Faith Hill

William McRea asked:


Taylor Guitars got its official start in 1974 with its founders, Bob Taylor and Kurt Listug. However, the story begins much earlier than that in the 60s when popular music spurred by the Beatles got a lot of people itching to play the guitar. The founders were young then, but they started their love of the guitar at around this time.

Eventually, this itch led them to the purchase of a guitar shop with another friend, Steve Schemmer. The shop was modest, and information on the Taylor Guitars site reveals that it was less than ideal. They constantly dealt with water leaks and flooding. But, everyone needs to start somewhere! Their beginnings were rocky and difficult and that first workshop seems to signify that.

Together, the three operated this shop which was then called the Westland Music Company. Their original business idea had the company selling guitars and their parts, repairing them, building them etc. They also decided to call their guitar line Taylors after Bob Taylor, the accomplished luthier of the group. Thus, the long process of trying to run a company and make top notch guitars begins in this little shop.

Long story short, they were eventually successful at both. Now, their company employs over 300 people, all of which play different roles in the company. Kurt Listug is still heavily involved with the company as CEO. They are successful, and the Taylor Acoustic is considered amongst the best acoustic guitars and has achieved world wide renown.

They manufacture 14 different acoustic guitar styles, with multiple models within each category. These include the Bob Taylor, named for the head Luthier, the 100 through the 900 Series, the Presentation Series, the Nylon Series, the KOA Series, and the Walnut Series.

There are also plenty of artists who enjoy their Taylor Acoustic guitars. These include Chris Procter, Pat Kirtley, Artie Traum, Wayne Johnson, Leo Klottke, Babyface, Faith Hill, Billy Idol, Stephen King, Better than Ezra, and scores others. Taylor are considered a special guitar by there owners.

Here is a review on a Taylor Guitar:

About the Taylor PC14C

I play finger style guitar and finger style solo guitar. First: This is a very expensive guitar which is made to be the top model of Taylor. So if you want to be able to get the real sound out of real good guitar: play with your fingers. Second: Ill love almost any good guitar. Every guitar should be heard for his own character and sound. So how does my PS 14 sound? Well with the well known Taylor sparkle in the highs and a very thick creamy mid and warm basses. The sound is very, very rich.

The history or Taylor guitar is a modern day success story, from an American Manufacturer that is still going strong.



Beverly

Pam Kennett asked:


Copyright (c) 2007 WealthBeing

Around 1910 an individual by the name of Wallace D Wattles wrote a book called The Science of Getting Rich. He also wrote a book entitled The Science of Being Well, which is fascinating but another story altogether. Wallace D Wattles contention was that “the ownership of money and property comes as a result of doing things in a certain way; those who do things in this Certain Way, whether on purpose or accidentally, get rich; while those who do not do things in this Certain Way, no matter how hard they work or how able they are, remain poor”.

Today, Paul McKenna, leading hypnotist and Neuro Linguistic Programming (NLP) master trainer, is serializing his book “I Can Make You Rich” in our national newspapers, complete with self hypnosis CD. So what have we learnt in nearly 100 years and numerous theories and textbooks on the subject and is it really possible to teach yourself how to get rich?

Paul McKenna builds on Wallace D Wattles and the work of Napoleon Hill in Think and Grow Rich. Napoleon Hill was commissioned by Andrew Carnegie to interview 400 of the richest people to learn how they created their wealth. By interviewing such individuals as Charles M Schwab, John D. Rockefeller, Henry Ford and Woodrow Wilson, Napoleon Hill proved Carnegie’s hypothesis and established that the real secret to wealth creation was that all wealth is created with the human mind. Defining further just what an individual could do to create this wealth, Hill identified a number of actions including having a real desire to pursue your purpose, faith (not so much spiritual but faith in your ability to reach your goal) and persistence to keep going in the face of adversity.

