When a business approaches a lending institution about debt financing, the lender conducts an evaluation of the borrower using a method known as the 5 C's of Credit
When considering key partners, you must consider the following questions:
- Who are your key partners and who are your suppliers?
- Which key resources are you acquiring from key partners and suppliers?
- What key activities do your key partners and suppliers perform?
What is operating leverage and why should you care? Ignoring the financial mumbo-jumbo, operating leverage represents how having debt can affect a company's bottom line profit. In some cases, Operating leverage can improve a company's profits and in others, it can destroy it.
Word-of-mouth marketing is not just making a good product or delivering a good service, and magically your clients will tell their friends how great you are, which will, in turn, lead to a greater number of sales. To achieve an epidemic you must employ some specific strategies.
When entrepreneurs look at debt financing, their credit score (FICO) plays an important role in being able to get a loan. Essentially, a person's credit score is computed on five dimensions, each with a different weight.
Have you ever discovered something new and thought “What a great idea for a new business?” Often the signals you observed are only part of a short-lived fad.
