There are definite financial triggers even in the very initial days of running an SME pointing out at whether the revenue model needs fixing.
This has been recognized by the economies across the globe leading to construction of the SME Exchanges in various developed and developing economies.
Like a credit card for an individual, there are specialized credit cards for businesses.
Learn about the proven and widely accepted business valuation methods that help provide a good starting point for estimating value.
There are several funding options emerging in India and entrepreneurs must gear up to raise funding from alternative sources to meet their requirements.
If you need a big loan and for a longer tenure, be ready to mortgage collateral.
Listing pre-supposes good corporate governance, which results in sustainability and helps generate an independent valuation of the company.
An important thing to keep in mind is the level of risk & reward a prospective investor is comfortable with. Very few investors (early stage VCs) are comfortable with a high degree of risk.
Business owners need to appreciate that the collateral is only a risk mitigation mechanism for the lenders.
At the heart of the decision to either go for a loan or raise money through equity is the actual need.
Just as every industry is different, so are the valuation methods needed for each industry. One needs to clearly identify the key business drivers and make realistic projections around that.
Small companies dream of getting themselves listed on the stock exchanges, but they generally fall short.
IFCI has been instrumental in providing financial support to many Industries across the spectrum.
FinTechs are constantly investing in building technology infrastructures with financial models, credit assessments and risk score tools by combining extensive data modeling and latest technologies.
For any SME owner, one of the major apprehensions is a cash flow problem, as it may hinder their business' growth and expansion.
Amongst all the key inputs for a business, it is the cost of capital that is not only the least understood, but is also the most difficult to determine accurately.
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