Business finance available at the Cape Town Business plan competition

Great blog article on the Cape Town business plan competition, currently inviting business plan entries from Cape Town based entrepreneurs. The competition organized by Bandwidth Barn are hoping to make the initiative an annual occurrence, ensuring business finance is made more accessible to entrepreneurs in the region.

Both banks and the government has come under continued pressure to provide further funding to businesses hoping that such finance will create a enterprise culture in the Western Cape region. The idea is obviously for initiatives such as this to first of all support job creation in the area and also to boost the economy as a whole.

Right from the moment someone thinks of a business idea, there needs to be cash. As the business grows there are inevitably greater calls for more money to finance expansion. The day to day running of the business also needs money.

One of the main reasons a business needs finance is to start up in the first place. Depending on the type of business, it will need to finance the purchase of assets, materials and employing people. There will also need to be money to cover the running costs. It may be some time before the business generates enough cash from sales to pay for these costs. Link to cash flow forecasting.

Entrepreneurs have expressed their excitement for the opportunity and we trust that it will go from strength to strength.

South African Business and Arts Grants announced

Recipients of the first cycle of Business and Arts South Africa Supporting Grants for the 2010/2011 financial year have been announced.


A total of 15 business plans and projects were given project-specific grants – a significant boost for South Africa’s cultural landscape. The grants cover a broad scope of arts projects – from visual arts to dance; theatre; music; and more.

The 2010/2011 Business and Arts South Africa Supporting Grants are awarded five times in the financial year after deliberation by the organisation’s board. In a carefully designed and monitored process, both the arts applicant and the sponsor complete application forms.

Available on www.basa.co.za, these forms are designed to encourage the two partners to work together and identify areas of potential benefit. Business and Arts South Africa allocates funds to the project once it has assessed how the partnership benefits both the sponsor and the recipient. This is in keeping with the organisation’s belief in taking arts projects from “seed to strength to sustainability.”

The full list of recipients and sponsors (see below) is an impressive one and covers a range of different-sized arts projects being mounted across the country.

Applications for the second cycle of Business and Arts South Africa Supporting Grant s are now open. The closing date for this next cycle is 7 July, with recipients being notified on 4 August.

Details of the next cycles are available on the Business and Arts South Africa website, www.basa.co.za.

Supporting Grants: 2010

Organisation: Big Time Dance Troupe
Project: Queen E and her Entourage
Sponsor: Ellies (Pty) Ltd

Organisation: Rotary Club of Kloof
Project: Art and Music in the Hills
Sponsor: TBWA Hunt Lascaris – Durban

Organisation: New Music SA
Project: eMusic Indaba
Sponsor: SAMRO

Organisation: Cosmos Productions
Project: Theatre for Change Tour
Sponsor: Protea Hotels

Organisation: Africa Ignite
Project: Showcasing Kwa-Zulu Natal proud art, craft and heritage at the King Shaka International Airport
Sponsor: Airport Company South Africa Limited

Organisation: Aid to Artisans South Africa Trust (ATASA)
Project: South Africa Handcraft Exhibition featuring the women artists of the Ndebele
Sponsor: Nando’s Chickenland (Pty) Ltd

Organisation: Tshwane Leadership Foundation
Project: Feast of the Clowns
Sponsor: City Property Administration (Pty) Ltd.

Organisation: Ifa Lethu Foundation
Project: Home and Away – A return to the south
Sponsor: G&D Apparel

Organisation: Field Band Foundation
Project: Field Band Foundation
Sponsor: Ogilvy (Pty) Ltd Durban

Organisation: Johannesburg Art Gallery
Project : My Private Universe
Sponsor: Stokvel Cellular (Pty) Ltd.

Organisation: Baxter Theatre Centre
Project: Remix Dance Company: Loveaffair
Sponsor: Red Lake Trading 10 (Pty) Ltd

Organisation: Kearsney College
Project: Kearsney Choir Tour to World Olympics Game (July 2010) – Return upbeat Festival (August 2010)
Sponsor: The Jonsson Group (Pty) Ltd.

Organisation: University of Witwatersrand
Project: Drama for Life Progr amme
Sponsor: German Technical Co-operation (GTZ)

Organisation: Individual (Dr Fred Scott)
Project: Eleven Soccer and Art South Africa 2010 Project
Sponsor: Commerzbank South Africa

Organisation: Buntuzim Media Production
Project: Maboneng – Alex Multi Arts Experience
Sponsor: Santam Ltd

Small Business Grants For Women

If you've got an excellent business plan but you just don't have the finances to get it off the ground then you need to have to think about applying for some small business grants for women. But having a good thought is only part in the battle. Here are some factors you'll need to have to take into account when applying for small business grants for ladies.

Your credit history – The difference between applying for a grant and applying to borrow money is that you'll eventually need to pay the loan back – with interest – but you won't have to repay the grant. Even so, when applying for modest enterprise grants for ladies it's very best that you have a spotless credit rating. If you could have negative reports on your credit report take steps to clear them up before you start applying for grants.

