small business grants.

Everything is possible with wise approach; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This information will help you to get small business grants or any other grants easier.

Investment funds for the small business.

One of the stage of fund receiving is company due diligence. More often the fund conducts check by own forces and for the means. They are interested in that the company has been evaluated by the experts, they do not wish to incur another’s risks. If both parties have found the compromise, the company and fund conclude the tie-up then investors receive a share in a company portfolio. All process from an entering into negotiations till the entry moment in the capital can take from three-four months and to about one year.

If after realization of due diligence the fund refuses investment, the company, most likely, should compensate partially the conducted works (on the average $50 thousand). In exchange the proprietor on hands still has all package of documents based on the results of testing. According to operating funds of private equity, despite the fact that there are a lot of those who are wishing to receive financing, to invest in average business is difficult enough. The main problem is revaluation by businessmen of cost of own business, and also experience and knowledge.

In its opinion, domestic businessmen frequently have no skills of drawing up of business plans, it is difficult for them to predict market development and it is even more difficult to present if thee still will exist that company in some years. A problem is also in unavailability of proprietors to changes.

The businessmen, whose business was independently created fro nothing, do not see necessity for various reorganizations or re-structuring, they are not ready to divide supervising posts with investors and painfully perceive fund attempts to participate in management of the company. Investment bankers complain that the basic holders of business quite often perceive them as enemies who as required “will merge” their business to competitors. However operating funds assure that the exit from the company is always adjusted with the basic holders of business, besides, at last there is a prime right to the repayment.

As it was already marked, funds aspire to take active part in management of an acquired company. By the way, for this reason managing directors even more often try to receive a controlling interest.

As a rule, experts are ready to help shareholders and top managers of the companies to develop business plans and strategy of development of the company, to carry out reorganization of business and to re-structure debts. Besides, the western investors insist on the international standards of the financial reporting and the European model of a business management. They, as well as owners of business, are interested in growth of cost of the company. After all after three or five years they will need to fix profit.

The times when governments have been flooding people with all sorts of grants are over. At least for a while. But that does not imply that you should get rid of the idea of getting small business grants.

Everything is possible with wise approach; small business grants including.

Read this blog for more helpful tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants easier.

Frequently private equity funds are sometimes a unique source of financing for representatives of average business. Attraction of the strategic investor not always reasonably, bank loans now very expensive and also not everyone give out them, the internal debt market is closed, and requirements for stockholder equity attraction on cross-border markets for the small companies are frequently excessive.

In many countries actively works an order of many private equity funds, such as: Advent International, Euroventures, P&S Group, etc. Many of them were created not so long ago on means of the international financial organizations, western sovereign, charitable and pension funds, the insurance companies and also private persons. In crisis perspective projects it is almost unreal to find, therefore private equity funds have renewed search of the companies just now when the economy has recovered from shock of 2009.

Life cycle of similar monetary pools, as a rule, constitutes five-ten years. In this time managing directors should find and perform investments, increase cost of acquired companies and to leave them with profit (expected return of investments — not less than 25-30 % annually).

Now funds of private equity are ready to put in the companies on the average from $5 million to $10 million in exchange for 25–60 % of a share of the company. If the enterprise needs in the grater financing, managing funds can consider cooperation variants, for example, recently some companies has closed the transaction on share purchasing in company for the sum $40 million However, large investments are now more likely an exception, for risk minimization managing directors prefer to involve coinvestors.

In spite of the fact that investors declare the readiness to put in money, in practice to receive that money today is much more difficult, than in 2007-2008. Funds are ready to invest exclusively in the company — market leaders who even in the conditions of crisis received the income and had stable demand for issued goods. While investors consider projects in agro sector, but already in 2011-2012, according to managing funds, transactions in financial sector, retail and pharmaceutics, and also in sphere of telecommunications are possible.

Does not frighten investors and the big debt load of business but only in the event that the involved means really will help to solve financial problems of the company and will increase its cost. And here those who is wishing to invest in startups after crisis are not much: as a rule, successful there is one project from several tens, and such risks are now inadmissible.

