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Actual for You - Venture Leasing - A Smarter Way To Build Enterprise Value
Whenever I can, I try to frequent locally owned and operated businesses. To be even more specific, non-franchised businesses. You're now asking "why?" Before I get into that, I will say that I believe that chains, franchises and large corporate owned businesses have their place in our consumerist society. However, how did most all of the big companies start? That's right. They started as small, locally owned and operated businesses.If the big businesses (a most typically we're talking about eating establishments) started out as local places, then what's the problem with frequenting them? There is no problem per se; it's more about supporting local business owners while at the same time ensuring we have a continual stream of new choices. Additionally, when you're traveling, it's a great idea to find the best local spots.I know that going to a chain or franchise can be comforting. You know what you're going to get. That's fine, but can you really get a feel for a city or town from eating at the same place you do when you're at home? No, it's the same old same old. I know that the people there are locals, but you really get a flavor for a town (no pun intended) when eating at a great locally owned and operated business.Once in a while (and it is very infrequently) these businesses grow up, and expand and ultimately become large corporations with stores or offices or restaurants around the country. Or they franchise and also become national or international brands. And t
How Venture Leasing Works
Generally, a major round of equity capital raised from credible investors or venture capitalists makes ventu
If you do what you usually do, you get what you usually get Or what the Universe and your Business have in common.Those who know me, know I have a penchant for soapboxes. I have a large variety of these wonderful contraptions and can get very excited about all of them (not always appropriately I might add)One of my favoured soapboxes revolves around this question:Who do you need to be, to have the business you want to have?I have done a lot of reading, studying and reflecting over the last few of years, and it has become abundantly clear to me that there is no such thing as “I”.Some of you might have seen “The Secret, and the Law of Attraction” recently or that mind boggling movie “What the bleep do we know” and come away with a frown on your forehead; Or some of you might just have observed at times that what you think about somehow becomes real.Telepathy and LoveHow many of us have been in love at some time in our life and it seems uncannily as if you are telepathically connected to your lover; Suddenly it seems as if they can read your thoughts, they ring up moments after you flash on them, and you find yourself finishing your lovers sentences. These are merely some of the most obvious real-life examples of the concept of our connectedness, but there is no reason to believe telepathy only works when we are in love.Have you ever wondered how for some people things always just seem to happen? While fo
The term venture leasing describes the leasing of equipment to pre-profit, start-ups funded by venture capital investors. These companies usually have negative cash flow and rely on additional equity rounds to fulfill their business plans. Venture leasing allows growing start-ups to acquire needed operating equipment while conserving expensive venture development capital. Equipment financed by venture leases usually includes essentials such as computers, laboratory equipment, test equipment, furniture, manufacturing and production equipment, and other equipment to automate the office.
Using Venture Leasing Is Smart
Venture leasing enjoys many advantages over traditional venture capital and bank financing. Financing new ventures can be a high risk business. Venture capitalists generally demand sizeable equity stakes in the companies they finance to compensate for this risk. They typically seek investment returns of at least 35% - 50% on their unsecured, non-amortizing equity investments. An IPO or other sale of their equity position within three to six years of investing offers them the best avenue to capture this return. Many venture capitalists require board representation, specific exit time frames and/or investor rights to force a 'liquidity' event. In comparison, venture leasing has none of these drawbacks. Venture lessors typically seek an annual return in the 14% - 20% range. These transactions usually amortize monthly in two to four years and are secured by the underlying assets. Although the risk to the venture lessor is also high, this risk is mitigated by requiring collateral and structuring a transaction that amortizes. By using venture leasing and venture capital together, the savvy entrepreneur lowers the venture's overall capital cost, builds enterprise value faster and preserves ownership.
Venture leasing is also very flexible. By structuring a fair market value purchase or renewal option at the end of the lease, the start-up can slash monthly payments. Lower payments result in higher earnings and cash flow. Since a fair market value option is not an obligation, the lessee has a high degree of flexibility and control. The resulting reduction in payments and shift of lease expense beyond the expiry of the transaction can deliver a higher enterprise value to the savvy entrepreneur during the initial term of the lease. The higher enterprise value results from the start-up’s ability to achieve higher earnings, upon which most valuations are based.
