Consider the Impact of Your Private Money Elevator Speech

Have you ever really given much thought to what is known as an “elevator speech”? This is what you do, when you have only a brief moment to talk to someone, and what you have to talk about is very important. How will you handle this opportunity? Will it mean great things for your business, or will it become an opportunity wasted?

In the world of private money, we encounter potential lenders each and every day (whether we realize it or not) and, as such, we also have elevator speech opportunities with the same regularity. Since private money is such an important part of modern small business finance, it is necessary to think about how you will approach people, given a brief moment of opportunity.

I’ve met business owners who have secured huge amounts of financial leverage, just by having a good private money elevator speech. What goes into such a speech to make it so persuasive? Therein lies the secret. You don’t have to be an expert salesperson or sound like, in any way, you have a pitch. That will actually drive more people away than it will produce success.

A good elevator speech starts with a simple introduction. Eye contact, hand shake, all that good stuff. You want to establish first name contact as quickly as possible to get the conversation comfortable. Small talk is for amateurs, so stay away from chat about the weather, politics, or the like, unless you have a very good reason to do so.

Next, you want to find out what your potential lender does for a living. Be interested in them, and seek to understand in as short a periodof time as possible what sort of career type they have. This is only important in that it helps establish why they would be interested in your private money program, rather than if they have money to lend or not.

Last, you want to be able to introduce what it is you do. This is the most important part, but don’t ignore the steps that lead up to it. You want your description of your business to be brief, compelling, and leave some questions in the other person too. Their questions and curiosity are mandatory to them being interested in becoming a potential private lender.

How do you know if your speech was a success? You don’t have time for a commitment from them, nor do you have time to even talk details. All it takes at this point is a simple question or comment. If they ask a question about your business or express interest in it, then your speech has been a success. Make sure to gather their contact information (and give them yours too), and you’re on your way to working with a new client.

More on that will come in future posts but, for now, get your speech down so you can bring your private money opportunity to as many people as you can.

The Many Uses of Private Money as Business Capital

A natural inclination among business owners is to think (pessimistically) that capital sources somehow do not or will not apply to their situation. Maybe this point of view is because you were refused financing of some kind. Maybe it’s because you sought venture capital and your business plan was not selected for funding. Maybe still it is because you’ve heard (through the grapevine or just the mainstream media) that business funding is tough to get and are just worried that this trend will leave you “out in the cold”.

It is true that getting business funding is tougher than it used to be. What is also true is that this trend tends to apply to traditional funding sources, such as commercial lenders, community banks, and even loans from government institutions like SBA. What else is there? Well, there’s formal venture capital, which by definition comes from an organized source that reviews numerous funding applications each year. There’s also private money, which is similar to venture capital, but typically comes from a single person and also has much fewer drawbacks.

Venture capital is typically reserved for tech companies and/or medical related products (i.e. businesses that have proven “home run” caliber potential). Unproven businesses, especially those that target investments, have little to no shot with “regular” venture capital, making private money even more attractive for these kinds of businesses.

Within any business, private business capital can be used for any of the following types of capital needs:

• Marketing expenses
• Business start up costs
• Product development costs
• Website design and development
• Product manufacturing and packaging
• Funding entry costs for investments

As you might notice, these types of costs are as critical as they are basic. You may, at this point, have a great idea for a business, and now need to do some or all of the items listed to help get your idea off the ground. How will you do this, if business capital is lacking or limited? Private money may be the answer. Does your idea have potential to become a profitable business? Does your business idea fall outside the scope of most venture capital firms? Is the idea something for which you can clearly and energetically show the value of to others? Answering ‘Yes’ to any or all of these questions is a sure sign that private money may be the answer to the capital needs of your own small business.

Just remember that the private sector has millions upon millions of dolalrs to invest. Recognize that you need privaet money for your small business, and then go get it! If that last part is still what has you curious about how best to proceed, then you’re in the right place. Stay tuned!

Business Capital Starts With A List

The need for business capital among business owners can be a no-brainer but how to go about finding this valuable part of a successful business can be more of a mystery. One of the unsung ways to create a continuous stream of business capital is to seek, pursue, and secure private money, which is simply a source of venture capital that comes from private individuals.

Where to find private money is a dilemma for many, but one that can easily be overcome when you know the right ways to go about finding the money you need. Because private money comes from (just what the name suggests) individuals, this means the potential lenders out there for you to find are virtually limitless. How do you sort through what could be millions of potential lenders to start your own journey towards a bank of private money?

It starts with a basic list. What kind of list, you ask? How about a basic list of people you know. This could include friends, family, co-workers, etc. What do you think of when you think about the prospect of doing this? Does it seem like an easy task or one that takes you outside of your comfort zone? The response you may have to this could vary, but the importance of making a list is without doubt.

If you’re naturally comfortable making a list of people you know who could be private lenders, then keep this in mind. The only rule at this point is to not rule anyone out, based on your opinion of their value as a lender. Judging a potential private lender by how much you think they have to lend, or their likely interest in private lending, is only going to do you, them, and your business a disservice. In short, let the lender tell you they have no interest..don’t assume this to be the case.