Paul McKenna gives a modern day twist. As a well known hypnotist and NLP Trainer, he is able to apply his skills to help individuals who may have a negative or destructive relationship with money. What he says is very similar to that of Napoleon Hill and Wallace D Wattles. He says that rich thinkers are those who live life according to their rules and their terms. Their bank balance may go up and down but they work from an inner belief that they will be wealthy. Poor thinkers on the other hand, may have big houses and wear fancy clothes, but their heads are filled with fears about the future and they mistrust those around them.

Rich thinkers work from a position of

Brittany

John Hill asked:


Todays’ relationship between dogs and their owners has changed dramatically from the days of old. Sure, they still stand guard over you and your family, and occasionally they still chew up that favorite pair of shoes. However, no person on earth has been able to display the type of unconditional love that our wonderful pet bestows upon us every day. Despite the difficult and trying process of house training and the sometimes long hours left alone while we are working, our beloved dogs eagerly wait for us to walk through the door, ready to snuggle up and help us unwind from a tough day at work. Sometimes a person’s best friend is the one with four legs and a wet nose.

With our growing love for these faithful companions it is no wonder we began to pamper and treat them to the finer things in life. From clothes to toys, special shampoos and beds, dogs are becoming increasingly more and more like our own children.

There are many online companies specializing in designer products for your dog where you can purchase items specifically designed to help you and your dog express that wonderful personality that has so endeared them to your heart. You can find a large array of pampered pet products such as suede sheepskins collars and leashes for that urban dog that enjoys treks through the parks or the occasional works outing. For the more sophisticated dog, you may prefer the stunning Swarovski crystal collars and leads that are available. Owners can also find the perfect little outfit for their best friend, including PJ’s for your little canine baby to snuggle into for a good night’s rest.

In addition to clothing and accessories, online pet boutiques often feature fashionable dog beds, from faux suede dog mattresses and dog hammocks to padded beds and cradles. These boutiques often also feature dog bowls and bowl mats so that your pet can enjoy sleeping and eating designer style.

As with humans, before getting all dressed up in their new chic clothes for a day at the park, your dog might like a good grooming to make him or her look their best. Why no try grooming products that will deliver professional results, making your dogs coat shiny and velvety soft? Some products are designed to condition dry coats, ward off summer flea and mosquito attacks, and there are even detangling shampoos and leave in shine treatments that will smooth away those troublesome stray strands, leaving beautifully soft fur.

When it comes to pampering your dog, there really is no limit to style, design, or product for your fuzzy buddy. After all, your dog deserves the same amount of love and attention they show you every single day. If your dog is a very special part of your life, then from time to time you might like to seriously pamper your pet. Although be sure not to over-pamper your dog and make your family jealous.

Doesn’t your dog deserve the best of everything?



Cynthia

Sachin asked:


Shimla-the queen of all hill stations,is one of the most popular hill stations in India.Its well developed facilities, easy accessibility and many other attractions makes it the most sought after hill resort in India.It is surrounded by pine, cedar, oak and rhododendron forests,in the lower Himalyan ranges.Shimla is favourite amongst all type of people,be it honeymooners,families, youngsters & old people.

Most of the people comes to the sylvan heights to spend some time in the lap of hills & to enjoy the pleasures of natural bounties out there.

Main Tourist attractions in Shimla- The Ridge-

This is the best place in Shimla,where one can spend many hours in a day,basking in the warmth of the lazy sun.This place experiences a mixed crowd of young and the old,having a stroll or talking against the backdrop of the glittering peaks.

Lakkad Bazaar-

This place,popularly known as the world of wooden marvels lies right below the ridge.This market offers a wide variety of items carved out of wood.One can get anything from key chains, walking sticks, massagers, toys and jewellery boxes to sailor’s wheels, planters and stationary holders.One can pick a plenty of things for friends and relatives, without flattening your wallets.

St Michael’s Cathedral-

This cathedral was Once considered to be the Michael’s Cathedral is a stained-glass masterpiece. It is masterpiece of stained-glass.It is a place that makes you learn the qualities of Hope, Faith, Patience and Humility.

