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Fast Money Guide
Fast Money Guide
Fast Money Guide
79
Ways
To Finance Your Business
Your Banker Didn’t Tell
You About
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 2
LEGAL DISCLAIMER:
NEVADA CORPORATE HEADQUARTERS, INC. IS NOT A LAW FIRM. WE ARE NOT ENGAGED
IN RENDERING LEGAL ADVICE AND CANNOT MAKE RECOMMENDATIONS REGARDING
INDIVIDUAL CIRCUMSTANCES. THE INFORMATION IN THIS PUBLICATION IS NOT TO BE
CONSTRUED AS LEGAL ADVICE IN ANY WAY. IF LEGAL ADVICE IS REQUIRED, CONSULT
A QUALIFIED ATTORNEY. THE LAWYER REFERRAL & INFORMATION SERVICE OF THE
STATE BAR OF NEVADA IS AVAILABLE FROM 9:00 AM TO 4:00 PM, MONDAY THROUGH
FRIDAY AT 1-800-789-5747.
Introduction
Here it is…our little-known fast money strategies to finance your business.
There are 79 ways to gain the money you need to grow your business all presented here in one
document. There is plenty of tips and ‘how tos’ on a wide range of money sources — some may be
familiar to you while others are creative ‘street-savvy’ methods few know about.
One strategy may be all you need or a combination of strategies will help you finance your business.
Read over the 79 strategies and take notes as you do. Check off the strategies that you can use to get the
money your business needs.
For your convenience we’ve included a checklist of the strategies you can print out — as you read the
e-book check off the strategies you want to pursue. Then when you finish you’ll have a game plan ready
to execute.
If you have questions feel free to contact us. We have complete advisory programs to help you establish
business credit and obtain the capital you need.
With our Business Credit Accelerator II Program, a Certified Business Credit Advisor will be assigned to
you and your business to help build an A-1 business credit profile. Our Business Credit Advisors have
background in a multitude of substantive areas and are uniquely suited to advise you on business credit
development and capital structure.
Thank you for your interest in Nevada Corporate Headquarters, Inc.. We hope you find this handy guide
beneficial to your business growth.
Contact Information:
Phone 775-329-7721, Fax 775-329-0852
E-Mail: Cort@nchinc.com
59 Damonte Ranch Parkway, #B262, Reno, NV 89521
TABLE OF CONTENTS
1. Accounts-Receivable Financing...................................................................................................page 6
2. Advanced Sales.........................................................................................................................................page 7
3. Accredited Investors..........................................................................................................................page 9
4. Angel Investors.................................................................................................................................... page 10
5. Asset-Based Financing........................................................................................................................ page 11
6. Bank Line of Credit............................................................................................................................. page 12
7. Bank Loan.................................................................................................................................................. page 13
8. Buy an Existing Business from Cash Flow............................................................................... page 14
9. Brokerage Firm Loans and Lines of Credit........................................................................... page 15
10. Business Development Commission........................................................................................... page 16
11. Business Incubators............................................................................................................................ page 17
12. Business Plan Writing Contests.................................................................................................. page 18
13. Car Title Loans...................................................................................................................................... page 19
14. Competitors............................................................................................................................................ page 20
15. Corporate Take-over - Raiding the Franchisee................................................................. page 21
16. Credit Cards: Business.......................................................................................................................page 22
17. Credit Cards: Personal.....................................................................................................................page 23
18. Craigslist.org......................................................................................................................................... page 24
19. Direct Public Offering.....................................................................................................................page 25
20. Economic Opportunity Zone Grants........................................................................................page 27
21. Faith-based Initiative Grants.......................................................................................................page 28
22. Federal Government Grants........................................................................................................page 29
23. Friends and Family.............................................................................................................................. page 30
24. Foreign Investment........................................................................................................................... page 31
25. Franchise Your Business..................................................................................................................page 32
26. Garage Sale.............................................................................................................................................. page 34
27. Home Equity Line of Credit...........................................................................................................page 35
28. Hard Money Lenders..........................................................................................................................page 36
29. Installment Loan Companies: “Quick Cash”..........................................................................page 38
30. Investment Bankers...........................................................................................................................page 39
31. Investment Clubs................................................................................................................................. page 41
32. Initial Public Offering.....................................................................................................................page 42
33. Inventory Factoring.........................................................................................................................page 44
34. Inheritances........................................................................................................................................... page 45
35. Institutional Investors..................................................................................................................page 46
36. Lottery Tickets..................................................................................................................................... page 47
37. Leasing Equipment.............................................................................................................................. page 48
38. Letters of Credit................................................................................................................................. page 49
39. License Rights to Your Product or Service.........................................................................page 50
40. Life Insurance Borrowing.............................................................................................................. page 51
1. Accounts-Receivable Financing
Accounts-receivable financing is also known as invoice or accounts-receivable “factoring.” It is a
popular form of raising capital for an existing business. Factoring is most suited for a business that
has a large volume of receivables. It works through a specialist factoring company that advances the
value of a percentage of the receivables to your business, less a fee, and may assume the responsibility
for collecting the factored funds. Who assumes the risk for non-payment depends on whether the
agreement is for Non-Recourse Factoring (the factoring company assumes the risk) or Recourse
Factoring (you assume the risk), which is most common. Factored receivables usually realize between
50% and 90% of value depending on the likelihood of collection identified by the factoring company.
What rates the factoring company will charge you depend on several ‘risk factors’:
• the credit worthiness of your customers
• the value of the ‘typical’ invoice
• the volume you pass to them for factoring
• the average time to collect on receivables
In general, lower risk and higher volume for the factoring company lead to more favorable rates.
What is involved:
• Before you begin the process, make sure your accounts receivable is not pledged as collateral to any other
lender, as is typically true with bank loans. Check your state’s Uniform Commercial Code (UCC) registry
for any public documents that reflect this type of commitment.
• Next, the factoring firm will want to review a comprehensive list of financial documents in order to
provide you with a quote for their services. These include your company’s most recent:
• Profit and Loss Statement
• Balance Sheet
• Accounts Receivable Aging Report
• Accounts Payable Aging Report
• You will need to sign a contract with the factoring company, which will outline terms such as the length
of the agreement, the advance rates, fees, and other terms, and pay a fee to cover background checks,
legal searches and contract development.
• Once the contract is in place, you will need to forward your invoices and proof of delivery of products/
services in order to receive payment.
2. Advanced Sales
Advanced sales can be achieved in a number of ways and can help fund a new business, whether
the money is used to build inventory or to help pay for office and staffing needs.
Litigation
Many professional service providers, from graphic designers to attorneys, offer services on a retainer
basis. Certain clients may be more than willing to pay your fees in advance to ensure your services will
be available to them as needed. Retainers are most often paid on a monthly or quarterly basis but may
also be collected as a lump sum covering a certain time period or an extended project. While a retainer
ensures your availability, it is not typically tied to a project’s success. Some retainers are set up to cover
a certain number of hours a month, while others are set up to cover certain tasks/activities without
tracking hours. Whatever route you choose to take with your clients, you will want to make sure to
always have a contract in place that spells out the specifics of the arrangement.
Potential benefits:
• Working on a retainer basis with at least some clients ensures you have a certain amount of
guaranteed income on which to base plans for your business. When you work only on a per-
project or per-case basis, your income can fluctuate significantly. When it rains, it pours, but you
never know when a drought will arise.
• You have a chance to establish a long-term relationship and generate word-of-mouth referrals
which typically carry much more weight than any paid advertising.
• Your clients benefit from your guaranteed availability and generally a better rate in exchange for
prepayment.
Potential risks:
• Clients may be less willing to commit to an ongoing expense in tough economic times. They
may prefer to deal on a fixed-fee-per-project basis. You can still, however, negotiate for progress
billings which will allow you to collect fees during the project instead of having to wait for
payment in full upon completion.
• You need to ensure your retainer fees are reasonable with respect to other options in the market
or you may find yourself at a competitive disadvantage.
• You run the risk of underestimating the time and expenses involved. Be sure to set your rates so
you can cover all your costs, including your wages.
• You must make sure you have the time available once you have deposited (and/or spent) the
retainer.
• If your agreement is not specific enough about what is covered by the retainer and what
additional fees apply for services beyond those covered by the agreement, you could end up with
a disgruntled client who expected more than you bargained for. The devil is in the details (or the
lack thereof)!
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 8
Selling Products
If you are selling a product, you can ask for deposits when an order is placed or even charge up-front
for the product while committing to deliver at a future date. For example, Web site sales are often
authorized and captured at the time of purchase although the product may be shipped at a later date.
Potential risks:
• Pay attention to your merchant agreement to ensure there are not limitations to when you can
charge your customer. There may be clauses that indicate a charge cannot be processed until the
product is delivered.
• Having deposited revenues from advanced sales, you must be able to provide the product or
service or you could be faced with a lawsuit.
Local Las Vegas Business received a loan in the amount of $3,000,000.00. This loan was used to payoff an
existing mortgage, buy a competitor’s business and put 300k in their pocket for expenses for the new business.
The new payment is only $2,000.00 more than the old payment and they were able to increase their net cash
flow by $18,000 per month.
3. Accredited Investors
The Securities Act of 1933 requires any business that offers or sells its securities to register the securities
with the Securities and Exchange Commission (SEC) or find an exemption from the registration
requirement. One such exemption allows a business to sell company stock to a type of investor called
an “accredited investor,” a term used for financially sophisticated investors who don’t need the same
level of protection as the less experienced investors the SEC seeks to safeguard.
Also known as “qualified purchasers,” accredited investors are defined by the SEC as:
• Individuals with a personal net worth of more than $1,000,000 individually or jointly with their
spouse.
