Financing Basics

Finance Start-Up

While poormanagement is cited most frequently as the reason businesses fail,inadequate or ill-timed financing is a close second. Whether you'restarting a business or expanding one, sufficient ready capital isessential. But it is not enough to simply have sufficient financing;knowledge and planning are required to manage it well. These qualitiesensure that entrepreneurs avoid common mistakes like securing the wrongtype of financing, miscalculating the amount required, orunderestimating the cost of borrowing money.

Before inquiring about financing, ask yourself the following:

• Do you need more capital or can you manage existing cash flow more effectively?
• How do you define your need? Do you need money to expand or as a cushion against risk?
• How urgent is your need? You can obtain the best terms when youanticipate your needs rather than looking for money under pressure.
• How great are your risks? All businessess carry risks, and thedegree of risk will affect cost and available financing alternatives.
• In what state of development is the business? Needs are most critical during transitional stages.
• For what purposes will the capital be used? Any lender will require that capital be requested for very specific needs.
• What is the state of your industry? Depressed, stable, or growthconditions require different approaches to money needs and sources.Businesses that prosper while others are in decline will often receivebetter funding terms.
• Is your business seasonal or cyclical? Seasonal needs for financinggenerally are short term. Loans advanced for cyclical industries suchas construction are designed to support a business through depressedperiods.
• How strong is your management team? Management is the most important element assessed by money sources.
• Perhaps most importantly, how does your need for financing meshwith your business plan? If you don't have a business plan, makewriting one your first priority. All capital sources will want to seeyour for the start-up and growth of your business.

Not All Money Is the Same

There are two types of financing: equity and debt financing. Whenlooking for money, you must consider your company's debt-to-equityratio - the relation between dollars you've borrowed and dollars you'veinvested in your business. The more money owners have invested in theirbusiness, the easier it is to attract financing.

If your firm has a high ratio of equity to debt, you shouldprobably seek debt financing. However, if your company has a highproportion of debt to equity, experts advise that you should increaseyour ownership capital (equity investment) for additional funds. Thatway you won't be over-leveraged to the point of jeopardizing yourcompany's survival.
 
Equity Financing

Most small or growth-stage businesses use limited equity financing.As with debt financing, additional equity often comes fromnon-professional investors such as friends, relatives, employees,customers, or industry colleagues. However, the most common source ofprofessional equity funding comes from venture capitalists. These areinstitutional risk takers and may be groups of wealthy individuals,government-assisted sources, or major financial institutions. Mostspecialize in one or a few closely related industries. The high-techindustry of California's Silicon Valley is a well-known example ofcapitalist investing.

Venture capitalists are often seen as deep-pocketed financial guruslooking for start-ups in which to invest their money, but they mostoften prefer three-to-five-year old companies with the potential tobecome major regional or national concerns and returnhigher-than-average profits to their shareholders. Venture capitalistsmay scrutinize thousands of potential investments annually, but onlyinvest in a handful. The possibility of a public stock offering iscritical to venture capitalists. Quality management, a competitive orinnovative advantage, and industry growth are also major concerns.

Different venture capitalists have different approaches tomanagement of the business in which they invest. They generally preferto influence a business passively, but will react when a business doesnot perform as expected and may insist on changes in management orstrategy. Relinquishing some of the decision-making and some of thepotential for profits are the main disadvantages of equity financing.

You may contact these investors directly, although they typicallymake their investments through referrals. The SBA also licenses SmallBusiness Investment Companies (SBICs) and Minority Enterprise SmallBusiness Investment companies (MSBIs), which offer equity financing.Apple Computer, Federal Express and Nike Shoes received financing fromSBICs at critical stages of their growth.

 
Debt Financing 

There are many sources for debt financing: banks, savings and loans,commercial finance companies, and the U.S. Small BusinessAdministration (SBA) are the most common. State and local governmentshave developed many programs in recent years to encourage the growth ofsmall businesses in recognition of their positive effects on theeconomy. Family members, friends, and former associates are allpotential sources, especially when capital requirements are smaller.

Traditionally, banks have been the major source of small businessfunding. Their principal role has been as a short-term lender offeringdemand loans, seasonal lines of credit, and single-purpose loans formachinery and equipment. Banks generally have been reluctant to offerlong-term loans to small firms. The SBA guaranteed lending programencourages banks and non-bank lenders to make long-term loans to smallfirms by reducing their risk and leveraging the funds they haveavailable. The SBA's programs have been an integral part of the successstories of thousands of firms nationally.