Your business enterprise idea – You can find various kinds of grants – federal grants, local government grants and even grants from private enterprises or individuals. Each organization looks for something various in the enterprises they decide to award grants to. For example, the Federal government likes to grant funding for companies that will help your community including a medical center or arts center or childcare facility. You'll have far more success as qualifying for grants if you match your organization to the requirements in the provider.

Your organization strategy – No matter which kind you apply for you are going to need to submit a detailed company program. This must consist of the amount of dollars you have to have, what you intend to spend the cash on, how you expect that income to assist your organization, what form of return you assume to see on the investment. Including pie charts and graphs will make your presentation look far more expert. If you've never prepared a organization program before you might want to consult with a professional to ensure much better response on your applications.

Your application – It is perfectly acceptable for you personally to apply for additional than 1 kind of grant. But no matter how numerous you apply for your application has to be filled out in it is entirety. Again, if you're not familiar with, or comfortable with, this step in the course of action it may well be ideal in case you consult a specialist.

These small company grants for women are a wonderful opportunity to suit your needs to create your mark and burst via that glass ceiling. And that grant money is readily offered for anyone who wants to utilize. And that's generally the problem – too a lot of females aren't familiar with writing a company strategy or cleaning up their credit report.

But you DO know how to run a business and you DO know you have a fantastic idea. Do not let your unfamiliarity with the grant process stand in your way of owning your own business enterprise. Most grants that you simply apply for will be really specific about the details that they want. Answer all of their questions and get creative wherever possible to make your application stand out above the rest. You'll find hundreds of small business grants for women and there's one that's just appropriate for you!

Learn more about small business grants for women. Stop by Catherine Yeatts's site where you can find out all about women's business grants and what it can do for you.

The likelihood of venture finance becoming more available.

Interesting blog post from ROSALIND RESNICK a few weeks ago, talking about the likelihood of venture finance becoming more available.

Last week, as I was testing out the very latest business plan software technology, I got a call from a client of mine I hadn’t heard from in a while. Turns out, when he and his partner couldn’t raise money from investors to launch their business last year, they did what many intrepid entrepreneurs do. They went back to corporate America and got jobs, and used their own money to build the prototype they needed to prove that their concept was more than just a business plan and a dream.

Now that they’ve launched their product, signed up their first pilot customer and started generating revenue, is it time to start pitching venture capital firms again, they want to know. After all the bad news they’d read about VC funding last year, did the VC industry still have a pulse?

According to the quarterly MoneyTree report released last week by PricewaterhouseCoopers and the National Venture Capital Association, the answer may be “yes”–and not just for later-stage companies but for startups and early-stage ventures, too.

First, the bad news: Venture capital investment in 2009 declined to its lowest levels in more than in a decade, the report found. Last year, venture capitalists put $17.7 billion in 2,795 deals nationwide, the lowest level of dollar investment since 1997. This marked a 37 percent decline in dollars and a 30 percent decrease in deal volume from 2008.

Now, the good news: In the fourth quarter of 2009, VCs put $5 billion to work in 794 deals. But while funding declined 2 percent from the third quarter of 2009, the number of deals actually grew by 15 percent. The report also had good news for startups: While first-time financings fell to the lowest dollar and deal level since the report began tracking VC investing in 1995, the Q4 numbers showed increases in the number of first-time and early-stage deals completed.

Does this mean the ice is finally thawing?

“The venture capital industry had no choice but to slow the investment pace in 2009,” Mark Heesen, president of the National Venture Capital Association, said in a statement. “The weak exit environment resulting from an unstable public market combined with a challenged limited-partner base sent a strong message to the venture community to pull back the reins–and the VC’s listened. Now that the economy has begun to show signs of improvement, we expect to see dollars flow more freely back into those sectors that offered the most promise before the recession began–clean technology, life sciences and IT.”

With bank financing still tight for small businesses, the VC turnaround couldn’t come at a better time for cash-starved startups and early-stage companies. Seed-stage companies attracted 9 percent of dollars and 11 percent of deals in 2009 compared with 6 percent of dollars and 12 percent of deals in 2008, the report found. Early-stage investments saw double-digit increases in the fourth quarter, with $1.6 billion going into 277 deals, a 32 percent increase in dollars and 26 percent increase in deals from Q3.

Now, don’t get me wrong. Despite the fact that you may have used top of the range business plan software the create your business plan, startups and early-stage companies face long odds when it comes to raising venture capital–even in good times. Still, it’s exciting to see the river of VC money starting to flow again. It may be winter in the financial markets now, but you don’t need to be an economist to see that spring is right around the corner.

Alternative sources for business finance

Having trouble finding business finance from the usual sources in recent months, despite having used top of the range business plan software have been a common phenomenon ammongst entrepreneurs. Business owners have increasingly had to be creative and with their efforts as many of the usual sources such as banks have tighten their purse strings and only provided finance to those with sufficient equity, water tight business plans and feasibility studies indicating high customer demand. The good news is that there is a wide range of options available – although your choice will depend upon the nature of the industry in which you operate.

Lets look at a few of the sources and strategies for finding business finding from various industries popular amongst entrepreneurs.