If the proprietor himself addresses to us behind financing, it needs to constitute the short resume of business: in what sphere it works, what is the situation in branch now. Acceptance of the positive decision is promoted also by availability at managers of the company of the business plan or development of strategy on the nearest three-five years: investors should understand for what borrowed funds will be spent.

It is very important that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a true helper today.

But, of course, you should remember that today the fight for small business grants as well as for other types of grants is harsher. This is logical – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more
details about grant industry.

To uneducated seller of ice-cream Rey Kroc came the idea of creation of restaurants of the fast food which soon has turned to world famous “McDonald’s”. That is characteristic; Kroc had no not only means for realization of the idea, but also formation. However its all-consuming optimism has led to that the network of restaurants of a fast food works now for many years in one hundred countries of the world. Earn billions on the ideas could such representatives of the world of business:

1. Michel Ferrero and his family, known to us as brands Ferrero Rocher, Nutella, Kinder chocolate, etc., is one of the large producers of chocolate in Europe. The world popularity and the first 10 billions of dollars were brought to him by idea to make chocolate for breakfast part, selling chocolate oil for toasts or sandwiches.

2. Top-manager Brad Hughes who was working on syndicate Property Research and engaged in operations with real estate had the idea to put along highways automatic left-luggage offices for all comers. Having left the company and having established his own business, Brad has earned on this idea 5,3 billions dollars.

3. How you will like the idea to take a usual shirt-polo and to paste on it a simple label with the image of a horse? “New” cloth has been estimated in 50 dollars and “has scattered” as hot pies in a winter icy cold. Simple clerk Ralf Lauren, after this started the popular idea about Polo cloth, and it has enriched him on 5 billion dollars. However, on an embodiment of idea he has borrowed 50 thousand dollars, but as you see, he did not remain in debt.
4. The son of the seller Thaw Worner, quit the college and has decided to earn on release of nice teddy bears with amusing names. As a result he earned 4,5 billion dollars.

5. Jeff Bizos’s first office took places in garage of the city of Seattle. What business he based there? The world’s largest virtual little shop Amazon.com and has begun the business with idea to sell books through the Internet. Also has succeeded: the idea has brought to him 4,4 billions dollars.

6. Co-owners of brand Red Bull of Kaleo Yuvivih and Dietrich Mateshits have realized the idea of creation of a power drink sated with vitamin B for conducting an active way of life and habitués of night walks on the basis of sugar and caffeine. Drink sales have already brought to founders 3,1 and 3 billions dollars accordingly.

7. To Italian Mario Moretti Poligatto has come to mind the idea to let out footwear with small holes on a sole which appointment is to relieve insoles of a sweat smell. At first he has tried to sell idea to Nike Company, but the known concern has not become interested in new production. And now, probably, kicks with envy, after all the idea has brought to Mario 3 billions dollars.

The days when governments have been showering people with all types of grants are over. At least for a while. But that does not mean that one must forget the idea of getting small business grants.

Everything is doable with wise attitude; small business grants including.

Read this blog for more helpful tips about grants, how to apply for grants, grant examples, ups and downs of the grants. This info will help you to get small business grants or any other grants in a more convenient way.

How it is possible to open business without having starting capital? Answers to these and other questions, you can find in the given clause.

And it is valid, before everyone who wants to create own business, sooner or later there is a problem of searching of start capital. Those who do not manage to get enough means for opening of the business more often forget about ideas which, probably, would bring to the founder if not milliard of profits and international recognition, but quite stable income. But someone nevertheless manages to find the desired sum or do the business without it. How is it possible?

Why those who start the business are in minority? After all almost each inhabitant of a planet dreams about it? Absence of starting capital is that reason and excuse why people have not managed to open own business. On one hand, it is difficult to argue pompously capital investments. Clearly and to the child that wishing something to produce, it is necessary to have premises and the equipment, at least. In other way: to pull out a notorious small fish from a pond it is required to buy a fishing tackle and to get bait. On the other hand, biographies of many great businessmen testify: that before to get to the first lines of ratings of billionaires of a planet, they did not have a penny. Whether it means, that for business opening there is something more important, than money?