Institute of Advanced Studies-

Orginally,this institute was the Viceregal Lodge,built in in 1888,it is a perfect example of a magnificent English Renaissance grey-stone edifice set admist beautiful gardens and lawns. The grounds of this place are open for visitors only on Sundays,otherwise the is by ticket.

Tara Devi Temple-

The panoramic views,provided by this temple leave visitors gasping.Situated atop a hill,& lying amidst the oak and rhododendrons, it is accessible by road, rail and by foot.

To know more about “indian-hill-stations” visit this site: http://www.indian-hill-stations.com



Louise

Aldian Prakoso asked:


What do you want the most? Is it money, fame, power, contentment, personality, peace of mind, or happiness?

Napoleon Hill summarized in his book Think and Grow Rich that there are 13 unique characteristics that every wealthy, successful and powerful man and woman has. He called these characteristics the Thirteen Steps to Riches.

No one was born with any of these characteristics. All were born the same. These characteristics are learned and developed to be the second nature. What are these characteristics, the Thirteen Steps to Riches?

1. Burning desire. It’s the starting point of all achievement. You must have burning desire.

2. Faith. Visualization of, and belief in attainment of desire.

3. Auto-suggestion. The medium for influencing the subconscious mind.

4. Specialized knowledge. Personal experiences or observation. You must focus in one area and concentrate there.

5. Imagination. Remember Law of Attraction?

6. Organized planning. The realization of desire into action.

7. Be decisive in nature. The mastery of procrastination.

8. Persistence. The sustained effort necessary to induce faith.

9. Surround yourself with master mind. It’s your driving force.

10. The mystery of *** transmutation.

11. The subconscious mind. The connecting link.

12. The brain. A broadcasting and receiving station for thought.

13. The sixth sense. The door to the temple of wisdom.

Among all of those thirteen characteristics, these five are the most important:

1. You must have burning desire.

2. You must have a specialized knowledge and concentrate there.

3. You must be decisive in nature.

4. You must be entrepreneur in spirit. Big money is made when there’s no guarantee.

5. You must surround yourself with master minds.

Before reading Think and Grow Rich, you must be aware that this book was not written to entertain. You can’t digest its contents properly in a week or a month.

Think and Grow Rich is a textbook on individual achievement of the experiences of hundreds of America’s most successful men. It must be studied, digested, and meditated upon. You must underline the sentences that impress you the most, and later go back to these marked lines and read them again. You will absorb its contents and make them your own.

What do you want the most?

If all of those successful men could achieve their dreams, so can you. Remember that no one was born with these successful characteristics. Everyone was born the same.

Build your successful characteristic using Think and Grow Rich !



Gerald

Marjorie Janczak asked:


“Love is the master key that opens the gates of happiness.” - Oliver Wendell Holmes However in today’s world, love seems to have assumed a different meaning. The problem of separation among couples is becoming overwhelming great and that in effect is affecting societal morals. It is interesting to reflect back and realize that in the days of our parents, such problems hardly existed. They managed to handle their differences and kept their love aflame. But how did they really do that? Below are some love killers that anyone who is concerned about keeping his/her love true must avoid.

1.Never go into a relationship just thinking about the financial wealth of your partner

Having a partner who can provide you with financial freedom and luxury is good but be careful not to just love his/her riches and think you really love him/her because that would not be true and should there be some misunderstanding, this money love would result definitely in a separation. In as much as money is good in any situation, it can be a devil and so if care is not taken, one time sweethearts may end up as the worse enemies that ever lived.

2.Accepting your partner because of his/her educational achievements or status

If you can openly and confidently present your less educated partner to the public then that is not an issue. But if you can only love and feel free with the less educated partner only in the privacy of your home then you rather think twice before deciding to spend the rest of your life with him/her because this can spark troubles.

3.If you cannot tolerate your partner’s faith (if different from yours)

It might seem in the beginning that love would solve this problem. But the reality is that if deep inside you refuse to accept the other partner’s FAITH it is most likely that it might disturb you even when you have been together for a long time. Wars have risen because of religion from old times and they are still be fought because of religion, so both parties MUST make sure that they respect each other’s FAITH if you decide not to change FAITHS.

