Archive for the ‘Entrepreneurialism’ category

Top 5 Benefits Of Business Networking

October 12th, 2011

Networking in business can mean two things.

One is, of course, the quantitative technical aspect of installing an efficient system of Local Area Network (LAN) in your office or a Wide Area Network (WAN) among your various branch offices. A systematic and technologically sound network has a very big role to play in creating streamlined processes, better management of data and user-friendly accessibility for employees in your business.

But in this article, we are going to talk about the top 5 advantages of the equally important qualitative aspect of networking in business – which includes networking with other business owners, customers, dealers and peers.

Especially for small and growing businesses, which do not have a marketing department or lots of money to spend on advertising, networking can be a key for expanding the business. For the CEO of a small business, investing in networking often serves as the biggest gateway to getting leads, referrals, new business and contacts. Let’s take a look at the top 5 advantages of networking in business:
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Angel Investors for Construction Deals

October 12th, 2011

Generally, angel investors are only willing to put up a significant amount of capital for a real estate transaction if the ultimate return on investment will be 20% per year or more. Otherwise, these private funding sources will look at small business investments that can yield substantially more return rather than sinking a large amount of money into a real estate transaction that may not pan out in the end. As it relates to construction deals, most of these private investors want to see that you have a substantial amount of experience as it relates to construction and general contracting. One of the benefits of being a general contractor is that you are able to effectively oversee any type of speculative construction project that you or your business has undertaken. As such, and within your business plan, you need to clearly showcase your experience in guiding the development of new residential or commercial property projects on an ongoing basis. If you are able to do this effectively then you will find that you are able to attract a large number of investors that are willing to put up a significant amount of capital as it relates to your ongoing real estate development deals.

On a side note, it is should be recognized that you are going to provide your real estate angel investor with a substantial amount of equity as it relates to the value of the overall project. This is primarily due to the fact that the current real estate market has allowed for a number of opportunities for individuals that have a large amount of cash to invest in tangible property investments. As such, you can expect that your business will need to provide at least 60% of the total value of the project to any individual investor that puts up the capital necessary in order to finance and complete the transaction. This is something that we are going to continue to discuss as it relates to how much equity that you need to sell in any specific project relating to real estate or a small business investment.
» Read more: Angel Investors for Construction Deals