Three Ways a Cheap Domain Registration Can Provide Profitability for Businesses

No country can survive economically without developing a keen interest in commerce. Therefore, as a business investor, you need to have a good understanding of the tenets of buying and selling before you think of venturing into business for the first time. Luckily, you can amass a lot of profit in your first year of getting established, provided you follow the latest trends that support the growth of both small-scale and large-scale businesses. One of the latest trends you need to work closely on for the growth of your business is getting noticed on the online hemisphere with a cheap budget. As it is, the online hemisphere is where you can get your achievements quickly and, with less concern to deal with huge losses. So, strengthening the financial cords of your business may be dependent on how you can take full advantages of what a cheap domain registration has to offer your business enterprise. Interestingly, businesses can survive a difficult terrain, when the secrets of making stable profit is known by clever investors. As your own boss, here are three ways a cheap domain registration can guarantee stable profit for your business.

1. Free supportYou need all the help you can get in business, so that you can become tough to handle several pressure in your process of growing your business, even as a start-up. One area that may be of great challenge to businesses, especially start-ups, is maximizing profit and dealing with losses simultaneously. The fact that you have a personal server to help you run your business should be a relief for you, provided you are working closely with a cheap budget. A cheap domain registration can put you in a special position whereby you can have access to free services from an expert company that can help you adopt new strategies for developing and sustaining your business goals.2. No hidden chargesYou might think it to be deception when lots of hosting companies are willing to help you register your domain names, since some amount of money is involved during registration. As long as you are prepared to work with trusted hands, you have no reason to be taxed, regarding the payment of hidden charges to have your domain names maintained in the course of running your business. The only charges you incur is when you decide to have your personal domain names, which come at a cheap price.3. ProtectionThe reason why many promising start-ups end up bankrupt is because they are not given enough protection by their hosting companies, especially in the digital marketing terrain. The fact that a domain registration is cheap does not mean that your private plans should be sold out cheaply to your competitors. When experts are allowed to handle your domain registration process, you rest assured of getting the privacy you deserve, so that your business secrets are not exposed to competitors that are not as good as you. At the end of each year, you should take credit for the effort you have invested in your business to make it grow by utilizing the digital space, through the proactive investment in cheap domain registration.

You shouldn’t wait until your business is taken apart by dubious acts that expose you to bankruptcy. Good business investors will take time to invest in various sectors that can guarantee survival, as well as provide business sustainability. A cheap domain registration is one area you should invest in so that your stream of income is not affected by the competitive business terrain. When you are able to put the right things in place, you can have control over how you determine your profit on a daily basis by focusing you effort on a cheap domain registration.

Venture Lending: Babson MBAs Get the Low-Down on Venture Debt Financing

Recently, several students from the Babson College MBA program called requesting an interview. They were researching the venture debt market and wanted an insider’s view of how this segment compares with venture capital. Their questions were thoughtful and I thought the discussion was worth sharing. An excerpt from the interview appears below:

Q. How does venture lending (VL) differ from venture capital (VC) as it relates to fund- raising expenses?

A. Fund-raising expenses in connection with venture loans are generally lower than for venture capital transactions. Legal fees are one of the largest expenses in many transactions. Lenders typically negotiate venture loan arrangements using their standard documents. Venture capitalists, however, usually use newly created stock purchase agreements. These agreements add considerable expense to these transactions since outside legal counsel is used. Other VC expenses include a more expensive and comprehensive due-diligence process.

Q. What about the flexibility of agreement terms?

A. It is difficult to compare the flexibility of terms between the two forms of financing. Flexibility can vary from lender to lender and from VC to VC. Generally, venture capital is a more flexible form of financing than venture debt since the proceeds are allowed to be used for many purposes. Usually, no collateral is required and there are fewer agreement covenants than lenders require. Venture loans often limit the use of proceeds to the acquired capital assets or for specific working capital purposes. Venture lenders usually require collateral and they may incorporate several covenants and conditions into their loan agreements.

Q. Are there VL companies that focus on segments other than technology or life sciences (e.g., retail, restaurants)?

A. There are not many venture lenders that specialize outside of those areas at present. The universe of venture lenders is relatively small, particularly in comparison to the VC industry. There are probably fewer than thirty U.S. firms that specialize primarily in venture lending or leasing. Most are involved in the segments that you mentioned.

Q. How much time does it normally take to get money from a venture lender? How many visits does an entrepreneur have to make to a venture lender before a final decision is made?

A. Most venture loans take at least thirty days to complete from the point of meeting the prospect to actual funding. Completion time can range up to sixty days or more, depending on the complexity of the credit. Most lenders will meet with the prospect a few times before committing.

Q. Can an entrepreneur continue window-shopping if a venture lender has started due-diligence?

A. Yes, but lenders frown upon shopping because of the time they commit to processing the transaction. The norm in the business is to bind a transaction with a commitment letter and fee. If the borrower/lessee continues shopping and chooses another provider, the fee is usually forfeited.

Q. Ideally, at what stage would an entrepreneurial company be considered safe for venture lending (e.g., a startup seeking the first round of financing or a company that already has a first equity round and is seeking a second round)?

A. Most venture lenders get involved after the company has successfully raised at least $5 million or more from a reputable venture capital sponsor – that is, after the A round.

Q. What are collateral requirements for a “growth capital” loan?

A. Collateral requirements vary. Some venture loans/leases are collateral specific. The lender requires collateral in the form of the equipment being financed. Other transactions are more flexible, allowing the proceeds to be used for general growth purposes and working capital. In the latter arrangements, the lenders may require an all-asset (‘blanket”) lien on the borrower’s assets.

Q. Would venture lenders invest in a company not sponsored by VCs? Are there any exceptions?

A. Generally, venture lenders invest only in companies backed by VCs or reputable investors with future capital to commit. The reason these sponsors are needed is that the enterprise usually is not approaching the point of profitability and will require additional funding rounds. There are exceptions and it depends on the other strengths of the credit. For example, a particularly strong cash position and strong collateral can entice a lender to relax the requirement of ongoing VC support as long as the lender has confidence in the management team. Other factors may also influence the decision.

Q. What are the top four or five characteristics that you consider before deciding whether to finance a startup?

A. We look for talented and experienced senior managers, strong VC sponsorship from reputable VCs, a compelling business plan and enterprise track-record since inception, an acceptable cash position and burn-rate, and acceptable collateral quality.

Babson MBAs: Mr. Parker, thanks so much for taking time to speak to us about venture lending. Your talk has given us an opportunity to gain valuable insight into this exciting industry.

George Parker: It has been my pleasure. I hope you find this information helpful and that you will consider venture lending as you form your career plans. Good luck in your research and give me a call if you need more information.