Construction

This sector has been particularly hit by the downturn. As a result of a significantly lower volume of work, many firms are struggling with cash flow problems. Similarly, the ever-increasing period between issuing an invoice and actually receiving payment can exacerbate these problems.
Invoice financing provides an efficient way of bridging the gap between doing the work and getting paid for it. This form of finance effectively allows you to borrow against the value of invoices you have raised, enabling you to secure funds almost immediately.

Under an invoice finance arrangement you will pass your invoices onto another company, known as a ‘factor’. This company will then advance you a portion of the value of your invoice; this is frequently as much as 90 per cent and can often happen within 24 hours.

The factor will then chase up payment of the invoice when it becomes due. When the invoice has been settled by your customer the factor will pay you the remaining value, less a small fee.

Invoice financing has become much more sophisticated of late. Many businesses rejected this form of funding in the past as there was a sense that customers would presume the company was in difficulties if it had engaged a factoring company. Today, though, invoice finance arrangements can be adapted to individual needs; any communication between the factor and your customers will appear as if it came directly from your company.

Retail
The problems faced by retailers are different to those endured by businesses operating in the construction sector. Stock is often one of the most significant assets held by a retail business – and yet, in a period of slowing consumer activity, it can be very difficult to translate stock into cash.

One of the most significant recent developments in the alternative funding market has been the growth of asset based lending (ABL). Asset based lending enables businesses to borrow against stock and other assets – and is therefore perfect for retailers.
ABL provides a flexible way of meeting the unique funding requirements of retailers and other businesses. Like invoice financing it is totally scalable, meaning that it will grow with your business. Asset based lending is used by businesses of every size.

Professional services
Providers in this sector have a unique conundrum. These individuals generally have no stock, and many do not have their own premises – working instead from their clients’ premises, or preferring to work from home or rented office space.

This can make it difficult to secure funding as there are no assets against which to secure a loan. However, if you are in this situation there are still forms of alternative funding that you should be able to access.

Invoice finance should be your first port of call if you are looking to secure funds quickly. The benefits are much the same as for those in the construction industry; this type of arrangement can provide you with up to 90 per cent of the face value of your invoices, as little as 24 hours after you raise them.

Comparator services can ensure that you find the right invoice finance partner for your business – a partner that will grow with your company, and support you and your business through every phase of its development. Alternative sources of funding are becoming ever more important for the survival of SMEs – and it is vital that you find a partner that enables you to take advantage of the opportunities they present.

Business Finance from Google Ventures

With

business finance

becoming an attractive option for many organisation with cash to spare, In March of 2009, Google unveiled its latest undertaking: Google Ventures. Google Ventures is a Google-backed venture capital group that aims to invest in new and exciting business plans. Funding is open to any company with a great idea, and the idea needn't be computer-based.

What is Google Ventures?
Google Ventures is a venture capital firm designed to provide funding to new businesses with exceptional ideas. Google Ventures, managed by Rich Miner and Bill Maris, has a starting balance of over $100 million dollars, and over 20,000 "exceptional Googlers" evaluating prospective businesses.

Google Ventures can provide funds ranging from seed money to millions of dollars in start-up capital to businesses they believe have the potential to be great. As an investment company, they are of course looking for businesses that will provide them with a return on their investment. However, they stress that they are also seeking innovative and creative companies who tackle problems in new ways.

Google Venture and Startup Companies
The aim of Google Ventures is to seek out potentially great companies under the leadership of entrepreneurs who will go on to do remarkable things. Google Ventures states that they are primarily interested in funding software companies, biotechnology companies, and companies in the consumer Internet industry Google Ventures operates separately from Google and investments do not have to be directly related to, or tie into, Google's Vision. Instead, they seek to maximize returns.

Only companies within North America are eligible for funding form Google Ventures as of 2009. Start-ups interested in being considered are urged to contact the company via email with a presentation or proposal. The website requests that proposals be limited to either twenty slides or no more than three typewritten pages, and cautions prospective business owners that they will respond only to companies they are interested in speaking with further.

Goals of Google Ventures
While Google is not new to investing, Google Ventures is different. Google will be using Google Ventures as their primary vehicle for making venture investments.

Google Ventures acknowledges that great ideas are not subject to recession or hard economical times. Ideas don’t stop, however the backing to make them become a reality does. In the face of economic downturn in 2009, Google is offering funding because they believe it is the time to invest in companies that have the chance to become "the next big thing." Google was founded by entrepreneurs, and they believe they should now help the future icons of the next generation.

Companies Helped
Google Ventures' first investments were made in April 2009. Pixazza was the first company offered funding by Google Ventures. Pixazza's core business is Internet advertising using pictures. Their business model involves transforming static images into interactive advertising vehicles. Consumers can "mouse-over" a picture to learn more about things they are interested in, or buy products they see.

Silver Spring Networks, whose core business is in smart grid technology, was next in line and in August of 2009, three more investments were made to Altarock, Brightsource Energy and eSolar, three alternative energy companies.

Read more: http://www.brighthub.com/office/entrepreneurs/articles/50275.aspx#ixzz0UnGnjjQW