Diversification of the capital or reorientation of means from one industry in another is an ideal method for businessmen already acting or doing the first steps. It is possible to find easily the starting capital for business which to you has had on heart, using incomes of any other business project, can be less interesting, but quickly paid back. For example, my acquaintance the sportsman and the climber, dreams to open own restaurant. But for this purpose he needs 150 thousand dollars. That to find the money he has opened the firm specializing on washing of windows and facades of buildings and rendering of some delicate services.

The competition in this segment is low, and capital investments practically are not required. Later he managed to involve in business also the associates on sports thanks to what the profit has considerably increased. So, opening of new capital restaurant is not behind mountains any more. Most attractive in a diversification is that it is possible to dispose money.

Often there are cases when people who are wishing to open own business expose on sale property objects: apartment, a summer residence, etc. it is good, it is a question of “a superfluous” car or “an unnecessary” summer residence, but it happens that you need to sell the only living space and rent apartment or even a room. What here to tell? Only one: who does not risk, that, as it is known, does not drink champagne. But at such cardinal steps the risk increases repeatedly.

It is very reasonable that government, despite this recession is not abandoning to assist small businesses. And small business grants can be a true helper right now.

But, surely, you should remember that today the fight for small business grants as well as for other kinds of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please check out this blog for more
details about grant industry.

Important is that the history knows examples when business there began out-of-pocket daredevils. However, for the sake of justice it is necessary to add that in most cases earn the capitals authors of ideas could only when have managed to draw attention of so-called business angels.

Business angels or, better to say, private investors unlike the heavenly colleagues not always receive bearers of ideas with open arms. An axiom of enterprise persistence: Christopher Columbus had to convince rich merchants within seven years to finance its expedition which has crowned, as it is known, with opening of America. But for medieval businessmen it was only a mad idea.

Unequivocally it is not necessary to limit a search circle only to metropolitan investors. Experts have calculated that quantity of active business angels in Europe is 125 thousand persons and in America 300 thousand. They operate alone, and as a part of various associations. In Great Britain there are over 18 thousand persons fork up every year on 750 million dollars, putting them in the most favorable, in their opinion, projects. Approximately the third part of projects invested by business angels is necessary for new technologies. An example of the most known “angelic” investment in the world — 91 thousand dollars enclosed in company Apple which have brought to investors 154 millions of net profit.

Besides actively active investors are also potential candidates. There are about one million in Europe and as much in the USA of them. The statistical portrait of business angel is that: middle age — 55 years, every fifth is the millionaire, and 99 % of investors are men.

The impudence and resoluteness will help you with search of business angel. For example, as in due course they have helped Harry Haberlend, decided to begin production of the expensive medical equipment. For this enterprise one million investments were necessary, but enterprising Harry has managed all in 1 thousand dollars.

Understanding that to compete to corporations-billionaires is too hard he has decided to go by the way of partnership, having offered them a property part in the new enterprise and at the same time and to receive an initial capital. For this purpose he has learnt home addresses of 50 holders of the companies on production of medical equipment and through FedEx has sent to each one the letter with the business plan, having spent for it 500 dollars.

150 dollars more has paid to the student who has created design of instruments prepared for issue in program СAD. 20 persons have responded to his letters, from them 14 have agreed to come on a meeting. As a result, 5 investors have enclosed in the newly made company more than one million dollars in exchange for 15 % of shares.

The times when governments have been showering people with all sorts of grants are over. At least for a while. But that does not mean that one should get rid of the idea of getting small business grants.

Everything is doable with nicely balanced approach; small business grants including.

Visit this blog for more helpful tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This info will help you to get small business grants or any other grants faster.

It is clear that for realization of business idea considerable means in most cases can be demanded. Where to take money? How to find the creditor and how to involve investments?

