Bar Stools

I thought renovating my pub would be a Herculean task, but it was a lot easier than I thought. Once I started picking out counters, colors, the wall dcor and even the bar itself, everything just seemed to fall easily and naturally into place.
Why, I can even say now that it was a rather enjoyable experience, similar perhaps to putting together a life-size jigsaw puzzle and seeing the big and beautiful picture materialize right before my eyes. The truth is, the only thing which wasn't easy to pick was the bar stools.

Ive had my old bar stools for years and have grown pretty fond of them, You know, theyre those sturdy steel mounted saddle bar stools, embedded in the concrete foundation, that you think youre never ever going to be able to take out. I hardly gave them a second thought, but once we got around to redesigning the bar, they became my biggest problem. They were comfortable, no doubt about that, with their padded leather bar stools which made you never want to get out of them, one reason I believe why my regulars would stay put until the wee hours of the night. Thing is, the seats of the bar stools were far gone and way beyond repair. Whats even worse is, once we started to look around, we realized that they don't even make that style any more.

Thats been a sort of a puzzle to me. I had the kind of bar stools that were mounted into the ground permanently, which is a good thing because they dont ever get knocked over or get thrown around during fights. But this being the case, you'd think that they'd make them modular, with seats that can be easily interchanged. Not so. We searched almost everywhere and called every bar stool manufacturer in the phone book but many of the seats we cam across just couldn't even be removed. I mean, whats the point of having bar stools that will last forever when their seats wont?

Ripping the bar stools out of the concrete was out of the question, because that would cost a fortune. Also, getting new and completely custom-made stools would have cost a pretty penny too. What I ended up doing was to hand re-upholster each of the stools myself. It was a terrible pain in the neck when I started out, and I was livid and grouchy, but once I realized the fun of getting to pick out, design, and build the bar stools myself, I quickly warmed up to the idea.

Now, my pub has re-opened, and everything looks just perfect. I just love seeing the faces of my regulars when they see my new-look pub for the first time. And the good thing is, business has never been better.

Author: Philip Culver
Article Source: EzineArticles.com
Provided by: Wordpress plugin Guest Blogger

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Orignal From: Bar Stools

Creating A Winning Bar Business Plan

Running a bar may seem like a lot of fun, like a full time party, but it is important to understand that the bar business is first and foremost a real business, and it is important to give it the due diligence and seriousness that it deserves.

==Marketing Your Business Effectively==

This means that even the most casual bar owner will need a good bar business plan in order to get off to a good start.

Getting a bar business up and running is never an easy process, and creating a professional and detailed business plan will help you plan for the future, market your new bar business effectively, and increase your chances for success.

==Detailing Both The Challenges And The Opportunities==

Getting a new fledgling business off the ground is one of the most difficult things anyone can do, and it is important that your bar business plan detail both the challenges and opportunities the new business is likely to face.

Being honest about things like the level of local competition, the potential legal issues the bar is likely to face, and other issues, is the best way to reassure potential investors and nervous lenders.

==Make Sure You Do Not Cut Corners On Your Bar Business Plan==

The business plan you create will be one of the most important documents in your new businesses.

When starting a new business, whether it is a nightclub, a bar or a disco, it can tempting to want to get the business up and running quickly, and to cut corners on creating the business plan.

==Your Bar Business Plan Should Be As Complete And As Detailed As Possible==

It would be a mistake to do so, however, since the bar business plan will be the cornerstone of your new enterprise.

Your business plan will come into play not only at the beginning, when you are seeking that all important startup capital, but down the road as well.

Every time you need to take a loan or attract investors in order to expand the business or overcome temporary difficulties, the business plan is the first document any potential lender will want to see. It is important, therefore, for the business plan to be as complete and as detailed as possible.

==Your Business Plan Can Help With Minimizing Your Tax Burden And Planning For Legal Liability Issues==

A bar business plan will also be important when it comes time to minimize your tax burden and plan for legal liability issues.

