The Wall Street Journal, Small Business
WSJ.com, December 2, 2010
Entrepreneurs Going the Royalty Route Use a Share of Revenue to Pay Back Loans
By: Scott Austin
When first-time entrepreneur Philip Vaugn recently began searching for start-up capital, he traveled down two conventional paths.
Mr. Vaugn, co-founder of travel-review aggregator Raveable.com in Kirkland, Wash., says he wasn't interested in forking over a large chunk of equity to venture capitalists or committing to ambitious investment-return expectations. He also considered a loan, but knew that banks had made it onerous for young companies like his to obtain debt financing.
"We're in a weird spot" but we have "a decent amount of revenue coming in," says Mr. Vaughn who expects Raveable's sales to grow two to three times annually.
So he's considering an alternative called royalty financing, in which a company pays back a loan using percentage of revenue. Traditionally found in industries such as mining, film production and drug development, royalty financing is being seen more among technology companies and other early-stage firms with growth potential.
To read the full article.. click here.
Friday, December 31, 2010
Thursday, December 30, 2010
Check out: Money is available for small businesses, but it takes work
Posted 11/21/2010 6:00 PM
USAToday.com, Small Business
AskAnExpert: Steve Strauss
Q: I hear that there is more money available these days for Small Business Administration loans. Is that true? If it is, how do I apply to the SBA to get one? Thanks in advance. Maurice
A: Yes, it is true that there are more SBA loan funds available right now than in years past. This is mainly due to 1) a change in administrations, and 2) the fact that both TARP and the new small business law added funding for SBA lending.
To read more... click here.
USAToday.com, Small Business
AskAnExpert: Steve Strauss
Q: I hear that there is more money available these days for Small Business Administration loans. Is that true? If it is, how do I apply to the SBA to get one? Thanks in advance. Maurice
A: Yes, it is true that there are more SBA loan funds available right now than in years past. This is mainly due to 1) a change in administrations, and 2) the fact that both TARP and the new small business law added funding for SBA lending.
To read more... click here.
Wednesday, December 29, 2010
Check out Editorial: Small businesses need more access to credit
By News Sentinel Editorial Board
KnoxNews.com
Posted November 19, 2010 at midnight
Small businesses breathe jobs into the economy, but tight credit is strangling them even as the nation slowly recovers from the worst economic downturn since the Great Depression.
Banks and other lenders remain tight-fisted, frustrating many small business owners who are ready to expand. Without access to credit, business owners can't invest in new equipment or new workers. Seasonal businesses that rely on credit to smooth out dips in cash flow are finding themselves vulnerable, even though they're profitable on a yearly basis.
To read the full article... click here.
KnoxNews.com
Posted November 19, 2010 at midnight
Small businesses breathe jobs into the economy, but tight credit is strangling them even as the nation slowly recovers from the worst economic downturn since the Great Depression.
Banks and other lenders remain tight-fisted, frustrating many small business owners who are ready to expand. Without access to credit, business owners can't invest in new equipment or new workers. Seasonal businesses that rely on credit to smooth out dips in cash flow are finding themselves vulnerable, even though they're profitable on a yearly basis.
To read the full article... click here.
Wednesday, December 1, 2010
Check out Boomerang Business Owners Sell Shop, Then Buy It Back
Sell the Store, The Buy It Back
by Emily Maltby
Wall Street Journal / WSJ.com Small Business Online
November 11, 2010
Call them "boomerang" business owners.
A handful of entrepreneurs who sold during flush times are repurchasing their old companies for cheaper prices, hoping they can resuscitate the now ailing businesses.
Dave McCarthy, who says he was tired of the day-to-day stress of running his own hand-crafted furniture business, Eldred Wheeler in Hanover, Mass., decided six years ago to sell the shop for between $5 million and $10 million in cash.
But he regretted the decision almost immediately, he says. "I should have gone on vacation rather than selling."
Then Mr McCarthy, who had since bought a candy company that he still runs, noticed last year that the economy had taken a toll on Eldred Wheeler, forcing its owners to severely cut staff and operations. He decided the opportunity was ripe, and bought back his old company for less than $1 million.
To read the full article... click here.
by Emily Maltby
Wall Street Journal / WSJ.com Small Business Online
November 11, 2010
Call them "boomerang" business owners.
A handful of entrepreneurs who sold during flush times are repurchasing their old companies for cheaper prices, hoping they can resuscitate the now ailing businesses.
Dave McCarthy, who says he was tired of the day-to-day stress of running his own hand-crafted furniture business, Eldred Wheeler in Hanover, Mass., decided six years ago to sell the shop for between $5 million and $10 million in cash.
But he regretted the decision almost immediately, he says. "I should have gone on vacation rather than selling."
Then Mr McCarthy, who had since bought a candy company that he still runs, noticed last year that the economy had taken a toll on Eldred Wheeler, forcing its owners to severely cut staff and operations. He decided the opportunity was ripe, and bought back his old company for less than $1 million.
To read the full article... click here.
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