.
Be Careful
Some available resources are readily available, but can be expensive. Always ask for all costs relating to the loan, costs, including interest, fees, closing costs, legal expenses, pre-payment penalties and third party expenses..
- Asset Based Lenders
- Pay Day Lenders,
- Factoring Companies,
- and long term use of credit cards
Tips
- Know your Breakeven (How many sales per month to cover your operating expenses)
- Do you meet lenders 3 Cs requirement? – Credit, Collateral, Cash Flow
- Do you understand what an SBA guarantee can do for you?
- Match your funding requests with appropriate time lines
- Create a path from yesterday to tomorrow. Your history is as important as your future (cash flow projections)
- Know your industry and your market
- When you are ready, prepare an executive summary as a sales tool that highlights the strengths of your business.
Breakout session 10- Define and discuss The Biggest Hurdle You Face in Your Business
Homework Session 10 – Submit an Executive Summary to workshop facilitator ( It will be critiqued and returned.)
WORDS OF WISDOM
- Raising money is a selling job.
- Be prepared to convince others of your ability to repay any obligations.
- Have an adequate interest reserve in your operating budget.
- Plan for all pre opening costs plus working capital requirements.
- Ensure having adequate working capital until break-even point.
- Avoid excessive short-term debt.
This series ongoing series handbook prepared by Marjorie Weber was prepared will also be part of the Miami Bayside Foundation to qualify small business owners for the Miami Bayside Foundation loan program.
Handbook series Small Business Start Up
Part 1: Small Business Start Ups Making It Legal; Part 2: Small Business Start Up Capital Access Primer and Key Steps ; Part 3: Definitive Steps to Create the Optimal Small Business Growth Team Part 4: Once You Have the Dream Team, It’s About Employee Retention, Part 5: Delegating Responsibilities Policies and Procedures – Letting Go Part 6: Breaking Down the Set Up of Small Business Financial Records Part 7: Three Best Bet Picks for Small Business Accounting Software Part 8: To Lease or To Buy? Issues Relating To Both In Today’s Market part 1 Part 9 Decided on a Business Lease? 20 Lease Provisions Part 10 What Small Business Contracts Are Required and Who Reviews? Part 11 What are the most serious small business risk and coverage issues? Part 12: Keeping Sightlines on Specific Small Business Target Markets Part 13: Small Business Targeting and Related Branding Components Part 14: Keys to Developing an Essential Small Business Marketing Plan Part 15: Small Business Social Media Blocking and Tackling 101 Part 16: Small Business Owner’s Primer- Understanding the Balance Sheet Part 17: 5 Considerations to Properly Price Products and Services Part 18: How to Handle Inventory in Cash Flow Projections Part 19: Accessing Capital for the Growth of your Business
Related articles:
Eli Mendoza on Equity and Financing
Small Business Capital, Digital Lenders and Angels