Planning for, and minimizing, legal liability issues is particularly important for the bar owner, and a good solid bar business plan will help you plan this important issue in the most effective manner possible.

Author: Shaunta Pleasant
Article Source: EzineArticles.com
Provided by: Guest blogger

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Orignal From: Creating A Winning Bar Business Plan

Save Thousands on Your Home by Utilizing California Refinance

Whenever I hear the word refinance or mortgage, I start to get nervous. In California, most folks like to relax, enjoy the sun, sky and surf (or mountains if you have em’) and not mess around with their hard-earned homes. But California Refinance can actually save people thousands upon thousands of dollars in mortgage payments, and can turn some people into full fledged home owners on beautiful, panoramic California property for far less money than they could have ever imagined. They can even look into purchasing homes that they never thought possible, or free up money to turn their current home into their fantasy home. Talk about California Dreamin’!

California has everything- Coastal property, beautiful parks, financial districts, a world-renown entertainment industry and a sublime wine industry. This makes California an extremely popular residential settlement zone. Permanent and seasonal home owners flocking to the West Coast, along with vacationing renters, have brought up market value considerably. Add this to the fact that California offers more benefits than other districts, and you have the perfect time to take advantage of the considerable opportunity this strong market brings by using California refinance to cut down on monthly payments, reduce loan lifespan, and find ways to make your interest tax-deductible.

But let’s not get ahead of ourselves. First a few quick points on refinancing for folks like me who just get tired of these terms just being bounced around without context. Refinancing a mortgage is simply taking out a new mortgage. When interest rates drop lower than your current mortgage rate, refinancing your mortgage could reduce your monthly home payments and free up cash to pay higher-interest debts or other expenses such as home maintenance. This strategy can end up freeing thousands of dollars for other expenses and pursuits, or it can be used to shorten the amount of time spent on paying for your home.

Many options exist through California finance. You can get a lower rate mortgage. You can transform an adjustable rate mortgage (known as an ARM mortgage) to a fixed rate, meaning no fluctuation in price according to a rising and falling real estate market which can be an expensive gamble. A first and second rate mortgage can be again changed into a single lower rate mortgage, and cash is available for family expenses. All this can be provided by California refinance as there is a focus on offering all different variations of home refinance loans, and unlike more conventional lenders, California refinance providers are more receptive and helpful to unique situations and financial constraints.

The bottom line is that california refinance helps homeowners to cut down on monthly payments by reducing interest rates and payments. Providers can also assist with attaining cash needed for debt consolidation and home maintenance. Borrowers with good credit history can be offered competitive rate programs, borrow up to one hundred percent of their financing and change their fixed and adjustable rates. California finance supports buyers that other providers might turn a blind eye to by working around homeowner problems such as bad credit history, nonpermanent employment, bankruptcies, slow payments, etc. In short, a world of options exists to save any and all borrowers money, time and trouble.

Utilizing California's refinance secrets will allow you to put your money into more pleasurable pursuits. Whether you are catching a wave or a movie, sipping some Sonoma wine or an L.A. nightclub martini, strolling by the golden gate bridge or by old faithful, or simply spending some quality time in your one-hundred percent bought and paid for home let California refinance worry about the mortgage. You sit back and enjoy life.

Author: Christopher Luck
Article Source: EzineArticles.com

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Orignal From: Save Thousands on Your Home by Utilizing California Refinance

Lawsuit Loans - Caveat Emptor!

If you have been injured in an accident it is quite likely that you have been financially stressed as a result, and are in need of an advance against your insurance claim, lawsuit or other legal action. If you are looking for someone to lend you money based on your future settlement, BEWARE! There are reputable sources available but, unfortunately, there are many more disreputable ones as well. In this article we will explain what to look for in a funding company and how to avoid being burned.

