Kiva Providing a New Source for Small Biz Finance

/in , /by

Kiva.Org was started as an experiment by Stanford Business School students Matt Flannery and Jessica Flannery after they traveled to East Africa to review projects for the microlender Village Enterprise Fund. As reported by “Business Week’s” July 31, 2006 issue Kiva has made virtual neighbors out of strangers half a world apart, and facilitated 450 microloans, totaling $200,000, since the site’s inception in March, 2006. The loans have helped small business owners from Honduras to Uganda start-up small businesses, and so far there have been no loan defaults.

According to an “INC Magazine” study of successful entrepreneurs, 55% used personal savings to finance the start-up of their businesses, 6% used charge cards, 7% used bank loans and mortgages. 13% friends and family loans, 6% relied on angel investors, 4% relied on venture capital funding, leaving 12% who obtained funding from all other sources. Many of the most typical sources are simply not available to people living in developing countries, who therefore stand to benefit the most from Kiva. This is a trend that certainly bears watching. -dr

Building a Winning Finance/Accounting Team

/in , /by

Without the right financial professionals, companies can struggle needlessly. Many good businesses go through tough times, and even go out of business, because cash flow wasn’t properly projected and managed. Business owners who don’t have the proper support and assistance when they review financial results are unable to see if any operational changes would help. A savvy controller or chief financial officer can help you decide if changes in pricing, product line, capacity or sales channels make your business more profitable. This article by David Rudofsky, from the May/June 2006 issue of “New York Enterprise Report” gives advice on how to build a winning finance/accounting team.

If it Sounds too Good to be True….

/in /by

Beware of individuals who claim they know of funding sources that do not have to be repaid, or that they will connect you with lenders, despite your poor credit record, past bankruptcies or lack of assets. These and other common scams are outlined for “Business Week Online,” by David Weiss, president of the Better Business Bureau serving greater Cleveland.

Business Owners Have Multiple Selling Options

/in /by

Michael Pfeffer, founder and managing director at Post Capital Partners, describes various sales options for business owners in this month’s “New York Enterprise Report.” In a Management Buyout, the business owner sells the company to the existing management team, simplifying the due diligence process. However raising the necessary capital may be a challenge for the management team. Strategic Buyers, such as customers, suppliers, or competitors, may be an attractive, high-value sales alternative, but could leave valuable information in a competitor’s hands, if a sale is negotiated and not completed. Private Equity buyers are a third alternative worth exploring, but it is essential for the business owned to determine if the potential buyer’s objectives are aligned with his own.

General Mills Upgrades its Financial Training

/in , /by

A special Human Capital edition of “CFO” magazine describes how General Mills has upgraded its training for financial professionals since the acquisition of Pillsbury in 2001, and with the full support of CFO James Lawrence, who was hired in 1998. The company’s finance leaders identified the four most important focus areas: new-hire training and orientation, midcareer training, strategic thinking and training on financial reporting regulatory changes. General Mills uses a mix of eLearning and classroom-based training. The curriculum is highly relevant to the work of General Mills attendees, and the teachers – in-house subject matter experts – are given special training themselves, so they are prepared to engage, and not simply lecture the students.