how to fund your san diego small business
TRANSCRIPT
The Essentials
• Bootstrapping• Borrowing• Getting Investors
What is the promise?
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Cash Waterfall
COSTS
Equity
Revenue
Dividend
Start with a short business
plan that outlines your
sound idea and how and
when it will make a profit.
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KNOW the Income Statement$ REVENUE
- Costs
Operating Income
-Interest Expense
-Taxes
$ Net IncomeNet Income = Profit Use profits to buy assets that increase sales.
The Income Statement is the essential financial tool to monitor if you’re business is keeping its business promise.
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Bootstrapping
Wit dependent
barter for talent – share office – crowdfunding – win contests – get favorable terms – maintain your credit score
Focus on having enough cash, time and talent to increase sales and margin fulfill promise
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Borrowing A lender is not an
A.T.M.
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They are partners but have no ownership
stake.
Borrowing
Show a longer business plan that demonstrates growth
How can revenue and margins grow?
Who are your clients (market)?
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Getting Investors An investor receives-
• An ownership stake
• Dividends / Sale proceeds (ROI)
• More Business
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Getting Investors
Show a longer business plan that demonstrates significant growth
How can revenue and margins grow?
Who are your clients (market)?
How can your business scale quickly?
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Where to go:
• Tech Coast Angels – techcoastangels.com• Hera Fund - hera-labs.com/funding• Golden Seeds - goldenseeds.com
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Hope is not a good strategy
Common hope stories:• I can do it myself.• I don’t need a written plan or advice.• If I build it they will come.
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A Profit Plan is good strategy
Spend cash on assets that have a direct effect on ↑ revenues. Be accountable and show appreciation to all stakeholders.
A profit plan helps:• You negotiate your business’ worth• Keep the business on track to fulfill its
promise. • Attract lenders, investors, buyers of your
business.
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