• Individuals with an income that exceeds $200,000 (or $300,000 jointly with their spouse) in each
of the two most recent years, with a reasonable expectation of the same in the current year.
• A bank, insurance company, registered or small business investment company, trust, charitable
organization, corporation or partnership with assets of more than $5 million.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 10
4. Angel Investors
“Angel investors” are high net-worth individuals who invest in emerging companies. They can be hard
to find and attract, but can be a great source for business capital, as well as guidance. They are typically
accomplished business leaders or professionals who enjoy investing in start-up ventures of interest to
them. Angel investors are financially sophisticated so it is important to be well prepared before you
open a dialogue with them.
Potential drawbacks:
• You will need to give up some equity in your company to receive funding.
• You must be willing to answer to your investor since angel investors generally take a more active
role than other funding sources.
5. Asset-Based Financing
Asset-Based Financing (ABF) is becoming more widely available to smaller companies. It used to be
reserved for major business ventures but as financing companies have perfected their practices, they
have expanded into the small business market. One popular form of ABF is invoice financing, where a
financing company advances funds based on existing orders ensuring that borrowing is limited to funds
that are in the pipeline. Lenders will advance up to 95% of an invoiced value. This can be an efficient
way for a business to raise fast money.
Asset-based financial institutions offer resourceful business funding approaches to companies that don’t
qualify for conventional loans from banks and lines of credit because of their startup condition, rapid
growth, or financial ratios which don’t measure up to a bank’s requirements. These alternatives usually
consist of asset-based loans, accounts receivable financing, and factoring.
Qualifying assets consist of: real property, A/R, equipment, finished inventory, and so forth. Some
financial loans depend on a certain asset, although some function like a credit line collateralized
throughout a mix of assets.
Asset-based financing is frequently employed just in the short-term, to give much-needed working
capital throughout a start-up or transition stage until a business has enough credit history or a
sufficiently strong enough balance sheet to become “bankable”.
It provides a quantity of recovery time plus an economic working atmosphere where the business can
display how it could perform with a long-term bank loan in place. This enables a business to show it
can be deserving of long-term funding.
The business still is the owner of its assets; however they may be easily seized if repayment isn’t made to
the lending company giving the credit. It is crucial to make loan repayments on time.
Business Expanding Equipment Lease: One of our clients recently obtained a lease for $5,500 in Fitness
Equipment which has allowed him to expand his Training business.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 12
Secured
• Favored by large businesses with more investments, assets, and cash flow.
• Require collateral (e.g., operating assets, accounts receivable, or inventory)
• Offer access to up to ten times as much money as an unsecured line at a considerably lower interest rate.
• Requires a solid business credit history and a minimum of two years in business.
• Varies in terms of interest rates, repayment terms, and possible prepayment fees so be sure to
comparison shop.
7. Bank Loan
This is a term loan normally over a period of one to five years. A bank loan is typically used for major
purchases, expansion of an existing business or providing capital to start a new business. Loans can
usually be completed within one month. Banks want a robust business plan that shows your potential
to repay the debt as well as a personal guarantee and excellent credit record. When considering this type
of loan, it is advisable to approach multiple banks and let them compete for your business to make sure
you get the best possible deal.
Market Information:
1. Clearly define your company’s products as well as your markets.
2. Identify your competition and explain how your business competes in the marketplace.
3. Profile your customers and explain how your business can satisfy their needs.
Financial Information:
1. Balance sheets and income statements for the past three years. If you are starting out, provide a
projected balance sheet and income statement.
2. Personal financial statements on yourself and other principal owners of the business.
3. Collateral that you’re willing to pledge as security for the loan.
Collateral is often company assets and personal assets outside the business. If you plan to purchase
equipment and other assets with borrowed funds, you can assume that this will be used as collateral for
the loan.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 14
Potential benefits:
• The qualification process can be much less rigorous than traditional forms of financing.
• You’ll be buying an established business with proven cash flow and avoid some of the pitfalls of
a startup business.
• You’ll have a track record and financials to approach a bank for more funding for expansion or
other financial need.
A recent NCHINC.com client was approved for $13,900 for a tanning bed.
Potential benefits:
• Get easy and efficient access to funds.
• Take advantage of competitive interest rates.
• Manage multiple loans in a single account; apply only one time.
• Choose from flexible repayment options.
• Pledge a broad range of assets as collateral.
• Easily track account activity.
Potential risks:
• A decrease in the market value of your eligible securities may require you to deposit funds to
meet a collateral maintenance call.
• A collateral call could disrupt your investment strategy.
• Your assets may be sold to meet a collateral call; the firm can sell those assets without telling you
and you are not entitled to choose which securities in the account will be sold.
• You are not entitled to an extension of time to meet a collateral call.
• The bank may demand full or partial repayment at any time.
• The LMA account is fully recoursed to you and you will remain responsible for any shortfalls on
the LMA account.
• For fixed-rate and term loans, principal payments made in advance of the due date, whether
voluntarily or involuntarily, due to demand or liquidation by the bank, may be subject to a large
breakage fee as determined by the bank.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 16
Through their educational programs, seminars and web resources you can gain access to…
• Alternative lending programs.
• Create linkages between potential funders and your business.
• Note that it may require relocation of your business to another state or region.
Starting Point: Google the terms “economic development” and “business development commission” + your
state, county or metropolitan area.
Three partners who had worked as the General Manager, Parts Manager and Sales Director were able to
pool their resources and buy the business they had worked at for 5 years. Because of the SBA requirement
that only 10% down was needed they bought the business for only $40,000 down payment. $13,500 per
individual and they now own the company and will be able to increase their personal income and create
some job stability for them.
Potential benefits:
• Aid with business fundamentals.
• Business networking activities.
• Networking with strategic partners.
• Marketing and advertising support.
• Support with accounting and financial administration.
• Gain access to bank lending alternatives, loan funds and guarantee programs.
• Gain access to angel investors or venture capital.
• Learn presentation skills.
• Links to higher education resources
• Intellectual property management.
• Regulatory compliance help.
• Advisory boards and mentors.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 18
What Is Involved:
• An initial entry (or “intent to compete”) of two to three concise and well-written pages that
summarize the plan by topic (product, market, competition, financing and operations).
• A detailed business plan that clearly shows how the venture will make money and that includes
market research in the form of, for example, customer surveys or trial sales programs.
• An oral presentation to the judges (often venture capitalists and other investors).
• A question-and-answer session with the judges (usually the most challenging part needing
significant preparation).
Helpful Hints:
• Do your homework and select the opportunities that best align with your ideas. The web site of
the organization hosting the competition is a great place to start.
• Don’t procrastinate. It often takes more than a year to prepare a winning plan.
• Ask for advice from past judges, as well as those who have won (and lost) in the past, to find out
what worked and what didn’t before you move forward.
• Develop a realistic plan you can use. It can act as your road map to success in your venture, even
if you don’t win the contest.
• Get a move on after the contest, when your enthusiasm and momentum are at a peak and your
data is current. If you wait too long, investors may not think you are serious.
Benefits
• You can gain timely insight, feedback and support from potential mentors that will help you
fine-tune your strategy and identify any flaws in your business model.
• You can get the attention of potential investors and/or partners who may be judging or guiding
the contest, while also potentially gaining access to valuable resources.
• While winning the cash prize will help some with your start-up needs, you will also gain
confidence in your idea and its potential.
• Once you have invested the time and energy in creating a plan, you will be more committed to
following through on your idea and keeping your business on track.
• You can use the plan to seek investors, who want a well-honed plan before they consider an
investment opportunity.
Potential Drawbacks:
• If you fail to make payments on your title loan, the lender will repossess your car and sell it and
charge you for the costs that they accrue doing so.
• Car title loans are being used by predatory lenders to take advantage of unsuspecting consumers.
• A car title loan payment is due within a month and often is for an amount that is far less than
the value of the vehicle.
• If you are in need of emergency cash, there are much smarter choices to a car title loan. These
alternatives include small consumer loans, and cash advances on credit cards.
Starting Point: Search on Google for “car title loans” or “payday loans”.
© Copyright 2012 Nevada Corporate Headquarters, Inc. All rights reserved back to top
Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 20
14. Competitors
An interesting concept for raising money for a new business is to regard local competitors as a source
of investment capital. Some business owners become entrenched in business models that work but are
not necessarily efficient. They would welcome an improved working model, but after years of running
the business a certain way, they find it difficult to make the change. If they are shown an innovative
new approach, it might just get their attention. What could be better than having an investor who
understands your business?
To gather competitive research, first set a framework for your competitive assessment.
Start by opening a new Excel worksheet and creating the following columns
outlining your competitors:
• Name (and location if relevant)
• URL
• Elevator pitch (brief answer to the question “Who is this company?”)
• Mission (if it exists)
• Products and services offered (with pricing)
• Strengths (What is the competitor good at?)
• Weaknesses (Where does the competitor fall short?)
• Key brand differentiators (What are the messaging, product and service offerings, etc., that set
the competitor apart from their competition?)
Next…
• Note their processes. (Manufacturing, marketing, distribution, JV partners, and more.)
• Track down the owners contact info, postal mail and email.
• Create a compelling and interesting proposition to present to them.
• Base the proposition on your ‘new way to (…)”, “increase effective yield”, “reduce waste and
boost bottom line”, “guaranteed execution” or whatever you have to offer that will increase their
business profits.
• Craft a letter that introduces your proposition to them…make the “secret sauce” (your new way
to (…)) vague — you don’t want to give away the secret until you have a financing arrangement.
• To create urgency mention that you are making the same offer to other businesses in your area
and will make a decision based on the terms of the arrangement.