4.Loving the color of your partner’s skin

Think not of the origin of a partner, think of your compatibility. Love knows no limits and what is more the problem of racism could be solved if the number of mixed raced children increase. You hardly realize how baseless racism is until you have mixed blood children.

5.Being or having a partner who is not supportive of your dreams

A partner who does not take time to discuss with you your future together or who ignores what you want out of life is worth thinking twice about. Every human being needs encouragement and support no matter how independent you may be and there is no better person to give such support and encouragement than your beloved partner.

6.Having a partner who just cannot exhibit care, warmth, generosity and positive energy : A partner who simply cannot show care, warmth, generosity and positive energy just does not deserve to be loved and be with. If you happen to be the partner who keeps giving all the time then it is about time you took a decisive and definite decision to call it quits no matter how much love you have for this other person because it just would not happen. If your partner could not acquire such qualities all the years he has lived till you meeting him/her, NEVER think you can work any miracles to change the situation. Whatever will be will be!

7.Just because the other person submits to your every wish and command : In Napoleon Hill’s classic ‘Think and Grow Rich’ he talks about two kinds of leadership - Leadership by Consent of, and with the sympathy of the followers and Leadership by Force, without the consent and sympathy of the followers. He further states that those who belong to the old school of leadership- by-force, must acquire an understanding of the new brand of leadership (cooperation) or be relegated to the rank and file of the followers since there will be no way out for them. One very important thing he added is that “Leadership-by-consent of the followers is the only brand which can endure. The fact is, this applies perfectly with couples as well. Being the ‘Head of the house’ or ‘breadwinner’ or any other excuse you can think of or imagine gives you no license to ‘lord’ or ‘lady’ it over your partner. Harmony is a vital ingredient of any relationship and the can only happen if there is respect, agreement and consent of both parties involved. So whatever side you are in such a relationship note that, the weaker partner will follow the forced leadership, but it will not be done willingly and for long.

8.Thinking a partner must be treated according to the number of years they have existed on earth

Age is just but a number. True love and respect for each other is all that matters in a relationship that longs to be meaningful and lasting. After all there are adults who behave like children and children who are more matured than their age.

9.Choosing a partner just to ensure you will have a heir to your ‘throne.’

Children are gifts to a couple. But when a partner’s main aim is to ‘replenish the earth’ then it becomes a danger and a threat to the relationship because should the unwanted happen, the ‘blameless’ one tend to start nursing some resentment for the ‘troubled partner’ and this is certainly not healthy for a lasting relationship. You need to love your partner just as he or she is!

10.Enter or be in any relationship other than to truly love and be truly loved! : Signs of lack of love for one’s self is enough evidence of a partner’s inability to give true love. If you can truly love yourself, then you are on the right path to giving and being loved by another. You need not say it. Love is the message and the message is LOVE!

There is more to loving than meets the eye but a thousand steps they say, begins with a step. Consciously and uncompromisingly working to maintain your relationship is the only way to have it last. Like any business, the business of love also needs to be worked on in every respect. The need to communicate the right way in order to send the right signals are very vital in this instance. In this way the couple can identify what is lacking in the relationship and they can subsequently make a collective effort to make the relationship work. Let not your love be just words, act it, it’s more powerful!



Minnie

Naveen Marasinghe asked:


 

The St Mungo Museum of Religious Life and Art, opened in 1993, is housed in a building constructed on the site of the medieval Archbishop’s castle. It reveals and analyzes the importance of religion in people’s lives the world over, since the beginning of civilization. Besides its unique concept, the museum provides an unparalleled view of the Gothic Cathedral and the Necropolis, a nineteenth century graveyard situated on the hill behind.

 

The museum has four exhibition areas spread over three floors. These include the Gallery of Religious Art, the Gallery of Religious Life, the Scottish Gallery and a temporary exhibition space. The objective of the St Mungo Museum of Religious Life and Art is to inculcate understanding and respect among people of diverse faiths, religions and atheists through its exhibits which include a Zen garden, and a sculpture showing Islamic calligraphy.

