Internal Rate of Return or IRR is the value rate earned on investment made by the company with its working capital. In the small business world, this form of financial investment evaluation has little to no value. Allow me to restate this: ‘IRR has limited to NO value in the small business world’.
Investment capital refers to the initial investment made with any new entrepreneurial venture. Investment capital may consist of any combination of financial resources, physical assets or sweat equity.
The Small Business Administration (SBA) is an agency of the federal government that provides loans, counseling and procurement opportunities with the federal government. Simply stated: “The SBA helps Americans start, build, and grow businesses”. No other resource exists that is as dynamic and beneficial to the small business owner as the SBA.
There are many different types of bank loans, each having their own respective purpose. All bank loans are categorized into two distinct groupings; secured and unsecured loans. Within in each category of loans there are several different sub-types of bank notes used to make a loan. Both categories require the owner of the small business to provide a personal guarantee to ensure the loan is paid back.
There is one responsibility of all business entrepreneurs that is loathed more than any other. It’s asking for money. First off, you have to find financial resources and then you have to ask for money. This article is dedicated to finding money and how to ‘ask’ for the money from a family member. It is easier than you think.