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Showing posts with label Business Financing. Show all posts
Showing posts with label Business Financing. Show all posts

Sunday, November 5, 2017


Own your name. Make sure the company name you choose is one with an available trademark and Internet domain name. To see if a trademark is available, you can do a trademark search online through the United States Patent and Trademark Office's website. Failure to properly obtain a trademark could put your fledgling business at risk -- not to mention that the time and money you have invested in establishing your business name could go to waste if someone else owns the trademark. Don't assume your new business name is not trademarked because you were unsuccessful finding such name on the Internet, either. Someone could have used the name for a business that closed, or filed a trademark and never used it.

Get in with the law. Understand what regulations, licenses and taxes you will need to follow, obtain and pay for your new business. After doing some initial research on your own, consult with a lawyer and accountant to confirm your understanding and to help structure your business to be in compliance with the law. Generally speaking, you will need to need to (i) ensure you are charging the correct amount of tax your service or product that your business is promoting, if applicable and (ii) obtain all of the proper licenses needed to run your new business, at a minimum. Establishing a successful business is hard enough. The last thing you need is some technical legality or administrative detail to stand in the way of your success.

How much do you need to live? When working on your business plan, do not forget about the most important factor: YOU. You need to take into account your living costs. Rent, mortgages, and health insurance -- these are all things that don’t pay for themselves. You will most likely need to cut out all the unnecessary extras you can live without. Make sure you account for unforeseen or unexpected expenses by factoring a little flexibility into your budget for those “just-in-case” moments. You might even consider taking a part-time job until things pick up with your new venture and speak to a financial planner to help you budget yourself properly.

Where are you in your life? Starting a new business takes brains, bravery, and what will seem to be endless hours of hard work. When you own your own company, there is always something that has to get done. You will most likely find yourself working at least 60-80 hours a week for the first two years. With that said, I’ll ask you one very important question: Are you ready to give up your personal life for the next three years?

Don’t over -- or under -- spend. Starting a business can be incredibly financially taxing on you and your family. You will need to learn where and when to spend. It’s important not to waste those precious seed dollars but it’s equally important to spend where necessary. In any business, you often have to spend money to make money.  Don’t skimp out on things your company needs. For example, it may be worth it to put $1500 in an online vendor listing, but it may not be necessary to give every new customer a $15 mug. Be sure to keep up with technology too -- there are many time-saving programs and apps (including free or inexpensive ones) that can help you keep track of it all, and as we all know, “time is money."

Friday, April 10, 2015


There have been many business people, entrepreneurs and dreamers been caught with their wallet open by the UPFRONT FEE SCAM. It is rampant on the internet and propagated to a large degree by business websites such as LinkedIn who do not monitor their service as well as they should. However, that is not the point of this post.

The upfront fee for financing is nothing but a big, fat scam. I have never heard of any upfront business financing deal that has ever been legitimate. I have heard of and heard from a number of people who have been taken in by this fraud.

Many of the financing terrorists (this is what they are far as I am concerned) are very, very professional. Some piggy back on the backs of legitimate companies even using cloned email addresses. Some of them are as dumb as a sack of hammers with terrible spelling, amateurish documents and idiotic presentations. In spite of this, they still manage to reel in a few suckers. The problem lies with people believing what they want to hear. If a business person is desperate for financing and does not have the wherewithal to raise funds from conventional sources, they will grasp at straws. These upfront fee scammers know this and bait their hooks accordingly. 

We live in an electronic age. The internet is a tool, a business tool that has trillions of bytes of information at ones fingertips. Why don't people use it to carry out due diligence? A very easy way to start is to type into a search engine the name of the individual or the company offering the financing followed by the word "scam".  And don't just look at  the first page that comes up. Often a website with some relevant information will show up on the subsequent pages. Also, check out scam websites. There are many out there and often or not, a name will pop up. Of course many of these scammers change identities often. If there are no hits in a search, the next best means of testing the validity of a financing offer with upfront fees required is to advise the lender / investor you will place the required upfront fees in trust with your lawyer. Advise the lender / investor to deposit the investment / loan funds in trust with his lawyer and let the two lawyers handle the transaction. If the investor / lender balks at this and advises that is not the way he does business, ITS A SCAM!! No if's, and's or buts. Run for your life.

If anyone who reads this post can provide 100% concrete evidence that an upfront fee financing has been successfully completed, I would be interested in hearing about it. To date I have never seen one or heard of one that has been nothing but a scam. 

Caveat Emptor. Or as P.T Barnum said; "There's a sucker born every minute" Don't let yourself be one.