The belated investment in small businesses

Let's imagine that you are given a million bucks and ask to spend wisely for a day, without leaving your city. Theoretically, you can spend the same amount. But the mind is unlikely to. Buying apartment - for a day? . Buy a dozen cars? .

Money is like the movement. In this case, the perfect business, where it is zero in the accounts of the technical. How long is a day, so many and out. In reality, of course, is the working capital reserve ( oborotka ) and there's even a whole area a short credit - factoring - when to replenish the working capital of a percentage. But if this is understandable, it is unclear what to do with the money of investors who want to give you a lot at once.

The point of view of the investor or lender is simple - the sooner and the more he will give money, the sooner and more will be paid.

Viewpoint credited business a little bit different - the more accurate and timely will be available, the easier it will be easier to pay for these obligations.

Let's say you need a shipment of 100 thousand. bucks to get a profit of 10 thousand. bucks. You also only have 10 thousand. and you're ready to take another 90 thousand. at 3 % per month. However, the investor provides a loan of 500 thousand. under 2. 5% with a return at maturity. Scenarios:.
- You insist on the direction you want the volume, get a loan, buy the game and implement it within a month. In the end, pay the creditor in 2700, net income 7300.
- You agree to the loan, take a consignment of 500 thousand. And within five months of implementing it (faster time to market is not to consume ). Lender you pay 500 * 0.025 * 5 = 62.5 thousand. Net loss - 12.5 thousand.

You say - a rarity? . Is a common situation.

Now let's see how there is a belated investment. I refer to those entering the business of money when it is already clear that the aid does not help, or in such quantities is not required.

Suppose you are in thought - to open a small chipok or two or three good shop. Costs chipok funny, the cost of stores advertising - a considerable sum. As a result, at the start you make the decision to save and open chipok. Six months later, you realize that chipok lives on the edge of cost and can go into the category of profitable companies only if it increases throughput times in two. However, you forget that attendance Chipka - the value of rigidly bounded above. Infusion followed, but attendance grows by 10-20% and all. The money spent, there is nothing to return.

In my eyes a man in his right mind has invested in a restaurant about 15 - 20m. Of these, he spent much of the equipment and cooks. But decided that at this time and stop and interior planning a girl who had just designed the apartment, waiters were recruited from the street, the room was rented in the street in 3- 4km from the center and an almost complete lack of infrastructure near: no office buildings or parking lots, . The advertising budget was 0.2-0.5% of the total investment. Six months later, it was decided to increase the advertising budget. A year later, the losses amounted to roughly the amount of initial investment and the restaurant was closed.

Almost any project can determine the actual ceiling of. For example, buying a digital machine for mini- printers in the office center. The main subject of marketing - business cards. Profits from the business cards of about 1. 5rub. To earn at least 75 thousand. rub. ( this will ensure profitability of the enterprise), it is necessary to print 50tys. business cards or 500 medium runs. Hard to imagine a situation in which this can happen. As a result, the purchase of such equipment based on the unrealistic volume printing can cost you a decent amount of losses during the year. But this example has nothing to do belated investment. Did you try to start pouring money into ads, hoping to attract customers to the business cards from all over the city.

Idealistic view of the business brings almost all beginners. As a result, damages, losses, frustration. To avoid this, try to be serious and realistic plan for several years. If it is outside your jurisdiction, do the company a minimum order of calculations, which subsequently is (probably) will be sold when you feel ready for something more.

The latest Forbes was a good story about a man who unsuccessfully for several years carried on business in a pair of its fitness clubs. Development was not, debts grew and after a while he sold them at cost price. And it was revealed, involving much larger network of clubs minifitness. If he had not brought enough money, you could do a franchise, but also repeated his story, ending in 2-3 clubs. Now he is the owner of the franchise network of more than 400 clubs and an increase of about 30-50 clubs per month across the country (USA ), and even abroad (Mexico, Canada).

Money is needed when they needed. And in the quantities that you need. In this simple secret of the correct credit. This allows us to calculate the forces and extinguish the loan in a timely manner without sacrificing the pace of development.

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