As a variant, it is possible to try to look for money at acquaintances, friends, relatives. But not all have such rich friends or relatives who without any problems can lend you a great sum of money for yours business idea.

There are various Funds of assistance of a small-scale business, including the state grants. Frequently they invest various business projects of beginning businessmen, including and a small-scale business, however quite often they independently choose candidates for investment of their projects or arrange competition or the tender. Thus, from 100 applicants 1 person if he or she offers the most accurate, competent plan for development of the business can appear the lucky beggar. Therefore this variant of crediting of a small-scale business will approach not for all.

One more variant is to address in bank for reception of the credit for business. However banks basically finance already operating small-scale business as wish to insure itself from a credit non-return. The small-scale business at a stage of creation for banks does not represent still the accurate fulfilled structure for return of percent on the credit.

It turns out that realization of yours business idea will not find the continuation?

If you really want you will find. There is always an exit. It is necessary for you to find the investors. In each city there are rich successful businessmen. Usually it is the heads of small or average business who are owners of several enterprises, founders of the various companies etc. They always understand that the money should gain money and searches for possibility of a favorable investment of means for their increase.

These people are steady on the legs; therefore presume to finance your business the project without mortgaging maintenance and guarantors of you. Explain, how much you business idea will be profitable, but for its realization some investments are necessary. Probably, for this purpose to be necessary for you the detailed worked business plan and give to its investor!

Private investors, unlike banks, are ready to put up money not only in development, but also in small-scale business opening. They have possibility of deeper studying of idea of business of the borrower and can penetrate into an essence of created business more detailed. Do not forget that fact that the investor can help you with council or consultation as it already has sufficient experience of creation and development of own business.

Having got of support of the investor, stipulate the cooperation and partnership scheme. Or you pay to the investor percent on the credit, or it will be simple to have the share in your business. Last variant is less preferable, as it essentially limits your independence. What scheme is better to choose for you, but much will depend on the decision of the investor.

It is very crucial that government, despite this crisis is not abandoning to assist small businesses. And small business grants can be a real helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please make sure to visit this blog for more
details about grant industry.

The sharpest requirement for credits is felt by small enterprises which only start to work in the market, their need in extra resources is satisfied hardly on 5 %. They from the point of view of banks — the most bad borrowers. They do not have experience, there is no lien, and there are turn-overs, stories of success or at least no normal reporting. But there is a risk of that anything similar at the beginner so never and will not appear. And still banks have a chance to run in milliard market of starting micro financing — competently having built in a chain of financial intermediary between the largest foreign both investors and the various microfinancial organizations.

With bank crediting of the enterprises of a small-scale business businesses as of today are marvelously not bad. Judging by the statistical data resulted by an every second, addressing to conferences “Crediting of small and average business” requirements of a small-scale business for bank credits are satisfied approximately on 30 %. If banks, even by the roughest counts, have run in third of market, means, development of other two thirds is a trick and time. Credits to small enterprises have ceased to be the piece phenomenon.
Many problems still remain unsolved, for example the mortgaging legislation, a reservation request to banks, quality of the reporting and a pledged security of businessmen, but in portfolios of regional banks credits to small enterprises already take from 40 to 90 %. And leaders of a banking market go to this business, understanding that should be present at intensively developing segment and to participate in growth of the enterprises which in the long term will increase base of corporate clients and become consumers of other banking services.

On the market of financing of small and average business there are super giants of a banking market, first of all mean. The programs in the market develop “daughters” of foreign banks. With programs of refunding of the banks crediting a small-scale business, the European bank for Reconstruction and Development works, and now Deutsche Bank KfW which has closely become interested in the small-scale business development and money crediting.

Therefore for the further forward development of crediting of small business it is necessary for banks to find technological decisions of two questions: resource base and minimization, distribution of risks.