Customers benefit more from venture leasing as compared to traditional bank financing in two ways. First, venture leases are usually only secured by the underlying equipment. Additionally, there are usually no restrictive financial covenants. Most banks, if they lend to early stage companies, require blanket liens on all of the companies' assets. In some cases, they also require guarantees of the start-ups’ principals. More and more, sophisticated entrepreneurs recognize the stifling effects of these limitations and their impact on growth. When start-ups need additional financing and a sole lender has encumbered all company assets or required guarantees, these young companies become less attractive to other financing sources. Correcting this situation can sap the entrepreneurs’ time and energy.
How Venture Leasing Works
Generally, a major round of equity capital raised from credible investors or venture capitalists makes ventur
It is so easy to do. A small typo. But it can have big consequences. Especially if it is in your media release.It can cause millions in lost sales, damage your reputation forever and cost you political elections.Just take the case of Western Australia's last state election. A missing zero in a media release on the costing of a water canal development just days before the election most certainly contributed to a loss of voter confidence at a critical time.Even seasoned professionals can make mistakes. So what can you do to prevent costly and embarrasing errors?If you follow these five easy steps you'll never have to take chances with media releases again.1) Get It Right First TimeWhatever your original source of information is, always get it right first time. Incorrect information will just be repeated. In your news release and then by the media.2) Print It Out HardcopyBecause we read electrons on a screen and not ink, we skim read, blink more, have less concentration and often overlook mistakes.Print out a hard copy and read.3) Double Check In The ReleaseAlways double and triple check dates, numbers, contact details, and people's names once you've written the release.4) Another OpinionAlways get someone else to read and re-read your release. A fresh set of eyes can often pick up mistakes and improve.5) Sleep On ItS
The term venture leasing describes the leasing of equipment to pre-profit, start-ups funded by venture capital investors. These companies usually have negative cash flow and rely on additional equity rounds to fulfill their business plans. Venture leasing allows growing start-ups to acquire needed operating equipment while conserving expensive venture development capital. Equipment financed by venture leases usually includes essentials such as computers, laboratory equipment, test equipment, furniture, manufacturing and production equipment, and other equipment to automate the office.
Using Venture Leasing Is Smart
Venture leasing enjoys many advantages over traditional venture capital and bank financing. Financing new ventures can be a high risk business. Venture capitalists generally demand sizeable equity stakes in the companies they finance to compensate for this risk. They typically seek investment returns of at least 35% - 50% on their unsecured, non-amortizing equity investments. An IPO or other sale of their equity position within three to six years of investing offers them the best avenue to capture this return. Many venture capitalists require board representation, specific exit time frames and/or investor rights to force a 'liquidity' event. In comparison, venture leasing has none of these drawbacks. Venture lessors typically seek an annual return in the 14% - 20% range. These transactions usually amortize monthly in two to four years and are secured by the underlying assets. Although the risk to the venture lessor is also high, this risk is mitigated by requiring collateral and structuring a transaction that amortizes. By using venture leasing and venture capital together, the savvy entrepreneur lowers the venture's overall capital cost, builds enterprise value faster and preserves ownership.
Venture leasing is also very flexible. By structuring a fair market value purchase or renewal option at the end of the lease, the start-up can slash monthly payments. Lower payments result in higher earnings and cash flow. Since a fair market value option is not an obligation, the lessee has a high degree of flexibility and control. The resulting reduction in payments and shift of lease expense beyond the expiry of the transaction can deliver a higher enterprise value to the savvy entrepreneur during the initial term of the lease. The higher enterprise value results from the start-up’s ability to achieve higher earnings, upon which most valuations are based.
Customers benefit more from venture leasing as compared to traditional bank financing in two ways. First, venture leases are usually only secured by the underlying equipment. Additionally, there are usually no restrictive financial covenants. Most banks, if they lend to early stage companies, require blanket liens on all of the companies' assets. In some cases, they also require guarantees of the start-ups’ principals. More and more, sophisticated entrepreneurs recognize the stifling effects of these limitations and their impact on growth. When start-ups need additional financing and a sole lender has encumbered all company assets or required guarantees, these young companies become less attractive to other financing sources. Correcting this situation can sap the entrepreneurs’ time and energy.
