Business Finance

Financing a business is not easy.

      Let’s say you are going into business.  The first important thing to look at is how much money do you have. Without any money you don’t have a hope.

       You see, banks or finance companies will not lend 100% of purchase value.  As a mater of fact, depending on the type of business, they may only lend 30% and that may be only on the hard assets.

      Let’s take an example.  Say you are buying a business for $500,000. The value of the equipment is $100,000, the furniture and fixtures are worth $50,000, the inventory count comes to $250,000. That comes to $400,000, which means the good will supposedly is worth $100,000.

     There are times when banks will not finance good will. Often they will only finance 50 % of the hard assets.  In this case you will only be able to raise $200,000, which leaves you will the problem of coming up with $300,000 somehow.

    You would need the help of a business consultant to come up with some creative ideas to cover the difference.  I know a very good business consultant that has helped many people buy businesses.  Go to the website to check out the help needed to finance this kind of problem.

     Written by: Howard R.S.


Why business location matters.

        How you even hear the comment, the three most important things if location, location, location.

       Well, depending on the type of business and product you sell it could be true but not necessarily.

      Retail stores need a heavy walk by or drive by traffic to be successful.  If a large portion of sales are commercial, phone in or online ordering then location is not as important. 

      Commercial, industrial businesses can be successful with smaller less expensive locations  because they tend to go to their customers rather that needing the customers to come to them.

      For more information or help in making these decision you can go to to find a good business consultant to help.

      Author:  Howard R.S.

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Start A Business

Not a big deal you say.

 Well, let’s discuss it.

       Say you start a business.  Your all set with the facility, the products are on the shelf, the staff in place and the customers are starting to come through the door.

      The first six months or even a year you may have more costs than you have revenue.   You a have a cash flow problem. You have more money going out for products, staff , rent, utilities than you have money coming  in from sales. If you do not have extra money somewhere or an operating line of credit you cannot pay your bills, you are dead.

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I am going to be up front and honest.

       Legal work is necessary from time to time so we need good, reliable, decent, fair priced lawyers.

       I believe most lawyers want to serve their customers well but at the same time I have met lawyers that just seem to be interested in the money rather than the service.

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Create Equity

Create equity by owning and operating a business.

I had a comment put on my blog which went like this.  I read your blog, it was a waste of time and I couldn’t believe you were so negative.

Maybe some of my blogs appear to be a little negative.  I don’t mean them to be depressing.  My purpose is to help people be successful and make lots of money.

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      The man I met last week is going bankrupt.  He has owned his company for over 6 years and now he is  goingthrough a terrible emotional time.

       Bankruptcy can happen when the owner makes tragic mistakes or when faced with economic conditions that are beyond their control. Or, perhaps even a combination of the two.

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Buy a Business

         There is a really big difference in risk in starting or buying a business.  So think carefully before making this major decision.

         First of all 55% of all new businesses fail in the first 6 years and another 30% fail in the next 10 years of operation.

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Website Visibility

     We live in a different world.  Thirty years ago no one would have asked the question, “do you have a website”.

      Today the question is “does your website work”?  Does your website come up on the first page of Google?  Still, lots of business owners who are asked these questions do not really know how effective their website is.

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         Ok, so we are kind of forced to have insurance. Can’t drive your car without insurance or you can get into real trouble. Nice going.  The insurance companies lobbied for that many years ago.

      Over the last 40 years I have paid insurance companies over $200,000 in insurance premiums and the insurance companies have paid out less than 25,000 in claims on my behalf. That’s a pretty hefty profit wouldn’t you say.

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Staff Hiring

Staff hiring is probably the most important decision in the entire business.  Not only is it usually the largest cost in the operation but it relates direction to production.

Hiring:   Be careful, be diligent, watch for attitude and check out the referrals. In the interview, if the applicant is evasive, looks down instead of in the eye and has a difficult time answering the questions, think twice about hiring.

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Lease Costs

      This is this important because lease or rent costs are usually the highest fixed cost of any business that does not own their own building.

         Be careful, the wrong lease situation can be a killer.  You can lose your business, go bankrupt and put you into terrible debt if you are not careful.

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*   *   *   *   *
  is a blog site for hopeful entrepreneurs that has tons of information on owning and operating a business. The purpose is to help people make money and creates equity.

          The Author has 40 years of business experience.  He has owned and operated multiple businesses through three boom and bust economies.

         Business failures far outweigh business successes especially in the first five years of operation. The purpose of this blog is to help owners become more successful.

         Plan to succeed, make the right decisions, correct the errors quickly and always, always give your customers good quality products or good quality service.

          Let’s talk, give me your feedback.   Howard



Business Help for Entrepreneurs:

         Sell a Business      Buy a Business

          Business Consulting           Business For Sale

          Sell My Business                Businesses For Sale        

          Business Appraisal             Company For Sale

          Business Skill Test              Companies For Sale

    Start a Business  Website Promotion

         Business Success 101        Bus. Websites Alberta

         Business Start Alberta         Website Promotion

         How To Start A Business    Cant Find My Website

         Why Start A Business          First Page On Google

         When To Start A Bus           Website Keyword Search

         Where To Start A Bus 

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