Best Ways to Fund your Startup Without VC

businessA widely held notion among many people in the entrepreneurial circle is that the way to start and grow a prosperous business, be it a limousine service or tech company is to come up with an outstanding idea, write an awesome business plan, raise capital from venture capitalist and flawlessly execute your plan. This is always not the case, and chances of failing are on the high.

Taking a venture capital at the very initial stage of your business may be a bad idea. Additionally, in the very early stages of a startup, most financial institutions do not work. Below, we discuss innovative ways to raise startup capital for your business without seeking the help of venture capitalists. Here are the ways to go about it.

Pricing and purchasing structure

The use of a subscription model allows businesses to charge up front for an increased access to a service or product. With this model, you require customers to pay upfront then use the sales generated to finance the creation of a new service or product. The subscription models that you subject your customers to range from monthly, quarterly, bi-annually to annually. This model can prove to be very important when bridging an initial funding gap or when you are seeking to raise equity financing.

Trade and Barter

Trade and barter can be a very good model if you require funding to grow your company. If you are in the non-profit space, trade and barter may mostly come in the form of in-kind donations. If you are for profit organization, sometimes it may be easier to raise $50,000 worth of goods as compared to raising $50,000 in cash. All you need is to be flexible in your negotiations to achieve the best outcome. You can also search for opportunities that allow you to create mutual value through sponsorships.

Purchase Order Financing

Leveraging memorandums of understanding, contracts and purchase orders can enable you access financing at a cheaper rate. Let’s take an example; suppose you are in a contract with say, government to build 500 units of housing, and you need money to manufacture the initial inventory. You can choose to share your purchasing order with a financier to access debt financing at a lower rate. You can also sign legally binding agreements to pay for any service or product rendered.

Accelerator programs

growthAccelerator programs and fellowships enable entrepreneurs to grow their business and increase the likelihood of their business success. There are a lot of internationally recognized accelerator programs such as Y Combinator and TechStars. These accelerators normally invest a small percentage of equity. There are notable fellowships such as Kellogg Fellowships and Kauffman Fellows Program.

 

Family and Friends

Another sure way to raise capital for your business is through yourself. However, if your funds can’t allow, you can try raising it through family and friends. However, many entrepreneurs shy away from involving their family and friends in contributing towards their startup. It should not sound like begging or putting the people you love in an awkward position. All you need is to pitch to them professionally.

 

 

 

 

How to Start a Car Selling Business

car dealerIf you have always dreamed of owning your own business such as Abingdon Tow Truck, and your passion leans to automobiles, then starting a car dealership might be the best option for you. Consumers are in constant need and in the look for quality new and used cars, and owning a car dealership business can be an impressive opportunity.

Before venturing into the car selling the business, there are many factors that you need to put into consideration. These aspects include what cars to sell, the location of your business, licensing, insurance, boarding among other things.

Used or New Cars

The first thing you need to do is to decide between selling new and used cars. This step is very crucial as it determines the initial capital you will spend on your business. When starting to sell new cars, you will need to invest a higher initial investment. This means you will need to have more upper financial support from investors such as banks or credit facilities. Alternatively, you can go for used cars. Evaluating the earning potential of used vehicles is essential.

Types of Car

Next, you need to lay your attention on the cars of focus, once you have decided whether to sell new or used cars. Decide on the brands to begin with especially if you are looking forward to acquiring financing. You would most preferably put your focus on brands such as Honda, Toyota and Nissan make, as they have a higher resale value as compared to the depreciating value of new cars. Additionally, decide on the cost of business equipment to be used as well as other issues such as the cost for advertisement and running the company.

Permits

Third, you need to look at issues such as licensing, insurance and bonding. When venturing into the car selling the business, you have to obtain a car dealer’s license, and other permits that guarantee your company meets the requires permits and safety laws. When it comes to bonding, it is very vital to ensure that it shields your business against defaulters of contract as well as safeguarding all transactions that you might be involved in.

Selling

Another critical aspect you need to master is the tradesman sale language and skills. The key to success in this business will be your ability to deliver. You have to ensure that your customers get to know the benefits and value of what you will provide during the vehicle selling process. You should have the skills and expertise to handle all deals and negotiations properly.

Location

When it comes to choosing a place, there are a couple of factors that come into play. If you are starting out, you need to ensure that the location you select can fully support your business. The larger the population, the more the sales that you will likely make. Another factor to put into play is the visibility of your business. If your business is located in a place that is obscure, you are likely to suffer few customers. Handle your inventory correctly and keep in line with all the set laws.

Top Things You Need to Know Before Buying a Car

New carBuying a car, be it new or old, can be an intimidating experience. The prospect of buying a car can be enticing and fabulous, especially if you think about what you can afford. Maybe your old vehicle has experienced enough problems, and you look forward to an upgrade. A new car can give you a comfort of mind and perhaps some form of additional luxury. These days, deciding on what to buy or what to look for has been made more straightforward thanks to the Internet. Instead of wasting vital hours consulting salespeople and other middlemen, you can do your research and establish what is right for you.

There are many things to consider before buying a new car and here are the most notable ones;

Determine your Needs

The first thing you should have in mind is to consider the type of car you need based on the specific needs you are looking for. Are you looking for a large vehicle that can accommodate your kids and family? Are you looking for a racing car with an immerse horsepower? All these specific needs should be underlying factors in determining your needs. Write down a list of features you would like your car to have. These features may be a sunroof, sound systems, heated seated among others. Figure out where and how often you will be driving and these factors will determine the type of car to buy.

