Buying a company is in bankruptcy is a clear strategy for investors with a broad view of business and is also an alternative enterprise. Then LFM expose a well-known success story of rescuing a leading Colombian and a sample of how some entrepreneurs invest in small businesses in bankruptcy to bring them up:

Avianca: the trajectory of this company and its brand power, among other things, made ​​the Efromovich Germain Brazilian businessman decided to invest in the airline acknowledged that financial problems needed a fresh injection of capital. At the time it was bought for 65 million dollars and currently costs about one billion dollars. The benefits received by investors have been remarkable even though when he purchased Avianca in 2004, it had debts of around 300 million dollars, but the actions taken by its new owner (including flights national and international changes in the corporate image and innovative advertising strategies, among others) have been so favorable that have allowed today’s historic airline continues to exist.

The program, which will be presented at the International Franchise Fair this week, provides for a term of 3 years grace period to pay the financing granted by the Ministry of Economy. Alcazar said that this year will be allocated 350 million pesos to promote the expansion of the sector, with programs that include funding of 250 thousand and 600 thousand dollars to zero.

The maximum amount that will fund the Secretariat will be 600 thousand dollars. That is, if the prospective franchisee saves 600 thousand pesos, the agency may pay 600 thousand pesos. Of course, if only saves 100 thousand pesos, the Secretariat will finance 100 thousand pesos. Alcázar explained that this program requires an evaluation that reflects the timeliness of savings, which must be enrolled in a product of GNP that involves insurance and savings to raise capital, as well as verification of the Bureau of Credit. The applicant shall choose one of the 100 franchises that are registered with the Ministry of Economy and shall promptly pay the financing, which is awarded by the Mexican Association of Franchises.

It is hoped that this program will capture at least 500 saving per year, not necessarily personal, but they can be groups of friends, family or investors.

The resources may be used to pay down payments, working capital, physical investment, studies, all involving the franchise.

An additional project is the foreign franchise radicalization for the Mexican market, where the Secretariat could fund investors with up to 250 thousand pesos. In this case the resources are limited for use only in consulting engagements that are focused on product radicalization.

Since the beginning of the crisis, the whole franchise agrees with the lack of funding as the major handicap for the system, the aspect that has hindered further growth. To address this situation the Government has mobilized since 2008 more than 60,000 million euros through the Official Credit Institute -23,400 million last year through direct and indirect loans, a move that has drawn criticism that identify obstacles to that funds to reach entrepreneurs. Franchises Today has asked the central opinion on the effectiveness of financing instruments for SMEs, and how it is evolving the granting of these credits during this 2011.
 And things have not improved substantially, according to the answers: 51, 6% felt that the grant funding continues at the same levels of these years, and 25.8% think even that has gotten worse.

As pointed out by David Moya, CEO of Look & Find : “In these first months data in terms of funding are not very different from the second last semester, but we are confident that banks will gradually open its lines of credit during 2011 and that the Government encourage the provision of credit to entrepreneurs because Spain is a country of SMEs and suffocate small business slowed growth unassumable would perpetuate current unemployment rates. “
 Connie Morrisey , cofounder of Vivafit , delves into this view: “Any period of excess leads necessarily to a later default. And if banks are increasingly less risk because they have to recover the excess credit extended without the necessary guarantees. ” However, views on the effectiveness of the ICO credits in excess paradoxically are mixed: 32.3% believes that the whole industry has benefited from them, while an identical percentage believes that only it has no network-a 29% state that benefited only a “few” -. On the other hand, the so-called Investment and Product ICODirecto lines have been most used by plants.

Paul Elejalde, responsible for Expansion and Franchises of the Vitoriana , is categorical: “Unfortunately, these actions are a dead letter. These lines always have to be approved by financial institutions, so it must meet the requirements they impose. Or, what is, if you have no guarantees are not going to grant ICO. “The big banks, the more effective
 the Franchise Today magazine also wanted to know what sector you assess efficacy when granting funding part of the main channels of credit from banks to credit unions, ICO or mutual guarantee societies. Well, the big banks-effective in 43.3% – the bench median and -33.3% ICO’s are powerful tools, have been the main beneficiaries of the sample. Meanwhile, savings banks, 53.3% are considered inefficient, and ineffective in SGR-46.7% – come off worst. 
 Finally, a 42.8% power to advise future franchisees that have at least 40-50% of the necessary investment in equity, and 35.5% emphasizes the role “more active” are hoarding family and friends in the financing of business projects. According to Ana Martinez Ortiz, administration and advertising of Diva’s Center : “The main mistake of entrepreneurs is to think that building a business is easy, but be patient and willing to defend the project during the months that can last the preparations and procedures tape. Nor is it easy to get funding if you do not have enough equity.”

