business
Articles, videos, and related content associated with all aspects of Business and the culture surrounding business.
Dealing With an SBIC
Small business investment companies (SBICs), a specialized form of venture capital firms, have become an important source of capital. SBICs are licensed by the federal government to fill a financ¬ing gap for small business. SBICs can borrow up to four times their private capital position from the U.S. government at favorable borrowing rates. Most SBICs attempt to cover only operating expenses on loans, with profits coming from equity participation. Thus, the interest-rate spread is narrow.
By Daniel Joseph 4 years ago in Journal
Regulation D Private Placement
Small and midsize companies are increasingly using private placements as fund-raising vehicles, thanks to a 1982 streamlining of the rules known as Regulation D. In a private placement, stocks or bonds are sold directly to an institutional investor or a small group of institutional investors. Regulation D is specifically directed toward opening up the huge private placement market. In several ways, the regulation can help a small business raise capital through a private placement. First, Regulation D increases the amount of capital that can be raised under various categories. Under the smallest classification (Rule 504), you can raise $500,000 in 12 months versus $100,000 under the former rule.
By Daniel Joseph 4 years ago in Journal
Raising Capital Through a Public Stock Offering
A public stock offering is probably the most complicated of the four ways to raise equity capital. Using this method means generating scads of paperwork to satisfy SEC rules. With that in mind, here are capsule descriptions of the four types of public stock registration open to your company: S-1 offerings. This is the general filing registration required by the SEC and is rarely suitable for smaller companies. It requires maximum disclosure for both the offering and later statements. This can be extremely demanding and costly.
By Daniel Joseph 4 years ago in Journal
Adapt Flow-of-Funds Analysis
Adapt Flow-of-Funds Analysis Just as the receipts-and-disbursements analysis provided a framework for a short-term cash forecast, the flow-of-funds analysis technique can be adapted to long-term forecasting. However, unlike the short-term forecast, some changes in the format used for the flow-of-funds analysis are necessary to separate the impact of operational and financial decisions.
By Daniel Joseph 4 years ago in Journal
A Question of Purchasing
Have our inventories, compared with sales volume, gotten out of line with those of others in our industry? Which of our products, in these terms, are showing the best and worst records, and why? Traditionally, management has been advised that “20 percent of your products probably account for 80 percent of your inventory,” so look to make the biggest cuts where most of the inventory occurs. In many cases, this approach can accomplish more harm than good and can hinder sales and deliveries of products that are among the most profitable. At the same time, it may overlook other situations that collectively account for much of the excess inventory.
By Daniel Joseph 4 years ago in Journal
