fundraising for for-profits - ready set present · what is fundraising for for-profits? (3 of 3)...
TRANSCRIPT
![Page 1: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/1.jpg)
FUNDRAISING FOR
FOR-PROFITS readysetpresent.com
![Page 2: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/2.jpg)
2
Program Objectives ( 1 of 3 )
Fundraising
readysetpresent.com
Understand what Financing for For-Profits
Encompasses.
Why you should raise funds for profitable businesses
Comprehend how much money you need to raise
for certain projects.
![Page 3: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/3.jpg)
3
Program Objectives ( 2 of 3 )
Fundraising
readysetpresent.com
Learn how to acquire a loan.
Explore the different sources for credit.
Comprehend the function of venture capitalists.
![Page 4: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/4.jpg)
4
Program Objectives ( 3 of 3 )
Fundraising
readysetpresent.com
Learn about the SBA, State Agencies, and “Angels”.
How to make the best of banks and financing
companies.
Understand the different signs of dangerous debt.
![Page 5: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/5.jpg)
A CHALLENGE
Please write a One Sentence Definition of
F U N D R A I S I N G
![Page 6: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/6.jpg)
6
Definition Fundraising
readysetpresent.com
noun the act or process of raising
funds, as for nonprofit organizations
or for a political cause.
![Page 7: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/7.jpg)
7
Etymology (1 of 2)
Fundraising
readysetpresent.com
The word “Fund” 1776, from fund (n.). Related: Funded; funding.
1660s, from Fr. fond "a bottom, floor, ground" (12c.), also "a merchant's basic stock or capital," from L.
fundus "bottom, foundation, piece of land," from PIE root *bhudh- "bottom, base" (cf. Skt. budhnah,
Gk. pythmen "foundation, bottom," O.E. botm "lowest part;“ Funds "money at one's disposal" is from
1728. Fund-raiser (also fundraiser) first attested 1957.
![Page 8: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/8.jpg)
8
Etymology (2 of 2)
Fundraising
readysetpresent.com
The word “raise” c.1500, "a levy," from raise (v.).
Meaning "increase in amount or value" is from 1728, specific sense in poker is from 1821.
Meaning "increase in salary or wages" is from 1898, chiefly American English (British preferring rise).
![Page 9: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/9.jpg)
WHAT IS FUNDRAISING FOR FOR-PROFITS?
![Page 10: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/10.jpg)
A for-profit business
is an business looking
to compile revenue.
Any for-profit
business needs
funding to succeed.
This is where financing
for for-profits comes
into the picture.
10
What is Fundraising for For-Profits? (1 of 3)
Fundraising
readysetpresent.com
![Page 11: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/11.jpg)
For-profits might
need funds to
restructure
operations.
Start a new
business. Start a new product.
11
What is Fundraising for For-Profits? (2 of 3)
Fundraising
readysetpresent.com
![Page 12: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/12.jpg)
Financing for for-
profits requires a
business plan.
Lenders/investors. Strategy.
12
What is Fundraising for For-Profits? (3 of 3)
Fundraising
readysetpresent.com
![Page 13: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/13.jpg)
EIGHT EASY TIPS FOR FUNDRAISING
![Page 14: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/14.jpg)
14
Eight Easy Tips for Fundraising (1 of 8)
Fundraising
readysetpresent.com
1
Build a business plan
You have to know how you plan on running your business
to form a potential investor or lender.
You have to be able to communicate this plan.
![Page 15: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/15.jpg)
15
Eight Easy Tips for Fundraising (2 of 8)
Fundraising
readysetpresent.com
2
Make sure you have personal or
family money
When you buy a business, 20 to 50% will come from
you and your family.
To be take seriously as a potential small business buyer,
you need between 50 and 150 thousand of ready cash
for a down payment and working capital.
![Page 16: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/16.jpg)
16
Eight Easy Tips for Fundraising (3 of 8)
Fundraising
readysetpresent.com
3
If you want to sell your business, self-
finance your endeavors
Sellers typically finance from 30% to 70% of the selling price.
Sometimes, banks will only participate when there is a large
amount of seller financing to indicate that the business is
sound in the eyes of the seller.
![Page 17: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/17.jpg)
17
Eight Easy Tips for Fundraising (4 of 8)
Fundraising
readysetpresent.com
4
Don’t count on banks without experience
If you’re a first time business buyer with no direct experience in
that business, rejections rates exceed 80%.
If you have experience, banks will finance 50-80% of real estate
values, 75-90% of new equipment values, 50% of used equipment,
and 25-50% of inventories.
They don’t finance intangible assets, except accounts receivable,
which they will finance 80-90%.
![Page 18: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/18.jpg)
18
Eight Easy Tips for Fundraising (5 of 8)
Fundraising
readysetpresent.com
5
Use the Small Business Administration
(SBA) to expand your existing business
Beware, this process can take 3 go 4 months.
Won’t really loan to new businesses.
![Page 19: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/19.jpg)
19
Eight Easy Tips for Fundraising (6 of 8)
Fundraising
readysetpresent.com
6
Utilize your suppliers
Almost everyone who sells something to your business will accept
special terms for funding purposes if you promise to make the
effort of involving them.
Equipment vendors are the most common source
Ask to stretch the interest-free period before paying their bills.
![Page 20: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/20.jpg)
20
Eight Easy Tips for Fundraising (7 of 8)
Fundraising
readysetpresent.com
7
Your customers might help
Ask for a deposit, it’s common!
Require payments before you do the job.
Billing annually for year-long service contracts and offering
incentives for pre-payments are typical.
![Page 21: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/21.jpg)
21
Eight Easy Tips for Fundraising (8 of 8)
Fundraising
readysetpresent.com
8
Find an outside equity investor
An individual ‘angel’ is usually only a close friend
Venture capitals want majority control of growing companies.
![Page 22: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/22.jpg)
WHAT’S AN ANGEL INVESTOR?