First of all lawsuit loans are not really loans they are non-recourse investments and are not subject to usury laws. To avoid the usury limits, which would render the product economically infeasible, the typical lawsuit loan or lawsuit funding transaction is done in the form of an investment rather than a loan. This means that the funding company only gets paid if the lawsuit or claim is successfully resolved. If you lose your case you own them nothing! Generally speaking, this non-recourse element renders the transaction an investment (not a loan) under the law[1].

In the past, there were no sources of help available to personal injury victims due to a strange confluence of circumstances.

1. Bar Association rules of ethics prohibit your attorney from lending you money for anything but case expenses, experts, tests, travel to the doctor etc. This rule exists for your benefit. The Bar is rightly concerned that if your lawyer lent you money against your future settlement, a conflict of interest might arise, and you could be pressed into accepting a settlement that was less than you otherwise would accept. Also, attorneys are not banks and they simply cant afford to operate their law practice and be a lending institution as well.

2. Banks and traditional lending institutions do not have the skills to evaluate personal injury lawsuits and thus, will not lend money to someone whose primary asset is their lawsuit.
About seven years ago, this void in the financial system started to be filled by a number of entrepreneurial companies some good, some bad. It was a rather strange group consisting largely of lawyers, wall streeters, and well-heeled business people. They used their own capital to fund cases and a new industry was born.

In these early years fees were very high and contracts very severe. While rates generally ranged from 3% to 6% per month, it was not uncommon to see contracts with rates of 15% per month, compounded! Contracts were also very Byzantine. However, rates have steadily come down and contracts, while not exactly consumer friendly yet, have become less severe. In short, the business was maturing into a responsible part of the specialty finance industry.

However, over the past two years or so, American Cash Flow Corporation[2], a marketing company with a rather checkered history, targeted the industry for promotion. Since then, the lawsuit funding industry has resembled a Wild West gold rush attracting an unbelievable number of get-rich-quick rip-off artists, amateur lending brokers with no experience and just plain folks who paid their $5,995 ($2,495 for the tape course) to become a cash flow broker and are trying to make their fortune.

Virtually all of these cash flow brokers are just that brokers. They do not invest their own money to fund lawsuit advances. However, they all do have websites that trumpet their expertise without revealing that they have none and are not acting as principal. If you are not careful dealing with them can make your situation worse much worse.

Tips for shopping for a lawsuit funding:

Deal with a company that is investing for its own portfolio. Otherwise, you could wind up paying a great deal more than necessary. Do not deal with brokers - someone has to pay the brokers fee and that someone is you! Would there be so many brokers if their commissions were not high?

Deal only with certified websites. When applying online, deal with a website that has the seal of Trust-e or one of the other recognized non-profit website privacy confirmation organizations. Your personal information may be used improperly.

Do not supply information that is not otherwise discoverable. Certain information is privileged (between you and your attorney) but that privilege is lost once it is shared with a third party. An inexperienced funding company may require information about your case that, once in their possession, will lose its attorney-client privilege and may be subpoenaed by the defendant. Experienced companies like CapTran www.captran.com never ask for this type of information.

Look for the best rate. Some companies like CapTran offer best rate guarantee. If CapTran approves a case and makes an offer, they will match or beat any legitimate competitors written offer or pay you $200. (You only get the $200 if they fund the case or you turn their offer down for some other reason.)

Do not make multiple applications with different funding companies. First of all, you have no way of knowing if that company is going to try to sell your deal to one of the others to which you have applied (which will not sit very well with the real funding source). Multiple applications create a nuisance for your attorney since he or she will have to complete many requests for information. Your best bet is to make an informed choice and work with that company.

Check with your attorney. Never sign a complicated contract such as a lawsuit funding agreement without first consulting with your attorney.

Questions to ask a funding company:

1. How long have you been in business?

The lawsuit funding industry is very young and has a great number of brokers and inexperienced companies with no real money. A sure tip-off is if the company advertises a mind-boggling array of financial products and services including note purchasing, account receivable financing, structured settlements, purchasing of lottery winnings etc. They simply want to shop your funding application until they find someone with money to fund it. Meanwhile, nothing is really happening with your application. If a company advertises that they work with a network of investors it simply means that they have no real funds of their own and therefore, cannot make a funding decision themselves.