The new line of funding has taken shape following the agreement signed yesterday by the Official Credit Institute (ICO), the Spanish Foreign Trade Institute (ICEX), the Spanish Company Refinancing (Cersa) and the Spanish Confederation of Mutual Guarantee (Cesgar). Companies have up to 100 million in loans to start or enhance their outdoor activity in the conditions of the ICO-Liquidity 2011. Under the agreement, the ICO covers 50% of the risk of each loan transaction, the ICEX, through mutual guarantee societies, takes another 25% of the risk and the financial institution making the loan, the remaining 25%.

The line is operational since yesterday. Under this agreement may obtain finance companies belonging to the Club with PIPE or approved aid PIPE program (up to 125,000 euros of funding) or any other program Icex or autonomous regions. This new agreement is part of a change of strategy aimed at facilitating the financing of companies that are committed to international markets, said yesterday the Secretary of State for Foreign Trade, Alfredo Bonet. So far, the ICO-ICEX focused on reclaiming part of the interest rate that banks and credits granted to SMEs who want to export or deployed overseas.

Given that this method could hardly that 30% of projects considerations funding, given the high risk involved for financial institutions, the new agreement focuses on endorsing up to 75% of that risk so that funds companies are granted more easily.

Applications must be submitted in any of the banks and attached to the ICO-Liquidity Facility for evaluation and the Icex. Once analyzed, will be forwarded, as appropriate, to the mutual guarantee company to study for their participation through the support necessary to cover part of the risk.

We can say with some certainty that bet after having taken the decision to buy a franchise in Canada that funding becomes franchise, at least temporarily, one of the most important priorities in their

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lives. Let’s review some tips, tricks and strategies that allow you to work through, successfully, the finance company and the different lenders and loans available to you.

In talking with many customers is quite clear that the type and style of the franchise you want to buy is often linked to perceptions of their ability to close the financing of the purchase. And when we look through the news business these days it seems that all types of businesses, from start to large corporations have enormous financial difficulties.

The reality is, however, that if you have a purchase price of the franchise right in relation to their own personal situation, including your credit history … you should be able to acquire the financing you need.

What are the ingredients for success? Some of the fundamental principles are “adequate” the proposal and its ability to commit capital to the business. Customers are concerned about the amount of equity that must be put in the business – in Canada

Our experience is that normally found in the 10-40% range, with 10% absolute minimum.

Financing of franchises sold on the basis of your business plan. This document need not be as formal as you think, but should include the essence of what you are trying to achieve. The basic concepts include information about you, your work and career, your personal financial situation. The document should cover details of the franchisor, the business model operating under and, finally, and perhaps most importantly a credible financial projections.

Often we are asked how much detail goes into the financial projections for financing the franchise company or a bank. The simple answer to this is that you must demonstrate clearly how the loan or loans will be repaid.

We encourage all customers, through a vigorous discussion to ensure that they are able to defend their sales projections and cash flow – and, equally important, are prepared to answer any questions the lender may have. A clear presenation backed by the confidence and experience are the key to loans to finance the franchise succeed.

Contrary to the beliefs of many franchisees in Canada your franchisor usually does not play an important role in the actual financing of your franchise. In some cases, might possibly be some kind of program in place with a financial partner, but rare in mainstream franchises that sell in the range of 100-350k.

So how are these funded then? Good question! One or two specialties lend financial firms to acquire the franchise industry. These are usually the biggest names of the mark and when the size of ticket purchase is highly important.

The reality is that government, through the Canadian BIL / CSBF program has become a leading financier of this business segment in Canada. The program has been adopted by hundreds, probably thousands of business owners to facilitate franchise loans funding. And for good reason, low financing rates, great terms, structures, and maximum flexibility in payment.

In many cases funding your franchise is complemented with specialized equipment financing for certain assets and working capital when it is safe and feasible. always remind customers think in terms of the acquisition of the franchise, and then focuses to ensure that is adequately funded on an ongoing basis. Running out of money to the right of the door is not recommended! That’s where the business plan and financial projections must be realistic.

SECOND: You must thoroughly investigate the industry you are considering to determine if it is really a business that can compromise.

THIRD: Attend industry meetings, talk to existing business owners, spend time at typical businesses and visit competitive locations to determine if its conclusions are shared by those already involved in the industry.

FOUR: You must decide whether to establish a new business, buy a new business or buy an existing business.

FINALLY: Appraise your own experience, skills and background and decide if the business is right for you.

* Do the economics of the business?
* Is it possible to reasonably predict future growth in earnings?
* Is there a sound financial footing?
* The purchase of a business with these good features, but bad management can represent a great opportunity.
* Do not overlook service businesses and e-commerce companies.

If you’re like most who are seeking more opportunities and wealth, this probably happens more often than ordinary people.

When a person that has little interest or a clear idea about these opportunities, they say, lack of capital are the main impediment to carrying out the cheap franchises and immediately cease the project, with the false belief that one must first raise savings to later undertake.

But it is always possible to obtain financing for a venture or franchise to install mostly cheap. The importance is to have knowledge of how to build a favorable proposal, and give it to the right person who is interested in your business plan.