![Page 23: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/23.jpg)
23
What’s an angel investor? (1 of 2)
Fundraising
readysetpresent.com
Wealthy, entrepreneurial
individuals.
Provide capital in return for a
proportion of the company equity.
![Page 24: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/24.jpg)
24
What’s an angel investor? (2 of 2)
Fundraising
readysetpresent.com
Take high personal risk in the
expectation of owning part of
a growing and successful
business.
For this reason, not all small
businesses are suitable for Angel
Investments.
![Page 25: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/25.jpg)
IS MY BUSINESS SUITABLE FOR ANGEL INVESTMENT?
![Page 26: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/26.jpg)
26
Is My Business Suitable for Angel Investment? (1 of 6)
Fundraising
readysetpresent.com
You need to raise a reasonably
modest amount. $15,000 - $360,000.
![Page 27: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/27.jpg)
27
Is My Business Suitable for Angel Investment? (2 of 6)
Fundraising
readysetpresent.com
You are willing to develop a
personal relationship with a
business angel.
Typically, business angels want hands-
on involvement in the management
of their investment, an amicable
friendship can help this coexistence.
![Page 28: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/28.jpg)
You are prepared to offer the business angel
a high return.
Average annual return of 20%-30% annum.
You have to understand your products and
markets.
28
Is My Business Suitable for Angel Investment? (3 of 6)
Fundraising
readysetpresent.com
![Page 29: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/29.jpg)
29
Is My Business Suitable for Angel Investment? (4 of 6)
Fundraising
readysetpresent.com
Some angel investors specialize
in expansion financing for
businesses with successful
histories.
Angels also finance start up and
early stage capital for companies
without a track record.
![Page 30: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/30.jpg)
30
Is My Business Suitable for Angel Investment? (5 of 6)
Fundraising
readysetpresent.com
You need an experienced and
professional management team.
If there are weaknesses in the
existing team, a business angel can
often provide the missing skills or
introduce new management.
![Page 31: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/31.jpg)
Trade sale of the business to another
company.
Repurchase of the business angel’s shares
by the company.
Purchase the business angel’s share by the
company’s directors or another investor.
31
Is My Business Suitable for Angel Investment? (6 of 6)
Fundraising
readysetpresent.com
Your business can offer the angel the possibility of an exit
Common exits include:
![Page 32: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/32.jpg)
WHAT IS VENTURE CAPITAL?
![Page 33: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/33.jpg)
Provided as seed funding to
early-stage, high-potential
growth companies.
Given in the interest of
generating a return.
33
What is Venture Capital? (1 of 2)
Fundraising
readysetpresent.com
![Page 34: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/34.jpg)
Comes from institutional
investors and high net
worth individual.
Pooled together by
investment firms.
34
What is Venture Capital? (2 of 2)
Fundraising
readysetpresent.com
![Page 35: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/35.jpg)
Typically comprised of small
teams with technology
backgrounds.
Also people with business
training or deep industry
experience.
35
What is a Venture Capital Firm? (1 of 3)
Fundraising
readysetpresent.com
![Page 36: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/36.jpg)
Typically invest in novel
technologies.
Will help firms they invest in
with both skills and capital.
36
What is a Venture Capital Firm? (2 of 3)
Fundraising
readysetpresent.com
![Page 37: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/37.jpg)
36
What is a Venture Capital Firm? (3 of 3)
Fundraising
readysetpresent.com
Most investments
are done in a pool
format.
Several investors
combine their
investments to invest
in many different
startup companies.
Spreading out risk.
![Page 38: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/38.jpg)
Person that makes venture
investments.
Expected to bring both
managerial and technical
expertise to investments.
38
What is a Venture Capitalist? (1 of 2)
Fundraising
readysetpresent.com
![Page 39: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/39.jpg)
Viable option for small
companies who cannot
secure a bank loan.
They will usually get
significant control
over company decisions.
Typically reject 98%
of presented
opportunities.
39
What is a Venture Capitalist? (2 of 2)
Fundraising
readysetpresent.com
![Page 40: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/40.jpg)
40
Should I Use a Venture Capital for Financing? (1 of 6)
Fundraising
readysetpresent.com
Your business needs
innovative technology.
Needs potential for
rapid growth.
![Page 41: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/41.jpg)
41
Should I Use a Venture Capital for Financing? (2 of 6)
Fundraising
readysetpresent.com
Like angel investments, you’ll
need a well-developed business
model of secure venture capital
investments.
Need an impressive
management team.
![Page 42: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/42.jpg)
42
Should I Use a Venture Capital for Financing? (3 of 6)
Fundraising
readysetpresent.com
Be prepared to give venture
capitalists or venture capital
firms a significant share of
company control.
Trade off for their
investments.
![Page 43: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/43.jpg)
43
Should I Use a Venture Capital for Financing? (4 of 6)
Fundraising
readysetpresent.com
Be prepared to accept new
leadership and workers in
your business.
Venture capitalists usually
have good resources.
![Page 44: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/44.jpg)
44
Should I Use a Venture Capital for Financing? (5 of 6)
Fundraising
readysetpresent.com
Make sure to give venture
capitalists an avenue for escape. This will increase the
likelihood of investments.
![Page 45: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/45.jpg)
45
Should I Use a Venture Capital for Financing? (6 of 6)
Fundraising
readysetpresent.com
Understand that a huge share
of profit return will be given to
venture capitalists.
You will lose some control
as a tradeoff.
![Page 46: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/46.jpg)
BEWARE OF DEBT OVERLOAD, FIVE INDICATORS
![Page 47: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/47.jpg)
47
Beware of Debt Overload, Five Indicators (1 of 8)
Fundraising
readysetpresent.com
When raising funds for a new
business idea or expansion,
beware of over borrowing and
building debt.
Ideally, long term debt
payments, including mortgage
and credit card payments,
shouldn’t exceed 36% of
your gross monthly income.