If you’re a bit uncomfortable with the propsect of presenting your business to people you know, then think about it this way. Are you doing them more of a favor by leaving them alone, or by presenting them with an opportunity to earn as a private lender, and letting them decide for themselves? The latter is clearly the better choice, so give your private lender prospects the chance, by at least showing them what opportunities you have available.

In future posts, we’ll explore in much more detail just how to go about presenting the opportunity that is private lending and how to go about actually securing the valuable business funding you need to start or grow your business.

Know Where To Find Credit and Capital for Your Business

In previous posts, I’ve talked about two of the three most common pitfalls that face small business owners and new entrepreneurs alike. The third, and perhaps most significant hangup for the modern small business concerns inadequate business funding. Be it a lack of credit, a lack of raw business capital, or both, these kinds of issues can bring even the best business concept to its knees. How do you avoid this probelm with your own business?

The first thing you need to do is recognize a) that you need capital to begin with, and b) where to find the capital you need. There has been a lot of recent press about the shrinking of the credit market, and this trend applies to businesses as much as it does to individuals. Many small business owners have felt the crunch, with credit lines shrinking or even disappearing altogether. With small business as the lifeblood of commerce in this country, where does that leave you as a small business owner?

The funding landscape might be foggy but there is still some visibility for today’s entrepreneur. You just need to know where to point the fog lamp and what you should be looking for. I’d like to cover several sources of capital you can pursue, including the aforementioned option for business credit. Let’s stick with this for just a moment. Business credit is still accessible, but is simply a little more finicky than it was even 12-18 months ago. Here’s what you need to realize.

First, you may need to offer a little more information about your business than you’ve been accustomed to in the past. For example, you might need to provide both a recent sales history and some proof to back it up, to best qualify for available business credit lines. Second (and especially if your business is new), your personal credit score may need to be  excellent in order to even be considered for business credit. What you may have been eligible for two years ago with a 620 score now may require a score of 720, just to put some numbers to the situation at hand. Last, you might expect to be granted lower credit lines, with the right to request increases once you have a stornger payment (and usage) history with a particular grantor of credit.

The bottom line is that your personal credit is as important to establishing business credit as it ever has been, so now is the time to be thinking about optimizing your personal credit score, both for your benefit and for the benefit of your business. In future posts, I will be discussing both ways to improve your credit and much more about many different types of capital that exist in the wordl of the modern entrepreneur. From the use of retirement accounts, to government loans, to tapping into the multi-billion dollar world of private investment capital, you need to know where to find the funding your business needs, and also the knowledge of how to acquire it.

Manage Your Way to Business Credit and Private Capital

In a previous post, I discussed the all-important aspect of having a solid business idea. Not only is a good idea critical for the entrepreneur to enjoy the kind of business success they seek, but it also is a critical area on which your business will be judged by funding sources.

Another important aspect of business success is that of management. Many entrepreneurs are classic dreamers and, as such, are good at coming up with new ideas. It is taking these ideas forward that is not always easy. One must have a management team in place to help bring a business idea to life. Having such a team does not mean having to have employees. Many common management tasks can be effectively outsourced, especially in today’s virtual world of commerce.

Examples of management tasks that you, as an entrepreneur, need to consider are:

• Marketing and design of promotional materials
• Website design and administration
• Product development and production (if applicable)
• Product shipping
• Customer service
• Accounting/bookkeeping

If these kinds of tasks aren’t exactly your forte, then you are certainly not alone among the world of small business owners. The key is to recognize that these management tasks must be somehow accounted for, in order for your business to be successful. If it means delegating them to an outside source, so be it. The best way to enjoy success in business is to focus on what you do best and at least be aware of what else needs to be done so you can make it happen.

Now, let’s see how this applies to funding for your business. Let’s say you have a great business idea and feel you can show its value to anyone who might provide credit, capital or other business funding. This is great and what will you do when these same funding sources ask about your management team and how the tasks listed above are going to be handled? Will this be a nervous moment for you or will you be prepared with the kinds of answers that produce financial results?

The truth is that great ideas are born every day, which I think typifies how the entrepreneurial spirit is still alive and kicking in our country. What sets a good idea apart from those that never receive business credit or capital to support them is the quality of management that can be shown, in support of the business.

Make a point, if business is something you are committed to, to develop your management structure alongside your ideas. Sources of business credit and private business capital will want to see that you have good management. They’ll need to see it in fact, and when you can show you have your ducks in a row, that’s how your great idea can develop into your business dream.

Empowering Your Capital Sources

When it comes to using outside sources of capital for real estate investing or for business development, whether it’s hard money, private money, or a source of venture capital, the point is the same. The more capital you can attract, the more successful your pursuits will be! This is a pretty cut and dry process with organized lending sources like venture capitalists or hard money lenders. How do you optimize your success with private money lenders?

