Articles for Step 67: Determine Personal Net Worth
Financial Skeletons Will Spook Potential Investors
Are you heading out trick-or-treating for a business loan? No matter how bewitching your costume, the following deal breakers will block your success and leave you with an empty pillowcase. 1. Ghostly Equity. If you’re hoping to get your deal off the ground with 100% financing, you’ll probably creep out potential lenders. Zero owner equity might make great fodder for sinister spam attacks, but it will usually break a small business start-up deal. Unless you’ve put the love-money hex on your Mom or Aunt Elvira, your no-equity plan will scare the cape off investors. To avoid having your business idea burned at the stake, plan to treat your banker to at least 20% equity. Read the full article.
There are some things that will stop your business idea, no matter how wonderful it is. These are the costly rough spots that you would rather conceal from the business analyst or banker. Hiding the information will only bring you and everyone you deal with frustration. Your best strategy is to get any deal breakers onto the table and mitigate them early – the sooner the better. Read the full article.