![Page 48: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/48.jpg)
48
Beware of Debt Overload, Five Indicators (2 of 8)
Fundraising
readysetpresent.com
If you’re trying to attract
investments for your business,
high debt is a huge turnoff.
Here are five simple
indicators of dangerous debt.
![Page 49: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/49.jpg)
Your disposable
income, the money you
have after paying bills,
drops.
Likely to be the case
if you dip into savings
to cover shortfalls in
your checking account.
Or if you take a loan
against your
retirement funds.
49
Beware of Debt Overload, Five Indicators (3 of 8)
Fundraising
readysetpresent.com
![Page 50: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/50.jpg)
You max out your
credit cards after
paying off longstanding
balances.
Smart to transfer your
balance from a high
interest credit card
to a lower rate.
Consolidate your debt
and pay if off with a
low-interest home
equity loan.
50
Beware of Debt Overload, Five Indicators (4 of 8)
Fundraising
readysetpresent.com
![Page 51: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/51.jpg)
51
Beware of Debt Overload, Five Indicators (5 of 8)
Fundraising
readysetpresent.com
You make only minimum
payments on your debt. Taking this route will take
you years to pay credit debt.
![Page 52: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/52.jpg)
52
Beware of Debt Overload, Five Indicators (6 of 8)
Fundraising
readysetpresent.com
You’re unprepared for
financial hardships.
Maintain an emergency fund,
three to six months of
expenses, so you can survive
a worst case scenario.
![Page 53: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/53.jpg)
53
Beware of Debt Overload, Five Indicators (7 of 8)
Fundraising
readysetpresent.com
Your gut is telling you that
your debt is too high.
You’re comfort level is just as
credible an indicator as
anything else.
![Page 54: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/54.jpg)
54
Beware of Debt Overload, Five Indicators (8 of 8)
Fundraising
readysetpresent.com
Remember, if your debt is
high and your credit history is
bad, you will have a difficult
time finding investors .
Debt will also take away
from personal capital
investments in your business.
![Page 55: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/55.jpg)
55
20 More Simple Debt Indicators (1 of 12)
Fundraising
readysetpresent.com
If these twenty trend pertain
to you, you might be
overspending or accumulating
too much debt.
Keep that debt low to
finance your business!
![Page 56: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/56.jpg)
56
20 More Simple Debt Indicators (2 of 12)
Fundraising
readysetpresent.com
You charge inexpensive items. You charge items you might
not buy with cash.
![Page 57: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/57.jpg)
57
20 More Simple Debt Indicators (3 of 12)
Fundraising
readysetpresent.com
You charge more each month
to accounts with outstanding
balances.
You charge items you don’t
need, and then feel guilty.
![Page 58: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/58.jpg)
58
20 More Simple Debt Indicators (4 of 12)
Fundraising
readysetpresent.com
You charge items on a
delayed payment plan.
You assume your credit cards
entitle you to a particular
standard or living, regardless
of your actual income.
![Page 59: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/59.jpg)
59
20 More Simple Debt Indicators (5 of 12)
Fundraising
readysetpresent.com
You dip into your savings
account for items and never
replenish your supply.
You have no savings account.
![Page 60: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/60.jpg)
60
20 More Simple Debt Indicators (6 of 12)
Fundraising
readysetpresent.com
You only shop at stores
where you can use card. Medical insurance is too
expensive to afford.
![Page 61: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/61.jpg)
61
20 More Simple Debt Indicators (7 of 12)
Fundraising
readysetpresent.com
You are reluctant to open
bills from creditors. You ignore payments until
your next paycheck.
![Page 62: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/62.jpg)
62
20 More Simple Debt Indicators (8 of 12)
Fundraising
readysetpresent.com
You’re still paying for last
Christmas when this
Christmas arrives.
Discussions of monthly bills
become arguments.
![Page 63: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/63.jpg)
63
20 More Simple Debt Indicators (9 of 12)
Fundraising
readysetpresent.com
You write checks today on
funds that will be deposited
tomorrow.
You don’t have a budget.
![Page 64: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/64.jpg)
64
20 More Simple Debt Indicators (10 of 12)
Fundraising
readysetpresent.com
You purchase items on a
“lay-away plan”.
You purchase the most
expensive brand to keep up
with others your age or in
your income bracket.
![Page 65: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/65.jpg)
65
20 More Simple Debt Indicators (11 of 12)
Fundraising
readysetpresent.com
You postdate checks.
You’ve applied for more
credit cards to enable you to
pay off other credit card
balances.
![Page 66: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/66.jpg)
If these indicators hit
home, think about
changing your habits to
lower debt and build a
healthy credit history.
Bad debt/credit history
= bad for financing your
business.
Enough about debt,
let’s move on to
quantifying your start
up costs.
66
20 More Simple Debt Indicators (12 of 12)
Fundraising
readysetpresent.com
![Page 67: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/67.jpg)
HOW MUCH MONEY DO I NEED?
![Page 68: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/68.jpg)
68
How Much Money Do I Need? (1 of 7)
Fundraising
readysetpresent.com
If you’re starting up a
business, you need to
determine your start up
costs.
Here are five easy tips for
estimating this number plus
some additional questions to
consider:
![Page 69: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/69.jpg)
Make a business plan, then
change it. 1
Determine all costs with an initial
outline, then alter these numbers as
the plan evolves.
2
69
How Much Money Do I Need? (2 of 7)
Fundraising
readysetpresent.com
![Page 70: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/70.jpg)
Be willing to pull back on
expenses. 3
Build your model, add up the costs, then
trim the plan and construct a smaller,
revised model.
4
70
How Much Money Do I Need? (3 of 7)
Fundraising
readysetpresent.com
Calculate your initial cash flow. 5
![Page 71: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/71.jpg)
71
How Much Money Do I Need? (4 of 7)
Fundraising
readysetpresent.com
Don’t under price your business,
pinpoint expected revenue and
determine your costs based around
these estimates.
