4/15/2012

1

“Beg, Borrow or Steal”

Finances and Your Business

$$$$ to get the show on the road!

Identity and Promotion Branding, marketing/advertising, sales materials

Infrastructure Legal, regulatory, technology, furniture & fixtures

Admin Utilities (phone, internet), Supplies, Postage, Insurance, Rent

4/15/2012

2

Financing Options

Beg Family (early inheritance?), friends (put it in writing)

Borrow (external)

Banks Instead – P2P Service Prosper.com – Ebay for loans LendingClub.com – lenders & borrowers find something in

common Angel Capital Association - trade association of angel groups and

private investors that invest in high growth, early-stage ventures.

Financing Options – con’t

SBA – Microloan program through lending partners

Maximum $50k, 6-year term Working capital Inventory or supplies Furniture or fixtures; machinery or equipment Not for existing debts or to purchase real estate

Intermediary – non-profit, community-based agency; required to provide training and technical assistance to borrower www.AccionChicago.org (see attachment)

4/15/2012

3

Financing Options – con’t.

Steal (internal)

Savings – reserve for unexpected stuff? emergencies?

Life Insurance Cash Value – impact on death benefit?

Home Equity Line of Credit – tied to a variable rate? need for a car, home improvement, college?

IRA or 401(k) – penalty? leveraging your future?

Intangibles & Expense Resources

Time commitment, self-discipline, back-up plan

Outsource? (see attached resource list)

Recordkeeping Quicken or QuickBooks