The first thing we need is a complete business plan. This is a complete and detailed description of exactly how it will operate the proposed business. Your proposal should contain:

The product or service you offer.
Stages of manufacture and description of the procedure, its costs (labor costs included);
Marketing
The sale price
Probable time of recovery of the investment made;
His plans for growth or expansion;
Total investment required.
Another important point is to project sales and project costs to determine the cash flow, at least for the next 3 years. If it is positive and is well determined, then we have a sustainable project ready to get the capital it needs from investors.

Building a good business plan armed with an idea about cheap franchises must be presented to various businesses and government agencies and foundations credits and achieving the requirements that we ask for accessing credit. In most cases these loans for cheap franchises are cheaper than those provided by a bank or financial institution that offers lower interest rates and longer to return.

This is not to be be austere, but to cut back on what you do not need, do not use or that is totally expendable. Everyone has to adapt this to your way of being and living, for what is completely dispensable for some, is essential for others, however, there are many expenses that do not lead us anywhere, and these can be trimmed.

1. Meet our expenses : Prepare a sheet of expenditure and income, as the basic step to saving is to know and put on paper what our monthly budget and how we spend it. The more disaggregated are the concepts of costs better.

2. Pay for what you use : avoid charges in gyms, clubs, magazine subscriptions, pay TV, collections, etc.., if you do not you take advantage of these services, it is no use having all these expenses if you are not going to the gym or club, do not read magazines, do not have time to watch TV or just piled collections without exploiting them. You pay for what we use.

3. Avoid impulse buying : if you plan on shopping, rebates or a shopping center, write down what you need, clothing, appliances, household goods, etc.. Stop and think what you really need will make you realize that many things you want to buy are a fad, and when comparing the price with your monthly budget, even more so. At the same time, going to the shops with our list, we will get our attention to what we really need.

4. Do not be afraid to try things and see the result : If your electricity bill, telephone or gas is high and want to reduce it, try in different months to do different things, and compare the receipts of the following months. For example, on only the lights in rooms where someone is, worry about the power of light bulbs from your lamps, turn on the heat only an hour before showering and then turn it off if you’re not using the computer does not keep on, do not let the tap water without having to open, shower in the bathroom closest to the heat, check if you have it turned on the heater at a time when there is nobody at home, with many bulbs lamps test disconnecting any, check your telephone costs , etc.. However small savings, multiply it by months, days or weeks (as), and you will see a small saving much at the end of the year.

5. Buy a piggy bank : every month, as if it were one more expense, an amount of money aside for saving, it is very important to have money for the unexpected, for no one can predict which fails the car, the washing machine or TV, you have to pay a fine, or incidentals. If the money you save monthly is funny, chances are you even get together not only for the unexpected but also a “whim” or a good holiday. People living up to their income, are the ones most likely to end up with financial problems, as any small contingency they usually do use debt, underfunded lead to many problems and headaches.

There is one last tip, which applies to almost everything in life, and is trying to use the least common of all senses, it is common sense, use what you have on your shoulders and think things twice when involving responsibility for long periods of time, whether or hire purchase debts.

While it is true that there are individuals with a knack for trading, anyone can get good deals if you prepare for it and follow some basic guidelines such as those we offer below:

- Communication: the communication process must be fluid. The negotiator has to listen to all stakeholders, but also offer a compelling speech and appropriate for the occasion.

- Preparation is essential that the negotiator prepare his speech before meeting with the other party. This will not forget any important steps you want to discuss at the meeting.

- Self-confidence: the security is essential to get a good bargain. If the negotiator does not believe in your own project or potential hardly convince anyone.

- Note: the other part of the negotiation should not be considered as an enemy but an ally. Watching other negotiators can learn many tricks and effective ways to negotiate.

- Information: a good negotiator must be a specialist in your area and, therefore, must be updated regularly, reading newspapers, magazines or other information resources that provide data on the sector.

The decrees, together with a number of specific events such as the atonement of the term of certain patents, the problems to get new drugs by inversion R & D, and the late payment d and some autonomous communities of up to 600 days – have led to a sharp drop in revenue from drug manufacturers. This in turn has generated a strong restructuring of the sector, with the merger of some of the strongest companies and many job layoffs, Abbott, Roche, Pfizer, – among others.
Review of the Pharmaceutical:

Pharmacy industry, the employers in the sector, said that with the imposition of generic what is happening is an increase in the import of unlicensed medicines in Asian countries at the expense of domestic production. For its part the government, in the words of Secretary General of Health, Martinez del Olmo, states that the savings should prevail and, while domestic production has dropped, look for the best prices on the global market in which we move.

Meanwhile other voices in the sector such as Jose Maria Pino, editor of Medical Writing Online demanding the end of the privileges of the drug, because for many years the bulk of its revenues are produced by the prescription of the state Health and advocate another model of relationship between them, where pharmaceutical necessarily need to seek other funding.