 

The Gallery of Religious Art exudes brightness with its colorful stained glass windows depicting Christian saints and prophets. It also displays a beautiful figure of the Hindu God of Dance, Lord Shiva.

 

The Gallery of Religious Life delves in detail into the world’s six main religions, namely, Buddhism, Christianity, Hinduism, Islam, Judaism, and Sikhism. The novel concept at St Mungo Museum of Religious Life and Art is being able to listen to people talk about their faith, and witness the Mexican Day of the Dead skeleton, which signifies the victory of life over death.

 

The Scottish gallery traces the impact of religion on the culture and beliefs of the people of West Scotland from early times to present day civilization. The Sharing of Faiths banner reflects the spirit of the multi-faith city of Glasgow. The Zen Garden is the only permanent one in Britain, depicting simplicity and the peaceful coexistence of man and nature.

 

Glasgow is among the most historic places in UK and you’ll find many attractions, both historic and modern, to explore. The choice of Glasgow hotels available provides you with an easy way to stay at, discover and enjoy Glasgow at leisure.



Brad

Robert Griggs asked:


Quick: name any pop single released by an Idol contestant who didn’t win. Did it take you a minute to think of songs such as Clay Aiken’s “Invisible”, Kimberley Locke’s “Eighth World Wonder”, or Diana DeGarmo’s “Dreams”? I bet it did.

Now try this: name any country single released by an Idol contestant who didn’t win. That test should be easier, as only Carrie Underwood’s big country hits are ruled out. Kellie Pickler’s current top 20 (and climbing) hit “Red High Heels” and the Josh Gracin catalog, including his smash hits “I Want to Live” and “Brass Bed” should instantly come to the minds of Idol fans, as well as fans of the respective singers.

One final question: which Idol has had the most successful full-length album (in sales) to date? If you answered Kelly Clarkson, you’d be dead wrong. Carrie Underwood’s debut album “Some Hearts” just crossed the four million mark in sales, and shows little sign of slowing down soon. Josh Gracin’s debut album quietly went Gold, and Pickler’s debut “Small Town Girl” also appears headed to Gold status.

Meanwhile, attempts by former contestants Corey Clark, Justin Guarini, Tamyra Gray, Ayla Brown, and others to break into the pop charts have fallen on deaf ears. Even season two darling Aiken has only achieved modest airplay at pop, something Kellie Pickler has done right out the gate with her first single.

Oddly enough, American Idol contestants have now generated more success on the country charts than country-geared Nashville Star contestants have. Buddy Jewell’s first hit did well, but followups and his album struggled, and he eventually parted ways with Sony/Nashville. Miranda Lambert’s had middling success, but still can’t quite achieve that breakout hit. More recent winners have also struggled to have measurable success on the country charts.

The country success for Idol contestants can be attributed partly to country music fans being less fickle than the fans of pop music. Today’s pop chart consists mostly of “flavors of the week”, acts who currently have a hot song out, most of which have been in the business for less than three years. While there’s plenty of new blood in country music, veteran acts like Martina McBride, Toby Keith, Tim McGraw, Keith Urban, and George Strait still regularly top both the airplay and album charts. So, put a good singer with a tried-and-true formula, and you can’t help but achieve some measure of success. While achieving a hit depends heavily on luck, a catchy song will get a new act further on the country charts than it will the pop charts.

Persona also has some effect on success. Remember, these contestants were seen by millions of viewers nationwide for many weeks. Justin’s argument with Simon on American Idol and his well publicized struggles with RCA paint him in a negative light. Tamyra Gray was burdened with the “boring” label by some, especially after her first single “Raindrops Will Fall” received dreary reviews from the music industry. The stereotypes people made of Justin and Tamyra doomed the fates of their debut albums, esepcially since at at time when “catchy” sells, neither of their singles fit the “catchy” criteria. Meanwhile, Corey Clark looked foolish trying to capitalize on Paula Abdul’s generosity and was largely ignored by the music community as a whole.

