Access to capital is a very complicated thing. There are many ways to capital the challenging thing is getting access. Most business owners and entrepreneurs are always strapped for cash. There is always ebb and flows, highs and lows.
The word CAPITAL AND MONEY have two different meanings. Capital is the physical stuff and money is cash to purchase physical stuff. What really is cash? Everybody wants cash to pay bills and to buy new stuff. There’s so much money out there that’s available that it’s not even funny
There are very few people who can earn or make a thousand dollars a day, making over $365,000 dollars a year and live off half and invests the rest. There are not a lot of us have rich parents and receive a million dollar trust fund. There are not a lot us who have the athletic and entertainment skills and make millions a year. There’s not a lot of us who have an I.Q of 180 or higher and can breeze through college or come up with some original creative idea that would shock the world.
In the business world there are many duplication’s in the same sector. Case in point, the next time you’re driving down the street in middle town America, count how many tire service stores you see in a several mile radius. For that matter count the fast food restaurants, gas stations, hair salons, barber shops etc etc you get the point. Duplication means competition and that means do you give good service to earn that customers business, are you professional and friendly to satisfy that customer for repeat business. Customer loyalty is at an all time low. All you have to do is mess up one or two times and they’re gone to the next company down the street. Customer loyalty is cash everyday repeat business.
I apologize for digressing but now that we have an understanding that Money is cash your customer spend for your product or service and Capital is physical stuff like land, owning the building, or a fleet of trucks that you owned.
There are three basic things that would guarantee you to receive Money for your business.
- History of Sales
- A creative new idea
If you come up with something that’s hot and new and it’s the buzz in a particular emerging market, money will be coming at you a hundred different ways. A creative new idea is like a new toy, everybody wants it.
If your product or service is selling like hot cakes, there are hundreds of investors interested in your company. Most investors want to see a four to eight quarter growth in sales.
If you have land, own a business building, or equipment you can use your capital asset for collateral.
In my future articles I will go into some case studies on how companies are successful in getting the cash they need to sustain and grow your business.