Financing SmartFundit Way

Traditionally, financing against receivables, firm contracts that produce cash flows in coming months or even years, has been a good source to finance operations.

SramanaMitra blog has an interesting writeup on how entrepreneurs can use traditional and innovative financing options to Boot-Strap their ventures. With the help of marketplaces such as Smartfundit, entrepreneurs can even assist their customers finance their technology investments and expedite selling process.

Though I do not completely agree that these mechanism can substitute venture capital, I do agree that "working capital" nature of needs can be financed using such finance mechanisms. If the venture needs capital to fund asset creation including IP , entrepreneur does need risk capital to finance it.

I also found a useful Jargons section on SmartFundit that you can use to understand various options you may have to finance your needs.

Important lessons for entrepreneurs: Look for Venture capital if you need to finance assets that involve significant monetization risk. If you just need finance for working capital, there are better ways to finance your business.

Carbon Credits - Guilt Money Can Fund Your Venture

If your business model revolves around a green technology, thanks to Kyoto Protocol and green movement, you can get access to an additional revenue stream and access to clean technology.

Kyoto Protocol sets a limit on amount of greenhouse gases a country can emit. To limit emissions to predefined set quota, signatory nations limit emission from polluting industries. The protocol also prescribes a regulatory and market mechanism of tradable carbon credits to effectively implement a global emission control program.

This is how it works. Assume, there is a company 'A' in USA that emits 100K tons of carbon dioxide. Now, USA government brings a legislation, that forces company 'A' to restrict emission to 80K tons of greenhouse gas.

To comply, company 'A' has two options, either reduce emissions by 20K tons, that has a cost, or buy 20k tons of carbon credits from someone who has earned a right sell carbon credits.

Sellers in this market earn rights to sell carbon credits by undertaking any effort that will help reduce greenhouse gases in atmosphere. This could be a simple mechanism such as undertaking tree plantation or advanced mechanisms such as creating a business around clean technologies.

The amount of greenhouse gases emission you help prevent is the amount of carbon credits you can sell in the international market.

For developing nations the mechanism to participate in emission marketplace is Clean Development Mechanism (CDM). Under CDM, a developed country can take up a greenhouse gas reduction project activity in a developing country where the cost of greenhouse gas reduction project activities is usually much lower.

The developed country would be given credits for meeting its emission reduction targets, while the developing country would receive the capital and clean technology to implement the project. You can visit Wikipedia to know more about world of carbon credits, mechanisms such as CDM and much more.

You can call it making money out of someone else' guilt, nevertheless, going green was never so greener.

Entrepreneurship Resources : Free PR sites

Irrespective of the type of business you run, to succeed, you need to promote your business effectively.

Press release is one of the most underrated promotion tools. For success, make sure the press release you write is linked to a "news worthy" big story that can attract media attention.

Checkout following free media outlets that you can use to post your press releases, you never know, you may find your business on the front page and that too for free.

- Business portal 24 - Free press release outlet
- The Open Press - Free press release news wire http://www.theopenpress.com/
- PR distribution service PRCAI: http://www.prcai.org
- PR Web: http://www.prweb.com
- PR distribution service PRSI: http://www.prsi.in
- News Distribution Network - News Wire
- Ezine Articles - http://www.ezinearticles.com/

Go make that big impact!

----------------------------
India Entrepreneurship Resource Series

During my first two ventures, I always found it difficult to get information about sources that could help me overcome some of the common challenges that new entreprises face.

With Enrepreneurship Resource Series of posts, I plan to contribute to this need in whatever small way I can.

Drop me a note if you come across resources that you think can help entrepreneurs in India or new ventures in general. I would be happy to publish them here.

Access to all the resource that I post is easy. Click on the label, below this post, named "India Entrepreneurship Resources" and you can see all the resources in one place.

NSRCEL Empowering Women Entrepreneurs

One of the prominent entrepreneurial hubs at Bangalore NSRCEL is offering an entrepreneurial management program exclusively for women entrepreneurs.

Women entrepreneurs are special and challenges they face are unique. Management program to assist them handle new business challenges, managerial functions & real world know how is a welcome visionary step. I have a woman entrepreneur at home and know first hand that it is not an easy path to take.

Vital statistics below

1. Dates of the program: Apr 16 - May 4 and again from May 21st to May 30th (Mon - Fri)
2. Details at NSRCEL website

Well done IIMB & NSRCEL, keep it up!