Archive for the ‘Private Placement Private Equity’ Category
Private Placement Private Equity
Posted by admin in Private Placement Private Equity on July 16th, 2009

Private Placement Private Equity

Private Placement Private Equity
Private Placement Private Equity
Private Placement Private Equity – the world has been in the vice like grip of banks for equity placement for some decades. For Private Placement Private Equity the finance industry entrenched itself in our private thinking so deeply that borrowing equity money by private placement or getting equity investment money from private sources must now become a way of life.
Private Placement Private Equity
With the dramatic fall from grace of the entire banking industry it is essential to take in new information of how to create money for ourselves. We must learn new concepts. A return to the “way things were” will be at least three to five years into the future. There is no reality in planning around exiting a young business by an IPO. No one will believe it.
Private Placement Private Equity
Private Placement Private Equity - although at some time in the future, five years out, the IPO market may recover to its former dizzying heights. However, right now in 2009 hopeful entrepreneurs have to actually build a business plan that creates longterm profits for the owners and the choice is to keep the business, or, focusing on a Trade Sale of a well
prepared business as an exit strategy.
Building a profitable business means “De-bugging sales channels” to generate income, and preparing for a Trade Sale means “De-risking a business plan” for an eventual sale. De-bugging and De-risking are the essential skills needed in the current market.
Perhaps the most fundamental of all concepts to accept is that as a business owner, we need to work ON our business, not IN our business. Working ON a business means attending to Business Strategy.
If one is able to cast off the shackles of slavery to the thinking of being dependent on the banks for money, then with private equity placement a great freedom is gained. Learning how to establish and sell a business then becomes a joyful prospect for future success based on our own creative thought.
Private Placement Private Equity
Private Placement Private Equity Raising some amount of capital definitely gives security and peace of mind to be able to pay current expenses as they fall due. However, by focusing on de-bugging the sales channel it is possible to contract income, and as long as the business has the wherewithal to deliver to earn the income, then the business does not actually have to be executed and capital can be raised on the basis of a de-risked business plan in a Trade Sale.
The next thing to do, after generating the willingness to learn, is to make a list of products the business has that can be delivered immediately. Because the earning of income from sales requires an exchange. Products that cannot be delivered should be ignored, and all attention focused on only one product the business can immediately deliver and exchange for money.
Private Placement Private Equity
With all of one’s awareness available to concentrate on one product the first lesson in establishing an incoming cash flow can be practiced.
The first step, after identifying one product capable of immediate delivery, is to “create demand for the product” by sending out information that lets potential customers know about the product with the aim of stimulating sales orders.
Capital is not needed to distribute information, particularly in the age of email. What is needed is persuasively written sales copy in bullet points highlighting the benefits of the product, headed with an attention attracting image, and a list of people to send the information out to.
The second step, after sending out the information, is to note the wants and needs of the potential customers that reply to the distributed information as these replies represent actual demand in the market. The business can now see a channel for expansion, as the business must expand into the demand expressed by potential customers. At this point the sales channel is well on the way to being “de-bugged” as the pathway to sales revenue is being identified.
Private Placement Private Equity
Operating a successful business comes down to three points:
1. Creating want for your product – stimulating demand.
2. Supplying into the expressed demand for your product.
3. Getting paid.
If one is able to think in these simple terms and temporarily forget about raising capital, then establishing cash flows is well within reach in very short time.
THE EXIT STRATEGY?
With cash flows established for the business the time consuming tasks of writing business plans and de-risking the business to position for a Trade Sale can be handled for that particular product.
A Trade Sale means to sell the business to a bigger business and can generate needed capital from the sale.
When the first step of stimulating demand and contracting sales is done the business is capable of being sold. This is what results from identifying one product that is able to be immediately delivered.
Private Placement Private Equity
CONCLUSION
Of course the option remains to continue doing the same old things, and to play the time consuming game of finding and negotiating venture capital, however, before an investment deal will settle the Due Diligence will require that the business is de-bugged and de-risked as outlined above.
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