However everything that is told, concerns only crediting of the enterprises, which already have what to show to bank from the point of view of the reporting, pledges, results of the activity. Different banks demand presence of such vital history of the enterprise for from 6 months till 2 years. Financing those who start and, maybe, even more desperately is in great need of extra resources, banks, as a rule, do not dare. The requirement for starting bank crediting and crediting of individual private businessmen is satisfied hardly on 4—7 %. But hardly in the near future banks will directly participate in financing of starting stages of development of small enterprises and individual businessmen.

The days when governments have been flooding people with all types of grants are over. At least for a while. But that does not imply that one should get rid of the idea of getting small business grants.

Everything is possible with wise approach; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant examples, traps and ticks of the grants. This information will help you to get small business grants or any other grants easier.

The state assistance to development of small business is carried out in following basic directions:

Creation of stable state and not state sources of appropriations for small-scale business support;

Use of rational mechanisms of the control over an expenditure of allocated funds;

Maintenance of activity control and law courts on protection of interests of small enterprises;

Creation of a network of the specialized institutes that are ensuring realization of a state policy of assistance to small business, including: power state structures; non-governmental associations and the organizations; the specialized organizations of an infrastructure; funds, credit, insurance and guarantee establishments, technological parks, business incubators, industrial areas and ranges, educational, consulting, information and serving structures;

Realization of direct financing of activity of small enterprises on the basis of special laws by granting of grants, tax and investment privileges, indemnifications, payments from funds of support of business, placing of public contracts:

Working out of purpose-oriented programs of the state support of a small-scale business on long-term prospect;

Rendering of the consulting help to businessmen; the organization of system of preparation and retraining of businessmen;

Granting to small enterprises on hire basis on favorable terms premises, the equipment, and land lots.

Assistance of foreign trade activities of small enterprises.

Ideas for a small-scale business: what idea of a small-scale business is the best one that can bring you money?

Thousand of ideas for a small-scale business, ten thousand ideas of a small-scale business! But it also can confuse … If to start to re-read all these ideas is can take a lot of time. And what result? A total absence of actions!

Certainly, to look some hundreds ideas for the general erudition costs. And all! What for to take a great interest in reading of all these thousand?
Take some other way!!!

Find the idea for a small-scale business independently, by means of your internal sensations, preferences, desires. How? The plan of action is more low resulted.

1. Be advanced with your favorite business
2. Be advanced with your best skills

3. Think up, considering the first and second item, the idea for a small-scale business!!!

In this triad the most important is the first item as from the business based on favorite business, you can receive all kinds of pleasure – material, spiritual, physical, etc.

Skills always can be generated, acquired, and fulfilled.

(Based on your favorite business), really, it is possible also to peep idea of a small-scale business. If only you knew that you want!

Now an example.

Let’s admit, your favorite business ia studying of rare things. A result – it is possible to create any business connected with restoration, purchase (with the subsequent restoration and sale), a finding, and an exhibition of curiosities!

Let’s admit, your favorite business is travel. A result – tourist business, the program on TV or radio, a column in the newspaper, the Internet edition on similar subjects, excavation, etc.

And after all it is only some examples of possible variants. There are much more of them. But all of them are based on your Favorite Business!!!

It is very important that government, despite this crisis is not leaving to assist small businesses. And small business grants can be a true helper today.

But, of course, you should remember that today the fight for small business grants as well as for other kinds of grants is harsher. This is logical – more businesses need them. So before you start your fight for the small business grants, please make sure to visit this blog for more helpful tips about grant industry.

The majority of foreign states for assistance of development of a small-scale business try to involve means not from the outside and at the expense of mobilization in home market using systems of privileges and national aid. Financial stability of the country directly depends on realization of economic potential of small enterprises, possibilities and conditions of their financial provision. The effective system of the state financial support is of great importance not only for the enterprises, and for a national economy.

Experience of the USA, concerning small-scale business developments, for couples of system of the state contracts, giving the chance to receive the guaranteed seller’s market of production is worthy to accelerate a private fund heap, to increase capacities. Public authorities approve the list of works and services orders on which grant only small enterprises. At a public contract of the company – monopolists are often forced a part order (about 10 %) to transmit to the subcontract to small enterprises.

