1 of 17 Contact Information Kathy Gilman Program Director Washington Access Fund 100 S. King Street Suite 280 Seattle, WA (TTY)

2 of 17 Washington Access Fund Programs Low interest (5.00%) business equipment loans for micro and small businesses (up to $10,000 for startup businesses, $25,000 for existing businesses) We are a direct lender Credit builder loans (up to $500) Low interest loans (5.00%) for Assistive Technology (AT) (up to $25,000) CCTV Rental Program Individual Development Accounts (IDA) – matched savings for AT or business equipment purchases Financial health assessments and referrals to financial education Business plan classes and 1-on-1 assistance

3 of 17 Business Loans Application process consists of: Application packet Business Plan - We will work with applicant to complete a business plan. Credit report. Credit builder loans up to $500 available Review and decision by Loan Committee

4 of 17 Business Loans For a start-up, generally evaluated as a consumer loan, but with business feasibility in mind. Different levels of planning required depending upon the loan amount: Up to $500, feasibility outline and description Up to $1500, basic business plan Over $1500, “complete” business plan

5 of 17 Keys to Business Planning (General feasibility considerations) 1.Do they have a clear idea and passion, at least some experience in the field? 2.Do they know what it means to run a business (pros and cons, what it means to be an entrepreneur)? 3.Do they have a Support Network? 4.Did they write a Business Plan and do the research themselves? 5.Do they know their personal financial situation, including benefits planning?

6 of 17 A business plan is important because : it’s a necessary part of any loan or grant application. it tells others that you have really thought about and planned the business it helps you make good business decisions. You are trying to convince a group of strangers to loan you money What I tell clients/applicants about developing a Business Plan

7 of 17 Parts of the Business Plan Business Description Mission Statement Business Goals Owner’s Qualifications Entrepreneurial Traits Business Structure Business Licenses Business Insurance Target Market

8 of 17 Business Description Red Flags Goals that are too broad or unrealistic, or do not relate to the plan at hand Limited or no qualifications for making the product or providing the service Not having the license and insurance in place Describing your target market as “everyone” or otherwise too broadly

9 of 17 Parts of the Business Plan Market Research – researching your: Competitors, Customers, and the Industry Red Flags: Saying “I don’t have any competition” Limited information about competition

10 of 17 Parts of the Business Plan Cost Analysis Start up costs Operating costs (overhead, or fixed) Variable costs (cost of goods sold) Start up capital requirements

11 of 17 Cost Analysis Red Rlags Cost Analysis Asking for the maximum loan amount (or any amount) without an explanation of how it will be used Not having all the funding necessary to launch in place Incomplete profit analysis

12 of 17 Parts of the Business Plan Financial Projections Pricing Sales Projection Income and Expense Projection Cash Flow Projection Break even point

13 of 17 Financial Projection Red Flags Unrealistic high sales volume right away Sales units don’t match the narrative Time needed to make or provide the service doesn’t match the numbers Unrealistic timeline Poor credit history

14 of 17 Parts of the Business Plan Marketing Plan Target Market Marketing Message Marketing Materials Marketing Methods 6 – 12 month Marketing Plan Elevator Speech (presentation)

15 of 17 Marketing Plan Red Flags Lower price than competition is the main plan Not using social media No website “if I build it they will come” attitude Target market too broad No plan beyond the friends and relatives approach

16 of 17 Parts of the Business Plan Record keeping Records to Keep Income & Expense Statement Benefits Planning Balance Sheet Filing System Tax considerations

17 of 17 Record keeping Red Flags No records of sales Incomplete expense info No business bank account No benefits planning