‘Where to get the money?’ comes after ‘Do I need the money?’ Do You Need Investors? ‘Where to get the money?’ comes after ‘Do I need the money?’ www.SmallBusinessSolver.com © 2018

Choose the right investors and communicate effectively with them. The Goal Choose the right investors and communicate effectively with them. www.SmallBusinessSolver.com © 2018

Key Points Types of Businesses Looking For Financing Business stages & timing Cash required for each stage Example What not to do Your next steps Wrap up www.SmallBusinessSolver.com © 2018

Grab your worksheet and follow along. www.SmallBusinessSolver.com © 2018

Types of Businesses Looking For Financing No Chance Financing Too Late Financing No Reason Financing No Needing Financing Financed www.SmallBusinessSolver.com © 2018

Phase Planning Launch Growth www.SmallBusinessSolver.com © 2018

Timeframe www.SmallBusinessSolver.com © 2018

Planning Business cards? Webpage? Contracts? Action www.SmallBusinessSolver.com © 2018

Cash Planning Launch Supplies / Office Space $2000 Business Cards / Webpage / Contracts $2500 www.SmallBusinessSolver.com © 2018

Business Cards / Webpage / Contracts Sales Planning Business Cards / Webpage / Contracts Cost = $2500 Sales = $1000 www.SmallBusinessSolver.com © 2018

Example John Doe is excited to launch his Landscaping business. He is planning for courses and new equipment. John currently has savings of $5,000 to invest. Each sale is expected to generate $2000 in profit. In anticipation of the launch, he is projecting future investment requirements. Does he need investors? www.SmallBusinessSolver.com © 2018

Take landscape design certification course Example Phase Timeframe Actions Cash Number of Sales Starting Position $5, 000 1 – Planning 4 Months Take landscape design certification course Rent equipment $1500 $5000 Pre-Launch Position $-1,500 www.SmallBusinessSolver.com © 2018

Now think about his launch and growth stage. Does he need investors? Practice: Landscape Now think about his launch and growth stage. Does he need investors? www.SmallBusinessSolver.com © 2018

Practice: Landscape 2 – Launch 3 Months Advertising Hire assistant $4000 $6000 3 For total of $6,000 Post-Launch Position -$5,500 3 – Growth 1 Year Hire staff Continue Advertising $10,000 15 for total of $30,000 Post-Growth Position $10,500 18 www.SmallBusinessSolver.com © 2018

Practice: Landscape John learns that he will need to obtain additional financing to fund the Planning and Launch phases of the business. John can see that for his overall business to be successful, he needs to be working on acquiring $5,500 worth of financing at a minimum, or his business will not be successful. www.SmallBusinessSolver.com © 2018

Top Mistakes To Avoid Ignoring cash flow because you don’t think it’s important. Not thinking ahead on how you will get funding, if you eventually need. No matter how many months or years it may be, always develop a plan just in case. Thinking that your personal credit score has little to do with whether you get a bank loan. Looking for investors at the very last minute. Using only a single investor and putting all your eggs in one basket. Incurring all of the expenses upfront even when you can hold off on some. www.SmallBusinessSolver.com © 2018

Now What? Figure our if you need funding Figure out what type you need (Contracts for Investors) Begin facilitating that relationship Try and have options Prepare to negotiate www.SmallBusinessSolver.com © 2018

Key Points Types of Businesses Looking For Financing Business stages & timing Cash required for each stage Example What not to do Your next steps Wrap up www.SmallBusinessSolver.com © 2018

Choose the right investors and communicate effectively with them. The Goal Choose the right investors and communicate effectively with them. www.SmallBusinessSolver.com © 2018

You need investors if you need more cash than you have. www.SmallBusinessSolver.com © 2018