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| Just In... |
The holiday season is commonly referred to as the season of giving. As such, Hennessey Capital is proud to support important causes in our community. The Hennessey Capital team has adopted a family in need through The Salvation Army. We recently held a "wrapping party" to wrap the gifts for the family, which were delivered today. Hennessey Capital has also started an online Red Kettle to support the important work of The Salvation Army and encourages you to donate here.
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| It's a Done Deal |
Hennessey Capital announces the following recent done deals:
$100k factoring facility for a Michigan-based company that performs repairs to cell phone towers, to fund payroll.
$50k factoring facility for a Michigan-based cutting tool distributor to expand their product line. $500k A/R line of credit for a Michigan staffing company with proceeds used to replace current bank debt and provide additional availability for growth.
$200k factoring facility for a Michigan-based LED light distributor to fund new business growth.
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| Greetings! | |
Welcome to the December 2010 edition of Growth Capital News. This issue offers a variety of insights and tips focused on all the topic areas we have covered this year - sales & marketing, operations, finance and leadership. There is also a bit of holiday fun. Thank you for your readership in 2010. Our goal is to continue to provide interesting and relevant information in 2011 to help you grow your business.
Happy Holidays!
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| Accessing Capital when Traditional Credit is Constrained |
By Mike Semanco, President, Hennessey Capital What is a borrower to do? Although the traditional credit market is showing signs of life, businesses are still facing a challenging credit market. Hard asset (equipment and real estate) collateral values have dropped dramatically so refinancing of loans requires more cash in each deal. Younger companies still require a track record, typically 2 years, to qualify for traditional lending. Because of constrained credit conditions, companies have to think outside the traditional box to finance their business.
In our business, we have seen companies negotiate preferred payment terms with their customers. Down payments, progress payments and shortened A/R terms are being pursued as viable alternatives. Companies who have normally written off the notion of factoring receivables are now using it as a stand alone financing product or using it in addition to current bank lines to fund incremental growth. ABL lines of credit are now more mainstream since most ABL lenders are focused on collateral and not solely on cash flow.
In addition to working capital alternatives, companies are looking at micro loan programs and seed funds to help with growth financing. These loans are usually under $50,000 but can make a difference to a young, growing business. State funded programs are constrained with lack of cash but could also be a source for creative financing. PO Financing for distribution businesses remain a good source of capital but project financing for manufacturing companies is non-existent in the traditional market.
Young companies are traditionally undercapitalized. In a tightened credit market, this creates more stress when new opportunities become available. Communication is always the key. Ask your banker if options exist outside their world. Do be afraid to ask customers what may be available. If customers like your product or service, they may be open to concessions. Ask your professional advisors to make introductions to funding sources. They should be aware of various options and point you in new directions
Credit is available. You may just need to look outside the traditional box to find it.
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| Six Simple Ways to Prepare for a Meeting | |
You can never be too prepared going into a meeting and you might as well not go at all if you aren't going to take the time to prepare. I have a meeting with a potential client for an important keynote speech in late January. I can do this speech and present myself blind-folded, with my hands tied behind my back, but so can most speakers. What I do differently is prepare specifically for the people I am meeting--something you can do whether you are a speaker, in sales, a consultant or looking for a job. Read more |
| When Starting a Business, people are the "Secret Sauce" | |
By Michelle Lange, Director, Walsh Institute I think we can all agree there is nothing better when placing a phone call than reaching someone who actually understands what you need, on the very 1st ring -- without having to wade through a series of voicemail menus. Likewise the same can be said about starting a business and trying to use the internet. In today's information dense world where nearly anything you could think of is 'googleable' and available online, the one-on-one interaction of professionals helping entrepreneurs is still the critical factor.
Well, the Blackstone Charitable Foundation and New Economy Initiative (NEI) located in Michigan are doing something about that.
The New York City-based Blackstone Group committed $50 million over five years to foster entrepreneurship and economic recovery in communities hardest hit by the global economic crisis. Its first major grant, for $2 million, establishes "Blackstone LaunchPad," a program it hopes will become a national model for fostering entrepreneurship through higher education. Walsh College & Wayne State are the benefactors of this grant in Michigan and opened the doors to each school's Blackstone LaunchPads this fall.
At Walsh, students and alumni are eligible to tap into all of the consulting and resources available - providing the practical skills, seasoned advice, and professional contacts that make the difference when starting up a new company.
The response has been very strong at both schools. In less than 10 weeks, at Walsh College we have had 65 participants, of which 21 are in full consulting mode with new business ideas. Local companies or business leaders can also get involved as venture coaches or resources.
While fostering business growth is an important outcome, equally critical is changing the landscape of higher education and transitioning from the day when a student's only option was to 'find a job' to now also understanding how to 'make a job.'
"Before LaunchPad, all I had was books and websites, now I have people." -
LaunchPad student
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| Trend-Spotter: The Man Behind Silly Bandz |
If you haven't spent time in playgrounds recently, you might not know about Silly Bandz, the colorful silicone rubber bands that come in hundreds of styles. Shaped like animals, numbers, letters and a range of objects, Silly Bandz have become a schoolyard craze.
Kids wear them as bracelets, collect and trade them. Some schools have even banned Silly Bandz, claiming they distract students.
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10 Things Not to Do at a Work Party |
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| 5 Year-End Tax-Planning Moves for Business Owners | |
 The end of the year is usually a hectic time for business owners, who are scrambling to wrap up activities while planning ahead for the New Year. This December is particularly challenging because of continuing tax uncertainty. As a small-business owner and tax expert, Wall Street Journal reporter Barbara Weltman focuses on what is known about tax rules, and suggests year-end actions that are helpful regardless of possible changes to tax rules. The 5 steps
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| Holiday Fun Facts | |
 Did you know?... The idea for using electric Christmas lights came from an American named Ralph E. Morris in 1895. The new lights proved safer than the traditional candles, which often started fires by falling in the dry Christmas trees.
Hanukkah is celebrated around the world for eight days and nights. Each night of Hanukkah, an additional candle is placed in the Menorah from right to left, and then lit from left to right. On the last night, all the candles are lit.
During the Christmas buying season, Visa cards alone are used an average of 5,340 times every minute in the United States
Candy canes began as straight white sticks of sugar candy used to decorated the Christmas trees. A choirmaster at Cologne Cathedral decided have the ends bent to depict a shepherd's crook and he would pass them out to the children to keep them quiet during the services. It wasn't until about the 20th century that candy canes acquired their red stripes.
Kwanzaa consists of seven days of celebration, featuring activities such as candle-lighting and pouring of libations, and culminating in a feast and gift-giving. The name Kwanzaa derives from the Swahili phrase "matunda ya kwanza" meaning "first fruits."
Due to the time zones, Santa has 31 hours to deliver gifts. This means that he would have to visit 832 homes each second! Wow - that Santa is fast!
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| Why Marketing is Like Giving | |
 'Tis the season for gift-giving. Which makes it the season for gift-buying. Which makes it the season for gift-selling and, by extension, gift-marketing. December is the biggest advertising month of the year as marketers spend billions of dollars to encourage recession-weary consumers to spread the joy. Marketing is itself a lot like gift-giving; to paraphrase the textbook definition, it's finding out what people want and providing it to them. Below are five general principles you might ponder over a cup of hot cocoa. Read the Business Week article
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| The Best Books for Business Owners of 2010 | |
 Inc.com turned to its panel of experts to determine the best business books of 2010 and offer insight on just what you should have on your nightstand.
See the list |
| Win Fabulous Prizes! | |
 Your reward for reading Growth Capital News all the way to the end? Send your name, email address, phone number and favorite holiday movie quote to keberhardt@hennesseycap.com and be entered to win a Hennessey Capital holiday prize pack! Five winners will be selected at random, so your chances are good. Respond by 5 p.m. on Friday, December 17 to be entered to win.
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How can Hennessey Capital help you in 2011? Visit HennesseyCap.com or contact Toby Dahm, Jeff Wright or Joe Romeo at 248.658.1100 to learn how Hennessey can help you or your clients. |
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