2. How many cases have you funded (approximately)?

CapTran for example, has handled over 10,000 funding requests and invested in several thousand of them.

3. Do you use your own money or are you a broker for others?

Be wary of companies that are members of the American Cash Flow Association as they almost certainly have no experience. Also be wary if a human never answer the telephone, as that is surely an indication of the level of service you are likely to get.

4. Who owns your company?

5. What is their business experience?

6. Do you have lawyers and paralegals on staff?

7. What the Annual Percentage Rate (APR) you charge?

(If you are quoted a monthly rates see the next question.) You will probably be told that it depends on your case, which is true, but they can tell you what they charge for a typical case. If they tell you there are no typical cases hang up and go the next company on your list. You should expect to pay simple interest rates as low as 2% per month for a case where strict liability standards apply; 4% to 6% for a typical auto case, and; 6% or higher for medical malpractice. ANY rate higher than 7% per month can be bettered with a little shopping.

8. Are your monthly fees compounded?

Many companies advertise deceptively low rates but load up the contract with many charges and monthly compounded rates.

The most common practice is to charge an application fee and/or a closing fee that is sometimes 10% or more of the amount you are advanced. If you contract for $10,000 you might be charged an application fee of $500 AND another fee equal to 10% or $1,000 a total of $1,500 in fees. Now, here is the best part you will have to pay interest on $11,500 interest on the $1,500 you didnt even get! In this example, if you were charged a 4.00% compounded monthly rate the true annual cost is not 48% but 75%! In this scenario it would be cheaper to take a 6% simple interest rate from someone else.

DO NOT AGREE TO PAY COMPOUNDED RATES!
Almost every client we deal with thinks that their case will settle in a short while, but personal injury cases can drag on and on for many reasons and those compound fees can eat up all of your settlement if your case takes much longer than you anticipate.

9. Do you charge any fees or discounts of any kind?

This is very important as some firms charge a low monthly rate but add on application fees, discounts and other hidden charges that will dramatically raise the cost.

10. Will you send a sample contract to my attorney?
Any reputable company will do this.

11. Can you give me an attorney with whom you have done business for a reference?

Any reputable company will do this also.

12. Are you a member of the Better Business Bureau? www.bbbonline.com

CapTran is a member of the BBB online and subject to mandatory dispute resolution.

13. If not, do you have a mandatory dispute resolution policy? What is your rescission policy?

CapTrans policy allows for rescission for up to 5 business days after funding.

If you follow these tips and ask these questions, your chances of finding the right funding company and the best deal for you are excellent. Armed with a little preparation and the age old admonition, caveat emptor let the buyer beware, you can successfully obtain a pre-settlement advance that allows you to stay the course and get a much better case settlement.

Footnotes

[1] This is a complicated topic but, generally speaking, if repayment of any part of the principal or interest is contingent on an event that is more than a mere colorable hazard, the transaction is not considered a loan and not subject to usury laws.

[2] American Cash Flow Association ( ACFA ), also known as the American Cash Flow Institute ( ACFI ), American Cash Flow Corporation ( ACFA ), National Mortgage Investor's Institute ( NMII ), Diversified Cash Flow Institute ( DCFI ), among many other names were all founded by Orlando lawyer Laurence J. Pino , who reprimanded by the Florida Bar Association for misusing an investors funds.

On June 20, 2003 the State of Tennessee issued a Cease and Desist Order in which the State charged that American Cash Flow Corporation together with 12 related businesses and 12 named individuals operated an illegal securities scheme that promised to make investors through the business of brokering cash flow transactions. Pino was cited by the Attorney General of Tennessee in 1996 for a similar scheme under the name of Diversified Cash Flow Institute . At that time DCFI paid fees and costs to the state of $10,284 for violating the Tennessee Consumer Protection Act of 1977.

