Business Finance - Resources for Entrepreneurs - Gaebler Ventures

Understanding business finance is a must for entrepreneurs who want to start a business, stay in business and grow big.

In addition to perusing these business finance articles, you may also be interested in our articles that focus exclusively on raising money for a business venture.

Equipment Sale Leaseback Financing. In an equipment sale-leaseback financing, you sell your equipment, get a cash infusion, and then leases the equipment back. This financing technique gives you access to cash and improves your balance sheet.
Bridge Loans. Bridge loans are short-term funds that "bridge" the gap between today's need for immediate cash to pay bills and the final closing of a pending investment deal or long-term financing package.

Takeover Financing. Takeover financing means exactly what it sounds like. It provides capital for someone to gain control of another corporation using stocks to gain the control.
Accredited Investors. Before accepting a check from an investor, you may want to make sure they are an accredited investor. What's an accredited investor? Great question.
Hotel Financing. If your entrepreneurial dream is to own a hotel, you'll be glad to know that hotel financing is a niche area of finance that is quite mature.and right now, there's a boatload of money to invest.
Going Public Through a Reverse Merger. A Reverse Merger may be the quickest way to go public but is it the best? We look at a few drawbacks of using a reverse merger to take your company public.
Understanding Warrants. You're talking to an investor and they are ready to invest at a valuation you like but they also want some warrants as part of the deal. You grin and wonder "What the heck is a warrant?" Avoid that hypothetical scenario -- read this article!
Poof IPOs. It sounds crazy but it's done many times. Get a bunch of companies to agree to be acquired by you, contingent on your going public and raising money to pay off the acquired company owners. It's called a Poof IPO and it's a novel business finance concept that has been used to make something out of nothing.
People to People Loans. Why go to a venture capitalist and submit to outrageous financing terms when you can borrow money from a complete stranger instead? New services like Prosper.com help you to borrow money. Just state your case and see who responds.
My Competitor Raised $50 Million - Great!. When a competitor raises a round of venture capital, how should you react? We discuss a scenario in which your competition raises a massive venture capital funding round.
My Competitor Raised $50 Million - Yikes!. If the competition raises a venture capital round, you can put a silver lining on it. But you should also be aware that this could be the beginning of the end for you.
The Golden Guide to Managing Cash Flow. Managing cash flow is the antidote to business failure. We discuss some surefire ways to make sure your business checking account balance stays in the black.
Cash Flow. So you've developed an amazing product and are ready to start a business, but you're not exactly a big finance person. The first article in this four-part series on understanding financial statements focuses on cash flow statements.
Balance Sheets. Are terms like cash flow, balance sheets, and EBITDA all Latin to you? The second article in this four-part series on understanding financial statements focuses on balance sheet statements.
Income Statements. If you'd like to understand the significance and function of financial statements as it relates to running a business, then this article is for you. The third article in this four-part series on understanding financial statements focuses on Income Statements.
Financial Metrics. If you can't measure it, you can't manage it. The fourth article in this four-part series on financial statements focuses on financial metrics.
First and Second Lien Loans. Trying to get a loan for your business? It is important to understand the different types of debt, whether that be subordinated or unsubordinated, unsecured or secured. This article focuses on first and second lien loans.
Senior Debt. Debt financing can be a great way to fund future growth. This article teaches you some of the basics regarding senior debt.