Two former contestants are special cases. Mario Vazquez has achieved a solid radio hit with his single “Gallery”, but it hasn’t translated into sales. Unfortunately, as usually is the case in this situation, any follow up singles have fizzled at radio, and album sales are lackluster. Meanwhile, Ayla Brown released her debut album under indie label Deal Time Records, but try finding it anywhere outside the Northeast. Between poor distribution and NCAA regulations (she is on a basketball scholarship at Boston College), Brown’s album had little chance at making any kind of blip on the sales charts. Radio airplay for Brown is nonexistent, as is often the case with independent label artists.

Meanwhile, Idols that have gone country have been smartly marketed, and have worked on songs that showcase their vocal highlights and limit their weaknesses. Simon Cowell didn’t get Josh Gracin’s country twang during his Idol stint, but country music fans certainly have. Josh leaned towards ballads and midtempos, while avoiding faster paced songs like “Ain’t Goin’ Down ‘Til the Sun Comes Up”, which he had trouble with on Idol. Underwood is an excellent vocalist who can more than hold her own with the likes of Faith Hill and Martina McBride, and she’s proven it on her ballad “Jesus Take the Wheel” and her recent chart topper, “Before He Cheats.” Underwood recently beat out both Hill & McBride at the American Music Awards, and may have some Grammy metal headed her way come February.

The record label headed in a different direction with Kellie Pickler, a decidedly polarizing contestant on the show. Fans didn’t know whether to be delighted or dismayed at her naïve nature. Her album plays up to her small town roots and some of her “blonde moments” on the Idol stage. However, she struggled mightily at big ballads, and her album stays away from the big held notes to a large degree, settling more for “catchy” faster paced fare that will satisfy both her fans and general country music fans.

Will season six bring us a country act ready to go, win or lose? We shall see come January 16, 2007, when American Idol returns. To the Point and Back will be covering the new season of American Idol in full detail, so check the site often for recaps and opinion surrounding the new crop of talented young people who are about to get a reality check from Simon, Paula, Randy…and us!



Robin

Dee Power And Brian Hill asked:


There are two kinds of capital: debt and equity. Both kinds are typically used by a company during its lifetime. Lenders have different objectives than investors and therefore look at different factors about a company when deciding whether or not to invest or make a loan.

Debt

Debt is money borrowed, which must be repaid at a set time period and generates income for the lender over that time period. Lending sources include not only banks, but also leasing companies, factoring companies and even individuals.

Lending sources look primarily at two factors: how risky the loan is; and whether the company can generate sufficient cash to pay the interest and repay the principal. The growth potential of the company is secondary; the primary considerations are the track record and asset base of the company. Usually the debt must be secured against the assets of the company and very commonly must also be secured against the assets of the owner of the company, also called a personal

guarantee.

Assets of the company are not usually given full book value in securing a loan. In other words, if your inventory has a book value of $50,000 (or it cost you $50,000 to produce that inventory) a lending source will only give you 50% to 75% of that value. The reason being is that the lending source is not in your business and would have to quickly liquidate the inventory, rather than selling it at market prices.

Accounts receivable, or money that is owed to you from customers who have previously purchased your product but not paid for it yet, are also discounted. Using the same example, $50,000 worth of accounts receivable may only be worth 60% to 70% of that value to the lending source. Customers may not pay the full amount owed, or feel they have to pay for the product at all, if an outside lending source is demanding payment. And so on…with equipment, land, buildings, furniture, fixtures and what ever other assets the company has, the same general rule applies.

The lender often requests that the personal assets of the owner of the company are pledged as a contingency and as a gesture of faith by the owner. Obviously, if the owner of the company does not believe in his/her own company’s ability to repay the loan, why should the lending source?