![Page 72: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/72.jpg)
Correctly estimate
your startup time.
Time = money, factor
extra time for
overlooked time-
consuming business
requirements.
Government
obligations like zoning
and safety inspections
could push your start
up time frame by
months.
72
How Much Money Do I Need? (5 of 7)
Fundraising
readysetpresent.com
![Page 73: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/73.jpg)
Be realistic about the
cost of money.
Don’t self-finance
larger ventures.
Factor in cost of
capital when
determining initial
expenses.
73
How Much Money Do I Need? (6 of 7)
Fundraising
readysetpresent.com
![Page 74: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/74.jpg)
It’s important to follow these
guidelines to accurately
determine your start up
costs.
Over borrowing or seeking
too much investment could
cripple your business.
74
How Much Money Do I Need? (7 of 7)
Fundraising
readysetpresent.com
![Page 75: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/75.jpg)
SIX QUESTIONS TO DETERMINE STARTUP COSTS
![Page 76: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/76.jpg)
76
Six Questions to Determine Startup Costs (1 of 5)
Fundraising
readysetpresent.com
When determining your startup
costs, ask yourself these six
questions for guidance.
![Page 77: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/77.jpg)
Will you need to hire
specialists, like a lawyer or an
accountant? 1
Will you need to buy some office
furniture or equipment? 2
77
Six Questions to Determine Startup Costs (2 of 5)
Fundraising
readysetpresent.com
![Page 78: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/78.jpg)
What supplies will you need
on hand for Day One?
Do you need to purchase a
beginning inventory?
3
Are you going to buy a business or
franchise? 4
78
Six Questions to Determine Startup Costs (3 of 5)
Fundraising
readysetpresent.com
![Page 79: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/79.jpg)
Will you have construction costs,
and if so, how much needs to be
done by professionals and how
much can you do yourself?
5
What can you do to lower costs? 6
79
Six Questions to Determine Startup Costs (4 of 5)
Fundraising
readysetpresent.com
![Page 80: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/80.jpg)
Overestimating will stress
your credit and undermine
control over you business.
Underestimating will cause
underfunding and cripple
progression.
80
Six Questions to Determine Startup Costs (5 of 5)
Fundraising
readysetpresent.com
Remember, overestimating and underestimating start up costs is bad:
![Page 81: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/81.jpg)
Most small companies and
startups look to banks,
venture capitalists and angel
investors for funding options.
Borrowing money from
friends and family is a tired
and true way to start a
business.
81
Borrowing Money from Friends and Family (1 of 7)
Fundraising
readysetpresent.com
![Page 82: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/82.jpg)
82
Borrowing Money from Friends and Family (2 of 7)
Fundraising
readysetpresent.com
Doesn’t stretch credit. You don’t need a
flawless business plan.
People that you know
and trust are many
times the logical
choice to help your
get started financially.
![Page 83: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/83.jpg)
Make sure they have the
financial means to make a
worthwhile contribution.
Only ask a small group of
friends and relatives.
83
Borrowing Money from Friends and Family (3 of 7)
Fundraising
readysetpresent.com
![Page 84: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/84.jpg)
Treat them as if they were
any other investor.
Incorporating them as
investors will change the
dynamic of your relationship.
84
Borrowing Money from Friends and Family (4 of 7)
Fundraising
readysetpresent.com
![Page 85: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/85.jpg)
Friends and family members
care about you and the
success of your business,
more so than other investors.
Set ground rules like a
repayment plan.
85
Borrowing Money from Friends and Family (5 of 7)
Fundraising
readysetpresent.com
![Page 86: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/86.jpg)
No matter how close you are
with somebody, money
changes people.
Personal complications can
arise from their involvement
with your company.
86
Borrowing Money from Friends and Family (6 of 7)
Fundraising
readysetpresent.com
![Page 87: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/87.jpg)
Be confident, have confidence
in your business, show this.
This affords them the dual
satisfaction of helping a loved
one in need and making a wise
choice with their money.
87
Borrowing Money from Friends and Family (7 of 7)
Fundraising
readysetpresent.com
![Page 88: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/88.jpg)
Most small business sales are
finance, at least in part, by the
sellers themselves.
Buyers are almost always told
by advisors to only buy if
there is an element of seller
financing.
88
What is Seller Financing? (1 of 7)
Fundraising
readysetpresent.com
![Page 89: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/89.jpg)
Seller financing insures the
buyer that the seller believes
in the business.
The seller wouldn’t invest in a
company that he/she is not
confident about.
89
What is Seller Financing? (2 of 7)
Fundraising
readysetpresent.com
![Page 90: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/90.jpg)
It also sets incentive for the
seller to succeed in the
creation of the business by
investing his/her own money.
Acts as an indicator of the
seller’s faith in the future of
the business.
90
What is Seller Financing? (3 of 7)
Fundraising
readysetpresent.com
![Page 91: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/91.jpg)
Sellers of small businesses
usually allows buyer to pay some
of the purchasing price of the
business in the form of a
promissory note.
91
What is Seller Financing? (4 of 7)
Fundraising
readysetpresent.com
![Page 92: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/92.jpg)
Common when business is large
enough to make a cash sale
difficult for the buyer (over
$100,000), but too small for the
mid-market venture capitalists
(under $5 million).
Also common when the
business does not appeal to
traditional lenders.
92
What is Seller Financing? (5 of 7)
Fundraising
readysetpresent.com
![Page 93: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/93.jpg)
Rule of thumb: sellers will
typically finance from 1/3 – 2/3
of the sale price.
Interest rate of the seller
note is typically below bank
prime rates.
93
What is Seller Financing? (6 of 7)
Fundraising
readysetpresent.com
![Page 94: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/94.jpg)
For example, a service business
which sells for $500,000 might
have a structure where a buyer
lends $150,000 and a seller
finances $350,000.