Subordinated Debt. Start-up businesses often require financing in the form of debt, which, unlike equity funding, allows the company access to greater capital resources while remaining free from the unwanted pressures of outside investors. This article offers a primer on understanding subordinated debt.
Behavioral Finance. Are stock and security markets really efficient? How do they explain abnormalities like the technology bubble of the late 1990s to early 2000s? A new field called behavioral finance may offer an explanation.
Efficient Market Hypothesis. The belief that markets are efficient is central to modern-day economic theory. As an entrepreneur, it's important that you are at least conversant in efficient market theories.
Understanding Equity Transactions: Stock Contracts I. In order to understand the capitalization structure of a company, it is important to know what the different types of contracts are to purchase and sell stock of the company. This is the first of two articles on stock contracts.
Understanding Equity Transactions: Stock Contracts II. This second article on stock contracts provides a more detailed explanation of investment strategies with option contracts.
Startup Equity Financing and Debt Financing. When a young company needs to raise money, they can opt for equity financing or debt financing. Here's how those financing rounds impact the company's capitalization structure.
Non-Cash Compensation: Granting Equity. Generally, companies choose to compensate their employees through cash, stock, and benefits. While cash is easily explained and benefits may include 401k plans, healthcare, and insurance, stock may be granted in through a number of different financial instruments. This article seeks to explain some common methods companies use to granting equity as a component of compensation
Phantom Stock and Stock Appreciation Rights. So you're an entrepreneur with a young company and you want to get your employees excited about the performance of the company but can't afford the cost of dilution associated with issuing options or restricted stock. Phantom stock and Stock Appreciation Rights can be a great way to overcome this obstacle.
Weather Derivatives. Derivatives are a type of financial instrument whose value is derived (hence the name of the security) on some sort of underlying asset or value. Derivatives can be used to hedge against an existing investment or be used to function as a form of insurance. This article focuses on weather derivatives.
Economic Derivatives. Sophisticated entrepreneurs hedge business risk by using financial instruments called derivatives. We take a look at how economic derivatives can protect entrepreneurs from drastic changes in a country's economic climate.
Credit Default Swaps. If somebody asked you what credit default swaps are, would you know the answer? This article offers an excellent primer on credit default swaps.
Collateralized Debt Obligations. Entrepreneurs should understand how various financial instruments work. In this article, we take a look at collateralized debt obligations or CDOs. CDOs are a form of credit derivative that creates a series of cash flows from a pool of credit assets.
Understanding Discounted Cash Flow. Discounted cash flow is a very important concept in business valuation. Discounted cash flow, or DCF, is an income approach to business valuation.
Understanding WACC. Since many analysts use the weighted average cost of capital (WACC) to discount cash flow, it is important to at least understand how WACC works.
Operational Risk. Risk faces your business every day that it is in operation. Managing this risk can prove to be one of the more important tasks that you face. Modern techniques can help you better understand what sort of decisions you should be prepared to make.
Risk Management. Risk management needs to be integrated into every facet of your operations. Entrepreneurs and small business owners have the luxury of being able to implement these systems at ground level. Learn why your small business should be concerned with risk now.
Investment Strategies Part I: Call Options. Although many alternatives exist with securities, call and put options offer a variety of opportunities for firms to realize returns while minimizing the amount of risk involved. This article introduces the hedging instrument of call options.
Investment Strategies: Put Options. Many companies have excess cash or other assets on their balance sheets that must remain relatively liquid for their operations. A company could be preparing to make a large capital investment or participate in another strategic action in the near future. Whatever the reason, companies can benefit by investing their short-term or excess capital in securities. Although many alternatives exist with securities, call and put options offer a variety of opportunities for firms to realize returns while minimizing the amount of risk involved. This article introduces the hedging instrument known as put options.
Investment Strategies: Covered Calls. The use of covered calls allows investors to profit from relatively stable stocks. This article introduces the hedging strategy of covered calls, how they are created, and how investors profit from their design.
Investment Strategies: Protective Put. Protective puts which allows investors to limit the downside risk of their investment while maintaining the upside profit potential. This article introduces the hedging strategy of protective puts, how they are created, and how investors profit from their design.
Investment Strategies: Straddles. Many equity investment strategies utilize both call and put options to decrease the amount of risk investors face with their investment portfolios. One such strategy involves straddles that use calls and puts to capitalize on volatile stock prices.
Investment Strategies: Strips and Straps. Different combinations of call and put options offer many strategies to investors that want to hedge the risk of their portfolios. Such strategies include strips and straps which are variations of the straddle technique discussed in a previous article.
Investment Strategies: Bear Spreads. Equity investors are able to hedge certain risks involved in their portfolios through different arrangements of call and put options. Various strategies use spreads which involve the purchase and sale of options with either different exercise prices or expiration dates. One particular type of spread is a bear spread, a strategy which profits from decreases in a particular stock's value. This article introduces the option strategy of bear spreads, how they are created, and how investors profit from their designs.
Investment Strategies: Box Spreads. Through different combinations of call and put options, equity investors hedge particular risks associated with their investment portfolios. Money spreads allow investors to profit from certain movements of a stock's price while limiting their amount of exposure. One specific type of money spread involves box spreads which combine put and call options to earn risk-free profits. This article will introduce box spreads, how they are created, and how investors profit from their designs.
Investment Strategies: Butterfly Spreads. Although an endless amount of strategies using puts and calls exists, some combinations are more widely used than others for equity investments. Many popular methods for managing the riskiness of portfolios involve the use of spreads. One particular type of spread, called a butterfly spread, profits from the lack of volatility in a stock's price during a given period of time. This article will introduce the options strategy of butterfly spreads, how they are created, and how investors profit from their design.
