CAPITAL STRATEGY – READY TO RECEIVE CAPITAL
Karl Dakin
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
CONTENTS
·?????? Quick Calendar – It’ a Busy Week
·?????? Funding Point
·?????? Camp Wapiyapi and Colfax Marathon
·?????? Successful Funding Show
·?????? Don Cohen Show
QUICK CALENDAR – IT’S A BUSY WEEK
In addition to this Instant Funding newsletter, I host the Successful Funding show, appear as a guest on various podcasts and television shows, speak at various events, and present my educational programs. I quickly list upcoming opportunities to share information, learn, or meet in person or via videoconferencing. I've included more info below.
TODAY - THURSDAY - SuperCrowd 2024 – Impact Crowdfunding – Wednesday/Thursday – April 17/18 - Online
Successful Funding – Community Building – Tuesday, April 23, 8 a.m. MDT – LinkedIn Live
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FUNDING POINT – CAPITAL STRATEGY – READY TO RECEIVE CAPITAL
Capital is needed to start and grow a business. From the day that the concept of a business opportunity forms till the day that the new business achieves breakeven cash flow, capital will be required that must come from the business founders or an investor. Even after achieving breakeven cash flow, a business may continue to have capital shortfalls as the capital required to grow is greater than the profits generated from sales.
?This simple reality dictates that every business have a capital strategy – a vision for where and when the business will obtain capital so that starting and growing is unrestricted by a lack of capital.
?On Tuesday, Lucas Marquardt of Precision Financial was my guest on my Successful Funding show.
??We discussed common practices of small businesses which often use a just-in-time capital strategy. In these situations, the small business will operate until they run out of capital before engaging in raising funding. This approach is similar to driving in rush hour traffic where a driver is continually speeding up and slowing down in response to traffic flow. This stressful situation may not be avoided in rush hour traffic, but a good capital strategy may avoid fluctuating operations.
?Lucas shared that in his work as a part-time CFO, he works with businesses that experience continuing cash flow shortages. It is not clear if this situation is caused by short-term planning or growth beyond projections, but the problems of cash shortfalls remain.
?We discussed the best form of capital is low-cost, line of credit financing. This source of funding has the most flexibility to match the needs of a business. In addition, using as much financing as needed and no more than needed will keep the cost of money as low as possible.
?Like any form of funding, a line of credit requires going through a capital campaign that involves getting the business ready to receive capital, identifying sources of financing, developing a pitch package, and then going through the application process. Obtaining financing may require pitching to multiple sources. All of this takes time and money.
?As Lucas observed, the best time to seek funding is when you don’t need it. This situation occurs when you have positive cash flow and sufficient capital for near-term goals. It represents a time when a business can put on its best face. A startup business may not be able to achieve this status, so it should work to line up financing before starting.
?As described within this Instant Funding newsletter, the three key factors to obtaining funding are (1) knowing the investor, (2) the investor having funding ready to deploy, and (3) sufficient motivation of the investor to choose a business to invest in over all other choices.
?Entrepreneurs should talk with different sources of line of credit financing early and often so that they are known to the source of funding when an application for financing is submitted. Keep in mind that line of credit financing is not limited to banks but may include vendors that may finance the purchases of the small business or an associated financing business.
?The application for a line of credit financing should be submitted as soon as possible so that it is in place when needed. A small business should anticipate going back to any established line of credit financing source to expand the size of the line of credit as often as possible.
?As a cautionary note, once a small business has established a line of credit, it should not assume that the line of credit will be available when needed. The funding source may experience its own cash flow shortfalls, face a change in regulatory requirements that limits its ability to provide funding or have a demand from other businesses for use of their lines of credit where your business may be placed in a line to wait.
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Businesses should have a capital strategy that looks forward at least one year and as far out as five years. The capital strategy should provide for funding as needed when needed to attain all milestones leading to the achievement of all goals of the business.
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CAMP WAPIYAPI AND COLFAX MARATHON
?I will be participating in the shortest part of the Colfax Marathon on May 18th – the 5K (run, jog, walk, enjoy being outdoors) to raise money for Camp Wapiyapi – an outdoor camp for kids with pediatric cancer that will hold camping sessions in late June (male volunteers are still needed as camper companions).
?If you are interested in also raising money through this fun event, there is still time to register and sign up to support Camp Wapiyapi.
领英推荐
?Party Gets Started With the Colfax 5K
?Thousands will gather on Saturday, May 18th for a 5K to kickoff Denver's largest running weekend that includes a well organized course, dogs, and race shirt.
?The finish line has food and DJ Sinna-G (on-air radio personality from 100.3 FM) to keep the party going!
?The party starts in Denver's City Park at the same spot as Sunday's Marathon. Run a PR or walk it with friends and oh yeah, dogs are invited! They will have a blast with their own bandana and hundreds of their friends!
?SUCCESSFUL FUNDING SHOW
Tuesday, I hosted my Successful Funding show with Lucas Marquardt of Precision Financial as my guest. We covered a wide range of activities regarding a small business and the need to manage their financial records to get a small business ready to receive capital.
You may see a recording of the show at:????????????
Next Tuesday, on April 23, at 8 am MDT, my guest will be Kathleen Minogue with Crowdfund Better. We will be discussing how small businesses may access their networks of people to gain investors and support their capital campaigns.
You may register to attend this free event at:
The Successful Funding show on my LinkedIn profile will repeat weekly at 8 a.m., MDT on Tuesdays. You may register to attend by going on LinkedIn, searching for Events, clicking on the Events button, searching for Successful Funding, and then clicking on the Attend button. You should receive an email with a link to save to your calendar. You can also click the Share button and obtain the URL link to the show to put it in your calendar.
You may view all of the Successful Funding shows in my Posts on my LinkedIn profile at: https://www.dhirubhai.net/in/karldakin/
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?DON COHEN SHOW
I was a guest on Don Cohen’s show on LinkedIn Live on Monday and Wednesday this week. I enjoy being a guest and engaging in conversations with other guests and with Don on building communities and using LinkedIn as a communication channel. Every show is its own adventure as we start with a word of the day and then see where the conversation goes from there.
Don is an expert on LinkedIn and particularly the use of LinkedIn Live streaming to build brands and communities. We will discuss using LinkedIn as a social media platform for building communities that support raising funding.
All shows where I have been a guest can be viewed on Don Cohen's LinkedIn page under Posts.
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Karl Dakin, the Capital Coach
Dakin Capital LLC
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
10 个月Do you have a line of credit financing?