PowerPoint Presentation Content Slides Include: • Definition/s of fundraising • Learning objectives for this presentation • What fundraising for-profits is (9 points) • Easy tips for fundraising (27 points) • Angel investors (4 points) o Is your business is suitable for angel investment (16 points) • Venture capitalism (4 points) o Venture capital firms (7 points) o Venture capitalists (5 points) o Should use venture capital for financing (12 points) • Beware of debt overload and simple debt indicators (27 points) o How much money you need (16 points)  Six questions to determine startup cost o Borrowing money from friends and family (15 points) • Seller financing (13 points) o Why a seller would offer financing (6 points) o Why a buyer should ask a seller for financing (6 points) o How seller financing is usually secured (16 points) o How both the buyer and seller can benefit (11 points) • Business loans o Types of business loans (26 points) o Applying for a business loan through a bank (31 points) o Getting a bank loan approved (12 points) o The government’s role (6 points) • Actions steps (16 points)

1. FUNDRAISING FOR
NON-PROFITS
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2. 2
Program Objectives
( 1 of 3 )
Fundraising
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Understand what Financing for For-Profits
Encompasses.
Why you should raise funds for profitable
Businesses.
Comprehend how much money you should raise
for certain projects.

3. 3
Program Objectives
( 2 of 3 )
Fundraising
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Learn how to acquire a loan.
Explore the different sources for credit.
Comprehend the function of venture capitalists.

4. 4
Program Objectives
( 3 of 3 )
Fundraising
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Learn about the SBA, State Agencies, and “Angels”.
How to make the best of banks and financing
Companies.
Understand the different signs of dangerous
debt.

5. WHAT IS FUNDRAISING FOR FOR-
PROFITS?

6. A for-profit business
is an business
looking to compile
revenue.
Any for-profit
business needs
funding to
succeed.
This is where
financing for for-
profits comes into
the picture.
10
What is Fundraising for For-Profits?
(1 of 3)
Fundraising
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7. For-profits might
need funds to
restructure
operations.
Start a new
business.
Start a new product.
11
What is Fundraising for For-Profits?
(2 of 3)
Fundraising
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8. Financing for for-
profits requires a
business plan.
Lenders/investors
.
Strategy.
12
What is Fundraising for For-Profits?
(3 of 3)
Fundraising
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9. EIGHT EASY TIPS FOR FUNDRAISING

10. 14
Eight Easy Tips for Fundraising
(1 of 8)
Fundraising
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1
Build a business plan
You have to know how you plan on running your
business to form a potential investor or lender.
You have to be able to communicate this plan.

11. 15
Eight Easy Tips for Fundraising
(2 of 8)
Fundraising
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2
Make sure you have personal or
family money
When you buy a business, 20 to 50% will come
from you and your family.
To be take seriously as a potential small business
buyer, you need between 50 and 150 thousand of
ready cash for a down payment and working
capital.

12. 16
Eight Easy Tips for Fundraising
(3 of 8)
Fundraising
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3
If you want to sell your business,
self-finance your endeavors
Sellers typically finance from 30% to 70% of the selling
price.
Sometimes, banks will only participate when there is a
large amount of seller financing to indicate that the
business is sound in the eyes of the seller.

13. 17
Eight Easy Tips for Fundraising
(4 of 8)
Fundraising
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4
Don’t count on banks without
experience
If you’re a first time business buyer with no direct experience
in that business, rejections rates exceed 80%.
If you have experience, banks will finance 50-80% of real
estate values, 75-90% of new equipment values, 50% of used
equipment, and 25-50% of inventories.
They don’t finance intangible assets, except accounts
receivable, which they will finance 80-90%.

14. 23
What’s an angel investor?
(1 of 2)
Fundraising
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Wealthy, entrepreneurial
individuals.
Provide capital in return for a
proportion of the company
equity.

15. IS MY BUSINESS SUITABLE FOR ANGEL
INVESTMENT?

16. 26
Is My Business Suitable for Angel Investment?
(1 of 6)
Fundraising
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You need to raise a
reasonably modest amount.
$15,000 - $360,000

17. 27
Is My Business Suitable for Angel Investment?
(2 of 6)
Fundraising
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You are willing to develop a
personal relationship with a
business angel.
Typically, business angels want
hands-on involvement in the
management of their investment,
an amicable friendship can help
this coexistence.

18. Comes from institutional
investors and high net worth
individual.
Pooled together by
investment firms.
34
What is Venture Capital?
(2 of 2)
Fundraising
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19. 47
Beware of Debt Overload, Five Indicators
(1 of 8)
Fundraising
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When raising funds for a new
business idea or expansion,
beware of over borrowing
and building debt.
Ideally, long term debt
payments, including
mortgage and credit card
payments, shouldn’t
exceed 36% of your gross
monthly income.

20. If these indicators hit
home, think about
changing your habits
to lower debt and
build a healthy credit
history.
Bad debt/credit history
= bad for financing
your business.
Enough about debt,
let’s move on to
quantifying your start
up costs.
66
20 More Simple Debt Indicators
(12 of 12)
Fundraising
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21. Will you need to hire
specialists, like a lawyer or
an accountant?
1
Will you need to buy some office
furniture or equipment?
2
77
Six Questions to Determine Startup Costs
(2 of 5)
Fundraising
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22. What supplies will you
need on hand for Day
One?
Do you need to purchase a
beginning inventory?
3
Are you going to buy a business
or franchise?
4
78
Six Questions to Determine Startup Costs
(3 of 5)
Fundraising
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23. Will you have construction
costs, and if so, how much
needs to be done by
professionals and how much
can you do yourself?
5
What can you do to lower costs?6
79
Six Questions to Determine Startup Costs
(4 of 5)
Fundraising
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24. WHY WOULD A SELLER OFFER FINANCING?

25. HOW CAN BOTH BUYER AND SELLER BENEFIT?

26. 12 TIPS FOR GETTING A BANK LOAN APPROVED

27. SCENARIO: BAKE SALE VS. BUSINESS LETTER

28. The bake sale The letter to L.L. Bean, Local Inn,
& Red Bull
156
Scenario: Bake Sale vs. Business Letter
Fundraising
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Which Fundraising Program Is More Effective?

29. 157
Scenario: Bake Sale vs. Business Letter
Fundraising
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Bake Sale
• Needed: 84 to bake 24 items (2 dozen
each); 6 to sell
• Sale price: 50¢/each
• # needed to sell:
2000 (x 0.50 = $1,000)
• Customers: game attendees
• Personnel: Volunteers
• Direct costs: Zero (volunteers will
donate the cost of their goods)
• What is the benefit/return?
Target Letter
• Needed: 3 people to write letters,
follow-up calls and/or in person visits
• Sell price: $500 for signage at football
event and press release in paper
• # of letters to be written: 1
• Customers: 3 Targeted Businesses
• Personnel: Volunteer
• Direct costs: Signage
• What is in it for these businesses?

30. 158
Fundraising
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Business Planning
Budgeting
Analysis
Fundraising Strategy
Fundraising
Planning

31. 159
Business Planning
Fundraising
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WHAT IS THE ORGANISATION’S
PURPOSE AND WHAT ARE IT’S GOALS?

32. Project Needs in
Detail
Proposed sources
Who and how to
action
By when
Expected decision
date
Record of progress
170
Fundraising Plan:
Fundraising
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