ESOPs allow grantees to have a stake in the company which directly results in greater loyalty.
MSMEs need easy credit facilities to fulfil the financial requirements of their business. The DCE's Credit Guarantee Scheme provides easy, collateral free credit facilities to MSMEs.
Technology does not come cheap and more often than not; it does call for substantial investment.
Paradoxically and fatally, just when risk of a downturn is at its highest, optimism also ends up peaking! So be careful with your forecasts; and even more careful with the forecasts of others.
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.
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