Noted Columnist Jane Bryant Quinn also wrote disparagingly about Pino and his operations in The Washington Post 0n June 18, 1998 "Note Brokering: Harder Than it Sounds"

"Pino, 46, a lawyer in Orlando, Fla., describes himself as an "exceptional business trainer." His seminar experience goes back to 1983 - not always in the best of company. He first lectured for huckster Charles J. Givens Jr., who ran some dubious financial-planning organizations. In 1993 and again in 1996, juries decided that Givens had committed fraud. Later, Pino taught for Dave Del Dotto, an earlier popularizer of "cash flow," who settled an FTC action in 1996 with a $200,000 fine. (Del Dotto went bankrupt; the FTC says he never paid). Pino himself was reprimanded by the Florida Bar Association in 1988 for misusing an investor's funds."

And in Newsweek reporter: Show Me The Money" "Larry Pino's pricey cash-flow workshops plug an easy way to get rich quick. It's a real business, all right -- but there isn't much easy or quick about it."

Wayne C Walker
President of Capital Transaction Group Inc
www.captran.com
"CapTran" a leader in Litigation Financial Services

Author: Wayne Walker
Article Source: EzineArticles.com

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Orignal From: Lawsuit Loans - Caveat Emptor!

Writing A Restaurant Business Plan To Help Your Business Grow

At one time, every chef has dreamed of opening his or her own restaurant. Indeed, owning a restaurant of your own can be a great way to put yourself squarely in charge of your own financial future.

There is a good reason why owning a business remains such an enduring American dream. There is a freedom that comes with knowing that you are responsible for your own future success.

== Things To Consider ==

For those considering opening the perfect restaurant, however, there are many things to consider. The failure rate for new businesses is notoriously high; an this is true for newly opened restaurants as well.

Therefore, it is very important for the potential business owner to spend as much time and effort preparing and creating a business plan as they do finding the perfect location and the best restaurant ovens.

== The Strengths And Weaknesses Of The People In The Business ==

It is important to take stocks of your own individual strengths and weaknesses when creating that business plan for the new restaurant. For instance, if your strengths lie in the financial field, you may be able to create the financial and budget portions of the business plan on your own.

The potential restaurant owner will likely be able to detail the actual equipment that will be needed to open the restaurant, as well as the monthly rent or mortgage for the location of the restaurant.

== Seeking Out Assistance ==

When it comes to some other parts of the business plan, however, the entrepreneur may need to seek some outside assistance.

For instance, few restaurant owners double as tax or legal experts, so it is important to seek qualified, independent help when preparing the legal and tax portions of the business plan.

== The Key To Getting Financing ==

A solid business plan is a complicated document, but it is an important one as well. The properly prepared business plan is the key to getting the financing that will be needed to get the restaurant doors open.

A business plan will also be important when seeking private investors or business partners. Any savvy businessperson will want to look carefully at the business plan before deciding to give up their hard earned money.

Author: Shaunta Pleasant
Article Source: EzineArticles.com
Provided by: Guest blogger

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Orignal From: Writing A Restaurant Business Plan To Help Your Business Grow

Top 10 Things NOT To Tell Angel and VC Investors

I am not writing this to create a list of things not to say so people can hide the facts or in any way mislead potential investors. On the contrary I personally believe you must be 100% upfront with any potential investors, and even volunteer some weaknesses to be credible. I am writing it to help entrepreneurs and CEOs design these issues out of their business so they never have to say them. Although there are certainly many exceptions to these, as a general rule there are many good reasons why all of these things should not be part of your company, if you are looking for outside investors. I have discussed some of the logic why, but this should not be considered a comprehensive discussion of the reasoning behind each item. You should also realize some of the reasons are a function or perception, of the market. I would never say they all make sense all the time. Each situation is always different.

