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Funding advice
Hi Chaz, I have to agree with the other opinions; you do not yet have a business, you only have an idea. To turn the idea into a business:
1. You need to convince investors (or lenders) that the venture is viable. This is extremely difficult as they need to see the (non existent) orders and cash flows emanating from it. Can you convince them?
2. You may approach and partner with an existing business which has the experience, infrastructure, distribution channels and funding to grow your product market. This may erode some of your own profit, but remember that 20% or 50% of nothing is still nothing! Their expertise may be invaluable to you and improve and shorten your learning curve.
3. You may take in a partner on the same principles as above, but make sure that he/she has the knowledge and resources to contribute to the business. You do not want a sleeping partner! Sleep does not generate business!
4. If you can obtain irrevocable orders from reputable (blue chip) companies, you can obtain funding on their credibility. Trade finance companies will arrange for import funding on the repayment ability of a debtor. Gary Simmonds may be able to assist you in this. Essentially this should be a self-liquidating transaction with no handling or repackaging. Delivery straight from the factory to the debtor.
5. Should you be able to finance the 1st import order yourself, the invoice can be discounted (factored), which will allow you funds to place the 2nd import order. Payment will be made directly from the debtor to the factor who will then release the retention (usually 30%). For further advice on this financing tool, you can send mail to grocashflo@gmail.com
Good luck on turning your ideas into profitable business. That is what entrepeneurship is about!
Hi Chaz, I have to agree with the other opinions; you do not yet have a business, you only have an idea. To turn the idea into a business:
1. You need to convince investors (or lenders) that the venture is viable. This is extremely difficult as they need to see the (non existent) orders and cash flows emanating from it. Can you convince them?
2. You may approach and partner with an existing business which has the experience, infrastructure, distribution channels and funding to grow your product market. This may erode some of your own profit, but remember that 20% or 50% of nothing is still nothing! Their expertise may be invaluable to you and improve and shorten your learning curve.
3. You may take in a partner on the same principles as above, but make sure that he/she has the knowledge and resources to contribute to the business. You do not want a sleeping partner! Sleep does not generate business!
4. If you can obtain irrevocable orders from reputable (blue chip) companies, you can obtain funding on their credibility. Trade finance companies will arrange for import funding on the repayment ability of a debtor. Gary Simmonds may be able to assist you in this. Essentially this should be a self-liquidating transaction with no handling or repackaging. Delivery straight from the factory to the debtor.
5. Should you be able to finance the 1st import order yourself, the invoice can be discounted (factored), which will allow you funds to place the 2nd import order. Payment will be made directly from the debtor to the factor who will then release the retention (usually 30%). For further advice on this financing tool, you can send mail to grocashflo@gmail.com
Good luck on turning your ideas into profitable business. That is what entrepeneurship is about!
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