Angel investors want entrepreneurs to demonstrate that they can “build someting and sell it,” Ellen Sandles, Executive Director of the Tri-State Private Investors Network, told the Wharton Club of New York. Angel groups are more forgiving (than venture capitalists) of a not-filled-out management team, but would rather pass on a deal than invest in a company that is at risk of running out of cash before breakeven is achieved.
According to an Amercian Bankers Association survey of its member banks, 67% of small-business loan applicants typically lack the documentation they need, the “Westchester County Business Journal” reported. According to James Ballentine, director of the ABA Center of Housing, Community and Economic Development, the survey also found that applicants have an incomplete business plan 43% of the time, lack collateral 27% of the time. Responding bankers had the chance to give tips to potential loan applicants, these fell into five categories: 1) Be prepared, 2) Know how much you need, 3) Have a backup plan, 4) Nurture management skills, 5) Establish relationships.
Writing for the New York Enterprise Report, Beth Polish enumerates these tips for those looking obtain private equity for their companies: 1) Wait until you’re really ready, 2) Prepare yourself and your company, 3) Identify the right target investors, 4) Conduct a two-way courtship, 5) Negotiate like a pro, and 6) Don’t wait to finance your company until you’re running on fumes.
This New York Enterprise Report piece describes why choosing the right distributor is crucial for your business. Your product’s desired distribution patterns, the nature of the proudct, and available resources all need to be considered when selecting one or more distribution channels. Direct sales can lead to the greatest revenue realization, but is also the most costly and resource intensive. Selling through distributors can place a product into new geographies and customer segments, but at a lower gross margin per unit. Selling your product through Original Equipment Manufacturers (OEM’s) can be a valuable source of steady sales, but at lower gross margin than the other two options.
A recent University of Pennsylvania study found that 64% of respondents who had recently used the Internet did not know that it is legal “for an online store to charge different people different prices at the same time of day.” Research shows that people often get upset if they learn that they paid more than someone else, possibly because they do not know much about what goes into a company’s decisions to set prices. On the flip side, Wharton Professor Peter Feder says that companies that benefit most from dynamic pricing are those that experiment with different pricing strategies, trying out lower and higher prices to different customers, and utilizing coupons, discounts and other incentives to maximize the customers’ shopping experience, and their own profits.