In addition to equity considerations, lenders commonly require theborrower's personal guarantees in case of default. This ensures thatthe borrower has a sufficient personal interest at stake to giveparamount attention to the business. For most borrowers this is aburden, but also a necessity.

《小公司创业》2.2.4：财务基础

财务基础

糟糕的管理通常被认作是公司失败的主要原因，那不适当的财务管理可能就是通向失败的临门一脚。不管你是重开或新开一家公司，你都得准备足够的资金。但仅仅拥有足够的资金也是不够的；你需要知识和计划来管理它才行。这些技能能帮助创业者避免犯一些诸如：错误估计需求量、低估贷款利息等初级错误。

在开始学习之前，先问问自己下列问题：

• 你到底是需要更多的资金还是需要提升管理现存现金流的能力？
• 你如何定义自己的需求？你是需要资金来扩张还是用它来作为一种风险缓冲？
• 你的需求有多急？提前做好资金需求规划绝对比在压力下到处找钱好得多。
• 你的风险有多大？所有公司都有风险，风险的等级会影响你的支出和决策。
• 你的公司处于哪个发展阶段？不同时期有不同的需求。
• 资金是用来做什么的？每家贷款方都会要求提供这个资料。
• 你所处的业界状况如何？处于萧条、稳定、成长等不同时期的业界对于资金的需求及来源都不同。在其他企业业绩都下降时，处于上升中的你一定会获得相对较多的融资机会。
• 你的公司是短线或长线经营？短线经营的公司通常对资金的需求通常在短期内就能得以回报。而长线的资金资助则是为了帮助类似建筑业这样的行业度过寒冬的。
• 你的管理队伍素质如何？这是贷款方是否放贷最重要的评判因素。
• 或许最重要的是，你的资金需求与你的商业计划是否切合？如果你还没有商业计划书，那么你最好尽快弄一份出来。所有的投资商都希望能看见你公司的未来。

钱不是都一样的

融资有两种方式：入股和债务。当你寻求资金时，你得先考虑一下自己的债务股本比——衡量你的公司所借的钱和得到的投资二者比例——你获得的投资越多，越容易吸引资金进入。

如果你公司的股本比率高于债务，那你应该优先考虑债务集资。当然，如果你的债务比率占了高，专家建议你增加你的股份，以此吸引其他资金进入来拯救你的公司。
 
股份融资

大多数小型或成长型公司都只采用有限的股份融资。因为债务的原因，那些增加的股份往往被一些不专业的人士占有着，比如朋友、亲戚、雇员、客户或者行业联盟之类的。而最专业的股份融资来源可能就是风险投资商了。这些风险承担者不是大财团就是政府组织，或者一些专业的投资机构。他们大多在与你相关的某个行业里有所研究。比如高科技业的加利福利亚硅谷投资就是一个著名的例子。

风险投资商经常被看作是到处寻找创业公司，然后大把投入资金的组织。不过他们更偏爱那些已经有3到5年经历，有潜力成为地区或全国范围内的行业领军者，并且投资回报远远高于平均水平的公司。风险投资商一般每年要看几千个的投资计划，但最终只选择其中的十几个进行投资。能否上市是他们最看重的因素。当然，质量管理体系、创新点与竞争力也是关键因素。

不同的风险投资商对待自己投资的公司有不同的管理方式。他们一般不会主动干预公司的运作，但一旦公司的业绩没有达到预期的要求，他们可能会强势介入要求管理层做出改变。因此作为股份融资来说，缺点就是会丧失一些决策权及潜在收益。

你可以直接与投资商联系，不过他们一般都是通过别人推荐来了解一个项目。

 
债务融资（此章有很多不符合国内实际情况的，译者直接略过了）

债务融资有多种渠道：银行、贷款、专业融资公司。当然亲戚、朋友、合作伙伴也是潜在的资金来源，特别当你的资金需求不是很大时。

一般来说，银行是小公司最主要的资金来源。他们的角色一般被定义为为客户提供短期贷款、信用保证、设备添购等特项贷款。但银行一般不愿意向小公司提供长期贷款。

出于权利确认考虑，债权方一般会要求债务方提供个人股份证明。这可以确认你在公司所拥有的股份能确保你在公司的领导地位。