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Blog posts by: John Hamilton

What does Slow Money mean to you?
In preparing to participate in the Slow Living Summit later this month in Brattleboro, VT, I reflected on the meaning of Slow Money. Is Slow Money the pace at which the return comes back to the lender/investor? Not to me. I think it is more about slowing down enough to examine whether you’re using your investment dollars in ways that are strategic, open-minded and likely to achieve your goals. I believe this definition sticks whether you are an individual investor, institutional lender,...
2 hours 15 min ago | more
Are we asking too much of bankers?
By John Hamilton Lately, as I’ve heard business owners bemoan their inability to get loans, I’ve found myself defending bankers’ business-lending practices, or at least trying to put their role in context. Before a commercial loan officer makes a loan, he or she needs to feel confident that the borrower has the ability to repay it. Their role as providers of “least-cost” debt means banks have to be selective and avoid losses. That’s particularly true in today’s economy, when the market is, at...
42 weeks 1 day ago | more
A toast to New Hampshire's small-business owners
By John Hamilton I have a new dependence, one that snuck up on me without much notice. I rely on local small businesses, including many run by people who are self-employed, for my food, gifts and services. The frozen blueberries I ate for breakfast came from a “pick-your-own” berry farm. The gift I shared last week with my wife was handmade and sold by a local artisan guild. A recent  plumbing problem was solved by a local tradesperson. Have you ever taken stock of how often you purchase a...
1 year 18 weeks ago | more
Balancing the bottom line and the public good
By John Hamilton An inflammatory headline in the Wall Street Journal this week, “The case against Corporate Social Responsibility,” unfortunately colored an interesting article on balancing public and private interests when making business decisions. It’s easy to dismiss those who suggest that businesses must always act either in the public good or in their private self interest – as if the two never overlapped. As a nonprofit, Vested for Growth invests in companies for a public purpose (to...
1 year 38 weeks ago | more
Manufacturers take a stand to deliver on lead times
By John Hamilton Many manufacturers who survived the lowest point of the recession with depleted inventories, reduced capacity and tight cash flow now have another challenge – rising backlogs of orders. They’re finding that the release of their customers’ pent-up demand is a good thing – but only as good as their ability to deliver. Of course, this is less of an issue for those companies with access to growth capital. For others, though, the economic turnaround is not yet solid enough, or they...
1 year 37 weeks ago | more
Five reasons why adding royalty financing helps angels be angels
By John Hamilton Angels who offer royalty financing in addition to equity live up to their fullest potential. To better understand this, let’s review the reasons angels invest in the first place (this list is in no particular order): Angels invest to make money: With royalty financing, the investor gets his or her return sooner – from each month’s cash flow as opposed to a sale or other exit years down the line. Because the return starts the month after closing and continues each subsequent...
1 year 37 weeks ago | more
Royalty financing: Not your father’s equity
By John Hamilton I want to spread the seeds of royalty financing – a powerful new deal structure for later-stage companies with healthy gross-profit margins. Investors, entrepreneurs and community development practitioners would be better off if they were familiar enough with the benefits and tradeoffs of royalty to apply it to a given business opportunity. I’m not saying that royalty is better than equity financing. Equity is a great way to add fuel and expertise to early-stage companies,...
1 year 37 weeks ago | more
Ways to increase staff productivity without a new hire
By John Hamilton Faced with the economic downturn, many leaders have been unable and unwilling to hire additional staff, even as the recovery begins to take hold. Fortunately, hard times can spawn innovation. And it is true, as Neil Irwin noted in a Washington Post article last week, people work harder when they’re afraid of losing their jobs. But how do you actually sustain this productivity gain so that it won’t disappear as soon as the “good times” return? Some CEOs have developed strategies...
1 year 37 weeks ago | more
Find a banker you can bank on
By John Hamilton A bank relationship that has stood the test of these past five years is a rarity, given changes in the banking profession and difficult market conditions for banks and small business alike. Is yours one of those businesses that have been forced to re-think its bank relationship? Or are you proactively deciding whether and how you might go about the process of switching? If so, here are 5 suggestions: 1. Treat the bank as a relationship, not a commodity to be priced. If you are...
1 year 37 weeks ago | more
The tax man cometh ... with a gift for your employees!
By John Hamilton Here is possibly the best tax news you will learn this year. Employees earning less than $48,278 can qualify for a tax credit for up to $5,600, called the Earned Income Tax Credit (EITC). At no cost to your business, employees receive this federal credit, which is similar to having additional money in their paycheck – perhaps as much as $2 an hour more. What is the rub? The only problem is that employees need to know about it in order to take advantage of this resource....
1 year 37 weeks ago | more