Avoid Unnecessary Extras

A dealer shop will offer you all types of extras, and it’s upon you to determine what you need and what you don’t. You might be presented with an expensive sports car, but the question lies; can you afford it? If you have cash on hand, you can make a sizeable down payment and have lower resulting payments. Ask your dealer if they offer any form of financing that can help reduce the burden of initial pricing. Some of these extras can be of great value, but can only work if you have the budget.

Work within Your Budgets

budgetThis is one of the most important things you need to do as it will determine the type of car to buy. You may want to get an expensive car, but your budget doesn’t allow. If the car is costly, be sure to think about the various financing ways available. Talk to your bank about car loan and leasing charges. If you have good cash, you can make a large initial deposit and negotiate your way to attract smaller interest rates for consecutive monthly payments.

Online Competitive Comparisons

First, you need to buy the vehicle and not the deal. Research on the available brands and dealers as it will help during the negotiation process. Look at car prices and compare prices between various brands and models. You should try to make a comparison of at least two brands in the same category of vehicle and find the one that’s best for you. Some brands will offer you a better value for money than others.

Ways to Improve Your Car’s Fuel Efficiency

Fuel EfficiencyOwning a car is not a privilege of the select few, but rather a necessity in this modern life we are living. With a car, you can guarantee your family the convenience of traveling during the weekend and also in situations that call for emergency. But aside from the joy and satisfaction that comes with vehicle ownership, there is also some lousy side; frustrations. When buying a car, you can go for manual, automatic or hybrid. One of the things that make car owners dig deeper into their pockets is on improving a vehicle’s efficiency, especially fuel efficiency.

If you want to improve the fuel efficiency of your car, here is what you need to do.

 

Take it Easy on Gas Pedal.

 

Most drivers tend to unleash the speed monsters even in situations that do not require speeding. It is regrettable that short span acceleration and speeding is not the best way to save on fuel.  While your car may be able to accelerate 0-60 mph in maybe under 5 seconds, doing so requires burning more fuel. The faster the acceleration, the higher the drag that your car works against, hence more fuel. When stopping from an accelerating span, more energy will also be spent to bring your vehicle to a stop. That said, the best you can do to save on fuel is to have a smooth driving.

 

Fuel Recommendations

You have to adhere to your vehicle’s recommended fuel types. Most people have the notion that premium gas is the best. However, that is not necessarily true. When it comes to getting the best results, adhere to the recommendations given by the manufacturer on your car. Many people fail to understand that car manufacturer always test their vehicles for best performance with the use of the ideal fuel types. It is still best to avoid cheap and doctored fuel.

Correct Tire Pressure

One of the most efficient and most comfortable ways to improve your car’s fuel efficiency is to inflate tires to their proper pressure. The sad truth is that most motorists neglect this vital issue. As long as the wheels turn and tires have good contact with the road, for some drivers, this is enough. The truth is that running on a low tire pressure increases the rolling resistance of your tires while on the ground and this robs you off some precious fuel.

 

 

Most Fuel Efficient Cars in America

2017 Hyundai Ioniq HybridFuel economy is a significant factor to consider when buying a new car. When it comes to matters fuel saving, we are now presented with a wide array of options. Many conventional vehicles of today offer an impressive fuel economy. There are alternative power-trains that many of our choices are even more comprehensive, with diesel, electric and hybrid opportunities all present.

Even without electric ones, gasoline and diesel cars can provide impressive fuel economy for buyers. Let us have a look at the most fuel-efficient vehicles that American market can go for today.

 

Toyota Prius

The Toyota Prius returns an impressive 52 mpg overall which is a significant improvement over the last generation which had 44 mpg. This new car handles more responsively making the ride more comfortable. The colorful digital gauges dominate the dashboard with a lot of fuel economy information. The car has a reasonably straightforward touchscreen infotainment system too making this car occupy the first option on the most efficient vehicles on the market today.

 

Hyundai Ioniq

The Hyundai Ioniq is the first immediate rival to Toyota Prius. This car matches its excellence with a 52 mpg fuel economy. Its power comes from a 1.6-liter engine which is four-cylinder and paired with an electric drive that puts a combined 139 horsepower. Though its six-speed dual clutch transmission is not the smoothest, this car is overly impressive and efficient. Just like the other hybrids on the market, the vehicle can drive on electric power at low speeds. There are also some safety features including blind spot warning and automatic emergency braking.

 

Toyota Camry

Toyota camryThe newly redesigned Camry brings about an impressive styling with slightly more nimble handling. It stands on the market as one of the best-midsized sedans today. Its 2.5liter four-cylinder engine has remarkable power and delivers 32 miles per gallon overall. There is also a 3.5 liter V6 available for those interested. Both drivers are paired with a new eight-speed automatic transmission. This car comes with impressive features such as forward collision warning, automatic emergency braking, and blind spot warning

 

 

Kia Niro

The Kia’s Niro makes a five-passenger car with a good fuel economy. This car features a 1.6 liter four cylinder engine which as an electric drive unit. All these features put an impressive 139 horsepower. Niro features a six-speed dual clutch transmission and has an overall 43 miles per gallon fuel efficiency.