Investment Strategies: Bull Spreads. By combining call and put options in various ways, equity investors are able to hedge certain risks involved in their portfolios. Various strategies use spreads which involve the purchase and sale of options with either different exercise prices or expiration dates. One particular type of spread is a bull spread, a strategy which profits from increases in a particular stock price. This article introduces the option strategy of bull spreads, how they are created, and how investors profit from their designs.
Energy Derivatives. Energy trading and energy derivatives may seem like a strange concept to some. We offer an explanation of how energy derivatives work and the role they play in risk management.
Freight Derivatives. Freight derivatives are growing in popularity as companies rush to hedge against dramatically rising or falling freight rates.
Inflation Derivatives. Should your business be purchasing inflation derivatives? In this article, we explain what inflation derivatives are and why buying inflation derivatives might be a smart move.
Insurance Derivatives. Insurance derivatives are financial instruments in which the value is determined by the performance of an underlying insurance risk or asset.
Agricultural Commodity Futures. Small businesses that operate in the agricultural industry must understand how agricultural commodity futures work. In this business finance article, we offer a primer for understanding commodities futures.
Establishing Business Credit. As a small business owner or an entrepreneur, obtaining capital is vital to keep your business or organization going. However, to be able to efficiently gain capital, it is important that business credit is established.
Understanding IRAs - Individual Retirement Account History. An Individual Retirement Account, or IRA, is a type of account which allows investors to contribute to their retirement through a beneficial tax structure. This article reviews the history of Individual Retirement Accounts.
Understanding IRAs - Traditional Individual Retirement Accounts. This article reviews what is known as the Traditional IRA.
Understanding IRAs - Coverdell Education Savings Accounts (Education IRAs). This article reviews the Coverdell Education Savings Account, formerly known as the Education IRA.
Understanding IRAs - The Roth Individual Retirement Account. This article reviews the Roth Individual Retirement Account.
Basic Guide to Capital Budgeting. Capital budgeting can be one of the most important things your company does. Learn the basics of capital budgeting and why it is important to your small business.
Basic Guide to Determining a Discount Rate. In addition to capital budgeting, determining a good discount rate can really help your business make wise project decisions.
Five Concepts of Finance. This article briefly goes over five basic concepts of finance that you should have a firm grasp on while running your small business. These are simple in nature, but their depth is significant. Getting a good grasp on them will help you run a more financially sound company.
Retiring in a Tough Market. Retiring can be a tough process in a rocky market. Learn how you can be comfortable with your portfolio, while not being overanxious to sell off potential winners. Balance your trepidation with a willingness to persist and you will come out a winner.
Debt Ratios. Ratio analysis is a fundamental tool for management, investors, or other stakeholders to evaluate the health of a firm's operations. This article introduces you to leverage ratios and how they are calculated.
Efficiency Ratios. Ratio analysis is a fundamental tool for management, investors, or other stakeholders to evaluate the health of a firm's operations. This article introduces some common efficiency ratios and how they are calculated.
Liquidity Ratios. To effectively evaluate the credit worthiness of a company, one must calculate its liquidity ratios from the business' financial statements. This article introduces you to some common liquidity ratios and how they are calculated.
Profitability Ratios. To effectively evaluate a company's successfulness at generating returns and profits from its operating investments, one must utilize profitability ratios. This article introduces some key profitability ratios and how they are calculated.
Basic Guide to the Federal Reserve. We explain the purpose and duties of the Federal Reserve. While it might not seem like they have an impact on your business, they certainly do.
Introduction to Risk and Return. We provide a brief introduction to the concept of risk and return. After reading this article, you will have a good understanding of the risk-return relationship.
Introduction to Time Value of Money. Looking for a primer on the time value of money? You're in the right spot! Some big corporations still have a hard time getting a grasp on this concept, so if your company can implement it into your planning process, you will have a leg up on the big guys.
Tips On Managing Your Finances. Money is becoming increasingly hard to manage in today's economy. And with rising inflation, job losses, and the recent credit crunch, business owners must be very tactful in matters of finances if they are to continue to stay in the black and out of the red. This article will highlight some key elements of effective money management both at the business level and personal level.
Spending Business Capital. It is important to consider when and where to spend your capital. This is discussed as well as some suggestions on when and where you will need to spend.
Cash Flow Issues to Consider. By properly budgeting your company's cash flows, your company can be better prepared for future cash constraints. How well you manage your company's cash flow can a have a major impact on profitability. Know where your company stands in terms of current and future cash flows and avoid many headaches that accompany being short for cash.
Where to Focus Your Capital: Operations Versus Sales & Marketing. For many small businesses, capital is a scarce resource. The question arises, where is the best place to use this capital? The decision is often a choice between marketing and sales or operations. This article addresses this important question.
Business Budgeting Fundamentals. This article covers the fundamentals of business budgeting. If you are not creating a business budget, you may be impeding on your chances of owning a successful business.
How to Get a D&B Number. Wondering how to get a D&B number? We explain how to go about getting a D&B number for a small business and we showcase a couple of extras from D&B that are worth investing in.
How to Get a DUNS Number. Small business owners have a lot of questions regarding how to get a DUNS number. This article offers detailed information on getting a DUNS number from Dun and Bradstreet.
Managing Business Debt. Are you managing your business debt in a way that will let you emerge from the current recession as a strong company? If not, you may want to read our article on how to deal with business debts.
The Venture Capital Method of Private Company Valuation. Valuation of private companies is a tricky task and not an exact science. In this article, we discuss a common method used by venture capitalists.