Basic Funding Options for Your Business

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Information about Basic Funding Options for Your Business

Published on November 30, 2016

Author: ThreeDogMarketing

Source: slideshare.net

1. Small Business Financing Presented by: Kristin Slice, Business Analyst America’s SBDC Maricopa

2. Sources of Small Business Financing IV. Financing a Small Business U.S Small Business Administration – Office of Advocacy 2014 The most common sources of start-up funds are owner’s and relatives’ savings coupled with credit cards and vendor credit lines.

3. Sources of Small Business Financing IV. Financing a Small Business U.S Small Business Administration – Office of Advocacy 2014 The most common sources of start-up funds are owner’s and relatives’ savings coupled with credit cards and vendor credit lines. 57% is personal or bootstrapping. 38% of start up funding comes from friends and family.

4. Financing Basics • Debt vs. Equity • Family & Friends • Angels • Venture Capital • Crowd Funding • Sweat Equity

5. Financing Basics • Debt vs. Equity • Family & Friends • Angels • Venture Capital • Crowd Funding • Sweat Equity

6. Angel Investors • Friends and family and f___s • Successful people you know • Professional Angel Investor • Angel Groups • Angel Funds

7. Angels Angel is lower amounts ($100k-$2M) with lower company valuations (startup likely under $2M valuation). Angels take less active role in mgt decisions than a VC might seek. Angels are typically individuals who have done well on their own and seek to give back to some degree.

8. Incubators and Competitions - Venture Madness - InnovateHER

9. Angel Remember….only ___ % of businesses get angel funding.

10. Angel Remember….only ___ % of businesses get angel funding. .91% - Entrepreneur Magazine, 2013

11. Financing Basics • Debt vs. Equity • Family & Friends • Angels • Venture Capital • Crowd Funding • Sweat Equity

12. What type of funding is missing…

13. What type of funding is missing… Any guesses why???

14. What type of funding is missing… Grants!!! Any guesses why???

15. What type of funding is missing… Grants!!! Any guesses why???

16. Banks / Debt Equity

17. Banking • National • Regional • Community What is an SBA Guaranteed Loan?

18. Alternative Lending • Micro Lenders • Crowdfunding • Factoring • Asset Based

19. 5 Key Borrowing Questions • How much do you need? • What will you do with it? • When will you pay it back? • How will you pay it back? - Where’s the the cash flow • What if something goes wrong?

20. Five C’s of Credit • Capacity – Cash Flow & Profits • Collateral – Assets available • Capital – Skin in the Game • Conditions – Economic Conditions • Character – Credit History, Trust

21. The Loan Application • Business Plan • P&L and Balance Sheet - Current / 2 years • Accounts Receivable Schedule • Accounts Payable Schedule • Business Debt Schedule • Cash Flow Projections -12 months / 2 years • Revenue Forecast - Current / 2 years • Tax Returns - Biz & Personal - 2 years • Personal Financial Statement • Capital Requirement / Use of Funds

22. How we help:

23. The Turn Down • What does NO really mean? • Turning no to yes? • It’s not personal • Persistence is the key to success

24. What if the answer is Yes? • Negotiations • Commitment Letters • Documentation

25. Lets talk about the elephant in the room…

26. In Summary - Find out how much money you need and put together a plan. - Find the right funding source - We are here to help you

27. Financing for your Small Business Workshop Presented by: Kristin Slice America’s SBDC Arizona @kristinslice Kristin.slice@domail.maricopa.edu Maricopa-SBDC.com

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