Does Your Business Deserve Financing?

Weeding Out The Poor Business Model

Does Your Business Deserve Financing?I listen to the average business man every day talk of the difficulty experienced in obtaining capital. In most cases I can see that the enterprise they are speaking of does not in fact deserve the financing sought. Continuing losses, bad business decisions, poor judgment, and a host of other reasons why funding is unobtainable. The market has a way of weeding out the poor business model.

So Few Find Needed Capital at the Prescribed Time

In some cases the needed capital sought is in fact deserved. But it is a rare thing indeed. For those enterprises the principal must endure days, months or even years to find the right financing solution. That is in fact part of the test. So few find the right match out of the shoot. So few find a steady stream of needed capital at the prescribed time.

Always Assess the Business Model

The rule of thumb is to always assess the business model. If it is not profitable after a year or so then either adjust it to profitability or move on. Not every idea can become a successful enterprise. Not every business model can be profitable. Not every opportunity can be converted into a going concern. Not all of us are meant to run our own business. Put it all together and you need to asses not only the model but yourself. The two must fuse perfectly in order for the model and you to thrive. Analyze, assess and examine all the factors before you continue your quest to run you own show.

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George Lovato, Jr. is President and Principal of BH Capital Ltd., Merchant Banker, Consultant, Author and Lecturer. Happily married for over 30 years to his childhood sweetheart Gale, they live nestled in the shadows of the Sandia Mountains in Albuquerque with their six hounds.

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One Response to Does Your Business Deserve Financing?

  1. Kim Bond November 12, 2010 at 8:09 pm #

    George, thank you for such great info, I love reading all of what you write and appreciate the fact it because you are right on the mark with the information.