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.
Tuesday, November 30, 2010
Object lesson--follow the exact terms of the lease when exercising an option to renew!
Rock Bottom Brewery tries to hang onto downtown lease
By Kathleen McLaughlin
Indianapolis Business Journal / IBJ.com
November 3, 2010
Landlord John Goodman wants Rock Bottom Brewery out of its West Washington Street location in downtown Indianapolis by next June.
Goodman recently rejected the restaurant's attempt to renew its lease for five more years. Rock Bottom, part of the Colorado-based chain, has occupied 14,600 square feet at 10 W. Washington St. since June 1, 1996.
The renewal notice was invalid, he said in an Oct. 8 Marion Superior Court filing, because it didn't come from the proper entity, which is named tenant Walnut Brewery Inc., and wasn't delivered by the U.S. Postal Service.
"It is unusual," said John Buerge, director of development and property management for Rock Bottom Restaurants Inc. in Louisville, Colo. "I think this is more he wants the space back for whatever reason."
Buerge insists that Rock Bottom's notice was adequate because it arrived via overnight delivery from UPS and required a signature. Similar cases in other states have been resolved in the tenant's favor, he said. Rock Bottom filed a notice to have the case moved to U.S. District Court of Southern Indiana.
To read the full article... click here.
By Kathleen McLaughlin
Indianapolis Business Journal / IBJ.com
November 3, 2010
Landlord John Goodman wants Rock Bottom Brewery out of its West Washington Street location in downtown Indianapolis by next June.
Goodman recently rejected the restaurant's attempt to renew its lease for five more years. Rock Bottom, part of the Colorado-based chain, has occupied 14,600 square feet at 10 W. Washington St. since June 1, 1996.
The renewal notice was invalid, he said in an Oct. 8 Marion Superior Court filing, because it didn't come from the proper entity, which is named tenant Walnut Brewery Inc., and wasn't delivered by the U.S. Postal Service.
"It is unusual," said John Buerge, director of development and property management for Rock Bottom Restaurants Inc. in Louisville, Colo. "I think this is more he wants the space back for whatever reason."
Buerge insists that Rock Bottom's notice was adequate because it arrived via overnight delivery from UPS and required a signature. Similar cases in other states have been resolved in the tenant's favor, he said. Rock Bottom filed a notice to have the case moved to U.S. District Court of Southern Indiana.
To read the full article... click here.
Want to Buy a Franchise? The Requirements Went Up
Some chains demand more experience - and more cash - from buyers
By Emily Maltby
The Wall Street Journal - Small Business Online
November 15, 2010
For entrepreneurs, it's getting tougher to get in on some franchises these days.
With the economy in the dumps, an array of franchisers are raising their standards for prospective buyers. They're demanding candidates to bring much more cash to the table, as well as a stronger track record of experience in the industry. In some cases, they're even inspecting the buyers' current operations to see just how well they're run.
Tactics for Tough Times
"The margin for error in a down economy is less," says Darrell Johnson, chief executive of franchise research-and-consulting firm FRANdata in Arlington, VA. "In a good economy, when you are struggling and learning on the job there is more margin for error because the economy is helping you along."
To read the full article... click here.
By Emily Maltby
The Wall Street Journal - Small Business Online
November 15, 2010
For entrepreneurs, it's getting tougher to get in on some franchises these days.
With the economy in the dumps, an array of franchisers are raising their standards for prospective buyers. They're demanding candidates to bring much more cash to the table, as well as a stronger track record of experience in the industry. In some cases, they're even inspecting the buyers' current operations to see just how well they're run.
Tactics for Tough Times
"The margin for error in a down economy is less," says Darrell Johnson, chief executive of franchise research-and-consulting firm FRANdata in Arlington, VA. "In a good economy, when you are struggling and learning on the job there is more margin for error because the economy is helping you along."
To read the full article... click here.
Monday, November 29, 2010
SBA Program Provides Women-Owned Businesses Greater Access to Government Contracts
The Small Business Administration's Women's Procurement Program Rule could provide easier access to $500 billion worth of feral contracting opportunities.
By Julia L. Rogers
10/26, AOL Small Business Online
After being stalled for nearly 11 years, the Small Business Administration's Women's Procurement Program Rule was put into effect earlier this month - potentially providing easier access to $500 billion worth of federal contracting opportunities for women-owned businesses.
The new rule dictates that women-owned businesses must account for 5 percent of government contracts, up from the current 3.4 percent. Eligible businesses must be at least 51 percent owned and controlled by women who are U.S. citizens, to enjoy deals up to $3 million in many industries and up to $5 million in the manufacturing sector.
To read the full article... click here.
By Julia L. Rogers
10/26, AOL Small Business Online
After being stalled for nearly 11 years, the Small Business Administration's Women's Procurement Program Rule was put into effect earlier this month - potentially providing easier access to $500 billion worth of federal contracting opportunities for women-owned businesses.
The new rule dictates that women-owned businesses must account for 5 percent of government contracts, up from the current 3.4 percent. Eligible businesses must be at least 51 percent owned and controlled by women who are U.S. citizens, to enjoy deals up to $3 million in many industries and up to $5 million in the manufacturing sector.
To read the full article... click here.
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