Business Funding Strategies

2011-12-18T13:38:00.002-07:00

Here we go taxpayers....Tax Preparation Checklist. Completed the 2011 Tax Update course. I'll spend the rest of the year sharing year end tax planning ideas and referring resources which can make 2012 a solid comeback year. Who's ready for their turnaround?

Verizon Wireless and Intuit get you paid faster...PAYMENTS ON THE GO

2011-08-25T13:52:00.001-07:00

Great for small businesses!! MONEY IN THE BANK, FAST bit.ly/omWdcu

There's something to learn here...@ObamaNews:

2011-08-15T12:53:00.001-07:00

There's something to learn here...@ObamaNews: Blog Post: White House Asks: Immigrant Entrepreneurship http://t.co/LZCTrvB

12 Emerging Markets Where The Splurge Is About To Be On

2011-06-10T20:11:00.003-07:00

Let's go partners! http://www.businessinsider.com/12-markets-retail-investing-2011-06

We must do our due diligence and follow the money. I'm writing my doctoral thesis on a topic related to this very occurrence. My secret, until it's been published. Until then, let's talk joint venture opportunities, feasability, funding, assurance, products and services delivered in one or more of 12 emerging markets. I write the business plan and strategy, a reflection of your business model, your vision, your relationship with your partners, and well considered planned actions, then you and your team go to work.

I'm your coach/sergeant (I like this part!), monitoring and analyzing performance, informing budget decisions, tracking the status of financing needs.

Ask the questions. If it's feasible, let's write the proposal, pitch it and match you with some money seeking emerging market opportunities. Let's get it!

DISCLAIMER: NEVER A GUARANTEE THAT ANY SINGLE PITCH OR PROPOSAL WILL BE FUNDED, THE LEVEL OF FUNDING, OR THE EQUITY PERCENTAGE RETAINED BY THE PROPOSER.

PREPARE TO BE FLEXIBLE AND THINK "FUTURE IPO" BIG. IF NOT, LET'S GO ON SHARK TANK. YOU REALLY CAN'T LOSE IF YOU GET AIRED!!

WHERE'S THE VALUE TO YOUR INVESTOR OR LENDER?

2011-01-03T14:56:00.004-07:00

Investors are risk takers, however, minimizing their risk is key to securing funding in a competition for their dollars. High returns are essential, so where is the value in giving you their money?

Profit

Your product or service can put more cash on the bottom line from improving existing operations or from development of projects? Good start! There's something to talk about. How much cash? Is the return on investment high enough to risk the investment? Write your business plan well. You should include marketplace examples of product/ service concepts, target customers, and growth strategies that you could feasibly duplicate, with help, of course.

Explosive Opportunity Protected by Patented Intellectual Property

If you own the legal rights to develop an idea or the technology behind an explosive growth opportunity, this could lead to money for your company. If you cannot or have not secured the patent, there is not much to talk about. Be able to prove that it is your intellectual property, write a feasability analysis, then give me a call. I'll walk it into a the Angels. If I walk out with a big check, meet me at the bank. I'll be needing my consulting fee ;-), then we go to work executing, collaborating, leveraging the resources provided by your investor into tangible success on goals.

According to the abilities of your company, offer your investor the following to improve your chances of getting the cash needed to build a profit making machine:

Proven demand (have open purchase orders from distributors or retailers in hand)
History of Profits - Brandish your verifiable history of profits within the last two to three years, understand your cost savings and additional profit opportunities which would improve earnings moving forward.
Proven marketing strategy (hence the highly effective marketing joint venture with a strong partner, which you will leverage to sell your own products and services)

(Disclaimer: Consult with your financial, legal, and business advisors as needed and appropriate before making any offers to investors)
Resources: Find an Angel Investor

Looking for an Investor? Find an Investor by location, net worth, and industry

Don't go there poorly packaged. Your future of well funded growth is bleek if you just scratch together your idea with a few pictures. Investors can be choosy. Look good, communicate effectively how your product or service wins in a competitive marketplace, and get the money. You may have to shop it around as you never know how hungry an investor is for the opportunity. A lot depends on the success or failure of their other investments. I'll get you prepared for a killer presentation!!