This strategy is somewhat unorthodox and counterintuitive but it can work if you do the numbers. Make
enough offers and someone may welcome your proposition — it could be just what they were waiting
for.
Starting Point: Local Yellow Pages or the Chamber of Commerce usually has a compiled list of businesses by
your zip and surrounding areas.
Advantages
• You will be up and running in no time.
• You will have a practical overview of previous success.
• You will prevent certain costs. Be sure to closely inspect the business agreement you’re entering.
Often you will enter the present business agreement, not a brand-new one that new franchisees
would enter. This could be associated with great advantage to you, specifically fees paid to the
franchisor in the current agreement are lower than such a brand-new franchisee would have to
pay.
Important Tips
• Discover why the leaving franchisee is leaving the company! He or she could be leaving the
company because of bad, unstable relationships with the franchisor that could plague you as
well.
• The particular purchase price for that current franchise is going to be something the leaving
franchisee decides, or something the two of you figure out collectively.
• Ask for an information packet from the franchisor.
• Job interview owners of current businesses.
• Research the business with other franchises in this industry.
• Look for expert advice to understand the franchise agreement.
Questions To Ask
• Just how long has the franchisor been in business?
• The number of franchised shops in the area?
• Where are they located?
• How much is the preliminary franchise fee as well as any extra new venture expenses? Are there
any ongoing royalty payments? How much?
• What management, technical, and continuing help does the franchisor provide?
• Exactly what regulations will the franchisor impose?
Starting Point: Search on Google for “(geographical location) franchise for sale”. Scan local classifieds online
and off-line. Do drive-bys where many franchises are found look for closed sign during
operation hours.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 22
Potential risks:
• You have to make quick payments and make sure they’re documented at the credit bureaus.
• This is costly debt with interest rates from 15% to 25%. And it is dangerous. Use with caution
and have a reasonable plan for repayment.
• It’s best to use for emergencies.
What is involved:
• When you apply for credit cards, select a card which has many functions and affiliations. (Air
miles, warranty extensions and bonus points for purchases.)
• Ones with universal use and low interest are the best choice for your personal finance.
• Figure out and read all the details of the agreement.
• Identify and record all purchases made.
• Take note of the billing time and repayment amounts.
• Make reminders for yourself for repayment schedules so you don’t miss a payment and steer
clear of penalties and charges.
• Another way to maximize the use of your credit cards is to take note of promotions and
discounts.
• When unique sales can be found, take advantage of all discounts and purchase offerings.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 24
18. Craigslist.org
One innovative way of attracting investment into your business is to place an online classified
advertisement on a posting service such as Craigslist.org. An advantage of Craigslist.org is the
advertisements are free, and the site is accessed by a large and diverse audience. There are many local
online ad services that can be used when looking for investors. Make sure your advertisements are
creative and specific to your target investor type.
Helpful Hints:
Writing a Good Ad
• Use some unique keyboard characters in your Title (headline).
• Indent your description (body copy) and use ALL CAPS.
• Use some rhyme. Use words creatively. Don’t blend in - stand out.
• Use urgency and scarcity to compel action.
• Study other ads of similar financing offers and copy what works.
• Place your ad in the best category.
• Remember, you’re looking for a lead to close the deal from your Craigslist ad.
LET THE BUYER BEWARE: Buyer beware. Always do your due diligence on a potential investor.
The corporation may sell securities once completing a DPO by direct methods; telemarketing or mail
outs but may also develop a brokering system to aid in the day-to-day management of such securities.
© Copyright 2012 Nevada Corporate Headquarters, Inc. All rights reserved back to top
Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 26
typically charge a commission of thirteen percent of the earnings from the sale associated with
securities, while the costs of a DPO are nearer to 3 percent.
• DPOs may also be completed within a smaller time frame and without extensive disclosure of
confidential information.
• Finally, since the inventory sold via a DPO goes to a restricted number of investors who are apt
to have a long-term alignment, there is often less pressure on the corporation’s management to
deliver short-term results.
• Doug obtained $75,000 in the 1st Phase - $30,000 from 1 lender at 0% for 12 months.
• Justine has received $82,000 & has one more application pending.
• William got an $80,000 capital infusion for his business.
The framework for the Empowerment Zone Initiative is embodied in four key principles:
• Strategic Vision for Change
• Community-based Partnerships
• Economic Opportunity
• Sustainable Community Development
SOURCE: www.HUD.gov
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 28
• Faith based government grants are available for faith based businesses and are made to help
these organizations along with other similar ones.
• The main focus of these organizations is to work for the benefits of at-risk youth, the homeless
and hungry, ex-offenders, medication addicts, well-being to work families and patients of HIV
and AIDS.
• You will find varieties of federal grants for individuals available for these types of organizations,
there are many people suffering from one issue or another.
• It depends on the need as well as purpose of the business that they make an application for the
grant.
• When applying for the grant, the organization must keep in mind the amount they are going to
receive because this will make them see whether that grant is suitable for that need or not.
• It is important to apply for the most suitable grant because fulfilling the need is important at any
cost.
• If your business is not given proper financial aid, they’ll find themselves in the same position
they were before you apply for the grant.
• In reality the grants or loans are available and provide sufficient amount of cash to fulfill
the requirements and profit the organization who carry out the activities and the programs
effectively.
• The federal government readily provides these types of organizations with funds so they will
carry on their own social service activities.
If you’re connected with any of these organizations, you can apply for financial help from the
government as the government has put aside a good amount of cash for this purpose.
Apart from government, there are other private businesses and nonprofit organizations that offer funds
to this type of organization. You can make an application for as many grants as you wish. There is no
limit in applying for faith based government grants and you only have to provide the proof of your
organization.
Potential benefits:
• Grants are the best possible source of financing.
• Unlike contest winnings, they aren’t taxable and, unlike a loan, it’s not necessary to pay them back.
• Keep in mind: Grants typically don’t cover your complete capital needs, and you usually have to
pony up the same amount for the project you’re aiming to finance.
To discover more about grant opportunities at the state level, check with your state’s economic
development agencies. Also find federal grant opportunities on the government’s site.
Contact local colleges. Some colleges and universities offer financial support to entrepreneurs through
their small business and entrepreneurial centers.
However, please note that grant requirements are strenuous, and there’s much competition for small and
home-based business grants.
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Fast Money Guide: 79 ‘Fast Cash’ Strategies for Your Business Page 30
Normally unsophisticated investors, friends and family typically finance your business because they
believe in you and genuinely want to help. However, if the business fails or a loan is not repaid in time,
the financial relationship can seriously affect your personal relationships. The author’s recommendation
is to think carefully before using this source of funding.
The bottom line of this money source is, if you can’t repay the loan, can you face Uncle Bill at the next
family reunion?
Starting Point: Your list of relatives, Christmas card lists and address books.
Attracting foreign investment to a business will take serious research and development to create a win-
win proposition. For example, perhaps a foreign company in a similar market sector is seeking new
distribution channels to grow their business within the United States. Identify companies that will
benefit from a unique alliance or business concept and approach them with your ideas.
There can be many international joint venture opportunities available on the Internet. Finding a perfect
fit for your business can take time and research. But having just one that really takes off can be worth
the effort.
• A true joint venture is considered to be a full alliance in which an independent entity is created,
involving two or more partners.
• The concept of an entity - an organizational form having separate structure and identity from
the participating partners - is central to the joint venture concept and distinguishes it from other
types of collaborative relationship.
• Make a list of what you have to offer a JV partner. Distribution, manufacturing capacity, a new
process, cost efficiencies, marketing savvy, political connections, and regulatory know-how are all
good things to offer a potential partner.
• Write a proposal of what you have to offer and seek.
• Customize it for each potential partner.
• Create a list of partners.
• Send them a query letter or email.
• Send your proposal if requested.
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• What kind of company do you have now? Even if you believe franchising is for an individual,
that doesn’t mean your business is franchisable.
• No matter how profitable your business is, it will not work as any franchise unless of course it
appears to be a great business opportunity.
• The business should be based on a concept with pizzazz, such as a fresh kind of fast-food or a
trademarked technology for repairing vehicle finishes.
• To be successful, a franchise has to capture the sight of would-be companies. It’s easier to
market the franchise along with built-in appeal compared to one that appears like some ordinary
business.
• Your business must create a superior service or product. Nobody wants to buy as well as run a
franchise whose achievement is based on being the lowest-cost maker.
• If you produce a superior service or product, it also has to be possible for one to control the
grade of that product or service.
• Much of the particular appeal of any franchise program to consumers lies in the fact, no matter
where each goes, if they patronize among that system’s franchises, they’ll get the exact same
quality of service and product they would get anywhere else.
• Unless your product or service or program is one that lends itself to that standardization, you
are going to have trouble franchising your notion.
• If you have a good product, a good market as well as plenty of flair, you need to search for
some safety.
• Specifically, you need to have a strong trademark. The best franchises, such as Train and
ServiceMaster spent plenty of time and money creating strong trademarks that express a
consistent and appropriate message about the item and the operation.
• An excellent franchise idea has to be teachable. That means it has to end up being something
you can explain to others and that it can be easily grasped.
• Your franchisable company should be systematized and its operations documented so it
can be copied by other people. In addition, it needs to be a company that can perform in a
noncentralized method.
• If your business is run based on knowledge which exists only in your head and needs your
personal involvement every step of the approach, you’ll have problems franchising it.
• Repeatability is an essential ingredient of the franchisable business. Which means your business
should be one that can be mirrored again and again in many areas by many individuals.
Incorporating all of these features into your company is going to take some time and vitality. In fact,
franchising is a different company from whatever business you are in now.
