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Thinking Small
By Eric Barnes, Thu Dec 8th
In talking with one of my funding reps recently, he mentionedthat in his many dealings with entrepreneurs at many levels, hefound that the vast majority of them had been trained to "thinksmall." The reasons for this were that they were constantlybeing reminded of 1. the difficulty of raising capital, 2. high interest ratescharged by lenders to small companies or 3. the insistence bymany venture capitalists that the company owner(s) surrendercontrol of their companies. If, instead, they continued to "think small," they could stillretain control of their company, even if they were unable toexpand due to lack of capital and a funding strategy. Thus,these entrepreneurs are encouraged to export their products orservices and are discouraged from becoming multinationalcorporations.
ENTREPREURIAL FEARS I've found similar attitudes. When I discuss a $1 millionfunding , I've often heard, "But it costs more to go public inthe States" or "We only grossed $2 million, last year." Theseare often examples of being stuck in a mental rut, locked intowhat is thought to be "possible." In such cases, my response is, "I understand. That's what you'vebeen thinking about and planning...and that's fine. However, canyou set that plan aside for a few moments and imagine what youmight be able to do if your company were a multinationalcorporation? If you could get not only that million, but severalmillions more?" I generally hear a long silence at that point.Then the ideas begin to pop, the possibilities expand. If,however, you really don’t want to be a multinational corporationwith its associated problems and the hard work required, alongwith the potential huge rewards, probably reading on is a wasteof your time. But if such an idea appeals to you, what are some ideas whichmight be considered? ACQUISITIONS You can grow the value of your company rapidly by finding cashproducing companies in your field, supportive of your mainproduct/service, that you might be able to acquire for cash or,even better, cash and stock. (That's the system used by CISCO tobecome a $50 billion international goliath.) That saves you thehuge costs of creating
a new market. You buy it alreadyestablished instead. It builds company value far faster than bysimply ramping up production, advertising and/or marketing. FRANCHISING Does your product or service lend itself to franchising?Macdonalds and similar firms would be far smaller if they hadsimply opened branches. The business would have become unwieldyvery quickly. Helping others to own their own businesses, whilethey, in turn, increase your company’s cash flow, makes greatbusiness sense. It’s another way to buy a new market rather thanbuilding it. FACTORING While you’re building your company, can you increase cash flowif your product or services are sold to other commercialenterprises. Factoring is the fastest, most reliable form ofrapid cash flow ever invented. One of the cheapest, too. Thepractice is over 3,000 years old and used by hundreds ofthousands of companies. See my two full article on thissubject here at GoArticles.com. INTEGRITY AND PROFESSIONALISM Probably the single biggest factor which made us decide to workwith this particular funding group is their extremely highlevels of integrity and professionalism. They trumpet awin-win-win intention from the very beginning. In over twentyyears in the financial field, we’ve never met a group like them.Click her to read about them. THINKING BIG My suggestion is simple: Think BIG! What was youroriginal dream? Might you be able to achieve it faster thanyou've thought? How big are you willing to grow? As anentrepreneur, what are you willing to tackle? If you can qualifyfor the funder’s program, we'll support you in your rapidexpansion toward your goals. Visit our Web Site About the author:Mr. Barnes is President & General Manager of Capital Funds GroupLtd., a Canadian based consulting firm specializing inPutting Companies and Money Together. They alsowork with non-US companies to take them public rapidly andinexpensively, then getting them funded. Visit our WebSite Email Him
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