Most entrepreneurs greatly underestimate the difficultly and time required to succeed at this task. They also underestimate the opportunity cost to their business while they are away focusing on something else. You only want to raise outside capital, if you really NEED to have capital to grow. I am recommending to many CEOs I coach and mentor today that because it is so difficult to raise money today, and valuations are not great, it would be a far superior alternative to spend the same amount of time selling, or adding value to your business in other ways, than to spend six to twelve months chasing investors. In many cases spending the same amount of time and effort selling your products, or service, could generate just as much money and not dilute your ownership and subject you to the whims, regulations and covenants of bringing in outside capital. This does not, however, mean you should not develop a complete business plan. This process will greatly increase your chances of success whether you are raising outside capital or not.

1. I have not invested my own cash in the business, but have only put in lots of sweat equity. Experienced investors know that a start-up is a roller coaster ride of both highs and lows. They want founders to prove their commitment by investing their own money to the point where it will REALLY hurt if they walk away during tough times. Skin in the game is your vote of confidence, so dont expect others to invest if you dont. This does certainly not have to be all your personal net-worth, but it must be a significant portion. You can take out a home equity loan, borrow or withdraw from retirement funds, or just invest personal savings. In the end this will pay off, if you do it right, because it will make you more efficient with capital usage and allow you to bring in investors later, after you have created some value and increased your company valuation. Ultimately, if you are successful, you will likely own more of the company as a result.

2. This (or that) market research firm said this market will be a $2 billion market in five years, so all we need is 5% of that market to build a $100 million company. Counter institutively this is basically saying you have NOT done your homework, and do not really know who your customers will be. This is top-down, not bottom-up market research. Besides most of these analysts firms lost huge credibility when the bubble burst and people realized some projected numbers beyond what the population of the entire planet for Internet users. You need to describe, if not actually list, the exact customers where you can win in most cases and why. Research says that 32% of angels site weak market analysis and analysis of the competition as the most critical mistake entrepreneurs make in their business plan. You must design your launch strategy around a particular customer profile and offer something that that customer cannot get elsewhere. Smart investors would prefer an unfair advantage in a smaller focused market, because the marketing and selling costs will be lower (concentrated) and the sales close rate higher. This also shows you know what you are out to accomplish and are focused on a smaller market you understand well and can win.

3. My spouse (or any immediate family) will be our other senior officers. Or we are going to use my brothers company for distribution (or anything else). Investors do not like nepotism and also know that a divorce could destroy the company. They are taking enough risk already, so why should they add another layer of risk with the divorce rate at 50%? Why should they believe out of all the management in the world your brother is the best qualified? Also, there can be no conflict of interest issues with deals that could be perceived as favored or the result of nepotism. This allows for shifting of costs and revenue in ways that are totally legal, but at the same time unfair to the investor due to subjective factors. This is fine in a wholly owned private company owned by a single individual (a lifestyle company), but should not really ever happen with outside investors. Enron, Adelphia, Worldcom and Tyco are perfect examples, and these have made everyone more aware of how easy it is to abuse executive positions. It is even possible that in the future institutional investors who allowed this could be perceived as violating their fiduciary responsibilities and have liability. After the fact, if something went wrong and the company shut down, the perception could be that things were done improperly. The room for interpretation on the dissolution of assets could easily be perceived as improper, even when it is done right, due to the wide room for judgement on the value of the remaining assets of any company that is closing. Since this is effectively a fire sale prices will be well below fair market value. In short, avoid any and all conflicts of interest, whether real or perceived.

4. I am going to also be doing some consulting to cover my expenses because of my low salary. Or I have other businesses to run also. Or anything else I invent I will personally own the rights to. These are all variations of the same theme. You are not fully committed to the business you want them to put their money in. This might work for Donald Trump, but for anyone who has not made his or her first $25 million dont expect that kind of latitude. Investors want and deserve your full-time attention as soon as they invest. This might be OK while you are pulling together your plan and dont have outside investors yet, but investors are buying YOU lock, stock and barrel and want your full-time attention and focus. This not only means your time at the office, but as a CEO, or any senior executive really, it also means they want to own your thinking in the car and shower, and all your ideas that are a result of your work.