• We substantially improved Roger’s credit report in less than 60 days and he has received $55,000
between 3 lenders putting him at a total of $93,000 so far.
• Ed & Roby had some challenges (and some curve balls) but they’ve stuck with it and done what we told
them - $76,350 so far with more to come!
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In many cities there are businesses who specialize in selling your items on eBay for you. It’ll save you
time but will cost you in a percentage of the earnings. It may be a good alternative for the time strapped.
Look in your Yellow pages for ‘We Sell On eBay’ for you type ads.
• Home-equity loans may be an attractive alternative to other forms of financial loans because
they usually offer the least expensive interest rates available.
• However, you have to carefully consider all the outcome of jeopardizing your home to fund your
business.
• Home equity loans can provide you with large amounts of money at a fairly low interest price, as
well as particular tax positive aspects unavailable with other types of loans.
• But using a home equity loan to invest in your business carries notable risk.
• If your enterprise fails, you’ll have lost both your business and your home.
• Most mortgage organizations are happy to lend owners a portion of this equity without
constraints on how we use the money.
• Refinancing isn’t challenging, and if your credit history is good, you could have the cash within
1-month. Or you will get a commitment for your loan of your second mortgage loan and draw
down the money as needed.
Potential risks:
• You will find many frauds in this area, especially if your credit rating isn’t A+.
• As before, keep in mind, if you default on the 2nd mortgage, it is possible to lose your property
for a lesser amount than the value.
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Hard money lenders are from private loan companies or lenders, and almost never from a deposit
institution or even commercial bank.
Potential Risks:
• Because any unregulated financial system can appeal to shady procedures, it’s important to
confirm the good trustworthiness of your tough money loan provider.
• A red flag to consider to tell the difference between an excellent faith hard money loan company
from predatory is whether the lender demands excessively high fees up-front.
• Hard money loans have features that are similar to conventional lending choices, but vary in
many ways.
• Hard money loans are issued based on a fraction of the property’s value.
• In case you were to default around the loan, the amount of the loan can reach up to what the
loan provider can expect to sell the property for if they need to do so rapidly.
• Since dangerous assets tend to be what protected hard money loans, you can expect having to
pay a higher interest rate.
• In addition, you won’t locate these loans offered by conventional lending institutions such as
banking institutions.
• You will also need to exercise severe caution in choosing a difficult moneylender, as the business
has hardly any regulation.
If you need a loan issued quickly to yourself or for your business, getting hard moneylenders can be less
difficult than finding a traditional loan, once you find the lender with whom you’re comfortable.
Rather than responding to the first ad which you see, you need to compare multiple hard cash loan
alternatives at iBank.com. Based on the details that you provide, you’ll receive a list of lenders that could
offer you the loan you asked for.
When to Borrow
• You’re honest about your personal risk - Difficult money mortgages aren’t sources of free
money. They’re high-risk loans that can lead to you having your home repossessed. You should
only take out a loan if you believe in your capacity to repay the credit.
• You consider unanticipated circumstances -- Don’t take out a mortgage unless you have other
methods to make the monthly premiums -- Should you or perhaps your spouse lose a job or
perhaps struggle to work for a period.
• Nels W. has $75,500 in approvals and still has 2 more applications pending.
• Robert just got his first approval for $20,000 from one lender.
• A new capital infusion for Yinka A., more than $74,000 in funding so far.
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Potential benefits:
• With instant money from an online payday loan, you’ll have money in your account even during
those long stretches between revenue.
• Sometimes periodic expenses like automobile insurance, real estate insurance, or even real estate
taxes take a bigger-than-usual nip out of your cash flow. Unpredicted things like unexpected
medical expenses and automobile repairs would be the problem.
• Your business can have unforeseen expenses, too! Marketing budget overages. Manufacturing
expenses, inventory and payroll obligations can strain a business’s cash flow.
There are instances when instant cash from an Internet payday loan can help you stem the bleeding.
Short-term installment rates are for short duration only. These loans should not be your primary means of
financing your business. Use them for emergencies and with a solid plan for paying them back — on time.
Equity Financing:
• One way is through equity financing where an organization sells partial ownership of the
company to the public. That is typically carried out by and IPO where the shares are first
introduced to traders.
• Debt Financing:
• Another type of loan is as financial debt financing. By means of debt funding, a company
actually borrows money through investors via the selling associated with bonds.
• The organization must repay the full amount borrowed, when the relationship matures,
combined with interest that has been agreed upon if the bond has been issued.
• Investment bankers can also be advisors to a business when coping with different types of
purchases such as mergers and acquisitions.
When a business uses an investment financial institution, the bank will prepare all the materials required
for the transaction and the completion of the deal. The important thing is, an investment bank can make
the process of raising money much easier for any company.
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There are several other ways an investment lender can promote securities for a company:
• Firm Commitment- The actual investment lender will actually buy the securities from the
company at an arranged price and then resell them to the public at a markup. The investment
lender takes the danger here but could benefit significantly if the securities are highly revered by
the public.
• Finest Efforts- The investment banker will do their finest to sell every one of the securities,
however they do not ensure it. The organization takes the risk here since they will not receive as
much funds if all the securities are not sold.
What is involved:
• An investment club is a group of individuals who make a commitment to contribute a fixed sum
of cash each month in to a common pool of funds, and then use that common pool to invest.
• Most commitments last for a period of a couple of years, with a payoff window at the
conclusion of the 2nd fiscal year.
• Commitments range from as little as $50 each month to $1,000 per month.
For the investment club participants there are many benefits including:
• Group investments to lower the overhead cost.
• More members have more ideas!
• You don’t have to follow the news every day. The group will be large, and will have mechanisms
to contact each other in the event of urgent market news requiring action.
• Ability to perform “Hedging” operations. Because of the large pool of money that will be
collectively invested, the club will have the ability to use options to protect gains and minimize
losses in the event of market swings.
• Tax deductions for expenses.
• Learn the techniques of the professionals.
• Meet and socialize with smart like-minded individuals.
As a business owner seeking financing you can present your investment opportunity at a monthly
meeting. You will need to arrange a time slot with the investment club in question and learn the way they
like to be presented with opportunities.
You may want to consider attending some meetings before you present your offer just to get a feel of
what goes on there and how other business owners make their presentations.
Choose a local or regional investment club when doing your research. You should network with the
investors and make some friends too — they may be more receptive to your opportunity when you
present it.
Investment clubs seem to be an upward trend in the finance world and can be a great alternative to tight
credit markets.
Starting Point: www.wfic.org; Google the term “investment club” + your state, county or metropolitan area.
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What is involved:
• An initial public offering (IPO) is the process by which a privately held company issues shares
associated with stock to the public for the first time.
• Also known as “going public,” an IPO transforms a small business from the privately owned and
operated entity into one that is possessed by open public stockholders.
• An IPO is a substantial stage within the growth of numerous small businesses, since it provides
them with access to the general public capital marketplace and also increases their credibility and
exposure.
• The decision to go public may also be influenced by venture capitalists or founders who would
like to cash in on their own early investment.
• The ideal candidate for an IPO is a small-to medium-sized company in an emerging industry,
with annual revenues of at least $10 million and a profit margin of over 10 percent of revenues.
• It is also important that the company have a stable management group, growth of at least 10
percent annually, and capitalization featuring no more than 25 percent debt.
Benefits of IPOs
• The primary advantage a small business stands to gain through an initial public stock offering is
access to capital.
• Another advantage IPOs hold for small businesses is increased public awareness, which may lead
to new opportunities and new customers.
• Another advantage of going public involves the ability to use stock in creative incentive packages
for management and employees.
Potential drawbacks:
• A public entity involves significant changes for a small business, though a lack of flexibility as
well as control for management.
• IPOs fell out of favor in the fallout of the dot-com bust in 2001.
• With Facebook’s IPO and other companies there seems to be a small resurgence, however, the
heyday of IPOs is over and may never return.
• FACT: It is not unusual for a small business to pay between $50,000 and $250,000 to prepare as
well as publicize an offering.
• A key disadvantage involves the public company’s loss of confidentiality, flexibility, and control.
SEC regulations require public companies to release all operating particulars to the public,
including delicate information about their own markets, profit margins, and long term plans.
• Experts recommend that small business owners think about all the other options first (for
example securing investment capital, forming a restricted partnership or joint venture, as well as
selling shares through personal placement, self-underwriting, or a direct public offering).
As you can see, going public probably is not right for the fledgling small business, but something to keep
in mind as your business grows.
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• Inventory loan financing (also known as “Flooring”) is the using of inventory value as collateral
for a loan.
• Loan companies want to make sure their loans are secure, which means this method will
improve the chances drastically of receiving money.
• Lenders and experienced business people understand that running out of stock will do
absolutely nothing but turn customers away from a business.
• More and more loan companies are willing to permit a business to make use of their present
inventory as collateral for future financial loans.
More Benefits:
• It also allows distributors as well as resellers to stock inventory with extended payment
conditions.
• Working capital position for the business is also increased.
• Also a key benefit is that it does not count against the business’s credit line.
Have a good strategy in place before you speak with a lender about your inventory loan options.
The fees for this type of financing are high. So you shouldn’t make this a primary way to finance your
business. Think of it as a short term problem solver.
34. Inheritances
Many people know they have been named as a beneficiary of a parent or grandparent and expect to
inherit various assets when the time comes. Occasionally, relatives can be receptive to the idea of
releasing a part of the inheritance while they are still living so that the money can be invested in a new
or expanding business.
Things To Know:
• (Yes! It’s probably a taxable event. Check with your tax accountant beforehand.)
• Estate tax may apply to your taxable estate at your death. Your taxable estate is your gross estate
less allowable deductions.