A Ideal Joint Venture Partner Has Established Relationships With Their Customers

You were thinking this may be a good time to dilute your business risk, take advantage of savings available in capturing marketshare through joint ventures and strategic alliances. OK, get smarter about how to go about this.

Joint Ventures and Strategic Alliances leverage the goodwill and relationships other businesses have built with their clients. You must insure you have the capacity to handle the additional business! Identify non-competing businesses that serve a client base similar to yours. Approach the owner and propose a joint venture or strategic alliance in which you’re going to endorse their business to your list and vise-versa. If you are a trusted source of related services, then your customers are already asking you where they should buy this or that.

This powerful small business marketing tool leverages the trust you and your alliance partner(s) have built with your clients and, when properly structured between two good companies with quality products and services, is as close to a guaranteed success as you’ll ever get.

Follow the Money...This morning on NPR, I heard the announcement of a report on the increase in taxable early withdrawals from retirement accounts, driven in part by extended unemployment. Then several friends called to ask me how to minimize the expected taxes on an early withdrawal within a few hours. It's an important and clearly relevant topic for many who read this blog. Below is the link to federal law applicable to those taxes. You'll learn the definition of an exempt "hardship" withdrawal and the formula for determining the percentage of taxes due on your withdrawal. Please consult a professional advisor for your unique situation, where additonal opportunties and/or additional restrictions may apply.

MAKING AN EARLY WITHDRAWAL FROM YOUR RETIREMENT ACCOUNT?

Paying a lower tax rate is a function of strategy and deserves the insight of a knowledgeable professional in the area of investment products. My investment bias is in starting or growing a business. There are other vehicles to reduce ones taxable income which I will feature throughout tax season (January - April, August - October). For resources to help you start a business, to identify grants, government and private contract opportunities, and to secure needed capital to fund your growth, please continue to follow me here at Business Funding Strategies - Follow the Money!

HOW TO SECURE A SMALL BUSINESS LOAN

2010-07-09T17:02:00.008-07:00

The bank didn't approve your loan or wants to offer you less than you requested?? Could it be that the proposed use of funds doesn't make great business sense. It is possible to hang yourself with a loan you can afford, but won't realize sufficient profits from to grow your business. Your margin for error is too small, with no cushion of profits to make your landing more forgiving. Banks traditionally are not interested in loans that simply keep the doors open. Borrowed funds should be applied to things that turn into more money, more profit for the borrower. Exception: SBA ARC Loan Program and other Stimulus funded loan products and guarantees.

What looks attractive to lenders in this market? A few fundable business strategies:

acquisitions
increasing cash flows by reducing the cost of existing debt
launching a project funded by a customer with good cash flows and credit
expanding a proven marketing strategy
buying a facility that reduces your monthly occupancy expense while building equity and accommodating needed additonal production or warehouse space
expanding production in response to increased demand for your products and/or services
a joint venture to achieve greater cost efficiency, spreading of the risk and better profit margins

What do you expect to gain from borrowing money?  Borrowing money isn't the answer to all the problems your business may be having, like negative cash flows, low or non-existent profit margins or lack of growth.  Have you run the forecast on your idea, a comparison to the industry, sought out the best practices of those winning in the game, written a well articulated and supported business plan?

Resources: Business plan templates, Financial Analysis tool, Identify best practices (SEC 10Q statements), Small Business Administration AZ Lender Rankings, Community Resources, Calculate the cost of a loan

Looking for an investor? SHARK TANK - Gourmet food product maker/retailer gets $500K for 50% stake in her company. "I'm willing to share responsibility, but not give you the responsibility [of making the owners rich]." If your business acumen and savvy don’t trump what the investor brings to the table, expect to share or give up control.

Learn what is important to investors, what motivates them to give you money. Note that sweat equity, meaning all of your invested personal labor, is expected and does not get credited toward your future equity position. Actual capital contributed gets consideration. The safety product patent owner should have taken the money, got rich and maybe gone on to invent other safety products. Clothing designer needs more competitive advantage, leverage (i.e., existing retail distribution channels to prove his market or following, brand name talent wearing and promoting his line).