Compensation of all expenses of the small enterprises connected with training of personnel practices Japan for acceleration of qualitative development of the enterprise, and 2/3 expenses for improvement of professional skill of workers.

Experience of Great Britain where the municipal authority declares competition on fulfillment of different kinds of works will be interesting to local government bodies. The winner receives not only the favorable order but also an initial capital. Support of small business at-sight can become a basis of development of regions and social and economic maintenance of their population.

In Germany at the expense of means of Bank of credit warranties small enterprises have possibility to receive a commercial credit, to constitute the leasing agreement. Also in Germany the system of preferential crediting is applied at development of highly technological productions, to creation of small private enterprises. In this case the payment for use of credit recourses, as a rule does not exceed 6 % annual, and term of credit injection of 10-15 years.

In Canada for granting of loans to small enterprises there are over 200 centers of development. In France with the same purpose are formed companies of the mutual guarantee.

In world practice are also known such forms of support of small business as returning of easy loans in case of successes and loans with preferential interest rates. For example, in Japan are granted long-term loans on favorable terms for small-scale business development in certain regions of the country, production incentive of new kinds of production and replenishment of the core and a working capital of enterprise structures. Thus the state guarantees to banks of commerce duly returning by the enterprises of loans.

In Italy practice of granting of preferential long credits is for example, under 3-5 % annual and at the market interest rate about 15 %. The enterprises can receive a side benefit in 20-30 % of indemnification of cost of a loan at long-term return of the credit.

The days when governments have been flooding people with all sorts of grants have passed. At least for some time. But that does not mean that you should get rid of the idea of getting small business grants.

Everything is possible with wise approach; small business grants including.

Read this blog for more helpful tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This info will help you to get small business grants or any other grants easier.

Small business grants: how to receive it?

We all need money to start some particular own business or develop it, but to do this you will need to do the following steps.

Small-scale business: before to begin business:

So, you have decided to be engaged in business and before to begin business it is necessary to adjust yourself for long and responsible work. Creation, expansion, a business management – here over what you should work. You should remember always a competition and to be able to remain ahead of all. But before to begin business, there are things which should be made in advance.

Market research. Research is an integral part of creation of business. Investigate the market and define, who your buyers? Who your paramount buyers? Learn other possible markets in which you can find buyers or offer the unique goods/service.

Choice of partners. Business is the partnership, one business will not construct. For work choose only reliable and skilled people. The partnership can be necessary, as for the organization is concrete your business (management, performance of certain responsible functions), and usual partnership with other businessmen and partners (suppliers, outsourcing, consulting, financing, crediting).

Safe financing. For business opening it is necessary to find financing sources. The most safe are the state grants for small-scale business. Anyway, when you take money for business development, you should secure yourselves against possible risks (in a case not good luck, you should be capable to compensate money, without a fatal damage for business and the personal finance).

Image. Before to begin business, it is necessary to prepare image package that you were easy for remembering, and your company associated at once with the concrete goods/services and any advantages. For example, the potential client should understand that you sell the qualitative goods, at rather cheap price.

Spirit for work. Business is your career, instead of temporary job! Many businessmen think that having been engaged in business they can receive more money, working less. So, it not so. In business you should stick, at least in 2 times more than at simple work. Unique difference is only in that your diligence will be remunerated to the fully (very few people from employers increases salary twice for diligence – a maximum the quarter award), and also that you can always realize the initiatives.

The persistence, flexibility and resoluteness will help you to become successful in business. Even when you have already begun the business, and began to get stable profit – do not stop persistently to work; aspire to become better and to be improved. So now you know what exactly you need for successful business making and for it growth and development. I wish you good luck in all your undertakings.

It is very reasonable that government, despite this crisis is not leaving to help small businesses. And small business grants can be a true helper right now.

But, surely, you should understand that today the fight for small business grants as well as for other kinds of grants has become more fierce. This is logical – more businesses need them. So before you start your battle for the small business grants, please make sure to visit this blog for more info about grant industry.