• Your gross estate includes the value of all property you own partially or outright at the time of
death.
Taxable Estate
• The allowable deductions used in determining your taxable estate include:
• Funeral expenses paid out of your estate,
• Debts you owed at the time of death,
• The marital deduction (generally, the value of the property that passes from your estate to your
surviving spouse),
• The charitable deduction (generally, the value of the property that passes from your estate to
the United States, any state, a political subdivision of a state, the District of Columbia, or to a
qualifying charity for exclusively charitable purposes), and
The state death tax deduction (generally any estate, inheritance, legacy, or succession taxes paid as the
result of the decedent’s death to any state or the District of Columbia.
SOURCE: irs.gov
If you need more information, see the following publication, forms, and instructions.
• Publication 559, Survivors, Executors, and Administrators;
• Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return;
• Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return;
• Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return for Nonresidents, not a Citizen of
the U.S.; and
• Form 1041, U.S. Income Tax Return for Estates and Trusts.
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There are mailing lists available of hedge fund executives on the Internet. Try http://lists.nextmark.com
Strategy #2
Never buy a Quick Pick ticket. Manual selection of numbers outpull computer created ones.
Strategy #3
Play games that award extra money or even prizes if your sequence, such as two sets in a row, earns you money.
Strategy #4
If you’re playing a lottery that requires that numbers be received in a specific sequence, remember to
“box” your selection. The numbers that can win can be selected in any order.
Strategy #5
Play lotteries that provide a bonus for an additional number.
Strategy #6
Play the all of tickets that you can. This boosts your odds as well.
Strategy #7
Pool your money for playing the lottery with several other individuals.
Strategy #8
Try a wheeling system. Wheeling is a way for you to get maximum coverage from the numbers you play.
Wheeling simply can help you span more numbers each time you play upping your odds of winning.
This is a method you should consider once you have other more reliable financing strategies underway.
Although the benefits of this method are compelling - No qualifying, no paperwork, no collateral
needed, and no investors to satisfy; somebody has to win — right?
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• Much less initial cost. The primary benefit of leasing business equipment is it allows you to
acquire assets with minimal preliminary expenses, saving capital for other business needs. Simply
because equipment leases rarely need a down payment, you are able to get the goods you need
without affecting your cash flow.
• Flexible terms. Leases are often easier to get and have more flexible conditions than financial
loans for buying equipment. This can be an advantage for those who have bad credit or need to
negotiate a longer payment plan to lower your costs.
• Easier to upgrade gear. Leasing enables businesses to address the problem associated with
obsolescence. If you use your lease to obtain items that may be outdated in a short period
of time, such as computers or other high-tech equipment, the lease passes the burden of
obsolescence onto the lessor. You are set free to lease new, higher-end equipment when your
lease expires.
• Tax deductible. Lease payments may usually be deducted as business expenses on your tax
return, lessening the net cost of your lease.
• Greater overall cost. Leasing a product is almost usually more expensive than buying is.
• You don’t own it. You don’t build equity in the equipment unless of course the equipment is
becoming obsolete by the end of the lease. This lack of ownership is a significant disadvantage.
• Obligation to pay for whole lease term. You are required to make obligations for the entire lease
period even though you stop while using the equipment.
• Leasing equipment can be a wise decision for business people who have small capital reserves or
even owners who need equipment that must be upgraded every couple of years.
• Buying equipment can be a better choice for established businesses or for equipment that has a
long life.
Letters of credit achieve their purpose by substituting the credit of the bank for that of the client, for the
purpose of helping trade.
There are basically two sorts: commercial as well as standby. The commercial notice of credit is the
primary payment mechanism for a transaction, whereas the standby letter of credit is a secondary payment
mechanism.
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Licensing is the transfer of copyright from one person or group to another person or group, where all
parties to the transfer benefit in some way. The licensing of products is a common form of licensing
and happens more than most consumers would think.
A Pre-Presentation Checklist:
• Businesses can license their products to manufacturers with a solid market share and the capacity
to market these products to a target audience better than you could.
• Licensing can give a business the upper hand during future negotiations. If a business takes
advantage of the right licensing opportunities, their future products will have a much better
chance of being picked up and distributed to a target market.
• With licensing there’s no debt to be paid back, no debt overhead burden, no qualifying, only
profits to obtain and put to use in your business.
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You’ve made the decision to get your latest computer on finance - and why not, it’s going to do wonders
for your cash flow and ensure you receive the latest device.
• The first place you went when looking for finance would be your bank manager. Pc finance isn’t
any different - and your bank will undoubtedly be only happy to help.
• Beware of the hidden pitfalls. Banks will just lend your business a set amount - as well as any
kind of lending it makes will count towards this.
• The current economic climate makes banks even tighter on their financing criteria. The tax-
deductible leasing agreement, rather than a financial loan, could make much more sense.
Manufacturer Options:
• Many manufacturers offer finance or even computer renting deals. Apple Company, for example,
provides two choices to professional customers called “Finance Lease” as well as “Residual
Lease”.
• If you are happy to be locked into a single manufacturer, it may be worth a look -- they often
supply upgrade options as well, to ensure that you always have the latest IT equipment.
• But you will be limited to each manufacturer’s pc equipment, which means this may not be the
best route to choose custom solutions, or where you need a piece of hardware the manufacturer
cannot provide.
• Merchants have now entered this market too, though they can’t match the professional finance
companies for flexibility and high APRs are typical.
• Specialist computer finance companies can offer the best of the maker’s computer finance
upgrades and the most versatile payment choices to match your business.
Potential Benefits:
• You receive cash, just as you would with a loan, yet you do not have to worry about making large
monthly payments since a fixed percentage is taken from each credit card sale until the loan is
paid off. There is no fixed timeframe for repayment.
• Since you pay based on the volume of business you are doing, you don’t end up ‘underwater’ in
slower months.
• You can take advantage of opportunity as it arises since you can get an advance of this type
quickly and easily.
• You receive a lump sum within a week of applying.
• There is limited paperwork to complete.
• There is no risk of losing collateral or impacting your credit rating since an advance is treated
like a purchase as opposed to a loan.
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43. Newspaper Ad
One simple way to attract the attention of local investors is to place an ad in your local newspaper under
the classified section of business or investment opportunity. The author has seen many entrepreneurs
take this simple but unpredictable route to raising capital. Your headline could read “Local
Entrepreneur Looking for Financial Partner to Make Millions” or “Discriminating Investors Wanted for
a Unique Private Investment Opportunity”. This approach may be a long shot but you never know who
may be reading the paper that day.
Keep It Short
You should know that short advertisements work best. You want to keep your ad short so you can focus
on producing response. Stay with short headlines, short entire body copy, and a short close. The purpose
of your classified ad would be to gather a lead -- you shouldn’t be trying to sell anything, so keep this in
mind.
Go for Response
Go with the “two-step” approach to advertising: produce a lead, and follow up on this guide with more
information.
You will want to make use of keywords or “trigger words” that entice your prospective client on taking
an action. Focus on what the investor gets, “Solid Returns” “Fast Growth Investment” “Safe ROI”.
Use trigger words proven to improve response rates, and can do wonders for your classified advertising
marketing campaign.
Study the ads in your local and national newspapers for tips you can use to boost your response.
Starting Point: Investors Business Daily, Wall Street Journal or USA Today
• When you take a loan to make money, you use one of the most effective magic secrets
recognized in the world today for building huge wealth. All you need is a good idea to
complement the money you’re lent and you’re off on a glorious road to great prosperity - fast.
• You work harder and have a greater opportunity to hit it big time.
• With money in hand you can concentrate on the business aspects of each offer, improving your
chances of success.
• Having money in the bank, even lent funds, gives you more confidence so you work relaxed as
well as close more big money deals.
• Cash on hand can help you work better deals, thus you may be in a position to get big discounts
at more favorable costs.
• Having money available may allow you to buy a company, buy supplies; or otherwise catch a deal
while your competition is fumbling around to get the needed cash.
• It gives a person independence, freedom of motion, and the power to make the best deals for
you.
• OPM can put you in a moneymaking state of mind, that is, you can earn more because you have
more!
• OPM is the magic which builds wealth in every nation of the world - large, small, and in-
between.
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Consignment
When goods are delivered to another company with the understanding that payment for the goods
is only made once the goods are sold. Consignment can cover just about any type of business. It is
worthwhile for the seller of consigned goods, because they don’t need to pay suppliers up-front.
Trade Credit
Trade credit is an arrangement between businesses to buy goods or services on account, that is, without
making immediate cash payment. The supplier typically provides the customer with an agreement to bill
them later, stipulating a fixed number of days or other date by which the customer should pay. It can be
viewed as an essential element of capitalization in an operating business because it can reduce the capital
investment required to run the business if it is managed properly. Trade credit is the largest use of
capital for most business to business (B2B) sellers in the United States and is a critical source of capital
for a majority of all businesses
Dropship
Dropshipping is a supply chain management technique in which the retailer does not keep goods
in stock, but instead transfers customer orders and shipment details to either the manufacturer or a
wholesaler, who then ships the goods directly to the customer. As in retail businesses, most retailers
make their profit on the difference between the wholesale and retail price but some retailers earn an
agreed percentage of the sales in commission, paid by the wholesaler to the retailer.
Use one or all of these popular financing techniques to free up capital for marketing and growing your
business. Trade credit in its various forms should be your first goal in your business financing plan. It’s
easy to establish trade credit and will help you over the hurdles of early growth.
Starting Point: Check with all your vendors for available credit programs.
• Besides raising equity capital from investors — a great number of private companies make use
of the Regulation D Programs to boost private debt financing.
• Most early stage or even start-up companies do not have the capability in order to qualify for
conventional bank funding because of rigid underwriting.
• Many entrepreneurs look for debt funding from private investors to capitalize their opportunity.
• Increasingly, debt financing from private investors using only a business plan is almost
impossible. Business plans do not supply any helpful information on the ability of a business to
perform.
• A Regulation D Debt Offering functions much like a private business loan where the company
offers a promissory note to investors.
• The note sets the terms and conditions of the loan arrangement between your company and the
investor.
• A note would provide a certain interest rate typically paid yearly to investors with a mature date
which dictates when the principle is paid back in full.
• Many early stage companies that lack the needed equity or operating history for conventional
financial institution financing will use private financial debt from investors for a short period of
time (12 - 36 months) to determine a credit and operating history.
• Then they have the ability to take out the private debt loan from the investors with a standard
bank business loan at a lower interest rate.
• Most companies use the programs to raise from $25,000 to $50,000,000 in capital.
• Regulation D Offerings have been used for a wide variety of transaction and industry types:
corporate seed capital, corporate expansion capital, film production capital, real estate equity
funding (acquisitions, development projects, golf courses, rehab), capitalization for early to
pre-IPO stage Internet and technology companies, expansion funding for retail companies, and
product development and distribution funding.
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• Private placement or private investment capital, is money invested in your organization usually
through private investors in the form of stocks and sometimes bonds.
• In the United States, personal placement often does not need to be registered using the
Securities Exchange Commission. Regulation D is easily the most popular form of non-public
private placement.
• According to Thompson Financial, over 416 million was released in the personal placement
market for 2002.
• Private placement will exist for the small business owner and is often less expensive and easier
than taking your company open public.
• High degree of versatility in quantity of financing which range from 100 thousand to 10-20
million with mixtures of debt, equity, or financial debt and collateral capital.
• Investors are more individual than venture capitalists, frequently seeking 10 to 20% return on
investment over a long run of 5 to 10 years.
• Much lower costs than approaching venture capitalists or even selling the stock to the public
being an IPO (Preliminary Public Offering).
• Quicker form of raising money than usual venture capital marketplaces.
Connect with bankers, attorneys, and accountants who can network your small business with a private
investor.
What is involved:
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• A private equity fund is a collective investment plan used for producing investments in various
equity (and to a smaller extent financial debt) securities according to one of the investment
methods associated with private equity.
• Private equity funds are typically restricted partnerships having a fixed term of ten years (often
with annual extensions).
• Institutional investors help to make an unfunded commitment for the limited partnership, which
is then drawn over the term of the fund.
• A private equity fund is actually raised and managed through investment professionals of a
particular private equity firm (the general partner and investment advisor).
• A single private equity firm will manage a series of distinct private equity funds and will make an
effort to raise a new fund every 3 to 5 years as the prior fund is fully invested.
• Nearly all investors in private equity are passive and rely on the manager to make investments
and generate liquidity from those investments. Typically, governance rights for limited partners in
private equity funds are minimal.
• Most private equity funds are structured as limited partnerships and are governed by the terms
set forth in the limited partnership agreement or LPA.
• These funds have a general partner (GP), which raises capital from wealthy institutional
investors, such as pension plans, universities, insurance companies, foundations, endowments,
and high net worth individuals, which invest as limited partners (LPs) in the fund.
• If you are starting or buying a small business, your personal savings can be an important
resource. This is the opposite of ‘OPM’ Other People’s Money.
• Most new businesses are started when business owners or partners dip into their own checking
and savings accounts to put together the financing needed to start up, purchase or expand their
business.
• Many times business owners and partners will liquidate savings held in stocks and bonds to be
able to come up with the needed capital.
• Also common is the practice of borrowing funds from personal credit cards and taking out
personal loans to ease the raising of funds required.
• While tapping into your credit cards may be an option it is not advisable to do so for long-term
financing.
• The money drawn down on your personal credit cards shows up on your credit history and
can affect your credit scores since it increases the amount of revolving debt that you have
outstanding versus the total available to you.
• You can use this money to invest in your new business or you can use it to pay your living
expenses during the early stages of your business venture.
• It’s also a good idea to keep some money as a cushion in case you have to pay unexpected
expenses.
Starting Point: Check your savings, checking, and CD accounts for available amounts.
Review your stock, mutual fund and bond holdings for available value.
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• Based on the SBA, around 250,000 angel investors’ in this country invest roughly $30 billion
annually, most of this in seed, start-up and early stage ventures.
• The early-stage entrepreneur thus has an increased likelihood of raising funds from angel
investors, and from professional venture capital close ties.
• You should create a business plan which underlines your sustainable aggressive advantage.
• It’s rare that an entrepreneur raises capital through private investors without having clearly
defined the aggressive landscape of his company and how his solution includes a clear
competitive advantage beyond others in the market.
• Investors will want to know the “barriers to entry” for your endeavor “how you will keep rivals
from being in the same exact business.”
• Some obstacles to admittance might consist of: patents, trade secrets and proprietary
technological development or answer.
• You should accept having “a good idea” is often not enough to raise capital through private
investors, and you ought to do your homework to provide “proof of concept” for the venture.
• The existence of a prototype or working type of your company’s product or service can greatly
increase your chances of attracting angel investors in the prototype stage of your business
should be borrowed by yourself, buddies, and loved ones.
• Angels are impressed when you have arranged potential customers who are willing to check or
test your product as well as commit to buy it, should it solve their difficulties.
• An entrepreneur who is able to demonstrate he can create paying customers within the real
world is far ahead in terms of raising from angels compared to an entrepreneur who simply has
a business plan as well as an idea.
• If you have decided to raise capital for your venture, you will improve your chances for success
if you employ professionals to help you with the procedure. This requires budgeting for
specialists, as well as the real process of making and mailing business plans, travel, telephone and
FedEx.
You should determine and get in touch with angels who are ideal for you.
• Deal size: Angel investors, becoming individuals, tend to know the investment size with which
they are comfortable. The entrepreneur shouldn’t be surprised to locate that most angels invest
anywhere from $25,000 to $250,000.
• “Syndication of angels” is a common process for those entrepreneurs, needing to raise capital,
beyond the individual amounts of most angels.
• Organization stage: Some angels will only purchase seed or start-up companies, while some seek
later on stage ventures looking for expansion capital. The entrepreneur and their professional
advisor should look to find individual angels whom tend to be well-suited to the stage associated
with development of the venture.
• Business: Angels invest in businesses these people either know and/or can readily understand.
Many angels, having previously been successful entrepreneurs, will often lean toward their earlier
industry encounter.
• A deal well-matched towards its potential angel investors will have a higher possibility of a
successful closing.
Most angels see themselves as “value-added investors’ meaning that they gain as much personal
satisfaction through helping a brand-new business owner because they go through contributing funds to
the venture. Many were previously successful business owners.
• You should never stop searching for additional angel investors until all checks through interested
parties have cleared the bank.
• You should invest your own money in your own venture. If you wish to start a company, be
prepared to invest your own money.
• You should place at least 20% of your own net worth within your business. Individual
entrepreneurs who are not prepared to assume this kind of risk aren’t considered serious
entrepreneurs through the investment community, and will not likely receive any financing.
Starting Point: Read your local newspaper classifieds and national ones as well;
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• Purchase order factoring, sometimes called “contract funding, is great for businesses requiring
financing during times of growth.
• Cash flow reserves often turn out to be insufficient, and additional financing resources are
needed.
• The issue comes when suppliers want a business to pay upfront by way of C.O.D., and also the
buyers want to buy the products on Internet 30-60 day conditions.
• This means there isn’t any incoming money during manufacturing while the goods are in transit,
and until the bills have grown up.
• Purchase order factoring solves this problem if you are paying for the cost of the goods directly
to your supplier for the manufacturer or even distributor.
• Purchase order factoring frees up your cash for other important business expenses for example
paying for resources or advertising.
Before applying for purchase order invoice discounting there are several things
that should be done:
• Get a purchase order from your customer.
• Look for a reliable supplier of your products.
• Place the purchase with that provider.
No matter what type of financing your company is seeking you should have a good plan written down
which shows how much money is required. Lenders like to know that you’ve got a plan, and it’ll increase
your likelihood of getting approved.
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What is involved:
The Private Company, which has gone open public, obtains the benefits of
public trading of its securities:
Requirements just before entering the reverse merging are the following:
• A Private Company will require approval of its stockholders for any merger with a public
company
• Once a company is public via a reverse merger, the real estate markets hold the following future
potential customers in the capital markets for the new Public Company.
• The market value of the Public Organization is often substantially higher than a personal
Company with the same structure within the same business
• Capital is simpler to raise with regard to public companies because the inventory has market
price and can be traded
• The public trading price of the Public Corporation’s securities can serve as a benchmark for the
offer price of a subsequent public or even private securities offering
• Acquisitions can be made along with stock since publicly traded stock is viewed as currency for
mergers as well as acquisitions
• Stock can be released for officers, directors as well as consultants
• If the stock distribution has included warrants, the new company can receive proceeds from the
exercise of those warrants if the trading price of its common stock exceeds the exercise (strike)
price of warrants.
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Potential risks:
• Consider all the ramifications of risking your home to fund your business.
• Using a home equity loan to fund your business carries considerable risk: If your business fails,
you will have lost both your business and your home.
• There are tons of scams in this area, especially if your credit isn’t A+. And keep in mind, if you
default on the second mortgage, you can lose your home for much less than the value.
The group most likely to be interested will be those in a related field that are wishing to diversify. Let’s
say, for example, that you want to start a landscaping business and need an investor.