Resources: Invest Southwest Capital Conference, December 2010

Stimulus Dollars to Fund Your Next Project - A deal worth nearly $2million in new capital

A client seeks stimulus funding to establish a child-centered business which will operate 24 hours 7 days/week, offering classes and access to support systems for children, their parents, guardians, teachers and other care givers. As The (self proclaimed) Joint Venture Advocate, in my opinion, the aspect of their business which serves their community and contributes the most to their high measure of success is the cross-linking of services within the early childhood education, behavioral health counseling, youth at risk, parent empowerment, poor families and economic development programs throughout their community. They're linking resources across many professional disciplines.  A portion of the loan is secured by real estate, the balance is unsecured, the owners have a government funded contract as a primary source of revenues, a secondary source of loan repayment and are contributing equity. The business will create 27 jobs at just over half their operating capacity. It's a beautiful story for the entrepreneurs and families affected! We'll follow the money and keep you posted.

Resources: where the stimulus money is being spent

Following the money...."$500K loan was worth the work" (June 23, 2010) - my client has a radio program now, still shopping the television program to the networks, and is continuing to thrive.  They report learning a lot about analyzing their performance with better financial reports and feel more in control than ever before! Great story with more to come. I hope to report that the television show airs soon :)

Have questions about your opportunities to secure funding for your existing or start-up business or non-profit? Need a consultant or a free community resource? Contact me at financestrategiesbyroz@gmail.com. I will connect you to resources that makes sense for your situation.   I look forward to hearing from you!

Rosiland Moore

INVESTOR MONEY IS SEEKING EXPLOSIVE OPPORTUNITIES

2010-06-23T16:18:00.011-07:00

Looking for an investor? Take a look at what investor's want...SHARK TANK - Pastry company gets $460K and goes on to increase sales ten fold. I anxiously await season two!!! I love a good "got the money" story :))

For those of us still looking for money, don't miss the Get Ready Seminar July 15, 2010 and August 12, 2010 in preparation for the Invest Southwest Capital Conference December 8-10, 2010 in Scottsdale, Arizona. Our own Shark Tank, without the made for television drama LOL I hope to see you there.

$500K deal was worth the work

I've been working a loan package for my client to reduce the cost of existing debt and launch a reality show based upon the business. Last update, the lender approved the requested amount of $250K to refinance debt and gave a contingent offer for an additional $250K to get the reality show rolling, once the producer secured a deal with a network. The loan was collateralized with personal and business assets. I've got my fingers crossed for the producer and my client!!

Paid $250K for being an effective collaborator?!??!!

Yes, there is a $250K grant for non-profits who are models of effective collaborating. This is what I've been telling you for years....collaborate your way to securing more grant awards. It works people! Applications are due July 16, 2010 for the 2011 award.

Have questions about your opportunities to secure funding for your existing or start-up business or non-profit? financestrategiesbyroz@gmail.com I look forward to hearing from you!

Rosiland Moore, MBA

Follow the Money

2010-03-02T10:04:00.027-07:00

To introduce Business Funding Strategies to the world, I'd like to express my most basic objective: to help business owners and operators of not-for-profit organizations secure funding to grow their businesses and subsequently to help more people live the American Dream of self determination. I'll be referencing clients and others actual success stories and asking those business owners to comment here on my blog.

Let's follow the money people!

Where's the federal govt spending right now? http://www.recovery.gov/Pages/home.aspx

Angel Investors conference (Think Shark Tank, http://abc.go.com/shows/shark-tank#) (http://www.investsouthwest.org)

Strategic partnerships are favorably viewed by government agencies and investors when those relationships result in creation and retention of jobs, increased capacity of small businesses to do business effectively with large organizations, increase production capacity, saves money, and increases profits. I'm officially going on record with the recommendation to identify a mentor or mentee that you will partner with on contracts for good and services with the government.

Public and private economic development programs targeting small, minority and women-owned businesses are actively seeking vendors with the capacity, resources, experience, and sustainability to award contracts. Are you ready to do business? Is money the only qualification you lack?

Let's explore the answers to those questions and others as we follow the money.

We'll follow the money, so come back and visit, follow me on twitter or get the feed. You may find some money that is looking for you :))