Living the Dream - Live “18 Ways to Raise Money for YOUR Business” March 24, 2010 E-Seminar / Conference Call Host: Mark Kohler, CPA, Attorney At Law Telephone Facsimile © KKO Lawyers, LLP Telephone Facsimile © Kohler & Eyre CPAs, LLC Telephone Facsimile © NumberWon Accountants, LLC 2009

Here’s what to Expect I. Borrowing (5) II. Partners (2) III. Investors (3) IV. Subsidies (2) V. Corporate Credit VI. Qualified Money VII. Miscellaneous (4)

Borrowing #1. Borrow from Family and Friends – –Document everything – –Is their ‘security’? – –Make realistic promises

#2. Use Credit Cards – –Interest Rates can be dangerous – –Not recommended Borrowing

#3. Small Business Administration (“SBA”) Loan – –504 / Seasoned borrower / fixed assets (as low as 10% down) – – 7A / Equipment / 30% down – – – – Will Jones Special Guest Wells Fargo Borrowing

#4. Home Equity Line – –Home Equity lines of Credit are still available – –HELOC’s are LTV restricted and subject to change. – –You must have good credit history. – –Line of Credit vs Traditional second mortgage. – –Martin Rodriguez Special Guest Borrowing

#5. Business Line of Credit – –Not “Corporate Credit” – –Conventional up to 100k (tough to get) – –Secured loan on Inventory and A/R (may use SBA) – –Personally guaranteed – –Will Jones Special Guest Wells Fargo Borrowing

#6. Joint Venture Agreement – –Document every aspect carefully – –Watch out for Vicarious Liability – –Use your entity instead of YOU – –May have to do tax return – –1099 may work (not to avoid employee role) – –Special Guest Kenny Childs Partnering

#7. Limited Liability Company – –Flexible – –Vicarious liability protection – –Tax Return – –More efficient and comprehensive in the long run – –Special Guest Kenny Childs Partnering

#8. Angel Investor- an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital. - Remember the importance of Business Plans, Brochures and Executive Summaries To find: Google and Networking Investors

#9. Venture Capital- is a type of private equity capital typically provided for early- stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. Venture capital typically comes from institutional investors and high net worth individuals pooled together in dedicated investment firms. List of top 100: Investors

#10. Securities Offering – –Be careful making promises – –Reg D / PPM – –Consult with a Securities Attorney – –Special Guest Mat Sorensen, Attorney Investors

#11. State Grants exist in EVERY state for a variety of businesses. Also minority and women owned business can often times get streamed lined service or specific opportunities. lbusiness/a/stategrants.htm lbusiness/a/stategrants.htm Subsidies

#12. Federal Grants and subsidies are also a huge option. An Example SBIR Small Business Innovation Research Program is a government-funded award system that provides funding to qualified small business concerns that meet research and development needs of the Federal Government. ness/a/stategrants.htm

#13. A ‘SCAM’ 99% of the time – –Don’t pay up front – –Review all applications for accuracy and fraud – –Understand what terms you will be getting on the credit Corporate Credit

#14. Self-Directed Retirement Plan – –Qualified monies include IRAs, 401ks, SEPs, Simples, Keoghs, HSAs, and DB plans – –Watch out for Prohibited Transactions – –Have Legal/Tax support throughout the process Qualified Money

#15. Save up your own money – –Keep your ‘Day job’ – –Be Patient – –Cut all possible costs – –Use Sub-Contractors when possible Miscellaneous

#16. Sell Something – –E-Bay / Craigs List – –Yard Sale – –Real Estate Miscellaneous

#17. Gift or Inheritance – –Get it when you can – –No guarantees Miscellaneous

#18. Charitable Donations – –Form a Charity out of your business – –Must have Charitable Purpose – –Beware of Prohibited Transactions and Self-Dealing – –Salaries must be reasonable and have market comparables Miscellaneous

Thank You For more information, please contact us at: KYLER KOHLER OSTERMILLER & SORENSEN, LLP Tel: Fax: