Private Investors, Angel Business Capital And How They Are Related

We all know what important an entity small businesses have come to be, especially in these times of recession, but in order to start one, we need to look for a private investor, angel business capital is provided by them and one can bank on them to see their business through. Why are small businesses so prominent today?

• Seventy five percent of the new jobs created today come from small businesses; in fact, small businesses gain billions of dollars all in the USA alone!

• Small businesses often grow into large concerns which have a prominent global presence.

• During times of recession, people are willing to invest small amounts of money, rather than a whole lot.

Smart Steps

So what should you do while courting a private investor, angel business capital or venture capital firms? You need to be smart about the choices you make before you start out on your business. Make sure you only go with accredited angel investors, who are sophisticated. By sophisticated angel investors, I mean people who have experience in the industry you are choosing to work in, they are the “been there and done that” type. It’s much easier to work with them, trust me!

Another mistake which young entrepreneurs make is that they underestimate angel investors. Angels might be a bit more lenient than venture capitalists, but they do care a lot about returns on their investment, so if you think you can rest easy, please don’t be under that misconception. You should also be good at making them feel important by asking their advice frequently on important (and sometimes unimportant!) matters.

Where To Look For Them

Where can you find a private angel investor who is not a relative of yours? The best way to find them is through personal contacts. Angel investors like to know who they’re dealing with and if you have common contacts it actually furthers your case a lot – The fewer the degrees of separation between the both of you, the better.

For private angel investors, angel business capital is provided on the condition that you are close to them. This means that you need to be based quite close to their offices. They don’t like the idea of investing in far off places. So, you could maybe start your search in local chambers of commerce, industry conferencing and of course, by networking.

There is quite a big difference between private angel investors and venture capitalists in terms of perspective. Do keep in mind that angel investors assume quite a high risk by providing your startup company with angel capital so they might interfere with your working to ensure that they succeed and don’t lose all that money. So conflicts are bound to arise if you are not clear on what you expect and your role.

An angel investor is really like a partner in your business, this is one thing you will definitely want to keep in mind while dealing with them. But, with private investors, angel business capital isn’t all that hard to come by, so keep a look out.

Business Tips for Improving Your Working Capital

The lifeblood of a business is its cash flow. A business owners main goal is keep that cash flowing and to use it for generating profit. When a business running smoothly and taking in profit, then it will undoubtedly have cash surpluses. If these things are not happening for you and your business does not have this cash surplus, expect to run out of cash and go out of business.

In today’s world of business, cash has once again become king. Actually, cash is earnings and worth more than inventory to many businesses as their financial managers try to maximize it whenever and wherever it is possible. Here are a few ways you can improve your business through gaining working capital:

  • Proper cash flow forecasting is what working capital management is all about. Yours should include the impact of unforeseen events, fluctuating market cycles, loss of a large customer, and your competition. Unforeseen demands and its effect on your business all need to be factored in.
  • There is nothing wrong with putting together a contingency plans just in case of unexpected events. It’s true that market leaders manage uncertainty much better than in years past, but you really should have risk management procedures for your company as insurance. Base it on both an objective and realistic view of how working capital is used in your business.
  • There is definitely an advantage to addressing working capital on a corporate-wide basis. The cash you generate at one business location is often times better used at another provided one is more profitable than another. However, for this type of internal business exchange to work you must have certain practices already in place. Your business better have efficient banking channels and an open line of communication between production and billing as well as an internal systems to move cash to and from the locations.
  • A new and different approach can be used to make use of the combination of operational and financial skills provides an encompassing outlook of your business’s overall operations. It also has shown to improve the identifying and implementing strategies used to generate short term cash. Only businesses with executives willing to personally define targets and performance levels make this happen. They need to be held accountable for delivering what they promise as well as pushing everything into motion as agents of change.
  • As a business owner, you need procedures in place that properly deal with dispute management. You want your customers to basically go away during disputes and free up that locked up cash. Not only that but it can also improve your overall customer service by using that energy towards sales, order entry, and cash collection. You’ll be pleasantly surprised how much of an increase you’ll see in your business’s efficiency on top of a reduction in operating costs.
  • Contact a few of your best customers and ask them what can be done to improve your operations. Many businesses tend to focus solely from their point of view instead of seeing how others perceive it. One recent study showed that by listening to their customers, a wholesale company saved a great deal of money through inventory reduction levels.

Who Were Some of Bruce Lee’s Students?

During Bruce Lee’s lift time he came in contact and made friends with many people that spanned from the average guy who may have been a student to popular actors of the time. Bruce’s first ever student is Jessie Glover in Seattle, he trained with Lee for about 5 years sometimes more than once a day and is considered an authority on Lee’s style of training..

When he began teaching his Jeet Kune Do style of martial arts, Lee only certified 4 people personally as instructors. These 4 are; James Yimm Lee, Ted Wong, Dan Inosanto and Taky Kimura. Dan Inosanto has trained most of the Jeet Kune Do instructors after Bruce Lee’s death.

Inosanto certified instructors for over 30 years which gave all of them direct lineage contact with Lee through him. Inosanto and taky Kimura were allowed to teach only small groups of students after Lee’s death. Other students of Bruce Lee were Chuck Norris, Joe Lewis and Mike Stone who all where already martial artist.

We all know about Chuck Norris being Lee’s opponent in the movie Return of the Dragon in the famous coliseum fight. Norris was already an accomplished martial artist when he met Lee, having learned Tang Soo Do in Korea while in the Air Force and competing and teaching back in the U.S.A.

The actor James Coburn could be found hanging out with Lee and was one of his students. Kareem Abdul-Jabbar a basketball star in the A.B.A and the N.B.A. was a student and was in Bruce Lee’s Game of Death as the last of the characters that Lee fought while going up the pagoda. Steve McQueen brought his son to Bruce for martial arts instruction. Chuck Norris had also instructed his son.

