1. How to Finance Your Business Start-Up Aizhan Tursunbayeva 24.09.2011

2. How to Finance Your Business Start-Up Access to Credit Objective: Understanding how to obtain financial support for your business during start-up and going forward.

3. Criteria for Success Business Plan including financial information: Balance Sheets, P&L Statements, Cash Flows, Budget and Time Line. Realistic Sales and Revenue Expectations Know your Opportunities and Risks Listen to Objections Learn from Criticism Understand your Finance Source and its Expectations. Provide an Exit Strategy

5. What Constitutes an Effective Business Plan Mission Statement Two or three statements that state your mission, vision and values. Key Business Activities Determine what your company sells/services. What is your market? Products and Service How does your product add value?

6. What Constitutes an Effective Business Plan Sales and Marketing Sales projections, customer pricing, forecasts and opportunities and risks Operating Plan Facilities, resources and processes used to run your business Human Resources Structure and people to operate your business. Retention of key employees

7. What Constitutes an Effective Business Plan Financial Plan Credible projections, stating your financial needs, balance sheet, P&L statements and cash flow budget. Future Growth How will your company grow in 3 to 5 years? How do you position your company?

8. What Constitutes an Effective Business Plan Exit Strategy-Four Ways to Go IPO Sale to a Competitor or Partner Sale to Employees Family Inheritance Close A properly planned exit will determine how you finance your start- up A properly planned exit can be a lucrative way to realize the value you have created

9. Starting a Business Assessment Develop ideas / business potential Your Business Plan How do you plan to finance and market your business?

10. Starting a Business Financing How to finance your business First Year Managing your day-to-day operations and planning growth

11. Obstacles to Financing a Start-Up No track record Difficult to sell concept Lack of assets No record of successful management Market acceptance

12. Sources of Finance Family, friends Personal credit cards Banks Venture capital funds Finance companies Development Banks Governmental programs

13. Sources of Finance Every source has its own expectations but all want to profit from their investment The greater the risk the greater the expectation of high returns Develop your “Value Proposition”

14. Sources of Finance: Banks WHAT DO BANKS LOOK FOR? Professional Profile Evaluate your ability to manage the project. A clear business plan. Project Viability Structured and short comments that cover all the elements of your business

15. Sources of Finance: Banks TIPS: Prove or qualify every conclusion you make Stick to your project – one clear and complete idea to many vague possibilities Help your banker to understand – Avoid technical details or language unless necessary

16. Sources of Finance: Banks Show how you will succeed Ability to repay your obligations Your forecast should prove how the project will be profitable. Keep it to a business proposition Concentrate on viability

17. Sources of Finance: Venture Capital Want high returns, equity, an exit strategy, a position on your board and will judge your proposal by the companies management experience Will provide funding on a success basis only and will withdraw funds if the company does not meet its projections Business Plan and complete financial projections

18. Sources of Finance: Finance Companies Specialized lenders – Products include leasing, subordinated debt, personal quarantines, etc.

19. Sources of Finance: Loans and Grants Loans or leases Complements other lenders Finance start-ups

20. How to Deal with Your Lenders Keep them apprised of your business Provide periodic financial information Let them know the good and bad news. It is best that any bad news comes from you and you can explain how you plan to overcome the problem

21. Types of Credit Loans Requires collateral Credit – Short and Long Term Leasing Asset based lending, the asset is the collateral, the terms fit the equipment and normally does not require prior credit history Credit Lines Use of personal credit facility. Expensive and normally is not sufficient

22. Questions