The seller might run for five
to seven years and carry an
interest rate of 8% to 10%,
monthly payments are the norm.
94
What is Seller Financing? (7 of 7)
Fundraising
readysetpresent.com
![Page 95: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/95.jpg)
WHY WOULD A SELLER OFFER FINANCING?
![Page 96: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/96.jpg)
Sellers are nearly always
reluctant to offering
seller financing.
When the buyer is unknown,
the seller’s fear of seller
financing is the greatest.
96
What is Seller Financing? (1 of 4)
Fundraising
readysetpresent.com
![Page 97: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/97.jpg)
97
What is Seller Financing? (2 of 4)
Fundraising
readysetpresent.com
Most business brokers want to
wait until the buyer prospect is
known before suggesting the
amount and terms of seller
financing.
![Page 98: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/98.jpg)
Offering seller financing up front
can attract buyers and speed up
a business sale.
Seller financing is seen by buyer
prospect as comforting proof
that the seller is not afraid of
the business’s future.
98
What is Seller Financing? (3 of 4)
Fundraising
readysetpresent.com
![Page 99: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/99.jpg)
Sellers can also get better
prices for businesses with
self financing.
Seller financing leads to speedier
sales because if the seller is playing
bank, the deal will be quicker, banks
take anywhere from 30 to 120 days
to approve and close a loan.
99
What is Seller Financing? (4 of 4)
Fundraising
readysetpresent.com
![Page 100: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/100.jpg)
A seller notes is a bond for
performance.
Sellers have strong motives to
maintain the business goodwill
if they have a remaining stake in
its future ability to pay back the
seller notes.
100
Why Should a Buyer Ask for Seller Financing? (1 of 3)
Fundraising
readysetpresent.com
![Page 101: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/101.jpg)
After a sale, the seller and buyer
frequently disagree about the
future of the business.
If a seller note is in place, the
seller has motive to temper any
irritation caused by the buyer
with forbearance.
101
Why Should a Buyer Ask for Seller Financing? (2 of 3)
Fundraising
readysetpresent.com
![Page 102: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/102.jpg)
The fact that the business owes
the seller a major amount of
money can change the nature of
the seller’s attitude.
A seller who is still owed
money is more likely to be
solicitous and helpful.
102
Why Should a Buyer Ask for Seller Financing? (3 of 3)
Fundraising
readysetpresent.com
![Page 103: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/103.jpg)
103
How is Seller Financing Usually Secured? (1 of 6)
Fundraising
readysetpresent.com
Most sellers add security
provisions.
Personal guarantees, specific
collateral, stock pledges, life and
disability insurance policies,
even restrictions on how the
business is run.
![Page 104: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/104.jpg)
104
How is Seller Financing Usually Secured? (2 of 6)
Fundraising
readysetpresent.com
Most common is the
requirement for a personal
guaranty by the buyer and the
buyer’s spouse.
Sellers expect this, and if a
buyer objects the seller will
question their seriousness.
![Page 105: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/105.jpg)
105
How is Seller Financing Usually Secured? (3 of 6)
Fundraising
readysetpresent.com
Specific collateral is another
common source of security.
With no bank financing, the
seller wants a first mortgage on
any real estate and first security
agreements on personal
property in the sale.
![Page 106: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/106.jpg)
106
How is Seller Financing Usually Secured? (4 of 6)
Fundraising
readysetpresent.com
Another security is
‘stock pledge’.
Buyer is required to
form a corporation and
give the seller the rights
to ‘vote the stock’ in
case of seller note
default.
Speedier solution than
foreclosure .
![Page 107: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/107.jpg)
107
How is Seller Financing Usually Secured? (5 of 6)
Fundraising
readysetpresent.com
Life and disability insurance
policies on key member of the
buyer’s new management team
are less frequent.
Term life insurance rates are
relatively low, so more
common.
![Page 108: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/108.jpg)
108
How is Seller Financing Usually Secured? (6 of 6)
Fundraising
readysetpresent.com
Restrictions on how the
business is run are sometimes
added.
Can require the new owner to
preserve certain account or
employment relationship, tat
certain operating ratios are
maintained, etc.
![Page 109: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/109.jpg)
HOW CAN BOTH BUYER AND SELLER BENEFIT?
![Page 110: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/110.jpg)
Don’t lose sight that this is just a
normal transaction between two
parties who must each benefit if
a deal is to be struck.
110
How Can Both Buyer and Seller Benefit? (1 of 4)
Fundraising
readysetpresent.com
![Page 111: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/111.jpg)
Buyers are just looking for a fair
change to buy a job and a
reasonable return on
investment.
Sellers are just looking to sell a
business they created, they
want the most they can get, but
have learned to be practical.
111
How Can Both Buyer and Seller Benefit? (2 of 4)
Fundraising
readysetpresent.com
![Page 112: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/112.jpg)
You will be able to buy the
business quicker because you
don’t have to wait for banks.
No loan processing or
guarantee fees, and no invasive
lender controls/audits.
112
How Can Both Buyer and Seller Benefit? (3 of 4)
Fundraising
readysetpresent.com
If you are a buyer, seller financing can offer you better terms and a friendlier lender:
![Page 113: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/113.jpg)
This will save you
time, and time is
money.
You’ll get a better price
with more buyer
prospects.
There are many more
buyers who can afford
to take a chance when
the admission price is
reasonable.
113
How Can Both Buyer and Seller Benefit? (4 of 4)
Fundraising
readysetpresent.com
If you are a seller, it is advised to commit early to seller financing:
![Page 114: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/114.jpg)
If you’re planning on using a
bank to raise funds for a For-
Profit business, you need to
understand the different types
of loans you can apply for.
