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Don't Be So Hard on the Bankers
Tweet Share on Facebook March 27, 2009 Comment (3)I hate to take an unpopular stand on something, but jeez, we’re making it awfully hard on the poor bankers.
For as long as I can remember, we in the world of entrepreneurship groused about how the banks wouldn't invest in a good business plan. Being a contrarian, I’ve tended, through some 30 years of this, to remind people that banking law used to forbid that. Ever since the Great Depression, regulations wanted banks to have collateral before they risked depositors’ money.
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The Angel Investment Crunch
Tweet Share on Facebook March 23, 2009 Comment (16)Business angels invest their own money in private companies run by someone other than a friend or family member. And accredited angel investors are the portion of these investors who meet Securities and Exchange Commission requirements for having either high net worth ($1,000,000 or more) or high income ($200,000 plus for single people and $300,000 plus for married couples).
Many people believe that accredited angel investors are an important source of early-stage financing for high-growth technology companies. Most angel groups are composed solely of accredited investors, and accredited angels are the ones that anecdotal evidence suggests provide pre-venture capital financing for many companies that ultimately go public or get acquired by public companies.
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Real Small-Business Stimulus Starts With SBDC
Tweet Share on Facebook March 19, 2009 Comment (5)Quietly, outside the headlines about bonuses and bailouts, the smarter entrepreneurs among us head to their local SBDC. There, they find classes on starting a business, classes on running a business, classes on business planning, tips, introductions...and sometimes just a touch of real-world experience, when it's badly needed.
SBDC stands for Small Business Development Center. There are about 1,000 of them across the United States. To find an SBDC near you, you can use the map at bplans.com or the umbrella organization website at asbdc-us.org.
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Is the Office Obsolete?
Tweet Share on Facebook March 11, 2009 Comment (7)One indicator that a social or business trend is entering the mainstream is the publication of books on the topic.
The release of the book I'm Outta Here: How Coworking Is Making the Office Obsolete is a clear signal that coworking is spreading.
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Credit Crunch Is Major Crisis for Small Businesses
Tweet Share on Facebook March 10, 2009 Comment (83)Right now, the system for financing small businesses in this country is in bad shape, and I'm worried about how the financial problems will affect entrepreneurship in America.
Specifically, I'm concerned that small businesses that face cash flow problems resulting from the current recession will be unable to get the money necessary to keep their businesses afloat until the economy rights itself. And I'm worried that a bunch of entrepreneurs who are starting businesses right now will end up undercapitalizing their businesses, thereby setting up a higher failure rate for start-ups in the coming years.
Entrepreneurs always have financing issues, so you might wonder why I'm so concerned about them right now. Basically, for two reasons. First, the recession that we're in appears to be longer and deeper than many we have had in the past, making it difficult for entrepreneurs to wait it out. A lot of good businesses are going to go under simply because there is no financing available to tide them over until demand picks up.
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The Five Factors of Growth Strategy for Your Company
Tweet Share on Facebook March 6, 2009 Comment (2)In the past two weeks, we've talked about using the Four P's of marketing to grow outside your company and two ways to build capacity and grow inside your company. Now let's look at the issues you need to watch for when you decide on a strategy for growing your company.
Control
This may be the first for a reason. Entrepreneurs like to be in control. That's why we're here. But to grow, you have to release some of that control to others who will help you.Costs
Do the figuring. Will this growth create more revenue than it costs? How long will it take to break even? -
How to Treat Model Employees
Tweet Share on Facebook March 6, 2009 Comment (1)It's hard to post just about business these days, when it feels like the events surrounding the new presidency and the threat of depression are so more important—if you're interested in my thoughts on that, you can click here—but I just had something happen in the office that reminded me of something I've learned, in 25 years of being an employer, about managing people and teamwork.
A good thing happened today. One of our customers reviewed our company on the website Yelp, spontaneously, and said very nice things about the company and its product, and particularly our customer service. (If you're curious, that review is here.) The review mentions one particular person on the team who did a great job helping.