Equity

Equity capital is money given for a share of ownership of the company. Equity can be provided by individual investors, sometimes known as “angels”, venture capital companies, joint venture partners, and the sweat equity and capital contribution of the founders of the company. Equity providers are more interested in the growth potential of the company. Their objective is to invest an amount now and reap the rewards of a 5 to 1, or even 10 to 1, payoff in three to five years. In other words $100,000 now will be worth $1,000,000 in three years if invested in the right company.

Since the objectives of investors are different from lenders, the factors they evaluate in determining whether to invest are different from lending sources. Investors like to put money in companies that have the potential for rapid growth. Growth potential is based on the quality of management of the company, product brand strength, barriers of entry to competitors and size of the market for the product.

So Debt Or Equity Capital?

The answer is dependent on the answers to several questions: Why does the company require additional capital? What stage is the company at? What is the financial condition of the company? How much capital is required? What constraints will the financing source put on the day-to-day operations of the company? And finally, what impact will the financing source have on the ownership of the company?

Why Does The Company Require Additional Capital?

The reasons funds are required, or how they will be put to use, may lend themselves more to debt than to equity or vice versa. Debt is often a source of funds for the day-to-day operations of the company or to refinance a current loan. Expansion capital can be debt or equity. Start up funds most often come from equity sources. A turnaround situation, refinancing a delinquent loan, covering a deficit in revenues, could be either, but in these cases the financing will come with a high price.

What Stage Is The Company At?

Companies grow through several different stages: seed, start-up, first stage, and second stage. The stage of the company can be an indicator of the risk involved. While neither debt nor equity would be prohibited at any stage, the older and more established the company is, usually the less risky it is.

Seed Stage–the idea for a product or company is in the mind of the founder, but there is still substantial research and development necessary to determine whether the idea is viable.

Start-up–the company has a business plan, a defined product, and basic structure, but little or no revenues are being generated. The product may still be just a prototype.

First Stage–the product is either ready for market, or is generating some revenues. The structure of the company is in place.

Second Stage–full scale production. The company’s product has been selling and accepted by the marketplace. The company is ready for a major national introduction of the product or introduction of a second product.

Established–the company has been operating successfully for at least three years.

Turnaround– the company has been operating for a number of years but is underperforming. A hard turnaround refers to a company that is not only underperforming, but has been in a cash deficit position with little hope of returning to a positive position without major restructuring.

What Is The Financial Condition Of The Company?

In certain situations the company’s financial condition will suggest one kind of capital over the other. If the company needs all its cash to fund its growth, then a loan is not feasible, because the company could not afford interest and principal payments. If the company just needs a line of credit to fund a cyclical increase in orders, then it doesn’t make sense to bring in an equity investor.

A lender looks at the asset base to secure a loan, and the cash that has been generated to pay the interest. They also look at what other debt or liabilities the company has and very often the debts and liabilities of the owner(s). The old adage that it’s easiest to get a loan when you don’t need one is close to the truth. A strong balance sheet, top heavy on cash, and light on the side of liabilities is easier to finance.

Investors look at how healthy the company is by reviewing trends in the operating statements and the balance sheet. A company that has demonstrated a positive trend in the past is looked upon favorably. However, the future outlook for the company’s product and market is just as important to an investor as the past performance. A company with a somewhat shaky past in a currently booming industry is probably preferable to an equity investor than a great performance in the past in an industry that’s on the downslide.

But what if your company is a start-up and doesn’t have much, if any, history? Then other factors will be reviewed such as:

How much money the owners contributed to the company.

How strong is the management team.

How dedicated to success is the management team.

What other proprietary assets might be available such as patents, trademarks, goodwill, etc.

What barriers to entry to the marketplace are there?

While both debt and equity come at a price, the company must generate enough cash to repay the principal of the loan and the ongoing interest expense. Equity does not have to be repaid according to a fixed schedule. Equity investors are seeking long-term returns.

How Much Capital Is Required?

A small amount of capital required for a short time is not often an attractive situation to either traditional debt or equity sources. Lenders are not interested in loans that cost them as much in processing as in the income that can be generated. Investors feel that the due diligence required to fund a small amount of capital is nearly the same as that to fund a much larger amount.