Explanation of six different
types of bank loans follows:
114
Types of Bank Business Loans (1 of 8)
Fundraising
readysetpresent.com
![Page 115: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/115.jpg)
115
Types of Bank Business Loans (2 of 8)
Fundraising
readysetpresent.com
1
Term loans
Most common general purpose loans, used for working
capital, expansion, refinancing, and acquisitions
You’ll repay them monthly over a term based on the
expected lifespan of assets you’re purchasing.
![Page 116: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/116.jpg)
116
Types of Bank Business Loans (3 of 8)
Fundraising
readysetpresent.com
2
Short term loans
Almost always set up for terms of one year or less.
Repaid in a lump sum at the end of the term,
instead of monthly.
Smaller amounts, less than $100,000, best for
seasonal inventory buildup.
![Page 117: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/117.jpg)
117
Types of Bank Business Loans (4 of 8)
Fundraising
readysetpresent.com
3
Equipment financing
Easier to obtain than general lines of credit because
equipment you buy serves as direct collateral for the loan.
Less risky, because if you are unable to make your
payments, you simply lose the equipment you purchased.
![Page 118: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/118.jpg)
118
Types of Bank Business Loans (5 of 8)
Fundraising
readysetpresent.com
4
Lines of credit
General business loans often used to insure against cash
flow issues.
Instead of getting a check for the full amount of the loan,
the bank will allow you to borrow up to a certain amount
per year.
You have to make sure to pay back these loans quickly.
![Page 119: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/119.jpg)
119
Types of Bank Business Loans (6 of 8)
Fundraising
readysetpresent.com
5
Credit card advances
Loan based on your track record and your expected future
business.
Good choice if your business has at least a three year
history of accepting credit cards.
![Page 120: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/120.jpg)
120
Types of Bank Business Loans (7 of 8)
Fundraising
readysetpresent.com
6
Factoring
Also known as receivables financing, basically selling your
invoices to a third party.
Instead of waiting for you customers to pay, you can get the
funds immediately, minus a small fee (3%-5%).
![Page 121: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/121.jpg)
121
Types of Bank Business Loans (8 of 8)
Fundraising
readysetpresent.com
Fewer than three
years in business. Good growth prospects
but average cash flow.
Active accounts but
slow paying customers.
Your business might be a good candidate for factoring if you have:
![Page 122: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/122.jpg)
122
Applying for a Business Loan from a Bank (1 of 13)
Fundraising
readysetpresent.com
When applying for a bank loan,
you have to prepare with a
written proposal.
Make your best application on
the initial attempt, you may not
get a second opportunity.
![Page 123: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/123.jpg)
123
Applying for a Business Loan from a Bank (2 of 13)
Fundraising
readysetpresent.com
who you are.
your business background.
the nature of your business.
the amount and purpose of your loan request.
your request terms of repayment.
how the funds will benefit your business.
how you will repay the loan.
Begin your proposal with a cover letter or executive summary
Clearly/briefly explain:
![Page 124: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/124.jpg)
124
Applying for a Business Loan from a Bank (3 of 13)
Fundraising
readysetpresent.com
Different formats are possible,
so contact your commercial
lender requesting the preferred
format.
When writing the proposal,
don’t assume the reader is
familiar with your industry or
business.
![Page 125: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/125.jpg)
125
Applying for a Business Loan from a Bank (4 of 13)
Fundraising
readysetpresent.com
Provide a description of
the business.
Include the type of organization,
date of information, location,
product or service, brief
history, proposed future
operation, competition,
customers, suppliers.
![Page 126: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/126.jpg)
126
Applying for a Business Loan from a Bank (5 of 13)
Fundraising
readysetpresent.com
Write about management
experience. Include resumes of each owner
and key management members.
![Page 127: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/127.jpg)
Include personal financial statements.
SBA requires financial statements for all principal
owners (20% or more) and guarantors.
Shouldn’t be older than 90 days, attach a copy of
last year’s federal income tax return.
127
Applying for a Business Loan from a Bank (6 of 13)
Fundraising
readysetpresent.com
![Page 128: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/128.jpg)
Provide a brief written statement indicating how
the loan will be repaid.
Include repayment sources and time requirements.
Cash flow schedules and budgets could support
this statement.
128
Applying for a Business Loan from a Bank (7 of 13)
Fundraising
readysetpresent.com
![Page 129: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/129.jpg)
129
Applying for a Business Loan from a Bank (8 of 13)
Fundraising
readysetpresent.com
Describe the existing business.
Provide financial statements for at
least the last three years, plus a
current dated statement (no older
than 90 days) including balance
sheets, profit and loss statements,
and a reconciliation of net worth.
![Page 130: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/130.jpg)
130
Applying for a Business Loan from a Bank (9 of 13)
Fundraising
readysetpresent.com
Provide a pro-forma balance
sheet reflecting sources and
uses of both equity and
borrowed funds
Describe projections of the business
with the implemented loans.
![Page 131: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/131.jpg)
At least one year or until positive cash flow can be shown.
Include earning, expenses, and reasoning.
Should be in profit and loss format.
Explain assumptions.
131
Applying for a Business Loan from a Bank (10 of 13)
Fundraising
readysetpresent.com
![Page 132: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/132.jpg)
Lease, franchise and purchase
agreements, articles of
incorporation, plans and
specifications, copies of licenses,
letters of reference, letters of
intent, contracts, partnership
agreement.
132
Applying for a Business Loan from a Bank (11 of 13)
Fundraising
readysetpresent.com
These other items might be useful during the application process:
![Page 133: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/133.jpg)
133
Applying for a Business Loan from a Bank (12 of 13)
Fundraising
readysetpresent.com
Include a list of real property
and other assets to be held as
collateral.
Few banks will provide non-
collateral based loans.
![Page 134: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/134.jpg)
All loans should have at least two identifiable
sources of repayment.
First source is ordinarily cash flow generated from
profitable operations of business.
The second is usually collateral pledged to
secure the loan.
