Financing Your Business

three Essential Secrets to Funding Your Business It’s a business! Create a business plan that shows how you will pay back the money Leverage with collateral Don’t take it personally and don’t get in your way It doesn’t have to be the most elaborate, academic business plan. It really isn’t that big of a deal and you can do it. Go on SBA website and just copy the format. You know your business and need to make it simple and digestible. Don’t construct barriers where there are none 2

Know what type of funding you need Cash Flow Financing Debt Financing Equity Funding Import/Export Loans Inventory Loans Mezzanine Financing Private Placement Sale/Lease Back Funding Turn Around Capital Acquisitions Funding Bridge Loans Buy Out Financing Construction Loans. Equipment Leasing First Stage Funding Initial Public Offerings Long Term Loans Permanent Loan Real Estate Loans Seed Capital Start Up Capital

Don’t require you turn over equity or company control Commercial Banks Don’t require you turn over equity or company control Need history and collateral Smaller loans available using personal credit history Small Business Administration No direct loans – guarantees 75% of loans Business must show that it cannot obtain conventional financing Nonproft Microlender Easier underwriting criteria High interest rates May be required to do training In summary: at WI, our focus is on a very needy population 4

Home equity loan/line of credit Factoring Customer or Suppliers Friends and family Business investors Credit cards Home equity loan/line of credit Factoring Customer or Suppliers 5

Local resources SafeBid Co,Santa Rosa Opportunity Fund, San Jose.. SF OBDC, Oakland SBDC, Concord Count Me In Keiretsu – Angel investors Pacific Community Ventures 6

About Women’s Initiative Train Fund Support Founded in 1988 Nation’s largest microenterprise training and funding organization Our Mission: Build the entrepreneurial capacity of low-income women to overcome social and economic barriers and achieve self sufficiency Our program is culturally accessible and includes comprehensive business training, financial services, and post-graduate services 7

Client PROFILE 100% low-income 83% women of color 25% have limited or no English language proficiency 20% single parents 46% high school equivalency or less 41% of businesses are unbanked Average business liabilities is $14,706 In summary: at WI, our focus is on a very needy population 8

Business status

Type of Debt

Average amount of Debt

Results 5 years after training, 70% of clients are running their own business Clients’ personal incomes rise dramatically— from a monthly income of $1,185 prior to $2,079 one year after completion of Women’s Initiative program Clients increase their average household net worth more than 300% within two years, from $12,968 before training to $53,572 after training. Graduation from WI causes $10K per year increase in income within one year. But REAL impact of the program is seen in our clients (GRADUATE SPOTLIGHT HERE). 12

Graduate spotlight Corinthia Peoples Corinthia Peoples Designs Leveraging: Loan IDA Matched Savings Program Graduation from WI causes $10K per year increase in income within one year. But REAL impact of the program is seen in our clients (GRADUATE SPOTLIGHT HERE). Graduated from Women’s Initiative in 2004 Launched Corinthia Peoples Designs shortly after In 2007, opened Corinthia Peoples Designs Show Room & Studio in Berkeley Her jewelry designs have been featured in the San Francisco Chronicle, The Examiner, Oakland Magazine, Bay Area Business Woman, and Comcast TV Her designs have been featured at San Francisco’s Fashion On The Square, New York City’s FFF WEEK and graced the counters of the Bellagio’s Las Vegas Capri Bouquet 13

Financing Your Small Business Julie Abrams CEO Women’s Initiative jabrams@womensinitiative.org