1. Funding Your Business Keeping Your Startup Lean While You Scale Josh Oaks, Derek Spitzer, Chase Corbridge, Gustavo Velasquez, and Seth Rasmussen

2. Steps to Fund Your Business Banks Friends, Families and Fools Angel Investors Venture Capital

3. Banks 1 out of 7 get accepted If….. You already have 3 years of financial data or back it with your home or some other asset Not for company in idea or seed stage

4. Friends Family and Fools ($10,000-$200,000) Guidelines for family and friendship financing: – Consider the impact of the investment on everyone involved. – Keep the arrangement “strictly business.” – Settle the details up front. – Never accept more than investors can afford to lose. – Treat the money as “bridge financing.” – Develop a payment schedule that suits both parties. – Create a written contract. – Have an exit plan.

5. Angel Investors ($100,000 to $5 Million) Fastest growing segment of the small business capital market. An excellent source of “patient money” for investors needing relatively small amounts of capital Where to find angel investors – Network! – Look nearby, a 50- to 100-mile radius. – Informal angel “clusters” and networks · Angelsoft.net: Access to thousands of angel investing groups.

6. Venture Capital ($3 M to $10 M) Two sources of Venture Capital ·Corporate Venture Funding ·Private Venture Capital Most want an active role in management; majority invest in an industry with which they are familiar. Seek equity stakes of 20 percent and 40 percent of a company but in some cases will buy 70 percent or more. Only 2 percent of venture capital goes to businesses in the start-up or seed phase.

8. Bootstrapping is to start a business without external help/capital. Startups that bootstrap their business fund development of their company through internal cash flow and are cautious with their expenses.

9. Utah Valley Marathon

10. Personal Finances No Salary Free Labor Guerilla Marketing

11. Key Takeaways: 1) Able to maintain control of your company without other investors entering 2) The best way to assure that you are creating shareholder value is by creating profit. If you are creating profit, then you do not need other people to invest in your company.

12. Bootstrapping Strategies “bootstrapping isn't limited to the startup state. It's a valid way for business owners to treat valuable resources at any stage of their business' growth.” Negotiate trade credit with suppliers (not a long- term solution).. Have a financial plan when negotiating. Factoring involves selling you account receivables to diminish the time of your business cycle.

13. Strategies Have a customer write you a letter of credit so you can use it as a security to obtain financing. For facilities or business offices use a long-term graduated payment mortgage over a 15 to 30 year period. Use your appreciated real estate as equity to have lenders loan you up to 75 to 80 percent of the properties value. A home equity loan is just one example of this.

14. Strategies Instead of having to pay cash up front for equipment have the manufacturer basically loan you the money by selling you the equipment on an installment basis. Below are two ways that this is usually done: 1. The conditional sales contract. The purchaser doesn't receive title to the equipment until it's fully paid for. 2. The chattel-mortgage contract. The equipment becomes the property of the purchaser on delivery, but the seller holds a mortgage claim against it until the amount specified in the contract is paid. Leasing is another way to avoid financing the entire purchase of high priced items. With leasing, you pay for only that portion you use, rather than for the entire purchase price. Keep a close watch on operating expenses. If interest rates are high, it won't take too many unpaid bills to wipe out your profits. It’s more costly to accumulate bills than to increase production.

15. Bootstrapping With Social Media Old Spice Viral video 2 of the 30- second videos have over 50,000,000 combined views Over 180 unique videos in 2 days Old Spice YouTube Channel was the most viewed in July, 2010 107% sales increase for body wash over July

16. Social Media Takeaways Popular Channels: Facebook, Twitter, Youtube, Wikipedia “You have to listen for user feedback, and incorporate them into the feature as if it's coming down from board members. Ultimately it will be users who determine whether your new site will successfully attract and maintain critical user base.” (socialmediatoday.com)

17. The Lindorf Effect Have high gross margins and if you can have a high net margin. Pay people with cash Have low overhead “Best form of capital is human trust.” Started call center with $6800. “Try above $100 million!!!”