How Venture Leasing Works
Generally, a major round of equity capital raised from credible investors or venture capitalists makes ventu
Finding an Area that Encourages New BusinessesThroughout the UK, there are many cities that have created specific plans devoted to encouraging new retail businesses. Norwich, Northamptonshire, Oxford and many other communities have focused their efforts on encouraging, developing and sustaining new retail establishments, business sectors and the infrastructure needed to promote investment and success.In Part I of our two-part article devoted to helping you choose the right premises for your business, we will consider what defines a supportive municipal environment for new companies. Although there will be individual nuances you'll want to bear in mind when selecting the specific address for your storefront, there are broader issues to be evaluated first before you choose the community in which your company will reside.Regional and National ReputationFirst, starting a retail establishment in a city or area that has an economic plan devoted to developing and advocating its regional and national reputation is desirable. If a municipality is willing to put forth the effort to attract various types of companies, especially large employers, then the ground will be fertile for retailers. Also, there is likely to be development money for new businesses.Business DiversityRegions that are interested in an economy that embraces various types of businesses tend to create a more stable trade environment. If there's a focus on one sector, such as high tech, and not much els
Venture leasing is also very flexible. By structuring a fair market value purchase or renewal option at the end of the lease, the start-up can slash monthly payments. Lower payments result in higher earnings and cash flow. Since a fair market value option is not an obligation, the lessee has a high degree of flexibility and control. The resulting reduction in payments and shift of lease expense beyond the expiry of the transaction can deliver a higher enterprise value to the savvy entrepreneur during the initial term of the lease. The higher enterprise value results from the start-up’s ability to achieve higher earnings, upon which most valuations are based.
Customers benefit more from venture leasing as compared to traditional bank financing in two ways. First, venture leases are usually only secured by the underlying equipment. Additionally, there are usually no restrictive financial covenants. Most banks, if they lend to early stage companies, require blanket liens on all of the companies' assets. In some cases, they also require guarantees of the start-ups’ principals. More and more, sophisticated entrepreneurs recognize the stifling effects of these limitations and their impact on growth. When start-ups need additional financing and a sole lender has encumbered all company assets or required guarantees, these young companies become less attractive to other financing sources. Correcting this situation can sap the entrepreneurs’ time and energy.
How Venture Leasing Works
Generally, a major round of equity capital raised from credible investors or venture capitalists makes ventu
The speed and low-cost communication of the Internet are attracting more and more consumer surveys to be made online. To assure a large-enough database of prospective survey participants the companies making the surveys are paying cash to those who take their surveys.Sometimes payment is in points that can be redeemed for cash; sometimes there are other benefits. The bottom line is that the participant receives value as compensation for taking the survey.To participate you must be a consumer, 18 years or more of age, have access to the Internet and be able to use a computer. Most of us buy food, clothing and other things. That qualifies us as consumers.While most survey makers have the 18 years old rule, there are special surveys for kids, usually requiring parental consent. If you can turn on your computer and send and receive e-mails, you have all the technical skills you need!So you say you apparently qualify and are interested in making money at home with paid online surveys? Great!Here's what you need to do to get started:1. Choose a good Paid Survey Guide Company to help you get started. There are 200+ of these companies out there. The good ones are larger, well established and growing. Pick one with a strong money-back guarantee, backed up by a bank or financial company such as PayPal or ClickBank. Most important, look for a company with a low refund rate.The refund rate is the percentage of their clients that leave and dem
Venture leasing is also very flexible. By structuring a fair market value purchase or renewal option at the end of the lease, the start-up can slash monthly payments. Lower payments result in higher earnings and cash flow. Since a fair market value option is not an obligation, the lessee has a high degree of flexibility and control. The resulting reduction in payments and shift of lease expense beyond the expiry of the transaction can deliver a higher enterprise value to the savvy entrepreneur during the initial term of the lease. The higher enterprise value results from the start-up’s ability to achieve higher earnings, upon which most valuations are based.
Customers benefit more from venture leasing as compared to traditional bank financing in two ways. First, venture leases are usually only secured by the underlying equipment. Additionally, there are usually no restrictive financial covenants. Most banks, if they lend to early stage companies, require blanket liens on all of the companies' assets. In some cases, they also require guarantees of the start-ups’ principals. More and more, sophisticated entrepreneurs recognize the stifling effects of these limitations and their impact on growth. When start-ups need additional financing and a sole lender has encumbered all company assets or required guarantees, these young companies become less attractive to other financing sources. Correcting this situation can sap the entrepreneurs’ time and energy.
How Venture Leasing Works
Generally, a major round of equity capital raised from credible investors or venture capitalists makes ventu
Jerry Seinfeld didn't call it quits because his audience wanted him to end his TV series. No, the comic turned TV star decided it was time to go.In an interview before the final "Seinfeld" episode, Katie Couric posed this question: "You’re the number-one sitcom, the leading program for a network and the most-watched show on television. Why hang it up?""The audience is a child, and you’re responsible for the child," said Seinfeld. "Sometimes that means not giving the child what the child wants. The child isn’t happy at the time, but perhaps later the child will understand."In other words, Seinfeld was saying "enough" to his devoted fans, much in the same way a child is denied candy even though each piece tastes good.Regardless of what you thought of "Seinfeld" -- a show about nothing, narcissistic, the funniest sitcom ever -- the producers, writers and actors knew their audience, and they delivered dead-on comedy to that audience for nearly a decade.But Jerry, whose roots are in standup comedy, didn’t want to keep the show alive until he "bombed." He didn’t want the "child" to turn on him. Instead, he left the series the same way he would exit his standup routine: with the audience wanting more.Take ChargeI like the child metaphor. If you’re a parent, you’re in tune with the needs of your children. Likewise, if you’re a marketer, shouldn’t you be in tune with the needs of your audience? Following are eight tips for managing the audience relationsh
How Venture Leasing Works
Generally, a major round of equity capital raised from credible investors or venture capitalists makes venture leasing viable for the early stage company. Lessors structure most transactions as master lease lines, permitting the lessee to draw down on the lines as needed throughout the year. Lease lines usually range in size from as little as $ 200,000 to well over $ 5,000,000, depending on the lessee's need and credit strength. Terms are typically between twenty four to forty eight months, payable monthly in advance. The lessee's credit strength, the quality and useful life of the underlying equipment, and the lessor’s anticipated ability to re-market the equipment during the lease often dictate the initial lease term. Although no lessor enters a leasing arrangement expecting to re-market the equipment prior to lease expiry, should the lessee’s business fail, the lessor must pursue this avenue of recovery to salvage the transaction. Most venture leases give lessees flexible end-of-lease options. These options generally include the ability to buy the equipment, to renew the lease at fair market value or to return the equipment to the lessor. Many lessors limit the fair market value, which also benefits the lessee. Most leases require the lessee to shoulder the important equipment obligations such as maintenance, insurance and paying required equipment taxes.
Venture lessors target lessee prospects that have good promise and that are likely to fulfill their leases. Since most start-ups rely on future equity rounds to execute their business plans, lessors devote significant attention to credit review and due diligence - evaluating the caliber of the investor group, the efficacy of the business plan and management's background. A superior management team has usually demonstrated prior successes in the field in which the new venture is active. Additionally, management’s expertise in the key business functions -- sales, marketing, R&D, production, engineering, finance --- is essential. Although there are many professional venture capitalists financing new ventures, there can be a significant difference in their abilities, staying power and resources. The better venture capitalists achieve excellent results and have direct experience with the type of companies being financed. The best VCs have developed industry specialization and many have in-house specialists with direct operating experience within the industries covered. Also important to the venture lessor are the amount of capital VCs provide the start-up and the amount allocated to future funding rounds.
After determining that the management team and venture capital investors are qualified, venture lessors evaluate the start-up’s business model and the market potential. Since most venture lessors are not technology specialists – able to assess products, technology, patents, business processes and the like - they rely greatly on the thorough due diligence of experienced venture capitalists. But the experienced venture lessor does undertake an independent evaluation of the business plan and conducts careful due diligence to understand its content. Here, the lessor generally attempts to understand and concur with the business model. Questions to be answered include: Is the business model sensible? How large is the market for the prospect's services or products? Are the income projections realistic? Is pricing of the product or service sensible? How much cash is on hand and how long will it last according to the projections? When is the next equity round needed? Are the key people needed execute the business plan in
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