You should consult with home builders, concrete contractors, pavement companies or any contractor
involved in home building or improvement. They already understand the market, your customer, and
the challenges of being contractors who service home owners, so it will not take them long to make a
decision about the viability of your business ideas and whether they want to get involved.
The BIG question: What do your customers buy either before or after your product?
• Make a list of the products or services your customers need in addition to yours.
• What other businesses cater to your customers?
• Compile a list of businesses from the above questions.
• Get your Yellow pages, business directories, online search engine and find all the businesses that
could make a good investor candidate.
Start by opening a new Excel worksheet and creating the following columns
outlining your related businesses:
• Name (and location if relevant).
• URL
• Products and services offered.
• Contact information. Postal address, phone, e-mail.
Next,
• Create a compelling and interesting proposition to present to them.
• Craft a letter that introduces your proposition to them.
• To create urgency, mention that you are making the same offer to other businesses in your area
and will make a decision based on the terms of the arrangement.
Starting Point: Local Yellow Pages or the Chamber of Commerce usually has a compiled list
of businesses by your zip and surrounding areas.
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Potential drawbacks:
• One downside is that obligations must be created on schedule and the loan must happen within
the designated time frame or else you may be susceptible to paying taxes on the money and a
10% penalty charge.
• If your business idea isn’t solid and proven you could be risking your retirement money and have
to pay more than you borrowed.
This is an option you should keep in mind while you pursue other possible sources of financing.
While the expenses associated with this strategy are high, the potential return you could have with a
business of your own could give you a superior investment advantage.
With today’s economic environment and with other countries as an example; government could make
off with a portion or all of your retirement savings. Using it for this purpose before they come for it
could be a wise decision.
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Try networking with self-employed people who will more apt to have self-directed IRAs. Start a list of
potential contacts from business associations, golf clubs, business seminars and other groups that have
self-employed people.
Also classified ads in newspapers and online can help you find potential investors.
The business owner starts a corporation, opens a corporate retirement plan, rolls the existing 401k/
IRA money into the new plan then has this retirement plan purchase the stock of the corporation.
This method provides initial capital to the business that can be used to purchase a franchise, an existing
business or to fund a startup.
Starting Point: Search your current provider’s website for rollover information. Find the proper forms you’ll need.
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• With intellectual property licensing, an advance against royalties is a payment made by the
licensee to the licensor at the start of the period of licensing (usually immediately upon contract,
or on delivery of the property being licensed) which is to be offset against future royalty
payments.
• In some business areas (e.g. film production) it is common practice for the licensee to demand
repayment of any advance that is not covered by royalties, whereas in others (e.g. book
publication) this practice is unusual.
E.g., a book’s author may sell a permit to a publisher in return for 5% royalties on sales from the book
and a $5,000 progress against individuals’ royalties. In this case, the writer would instantly receive the
$5,000, and royalty payments would be withheld until the publisher’s takings from selling copies of the
book reached $5,000, after which point the 5% royalty would be paid on any extra sales.
If you’re in the creative field this can be a good start to launching your career. It can also haunt you if
you completely sell your royalties away. Think this method through before you sign.
• Royalty financing is a relatively new concept that offers an alternative to regular debt financing
(loans and trade credit) and equity financing (venture capital and stock sales).
• In a royalty financing arrangement, a business receives a specific amount of money from an
investor or group of investors.
• The money might be put toward launching a new product or expanding the company’s
marketing efforts.
• The investor receives a percentage of the company’s future revenues over a certain period of
time, up to a specific amount.
• The investment can be considered an “advance” to the company, and the periodic percentage
payments can be considered “royalties” to the investors.
Things To Know:
• The investor buys a percentage of your company’s revenues in contrast to the more traditional
method of buying a percentage of ownership in your company, and therefore profits/income.
• The investor gets paid regardless of the profitability of the company, and gets paid first, before
taxes, debt service, and interest.
• The investor even continues to get paid if the company declares Chapter 13, a reorganization
under the bankruptcy code.
• If there are sales, the investor gets paid. This is important to keep in mind when considering this
type of financing.
• Obviously this kind of financing is only appropriate for companies that have a high gross margin
or low cost of goods sold.
• It’s also easy to oversubscribe the company’s revenues — and it can make obtaining more
traditional debt financing or an equity investor much more difficult.
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• Compared to equity financing, royalty financing enables entrepreneurs to obtain capital without
giving up a significant ownership position in the company to outside investors.
• Royalty financing resemble loans—and are not subject to state and federal securities laws as
some equity financing deals are.
• Royalty financing also increases a company’s ability to structure deals with individual investors,
who might be attracted to the idea of receiving a monthly or quarterly yield over the life of their
investment.
• Compared to debt financing, royalty financing provides more convenient payback terms and less
severe penalties for default.
Potential benefits:
• The U.S. Small Business Administration’s 7(m) Microloan program provides short-term loans of
up to $35,000 to small businesses and not-for-profit child-care centers for working capital or the
purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment.
• Proceeds cannot be used to pay existing debts or to purchase real estate. The SBA makes or
guarantees a loan to an intermediary, who in turn, makes the microloan to the applicant.
• These organizations also provide management and technical assistance.
• The loans are not guaranteed by the SBA. The microloan program is available in selected
locations in most states.
• SBA Microloans are generally designed to target low- and moderate-income micro entrepreneurs,
particularly the so-called “un-bankable” population that has had little to no contact with the
mainstream financial services industry.
• Typical Microloan clients have either no credit history or a poor credit history, lack of collateral
and a lack of business longevity, making them unqualified for more traditional commercial debt
financing.
• Successful Microloan clients, given appropriate financing and technical assistance, have built
successful firms that improved their own standards of living while also creating needed jobs in
low-income communities.
Previous administrations have tried to cut this program due to budget constraints. Refer to SBA’s
website for its current status.
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• The most popular type of financial assistance from the Small Business Administration was
with the agency’s Low Documentation (“LowDoc”) Plan, a derivative of SBA’s long-established
assured loan plan. This program was terminated in Fall August 2005....may it rest in peace.
• Initiated in 1993, LowDoc expedited the actual procedures for obtaining SBA guarantees on
commercial loans under $150,000. Problems regarding bureaucratic delay as well as protracted
loan approval procedures had been reduced so that processing time for a LowDoc plan was
usually less than 36 hours.
• Nevertheless....the Small Business Administration Express Program was made long term. SBA
Convey loans require no documents the from Small Business Administration and the turn-
around time to the lending institution is actually alleged to become 24 hours. Check out the
Express loan option here. Keep in mind that usually the warranty on these financing options is
only 50 % so the loan provider has a smaller amount of an incentive to use this form.
SBAExpress
The SBAExpress program gives small business borrowers an accelerated turnaround time for SBA’s
review. You will receive a response to your application within 36 hours. In addition, lower interest rates
are often available to you when you apply through an Express program.
Patriot Express
The U.S. Small Business Administration has announced the SBA’s Patriot Express Pilot Loan Initiative
for veterans and members of the military community wanting to establish or expand small businesses.
The SBA and its resource partners are focusing additional efforts on counseling and training to augment
this loan initiative, making it more accessible and easy to use.
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Patriot Express loan proceeds can be used for most business purposes,
including:
• Start up costs
• Equipment purchases
• Business-occupied real-estate purchases
• Inventory
• Infusing working capital
• Managing your business
• Expansion
• Preparing your business for the possibility of your deployment
• Setting up to sell goods and services to the government
• Recovery from declared disasters.
Small business exporters are taking advantage of the world market and selling billions of dollars of
goods and services overseas every year. In fact, 70% of all exporters have fewer than 20 employees.
If you are one of these businesses, or would like to join in this growing trend, and you think you are too
small to receive government sponsored export financing, think again!
• Streamlined financing up to $500,000
• SBA Export Express offers flexibility and ease of use to both borrowers and lenders.
• It is the simplest export loan product offered by the SBA and allows participating lenders to use
their own forms, procedures and analyses.
• The SBA provides an answer in 36 hours or less.
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How do I apply?
• Interested businesses should contact their existing lender to determine if they are an SBA
Express lender. Lenders that participate in SBA’s Express program are also able to make Export
Express loans.
• Application is made directly to the lender. The lenders use their own application material in
addition to SBA’s Borrower Information Form. Lenders approve the request and then submit a
limited amount of eligibility information to SBA’s National Loan Processing Center.
•
• Export Working Capital Program (EWCP) - SBA’s Role in Export Financing
•
• Many banks in the U.S. do not provide working capital advances on export orders, export
receivables or letters of credit. Because of that, some small businesses may lack necessary export
working capital to support their export sales.
• That is where an SBA program can make the difference. SBA provides lenders with up to a 90%
guaranty on export loans up to $5 million as a credit enhancement, so that the lenders will make
the necessary export working capital available.
• The SBA delivers its export loan program through a network of SBA Senior International Credit
Officers located in U.S. Export Assistance Centers throughout the country.
• These specialists understand trade finance and are available to explain SBA’s export lending
programs, the application process and forms and to guide exporters in selecting appropriate
payment methods.
• They can also link companies to specialists for increasing export sales and managing foreign
payment risk.
• Exporters can apply for EWCP loans in advance of finalizing an export sale or contract. With an
approved EWCP loan in place, exporters have greater flexibility in negotiating export payment
terms—secure in the assurance that adequate financing will be in place when the export order is
won.
The 7(a) Loan Program includes financial help for businesses with special requirements.
For example, funds are available for loans to businesses that handle exports to foreign countries,
businesses that operate in rural areas, and for other very specific purposes.
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SOURCE: sba.gov
This type of setup means that 100% of the project cost is covered either by contribution of equity by
the borrower, or the senior or junior lien.