134
Applying for a Business Loan from a Bank (13 of 13)
Fundraising
readysetpresent.com
![Page 135: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/135.jpg)
12 TIPS FOR GETTING A BANK LOAN APPROVED
![Page 136: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/136.jpg)
136
12 Tips for Getting a Bank Loan Approved (1 of 16)
Fundraising
readysetpresent.com
In addition to preparing a good
loan application, you also
remember a couple of things.
Here are twelve tips to get your
bank loan approved .
![Page 137: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/137.jpg)
Remember that to stay
in business a bank
needs to make loans.
Look for a bank that is
familiar with your
industry.
Seek banks active in
small business
financing.
137
12 Tips for Getting a Bank Loan Approved (2 of 16)
Fundraising
readysetpresent.com
![Page 138: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/138.jpg)
138
12 Tips for Getting a Bank Loan Approved (3 of 16)
Fundraising
readysetpresent.com
As a small business
entrepreneur, be thoroughly
prepared to explain your
business when requesting a
loan.
You need to show your bankers that
a loan is a low-risk option.
![Page 139: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/139.jpg)
Learn to anticipate
every question your
banker might have.
Ready answers reflect a
confident borrower.
Here are five questions
to expect from a
banker.
139
12 Tips for Getting a Bank Loan Approved (4 of 16)
Fundraising
readysetpresent.com
![Page 140: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/140.jpg)
140
12 Tips for Getting a Bank Loan Approved (5 of 16)
Fundraising
readysetpresent.com
How much money do you need?
Be exact, add extra for
contingencies.
How long do you need it for?
Be prepared to explain what the
money will do and why your
business is a good risk.
![Page 141: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/141.jpg)
1. Buy new assets
2. Pay off old debt
3. Pay for operating expenses
141
12 Tips for Getting a Bank Loan Approved (6 of 16)
Fundraising
readysetpresent.com
What are you going to do for it?
Businesses use loans for three things:
![Page 142: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/142.jpg)
142
12 Tips for Getting a Bank Loan Approved (7 of 16)
Fundraising
readysetpresent.com
When and how will you repay
you loan?
Cash flow projections should
provide a repayment time
frame.
What will you do If you do
not get the loan?
![Page 143: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/143.jpg)
Do not take an
apologetic and negative
attitude.
Present yourself as an
entrepreneur who can
and will repay the loan.
Boost your image by
providing your loan
officer with promotional
materials about your
business:
like ads, articles, and
press releases.
143
12 Tips for Getting a Bank Loan Approved (8 of 16)
Fundraising
readysetpresent.com
![Page 144: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/144.jpg)
144
12 Tips for Getting a Bank Loan Approved (9 of 16)
Fundraising
readysetpresent.com
Dress in a professional manner
for the interview.
This is a business transaction,
so treat it as such.
![Page 145: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/145.jpg)
Do not stretch the truth in your loan application.
Avoid broad, vague statements.
Lenders can easily check many of the facts in
your application, you have to be able to support
each statement with data.
145
12 Tips for Getting a Bank Loan Approved (10 of 16)
Fundraising
readysetpresent.com
![Page 146: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/146.jpg)
146
12 Tips for Getting a Bank Loan Approved (11 of 16)
Fundraising
readysetpresent.com
Be sure all you documents are
near, legible and organized in a
cohesive and attractive manner.
Type all documents, include a
cover letter.
![Page 147: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/147.jpg)
147
12 Tips for Getting a Bank Loan Approved (12 of 16)
Fundraising
readysetpresent.com
Do not push the loan officer
for a decision.
Your banker cannot make a
decision until all your
documentation is complete.
![Page 148: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/148.jpg)
Be confident
Show that you can make a success
out of the money that the bank will
lend to you.
148
12 Tips for Getting a Bank Loan Approved (13 of 16)
Fundraising
readysetpresent.com
![Page 149: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/149.jpg)
Keep trying one lender
after another until you
get your loan.
Ask for a referral from a
successful entrepreneur.
Find a friend or
acquaintance in good
standing with a bank to
get a referral.
149
12 Tips for Getting a Bank Loan Approved (14 of 16)
Fundraising
readysetpresent.com
![Page 150: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/150.jpg)
Failure to discuss risk in your
application is bad.
If you do not discuss risk, a
banker will assume that you
haven’t thought about risk.
150
12 Tips for Getting a Bank Loan Approved (15 of 16)
Fundraising
readysetpresent.com
![Page 151: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/151.jpg)
Remember that the first loan is
typically the hardest to get.
Bankers prefer to lend money to
borrowers who have borrowed
at least once and have paid back
at least one loan on time.
151
12 Tips for Getting a Bank Loan Approved (16 of 16)
Fundraising
readysetpresent.com
![Page 152: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/152.jpg)
Government agencies generally
do not make direct loans to
business owners.
Government provides a guaranty
to banks and lenders for money
lent to small businesses.
152
What is the Government’s Role? (1 of 3)
Fundraising
readysetpresent.com
![Page 153: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/153.jpg)
This guaranty is a promise to pay a
portion of the loan back to the
banks in case the business owner
defaults on the loan.
A guaranty reduces the lender’s risk,
which allows the lender to make
loans to business owners who don’t
qualify for traditional loans.
153
What is the Government’s Role? (2 of 3)
Fundraising
readysetpresent.com
![Page 154: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/154.jpg)
Some state and local government
agencies and non-profits will make
loans directly to a business.
This means you do not have to go
through the bank to acquire a loan.
154
What is the Government’s Role? (3 of 3)
Fundraising
readysetpresent.com
![Page 155: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/155.jpg)
SCENARIO: BAKE SALE VS. BUSINESS LETTER
![Page 156: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/156.jpg)
The bake sale. The letter to L.L. Bean, Local Inn,
& Red Bull.
156
Scenario: Bake Sale vs. Business Letter Fundraising
readysetpresent.com
Which Fundraising Program Is More Effective?