Insurers Use a Variety of Key Tools When Assessing the Financial Stability of a Potential Account

For many small and medium sized businesses, most insurance underwriters will be able to determine the quality of risk by looking at a few key factors such as loss history, location, years in business, revenues, qualifications of management and accounting information if warranted. Yet for much larger and complex risks with revenues in the 10’s of millions, ratio analysis has become mandatory. There are many types of ratios that can be derived from the accounting records. We will look at a few key ratios that assist insurers in identifying the following key objectives.

  • The overall financial strength of the company
  • The ability to pay premiums
  • Growth and future shortcomings

I will examine 4 of the more common types of ratios used by underwriters and actuaries.

Total Assets Turnover Ratio

Leverage Ratio

Liquidity Ratio

Profitability Ratio

Total Assets Ratio -numbers from both the balance sheet and the income statement are needed to determine this ratio. The total assets turnover ratio helps determine the financial strength of the company and its ability to use assets to generate sales. It is often used in back to back year comparisons

Total assets turnover ratio = ____Sales______

Average total assets

Ex: MYcompany = 1,500,000/ ($960,000 +$ 1,000,000)

= 1.3

A ratio amount of less than 3 is a good indicator that there may be an issue with one or more of the asset categories such as fixed assets, inventory or account receivables. The insurer would most likely look into this further to seek out if there could be a problem with inventory or if the firm’s collection period is too long.

Leverage Ratio – this ratio looks at the company’s ability to meets its financial obligations. The larger the debt may be, the greater the chance that the company will be unable to meet their debt payments.

The most commonly used Leverage ratio is total debt to total assets and can be calculated as follows

Total debt to total assets ratio = ___Total debt___

Total assets

EX: Mycompany = $650,000/$1,400,000


For each dollar of the company’s assets, creditors are financing 46 cents. This is very close to 50% or 50 cents and should be monitored closely with calculations done on previous years to see how the company is trending.

Liquidity Ratio – this really quick ratio allows one to determine the company’s ability to pay short term debts. A low ratio will indicate the company may be struggling and unable to meet expenses as they come due. A ratio amount of less than 2 is usually an indication of poor performance.

The most common liquidity ratio is the Current ratio calculation

Current ratio = __Current assets___

Current liabilities

EX: Mycompany = $130,00/$48,000

= $ 2.7

Mycompany has $2.7 of Current Assets to meet $1.00 of its Current Liability. This is a good ratio.

Profitability Ratio – this ratio measures the overall performance of a company. The Net profit margin is the most easy and commonly used ratio. It quickly indicates how much of each dollar shows up as net income after all expenses have been paid. For example, if the net profit margin is 5% that means that 5 cents of every dollar is profit. A ratio amount of 5% or greater is a good indication.

Net Profit Margin = Net Income

Net Sales

EX: Mycompany = $45,000/$560,000

= $.084 or 8.4%

Thus Mycompany realized an 8.4 % net profit after taxes.

Once a few or all of the above scenarios are run by the insurer, they can then determine if the risk presented fits their underwriting guidelines and what premiums and coverage’s will be applied. If the risk is unfavorable, the insurer will most likely decline the risk and keep a record on file indicating this risk was presented and declined usually for a 3-5 year period. In addition to insurance companies, many banks have also run these formulas to help determine the efficiency of operations and credit worthiness of loan applications. These simple and quick calculations can provide instant information about a company’s performance and can trigger alarming numbers that may need to be reviewed more closely. Small and medium sized business owners can do these calculations on their own or seek out an accountant to see how their business is trending before the year end income statement and balance sheet are produced.

It must be pointed out that different industries have different ratio benchmarks. Many insurance companies have gathered this information from many years of data from a number of different industries. An excellent place to obtain key business ratios is Dun and Bradsheet. Feel free to drop me a line if you have any questions or looking for other key ratio indicators.

Sample Cover Letter For High School Students

Many teenagers who pass high school look for part time or full time jobs for earning pocket money. A job can be an experience building stepping stone if you already know what type of career you would like to make in future. Nowadays there is huge number of jobs available for high school student. You just need to prepare an effective cover letter if you want to secure a decent job.

In this article I would like to provide a sample of a high school cover letter which would help high school students, particularly juniors and seniors who want to enter the workforce.

Your Name

Your Address

Your City, State, Zip Code

Your Phone #

Your Email


Employer Name



City, State, Zip Code

Dear Mr. /Ms. Last Name,

I am responding to the employment opportunity listed on your website. Please accept this letter and accompanying resume as evidence of my interest in applying for this job. I feel my qualifications and my skills would prove to be an asset for your organization.

I have recently passed high school from a well known school. Now, I am looking for an honored job that will add experience to my building career. Here are some of my key strengths that I would bring to the position. I am:

1. A self-starter.

2. Disciplined.

3. An excellent communicator.

4. Very willing and eager to learn new things.

5. Exceptional at customer service.

6. Great team worker.

Accepting challenges is the foundation of my life experiences and something I do with confidence. You will find me a totally committed individual with pride in being direct, spontaneous and communicative. I can maintain records, perform numerical calculations with accuracy and I need little direction to complete assigned tasks. These are the qualities that make an excellent candidate for this post.

I was responsible for handling and organizing various important activities in my school. I have even participated in numerous cultural activities. I have working knowledge of MS Word, PowerPoint, MS Excel and Internet.

I would appreciate your consideration of my credentials. If you do think there is a shared interest, I would greet the chance to meet with you to hear more about your company, the requirements of the position, and how my skills would be a good fit.

Thank you in advance for your consideration.


Your Signature

Your Typed Name

I hope my article will help you in preparing a high-quality and eye-catching high school student cover letter.