In Cash for Chocolate, WSJ outlines several creative ways to raise funds for those of you looking for an innovative solution. I like the idea of "chocolate bonds" where you receive a box of chocolates every month as part of your investment return, or receive a "grocery discount" when investing in a…
You wouldn’t think it would be too hard to sort out whether this is no small business lending because there is no capital … or because small businesses aren’t asking. There’s a lot here so keep reading if you want to gain a better understanding of what’s REALLY going on.
The Wall Street Journal recently carried an article, Big Bank’s Lending Programs Yielding Few Results So Far, which summarizes efforts by big banks like Goldman Sachs Group, Citigroup and Bank of America, under pressure from the Obama Administration, to launch programs to increase lending to entrepreneurs. Most of these programs are Community Development Financial Institutions (CDFI’s) – oh, great, another financial algorithm – which primarily lend to small businesses in low income areas – a worthy program but hardly a program targeted at the broad small business community.
Three days earlier in, A Credit Crunch That Lingers, the WSJ pointed out that only half of small businesses that tried to borrow last year got what they needed according to (more…)
Yesterday, I referenced a shorthand version of a business plan outline. Most of you saw the words "business plan" and immediately started looking for the key to the gun cabinet, conveniently placed right next to the liquor cabinet ... because that phrase usually incites a painful, grinding noise between your…
I've written numerous posts about business plans ... the importance of preparing them, what should be in them, etc. Seth Godin has another, very simplified concept about what's really needed: * Truth * Assertions * Alternatives * People * Money Cuts to the quick, doesn't it? What do think is…
I’m sure this will be a popular post … but set aside your emotions for a moment about the BP disaster… and consider the insistence by the federal government that an independent agency take over the claims resulting from the oil spill, purportedly overriding BP’s authority, and that of the other 12 entities on board the oil platform, in those matters. The suggested prototype is the independent examiner appointed to handle claims resulting from the events of 9/11 … but recognize that those events were NOT directly caused by a legal entity with rights and responsibilities and shareholders, or that was subject to a myriad of legitimate national and international governing bodies.
Who should decide how much to pay whom for oil spill claims?
What I wonder is whether BP … in most cases, any corporation … shouldn’t have some rights and control over the claims paid from funds ultimately belonging to their shareholders? Take special note that in BPs case, a powerful example of the global economy in which we live, 18 million British citizens own stock in BP, many of them retirees.
Emotions are running high and many people would prefer to see BP hanging from the nearest rafter. At the same time, shouldn’t a company be allowed to settle claims in a fair and reasonable manner? There are plenty of ways in which individuals and organizations can seek redress if they disagree on the results, either through appeal or in claims or civil courts if a reasonable settlement cannot be made.
What paperwork? (more…)
Like we need more bad news in or about California ... but the Chief Executive organization's survey of Best and Worst States for Business 2010 finds the Golden State's golden egg is actually something else that's been painted over ... if you catch my drift. We're not just last for…
I'm a relentless advocate for outside board members in family businesses, in large part to divorce the value of objective business discussions from subjective family dynamics. I've seen a family member derail an important conversation because his baby brother ... some 30 years ago ... wrecked his bicycle. Jeff Bussgang,…
Many of you have seen articles about this general theme recently – in part a function of "The No A**hole Rule" published last year by Dr. Robert Sutton of Stanford University. Lars Dalgaard, President of Success Factors, a company with whom I have an affiliate relationship, spoke recently about his…
Someone recently told me that they’re bored by finance. “Don’t distract me with strategic finance stuff, just let me run my business the way I know how.”
“No problem,” I said, “if you’ll just answer one question. What if the way you’re running it is causing increasing strain on your financial resources, cash flow is dwindling and you’re destroying market value every year. Do you care about any of that?”
“Of course, I do, but when sales start picking up again, all of that will go away and my EBITDA will return to normal levels.”
“Really?” I said. “How do you know that?”
“That’s the way it’s always worked.”
“Have you had any problems with your banking relationship?” (more…)