5. We have it all figured out. The fact of the matter is that the only guarantee you can make is the plan will evolve and change and the business plan is pretty much guaranteed NOT to happen. Only naive investors would think you are going to do everything that the plan says and not make changes as you go. If they really believe this, you probably do not want them as investors anyway. If you say this, you are basically saying you are wet behind the ears or unrealistic. Besides, if you really had it all figured out and proven, you probably would not even need their money, you would be bankable and pay prime rate instead of twenty to fifty percent per year to get equity dollars.

6. We have everyone we need on board in management to be successful. If this were true, you are either spending WAY too much money on staff, or you do not understand the skills you will need to bring on as the business grows and evolves. This is never true and saying it is like waving a flag saying I am an amateur. All investors assume you will need to hire other key players and set aside a stock option pool for that purpose.

7. We are going to sell this product to everyone (even in a single industry), because everyone can use it. This worked during the bubble for a while when $30 million was being dropped (foolishly) at a pop to fund some broad horizontal plays. Today, the smart money is mostly funding companies going after niches, and maybe some verticals (with top management teams, ideas and markets). Virtually every company today needs a market entry strategy that is narrow and focused to establish them as the go to company for a particular problem or solution. You NEED to be the big fish in a small pond first because small fish in the ocean get eaten alive more often than not. You can add niches, products or expand to an entire vertical later after proving every element of your business in a single niche. By the time you get there so much can change it is usually even a waste of time figuring out what that order will be in advance. Markets and technology are too dynamic today.

8. We have no competition. This is virtually never true, as people are doing something to deal with the problem you solve today. If you are a restaurant then the grocery store across the street is your competition. You can almost never view a market that narrowly, unless you just got the patent on nuclear fusion, even then coal, oil, hydroelectric and solar are still competition. Besides you really cant know who else might be working on the problem and if it is an attractive market you will clearly have followers. So you need to articulate how you will stay ahead of competition either way.

9. Only our management team is qualified to develop and execute this business. This is about as false, naive and arrogant a statement as anyone can make, so dont even come close. To say you are the only people in the world who can do this is not only terribly unlikely, it is in FACT something you can not possibly know for sure, because you dont actually know everybody else do you? So it is always a false statement and shows overconfidence. It is better to err on the side of saying something like: we know there will be competition and here is how we will be cheaper, different, better and/or faster.

10. Our projections are very conservative. This is the most overused expression of the lot and I would guess it gets said in more than ninety-percent of investor presentations. The fact is that entrepreneurs are always optimistic; they wouldnt be entrepreneurs if they were not, as they are certainly fighting the odds. Any good investor is going to make their own judgements on the ramp rate of sales and expenses anyway, so this is better left unsaid. The fact is you never know because you never know if there are fifty other companies working in stealth mode on the same idea. According to research 32% of angels site unrealistic financial projections as the number one mistake made by entrepreneurs.

11. We dont know how much money we need, or we can do it on anything between $500K and $10MM. Investors want to know you have a solid plan. They also all have a certain amount they want to invest. Do your homework and understand exactly who you are talking to. You should know exactly what you are asking for before you go in and have a business plan with a financial plan that matches this. Asking for the wrong amount is as good as blowing the presentation entirely. Although you may be able to execute a business plan more slowly, yet successfully on less capital, and you may have a couple of scenarios figured out (you should), you can really only show one plan to any particular investor.

Level of Management Team Needed

Getting investors today requires a strong team, idea and market (not the same as idea). What level of team do you need to have a good likelihood of obtaining angel financing? Here is a chart of the level of management team you will likely need and you can interpolate between these levels. Currently, you will likely need to reach level five to bring in any angel investors and probably a level 8 to get any money from VCs. This also assumes you have an attractive, and large, potential market, some barriers to entry and a good head start or patent protection.