An untapped resource we’ve profited from handsomely over the years is the use of retirement accounts as sources of private money and thus as funding sources for either real estate investments or small business development. All you need to learn is how to properly use these kinds of funding sources as private money and we have just the source you need to learn this powerful information.

Our group works collaboratively with Retirement Education Group (REG), a subsidiary of Equity Trust, the bona fide leader in investment uses for IRAs and other types of personal retirement accounts. It’s not just about unlocking your own investment potential, but also that of every private money lender prospect you present your business to, and that’s where the resources and educational programs offered by REG become so valuable.

When you are truly committed to learning how to empower your sources of private money to invest with you in ways they will likely have never thought of on their own, click here and learn more about what our REG offerings to you can do for building private money into your own real estate investments or small business!

12 Reasons Why You Need to Secure Business Capital NOW

Below are some of the many ways that business funding comes in handy and I’m guessing at least one of the things listed may be something you hadn’t yet thought of.

Business capital helps your business grow by:

Allowing you to pursue more projects

Opening doors of opportunity for projects you might have previously not been able to do

Keeping your personal funds and assets liquid, optimizing your business flexibility

Acting as a magnet for even more business capital

Giving you incentive to better organize your business operation and create documents like business plans

Encouraging you to formalize your business through creation of a legal business entity

Allowing better separation of personal and business expenses, making tax planning a preparation that much easier

Establishing you as a better spokesperson and ambassador for the scope of your business

Giving you cause to set higher and better goals for your business

Allowing you to pursue important things like business marketing more aggressively and more quickly

Putting you in better control of your business, where you are more proactive than reactive

Offering peace of mind that this is not something you have to do entirely on your own

As you can see, business funding benefits you in far more ways than just providing valuable capital for your day to day business operations. It also helps create what I like to call a snowball effect, that only grows and gets stronger over time, allowing your business to grow to heights that, a short while ago, were only in your imagination.

For More Info Contact Michael Van Horn

How To Build Good Credit

Credit comes with pitfalls. We are told this regularly and for many people it seems to be all they ever hear about the process of paying with credit. However, if managed to your advantage, you can make credit cards work for you. Bear in mind that banks and lenders are quick to add charges to accounts when they feel that there is an opportunity to do so – and don’t give them the chance to do it. Do you believe that it costs them that much to administer to your late payment? Of course not – so make sure you are in the driving seat.

To do this, it is a matter of using credit in ways that the bank won’t recommend. The “monthly” payment on your credit card will usually be set at a small percentage of the balance, and the bank will be happy for you to only ever pay that, because you will pay off more than you ever borrow. Interest, plus any charges, will amount to as much money as you borrowed in the first place. However, you can pay more than the monthly payment, so here is how to make it work for you.

When you take out a credit card, use it as you would use an ATM or debit card. Pay for groceries with it when you get your wages at the end of the month, and then instantly pay the balance off in full. For a while, live off credit and use the money that goes into these costs to make payments to your card. Your credit rating will soar. Your bank will offer you better terms. You’ll be in the driving seat.

How To Turn Things Around

It is a very rare kind of person that does not have money problems at some point in your life. It is important to realize in the circumstances that missing a single payment on your credit card does not make you a bad person, a financially reckless individual or a debt risk. This is not because it is fine to miss a credit payment – ideally, it won’t happen to you – but because there is a way back from credit problems. You need to be concentrated on finding that way back and taking it – but as long as you keep a clear head, this is more than manageable.

Missing one credit card payment is unlikely to strip you of a positive credit rating in one fell swoop. What you need to keep in mind is that there are very good reasons to treat your first missed payment as a warning sign. If you fall into longer term problems with debt, it will be much harder to escape them. For this reason you should focus on that payment and tell yourself that it won’t happen again. Pay attention to making the payment when you can, and meeting the next one when it becomes due. By sticking to this promise to yourself you will make it far more likely that the one missed payment was an aberration. If you think that you will have problems making payments going forward, look for alternative solutions such as consolidation or debt management, rather than letting the problem grow.

Unsecured Credit – You Still May Lose More Than You Gain

Although there are obvious pitfalls to taking out a mortgage or a new car loan which are not a problem with unsecured credit, there is no doubt that unsecured borrowing can still be a very risky endeavor. Just because the lender cannot repossess your possessions to make good on the loan, this does not mean that you cannot be put in a very risky situation financially. The first thing that will happen when you miss a payment on a loan or credit card is that you will go into the company’s “collections” file and they will pursue you for payment.

As well as entering the collections department, you will find that your credit record will contain the information of your missed payment. There are certain kinds of borrowing that are available to people with perfect credit ratings, including loans that have extremely low interest rates. A black mark on your credit rating will be enough to disbar you from ever qualifying for such lending, and will mean that any credit you do get will be very much on the lender’s terms.

Borrowing money can be the solution to a problem in a number of situations, but it is important to realize that without the continued means to pay the money back you will be placed in a very troublesome situation. Sometimes the best way to deal with the pitfalls of unsecured lending is just not to borrow at all. It may make for a difficult situation, but it will be one without unpleasant letters and phone calls.