1. 4/15/2012
Finances and Your Business
“Beg, Borrow or Steal”
$$$$ to get the show on the road!
 Identity and Promotion
 Branding, marketing/advertising, sales materials
 Infrastructure
 Legal, regulatory, technology, furniture & fixtures
 Admin
 Utilities (phone, internet), Supplies, Postage, Insurance, Rent
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2. 4/15/2012
Financing Options
 Beg
 Family (early inheritance?), friends (put it in writing)
 Borrow (external)
 Banks Instead – P2P Service
 Prosper.com – Ebay for loans
 LendingClub.com – lenders & borrowers find something in
common
 Angel Capital Association - trade association of angel groups and
private investors that invest in high growth, early-stage ventures.
Financing Options – con’t
 SBA – Microloan program through lending partners
 Maximum $50k, 6-year term
 Working capital
 Inventory or supplies
 Furniture or fixtures; machinery or equipment
 Not for existing debts or to purchase real estate
 Intermediary – non-profit, community-based agency; required to
provide training and technical assistance to borrower
 www.AccionChicago.org (see attachment)
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3. 4/15/2012
Financing Options – con’t.
 Steal (internal)
 Savings – reserve for unexpected stuff? emergencies?
 Life Insurance Cash Value – impact on death benefit?
 Home Equity Line of Credit – tied to a variable rate? need for a
car, home improvement, college?
 IRA or 401(k) – penalty? leveraging your future?
Intangibles & Expense Resources
 Time commitment, self-discipline, back-up plan
 Outsource? (see attached resource list)
 Recordkeeping
 Quicken or QuickBooks
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