Conclusion

You need to pull out all the stops today to obtain angel financing. This means getting further on less money than ever before. Which in turn means better focus and using virtual company techniques to get much further on your OWN personal resources, and/or friends and family money. It also means pulling together a team of people that address all the major risks in the business. This requires creative deals to bring people in and probably not be paying them, certainly not full-time, while you are creating real value in your business. Investors want to invest in something that already has value built in, not an idea or business plan with a one-man show today.

The most common mistake made today made by entrepreneurs is going out looking for money before they are ready. The competition is fierce out there, so dont burn your best personal contacts by approaching them with an incomplete or undeveloped business plan or company. If you have not successfully raised money before, get help from someone who has. C-Level Enterprises offers a complete financing review and critique that is guaranteed to improve your chance of obtaining financing. Go to www.CLevelEnterprises.com for further information. Also see www.StartupPlanet.com for audio courses on raising investor capital.

Author: Robert Norton
Article Source: EzineArticles.com

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Orignal From: Top 10 Things NOT To Tell Angel and VC Investors

Restaurant Mortgage Refinance

Historically, from the borrower's perspective, financing restaurants properties has been cumbersome with limited loan options. Further on restaurant loan refinances, borrowers face even more limitations as the SBA (a leader in financing this building type) typically does not perform refinances. Borrowers are left with a limited pool of lenders that remain cautious within this category and offer conservative underwriting guidelines, like max 60% loan to value and debt coverage ratios of 1.4 or more.

Despite these restrictions owners do have some new loan programs that have become available in the last few years. 30 year amortizations as well as stated income loans are a few examples.
From the lenders perspective, the special use nature of the buildings themselves, as well as the relative high rate of bankruptcy/foreclosures within the restaurant industry makes lenders cautious. Another issue is the high level of seller financing which further complicates and creates additional risk for banks.

Underwriting focuses on traditional fundamentals, loan to value, debt coverage ratio, strength of tenant, credit worthiness of borrower, and property analysis to make their funding decision.

Debt Service Coverage Ratio restrictions are typically conservative at 1:1.3 to 1:1.4 for this building type. Meaning that for every $1.30 of net income (income after taxes, insurance, repairs, etc) the property produces, the mortgage payment will not be allowed to exceed $1.00. Said in another way, after all expenses and the mortgage have been paid, the owner will need to net $.30 to qualify for the refinance.

Due to the cash nature of this business, stated income loans, (where borrower does not have to provide tax returns) can be a solid option for owners that do not show enough net income to qualify for traditional loans. With this type of loan the DSCR discussed above is not relevant.

Loan to value restrictions on restaurants refinances are typically capped at 60% on both rate and term or cash out refinances. However, there are lenders that will allow high leverage with seller held financing (sits in second lien position). The combined loan to value can be as high as 90%. For example, if the current first lien position existing convention loan is at 40% loan to value and the seller held is at 30% loan to value the owner could pull an additional 20% equity out on a cash out refinance on the first position loan (40% + 30% + 20% =90% CLTV).

In the case of investment restaurant refinances, tenant evaluation is important but not as critical as it is on some property types. Lenders may request tenant financials as well as borrower financials and scrutinize the time left on the current lease; among other information.

Great caution will typically be used as market value and market rent is evaluated and compared to the subject property. Value is typically calculated in the most conservative of manors. Some lenders will want to use the value of the building in its shell condition. Basically if the borrower defaults the lender wants to be guaranteed that the value will still be there if they have to strip the building down to its studs. Age, appearance, location, accessibility, and local market conditions, as well as other factors are important as well.

The personal credit worthiness of the borrower will be scrutinized. 680 credit score is normally the minimum for the best finance options. Exceptions can be made (on a limited basis) as some conventional lenders will consider scores as low as 640. The net worth and experience of the borrower will make a major difference as well. Lenders will almost always require personal guarantees. Normally lenders will want to see a minimum of 2 years management/ownership experience to qualify.

Author: Jeff S Rauth
Article Source: EzineArticles.com

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Orignal From: Restaurant Mortgage Refinance