FUNDING SOURCES #8 - SUPPLIERS
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
MY QUICK CALENDAR
TOMORROW, TUESDAY - SUCCESSFUL FUNDING, October 8, 8 am MDT Linkedin Live
WEDNESDAY – DON COHEN show, October 9, 9 am, MDT, LinkedIn Live
THURSDAY, COMMUNITY REVITALIZATION, October 10, 8 am MDT LinkedIn Live
FUNDING HAPPENINGS
?DreamSpring, a non-bank source of debt financing, published an article titled 4 Steps to Building Creative Business Partnerships to avoid silos (see yesterday’s edition of the Instant Funding newsletter) and encourage collaboration.
FUNDING POINT – FUNDING SOURCES #8 - SUPPLIERS
There are some businesses that only their founders can love. For a variety of reasons, it is very difficult, if not impossible, for an investor candidate to fund if all they can look to is participation in the revenue or income of that business:
·?????? Business is too young – pre-revenue
·?????? Business is not in the investor candidate’s backyard
·?????? Business has lots of competition, from doing nothing (status quo) to everyone is a competitor (think of a coffee shop)
·?????? Business is engaged in a market about which the investor candidate has no knowledge
?Suppliers are commonly the most interested in the success of a small business as their sales may grow as the small business scales operations.
?Funding from a supplier may take the form of:
·?????? Equity investment
·?????? Debt financing
·?????? Deferred payments
·?????? In-kind services (warehousing of inventory)
·?????? Technical and market services
·?????? Industry contacts
?Advantages
?Suppliers often know the markets for the products and services of a small business as well or better than the small business.
?Disadvantages
?Accepting funding from a supplier may commit the small business to purchase all of the needed products and services from the supplier. This restriction may limit selection and make dependence upon the viability of the supplier another risk factor.
?Recommendations
?A small business should determine common funding available through all of its suppliers. It should then explore better funding choices from alternative suppliers. Where common funding does not meet funding needs, the small business should discuss with suppliers creative options.
领英推荐
?RCI COMMUNITY FUNDS
As a member of this new company, I am working with a team of professionals to craft a new funding mechanism for revitalizing underserved communities.
Approval was given by the State of Maryland for the formation of RCI Community Funds Benefit LLC – this for-profit business is working to raise and deploy funding strategically into a series of selected communities.
In parallel, the newly formed RCI Academy corporation will offer educational programs on community revitalization.
RCI Community Funds will host the Community Revitalization show this Thursday, October 10th at 8 a.m. MDT/10 a.m. EDT on LinkedIn Live. The featured guest this week is @Chris Miller, the Executive Director of the National Coalition for Community Capital (NC3).
You may register to be in the audience at:
Last week, the guest on the Community Revitalization show was @Frank Moseley II with the Center for Common Ground. The conversation talked about the need to establish trust with a community before launching projects for rebuilding the community. A common path is through education on financial literacy.
You may see a recording of the show at:
?
?DON COHEN SHOW
NEXT WEDNESDAY, October 9, I will be a guest on the Don Cohen show. 9 am, MDT on LinkedIn Live. The word of the day will be ‘initiative’.
?You may register to be in the audience at:
?Don is my mentor and guru on using LinkedIn as a social media platform to build my brand and build my community of individuals and organizations who work like me to help small businesses and communities raise funding. Donald Cohen
?
??
SUBSCRIBE
You may subscribe to this Weekly edition of my Instant Funding Newsletter, or you may subscribe to my Daily edition.
??
Karl Dakin, the Capital Coach
Dakin Capital LLC
?
--
5 个月That's veary Interesting event thanks for sharing this?????????????????????????
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
5 个月What terms do your suppliers offer to provide any form of funding?