Proceeds from 504 loans must be used for fixed asset projects, such as:
• The purchase of land, including existing buildings
• The purchase of improvements, including grading, street improvements, utilities, parking lots
and landscaping
• The construction of new facilities or modernizing, renovating or converting existing facilities
• The purchase of long-term machinery and equipment
The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or
refinancing.
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Eligibility
To be eligible for a CDC/504 loan, your business must be operated for profit and fall within the size
standards set by the SBA.
Under the 504 Program, a business qualifies as small if it does not have a tangible net worth in excess
of $7.5 million and does not have an average net income in excess of $2.5 million after taxes for the
preceding two years.
Loans cannot be made to businesses engaged in speculation or investment in rental real estate.
The maximum SBA debenture is $2.0 million when meeting a public policy goal.
These include:
• Business district revitalization
• Expansion of exports
• Expansion of minority business development
• Rural development
• Increasing productivity and competitiveness
• Restructuring because of federally mandated standards or policies
• Changes necessitated by federal budget cutbacks
• Expansion of small business concerns owned and controlled by veterans (especially service-
disabled veterans)
• Expansion of small business concerns owned and controlled by women
SOURCE: www.sba.gov
General Information:
The SBIC Program is one of many financial assistance programs available through the U.S. Small
Business Administration. The structure of the program is unique in that SBICs are privately owned
and managed investment funds, licensed and regulated by SBA, that use their own capital plus funds
borrowed with an SBA guarantee to make equity and debt investments in qualifying small businesses.
The U.S. Small Business Administration does not invest directly into small business through the SBIC
Program.
Only companies defined by SBA as “small” qualify for SBIC funding. Generally, the SBIC Program
identifies a company as “small” when it’s net worth is $18.0 million or less and its average after tax net
income for the prior two years does not exceed $6.0 million.
All of the company’s subsidiaries, parent companies and affiliates are considered in determining the
dimensions standard as well as for certain industries alternative size standards might apply.
Details regarding regulating size restrictions are included in the Small Business Dimension Regulations.
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• There are more than 300 licensed SBICs in operation these days. SBICs pursue investments in a
wide range of industries and geographies.
• Some SBICs invest in a particular field or even industry by which their administration has
knowledge, while others invest more generally.
• The SBIC plan currently offers its licensees use of debt funds with a 10-year maturation and
semi-annual interest payments.
• The framework of this financing means that most SBICs focus totally on providing small
businesses with debt or debt with equity functions.
• SBICs will usually focus on companies that are old enough to create current interest payments
on the investment to ensure that, in turn, the actual SBIC can meet its interest obligations
towards the SBA.
SOURCE: www.sba.gov
To learn more about other financing options available through the U.S. Small Business Administration, refer to the Loans
and Grants section or call 1-800-UASK-SBA (1-800-827-5722).
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Silent partner is a business partner who provides capital but does not take part in the management of
the company.
Knowing these things and more will help you find a willing silent partner and will relieve their doubts as
to your abilities because you’ve thought out all their concerns ahead of time.
Network with your relatives and business associates and ask if they are willing to be your silent partner.
If not, ask for referrals. Check with your golf buddies and other social gatherings where successful
businesspeople hang out.
You can also advertise with classified ads both offline and online.
You can make important contacts with vendors, management people, competitors to be aware of and
some employees you can hire.
You’ll gain industry insights only being in the trenches can bring.
Keep In Mind:
• The money you get for your second job should be put away for financing your new business.
• It’s not an ATM you can use for the next electronic gizmo or getaway vacation.
• Find safe and high-yield investment vehicles to make your nest egg grow.
• Use investments that can be quickly liquidated when the time is right to launch your business.
You don’t want your money tied up in long-term investments.
Get Started:
• Make a list of your job skills.
• If those skills include jobs that can be done at home as a virtual worker consider using a job
board like www.eLance.com and others.
• This gives you time flexibility and keeps you at home to further plan your new business.
More Tips:
• Register on online job sites. Also take a look at your local paper online listings.
• Use social networking sites to your advantage. Make a special professional Facebook, Twitter,
MySpace, LinkedIn, Bebo etc. account particularly for your work.
• Network. Join associations, and clubs connected with your career.
• Lead from your strengths. If you know what you are skillful at, or above average, or just brilliant
at ... then move through that region first.
• Mitigate your weaknesses. Play down your weak points. Avoid those activities that you are not so
good at, or generally don’t like doing.
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Advantages:
Both beginning a company as well as manufacturing an item involves a lot of time, cash, responsibility,
as well as risk. By licensing your venture concept you transfer all of those responsibilities and dangers
to another person. Licensing is fantastic for the person or even team that wants to keep inventing rather
than starting and running an organization.
• Work out the terms of your permit carefully. Don’t “give away the store” through granting an
exclusive worldwide license for all uses with low minimum obligations, rather than a number of
non-exclusive licenses for individual that utilizes sensible minimums for each.
• Don’t create undue limitations on the licensee, as it could become impossible for the product to
become profitable.
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What is involved:
• Selling company assets, even a division of your company, is a tried-and-true method of
increasing capital.
• You might have equipment that’s not being used or perhaps a building and land which has a
higher value to someone else than it does to you.
• You can sell a whole product line that doesn’t fit well with your corporation’s focus.
• Marketing intellectual property such as patents, formulas, customer lists, or industry secrets.
• Make a list of all the things you haven’t used in the last six months.
• Electronics, second cars, recreational vehicles, clothes, antiques, assets from a previous business,
• Research and put a value on your list of assets (for each item).
• Choose the proper venue for selling your items whether it’s an online auction site, a real estate
• Set a goal to raise all the capital you can by a certain date.
The good news is your life will become less complicated and organized now, and you can buy
new and better stuff when your business succeeds.
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The key to making this financing work is to be flexible to where your business is located, what type of
business you are in and having the persistence to make it happen.
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Benefits:
• No interest is normally charged and, if it is, the rate is generally less than other alternatives like credit cards.
• No collateral is required.
• Applications are short and easy to complete.
Options to Explore:
• Ask your vendor to extend their terms for a longer time if you have a considerably larger order than
usual.
• Offer them the opportunity to be your ‘sole provider’ if they give you extended time to pay.
• Provide them access to your business plan and history of customer orders to help persuade them
your new business will be successful and is worthy of a break.
• Pay a slightly higher price in exchange for longer terms. (CAUTION: It may be hard to reverse this
pricing structure when your cash flow improves and you no longer need the extended terms.)
• Convert your payable(s) into a loan (i.e., note) from the vendor.
• Offer them equity in your company to remove outstanding payables.
• Offer to trade off discounts available for paying quickly in exchange for a longer payment timeframe.
• Permit your supplier to hold a lien on materials or products provided as collateral for extended
payment terms.
The all-important questions you should ask and understand before choosing to
work with venture capital firms include:
• Do the venture capitalists uphold their word?
• Do they make themselves accessible to you?
• Are they helpful with opening paragraphs and skilled in helping the company?
• Are they supportive of administration?
• How do they respond in a crisis?
• Don’t presume anything.
• Their due diligence is going to include a formal background check of you.
• You should do the same to them.
• The relationship with the firm may last for years. Make sure you pick a partner you can work with.
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“Thanks for taking the time to read the Fast Money Guide. I hope it has helped you discover
creative ways to find the capital to launch your new business or to finance that great idea.”
© Copyright 2012 Nevada Corporate Headquarters, Inc. All rights reserved back to top
Three Simple Steps to get Started…
Step One – Choose Your Business Structure
• Corporation
• Limited Liability Company (LLC)
Remember
Taxes - Nevada has no state corporate taxes, no franchise tax, no tax on corporate
shares and no personal income tax.
Asset Protection - Nevada is one of the few states where the corporate veil (the
legal barrier between your personal assets and your business liabilities) has never been
pierced, except in instances of deliberate fraud.
Trust - At NCH, we are so certain Nevada law will provide you, your family and
your business with maximum legal protection that we offer a $100,000 guarantee that
the corporate veil of your corporation will never be pierced.
Don’t Wait Another Day!!
1-800-508-1729
WWW.NCHINC.COM
Cort W. Christie is the “Entrepreneur’s Entrepreneur”
Cort is a National Expert on entrepreneurship, business asset protection and small business tax
strategies. Additionally, Mr. Christie has an extensive background in business financial services and small
business growth strategies. He has distinguished himself as a nationally recognized speaker and has
appeared as a featured guest on some of the largest radio shows across the country. Additionally, he has
hosted his own weekly radio program in San Diego and Las Vegas and has made guest appearances on
MSNBC and CNBC.
Cort Christie has a BA in Finance from the University of Minnesota and an MBA from Pepperdine
University. He was also the founding President of the Las Vegas Chapter of The Entrepreneurs
Organization and currently sits on the Board of Reno’s Chapter of The Entrepreneurs Organization.
Cort is the author of the book Incorporating in Nevada – The Do-it-Yourself Guide and the book
The Nevada Edge, both of which have been distributed to tens of thousands of business owners
internationally. Also, Cort has written various small business guides such as Insiders Guide to Building
Corporate Credit and the Fast Money Guide.
Cort grew up in Duluth, Minnesota and is currently living in Reno, Nevada with his entrepreneurial wife
Jennifer and their children Luke and Lian.
Corporate Service Center, Inc., a Reno, Nevada-based national business formation and small business
services company. www.corporateservicecenter.com
Integrated Tax Solutions, Inc., a Las Vegas, Nevada-based Tax and Accounting firm.
Contact Information:
Phone 775-329-7721, Fax 775-329-0852, Cort@nchinc.com
59 Damonte Ranch Parkway, #B262, Reno, NV 89521