On the other hand a very large amount of capital may only be obtainable if broken into stages that are funded based on achieving performance levels. For example: you have an idea for a diagnostic test that would be a medical breakthrough and revolutionize the treatment of all disease as we now know it. But you need $3.5 million to get the product ready to market. The initial funding may be as little as $50,000 to perform a literature and patent search to see if anyone else is working on the same idea and to determine the size of the market demand for the product. If the search shows that no one else is working on the idea, and the market is every doctor’s office worldwide, the second stage of $500,000 could be available to acquire lab equipment, hire lab technicians for six months, and hire consultants to develop a business and marketing plan. If the lab technicians develop a prototype test apparatus by the end of the six months, then $1,000,000 more could be available to develop a working prototype and patent it. When the working prototype is patented then $750,000 would be available to obtain FDA approval and independent tests.

What Constraints Will The Financing Source Put On The Day-To-Day Operations Of The Company?

You must consider how the financing source may limit the company’s operations. Loan covenants often restrict what the company can do with excess cash. They can also put limits on how much the company can spend, and on what type of expenditures, as well as demanding that the company maintain certain balances in their accounts, collect their receivable within certain limits, even determine the credit policies that the company extends to its customers. The company may not be able to take advantage of some opportunities because of these restrictions.

Equity investors can demand the same restrictions and in addition require that they have veto power in certain instances, or expenditure approval, even if they are in a minority ownership position.

What Impact Will The Financing Have On The Ownership Position?

The last issue and probably the most important one is, how will the owners react to having their ownership and management control diluted. An investor can often contribute experience and management expertise, as well as money, and has a vested interest in the success of your company. A lending source has no impact on the company (other than any loan covenants discussed above); its primary objective is to be repaid.

So Debt Or Equity? The choice is yours.



Marcus

Saleem Rana asked:


It was a medium day in Alaska. The sky was a bit overcast. The air was cool.

Frantic activity was visible in all directions as the drivers prepared for what could arguably be called the toughest race in the world.

The Iditarod Trail Sled Dog race is an annual event in Alaska. Mushers and dogs cover 1,100 miles. It can take them 8, 14, to 21 days to complete the distance.

Teams must race through blizzards that cause whiteout conditions, subzero weather, and gale force winds.

The trail runs through Alaska, from Anchorage in the southeast, up the Rainy Pass of the Alaska range, through the sparsely populated interior, along the shores of the Bering Sea, and finally reach Nome, in the northeast.

Musher Mike’s marathon runner stamina and mountaineering strength and ferocious agility were evident as he ran through the gangline, harnessed them, and hooked them to the four wheeler’s gangline. The dogs were happy and enthusiastic, all psyched up and ready to go. He undid the retainer hook and they were off like a speeding bullet.

Then 17 days later, the Iditarod was over, and he had lost, for the third year in a row.

He had crossed over harsh and starkly beautiful landscapes under the Northern Lights, through tundra and spruce forests, over hills and mountain passes, and across icy rivers.

His wife, Clarissa, came over. Her sky-blue eyes were smiling.

“Well, she said.

“Joy will come, “said Mike.

She nodded.

He continued: “I used to imagine that I would lose myself if I gave myself away and keep myself if I hid myself away, but now I know that the contrary is true. If I could do it all over again, I would.”

“I admire your faith,” she said.

“It’s because I have learned to love what I do. When you have love, faith comes, sadness passes, and solitude breaks. Even when I lose, I love, and rather than finding myself in hell, I find myself in heaven.”

“That’s all a person needs,” she agreed. “Faith, courage, and love.”

“Yes, ” said Mike. “I refuse to fall down.”

“That’s what I love about you, Mike. If you fall down, you refuse to stay down. If you get pushed down again, you raise your heart to heaven and make the impossible, possible.”

“Let’s get some hot coffee,” he said. Hooking his arm in hers, they walked toward the coffee shop to make plans for the next Iditarod.



Phillip