![Page 157: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/157.jpg)
157
Scenario: Bake Sale vs. Business Letter Fundraising
readysetpresent.com
Bake Sale
• Needed: 84 to bake 24 items (2 dozen each); 6 to sell
• Sale price: 50¢/each
• # needed to sell:
2000 (x 0.50 = $1,000)
• Customers: game attendees
• Personnel: Volunteers
• Direct costs: Zero (volunteers will donate the cost of their goods)
• What is the benefit/return?
Target Letter
• Needed: 3 people to write letters, follow-up calls and/or in person visits
• Sell price: $500 for signage at football event and press release in paper
• # of letters to be written: 1
• Customers: 3 Targeted Businesses
• Personnel: Volunteer
• Direct costs:: Signage
• What is in it for these businesses?
![Page 158: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/158.jpg)
158
Fundraising
readysetpresent.com
Business Planning
Budgeting
Analysis
Fundraising Strategy
Fundraising
Planning
![Page 159: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/159.jpg)
159
Business Planning Fundraising
readysetpresent.com
WHAT IS THE ORGANISATION’S
PURPOSE AND WHAT ARE IT’S GOALS?
![Page 160: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/160.jpg)
160
Business Planning Fundraising
readysetpresent.com
WHAT ARE THE SPECIFIC OBJECTIVES (START DATE - END DATE)
![Page 161: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/161.jpg)
Facilities Overhead,
maintenance, furniture,
equipment, rent,
utilities…
Core Functions Overhead, maintenance,
furniture, equipment,
rent, utilities…
Governance Board, audit, legal…
161
Budgeting: What Are the Central Costs Fundraising
readysetpresent.com
![Page 162: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/162.jpg)
Core costs… Current projects… Upcoming new
projects…
162
Budgeting: Operational Costs Fundraising
readysetpresent.com
What is the organization’s overall budget?
![Page 163: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/163.jpg)
Fundraising history? Current resources
Current trends
Known facts
Fundraising resources? People
Time
Systems
Skills
Data
163
Analysis: Fundraising (1 of 2)
Fundraising
readysetpresent.com
![Page 164: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/164.jpg)
164
Analysis: Fundraising (2 of 2)
Fundraising
readysetpresent.com
Changes in policy Changes in criteria Changes in trends
The Big Picture?
![Page 165: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/165.jpg)
Current Funding? Grants, contracts, gifts, fees, other
earned income, gifts/help in kind,
community fundraising events.
Trends and Needs? Rises in costs, over-reliance on one
funding source, untapped sources for
additional fundraising, know funding
facts, other fundraising providers.
165
Analysis: Fundraising History Fundraising
readysetpresent.com
![Page 166: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/166.jpg)
People, Time, Systems? Trustee/staff/associates/volunteers/
team members.
Time available at the right time.
Management structure for fundraising.
Administrative structure for
fundraising.
Skills and Data? Public Relations, networking, making
the case for support, writing bids,
budgeting.
Funding databases, on-going
intelligence.
166
Analysis: Fundraising Resources Fundraising
readysetpresent.com
![Page 167: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/167.jpg)
Changes in Policy? Market trends.
Service delivery.
Social and community cohesion.
Shareholders and stock holders.
Public image.
Changes in Criteria? General to specific symptoms/causes.
Empowerment .
Priorities.
167
Analysis:The Big Picture (1 of 2)
Fundraising
readysetpresent.com
![Page 168: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/168.jpg)
Grants vs. earned income
Web based fundraising
Patterns of donations/giving
Partnership work
168
Analysis:The Big Picture (2 of 2)
Fundraising
readysetpresent.com
Trends and Changes?
![Page 169: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/169.jpg)
Business Plan
Proposed sources
Project Needs
Contingency
Resources needed
169
Fundraising Strategy: Fundraising
readysetpresent.com
![Page 170: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/170.jpg)
Project Needs in Detail
Proposed sources
Who and how to action
By when
Expected decision date
Record of progress
170
Fundraising Plan: Fundraising
readysetpresent.com
![Page 171: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/171.jpg)
Business Planning
Budgeting
Analysis
Fundraising Strategy
Fundraising
Planning
171
Fundraising
readysetpresent.com
![Page 172: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/172.jpg)
WHAT IS YOUR NEXT STEP
![Page 173: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/173.jpg)
Action Plan
readysetpresent.com
Fundraising
174
What are you going to
take action on?
Start with the three
easiest items.
![Page 174: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/174.jpg)
Be as systematic as possible.
Rank the behaviors in terms of their complexity or degree of difficulty.
Rank the behaviors in terms of chronological order.
List specific behaviors.
Action Steps ( 1 of 4 )
readysetpresent.com
Fundraising
175
![Page 175: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/175.jpg)
Advance to a more difficult behavior.
Break difficult behavior down into several smaller behaviors.
Attach time limits to each behavior.
Begin with the least difficult behavior.
Action Steps ( 2 of 4 )
152 readysetpresent.com
Fundraising
176
![Page 176: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/176.jpg)
Review all previous behaviors.
Advance to next most difficult behavior.
Measure and evaluate.
Repeat specific behavior until mastered.
Keep records (preferably visual).
Action Steps ( 3 of 4 )
readysetpresent.com
Fundraising
177
![Page 177: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/177.jpg)
Reinforce through reward and punishment.
Use visual reminders (pictures, charts, etc.)
Remember: "A small goal is enough!"
Action Steps ( 4 of 4 )
readysetpresent.com
Fundraising
178
![Page 178: FUNDRAISING FOR FOR-PROFITS - Ready Set Present · What is Fundraising for For-Profits? (3 of 3) Fundraising readysetpresent.com . EIGHT EASY TIPS FOR FUNDRAISING . 14 Eight Easy](https://reader036.vdocuments.net/reader036/viewer/2022081611/5f0763c27e708231d41cbe67/html5/thumbnails/178.jpg)
FOR MORE INFORMATION
VISIT US ONLINE AT
.com