1. Financing Your Business

2. Getting Started Bootstrapping: Operating a business as frugally as possible and cutting all unnecessary expenses.

3. Start-up Money Equity Financing: Cash raised for a business in exchange for an ownership stake in the business Debt Financing: Financing with loans that must be paid back with interest Equity Financing: Cash raised for a business in exchange for an ownership stake in the business Debt Financing: Financing with loans that must be paid back with interest

4. Sources of Equity Capital/Financing Personal Savings Friends & Family Private investors (Angels) Partners Venture Capitalists Personal Savings Friends & Family Private investors (Angels) Partners Venture Capitalists

5. Sources of Debt Capital/Financing Bank Trade Credit SBA Loan Commercial Finance Companies Minority Enterprise Dev. Programs Bank Trade Credit SBA Loan Commercial Finance Companies Minority Enterprise Dev. Programs

6. What Bankers Expect FIVE C’s 1. Character 2. Capacity 3. Capital 4. Collateral 5. Conditions FIVE C’s 1. Character 2. Capacity 3. Capital 4. Collateral 5. Conditions

7. What Bankers Expect FIVE C’s 1. Character: A. The borrower’s reputation for fair and ethical business B. Business experience C. Management team FIVE C’s 1. Character: A. The borrower’s reputation for fair and ethical business B. Business experience C. Management team

8. What Bankers Expect FIVE C’s 2. Capacity: A. The ability for the business to pay the loan 3. Capital: A. The net worth of a business FIVE C’s 2. Capacity: A. The ability for the business to pay the loan 3. Capital: A. The net worth of a business

9. What Bankers Expect FIVE C’s 4. Collateral: A. Valuable assets a bank can claim if the loan is not paid back 5. Conditions: A. Potential for growth B. Amount of competition C. Location D. Form of ownership FIVE C’s 4. Collateral: A. Valuable assets a bank can claim if the loan is not paid back 5. Conditions: A. Potential for growth B. Amount of competition C. Location D. Form of ownership

10. Start-Up Costs The costs a business incurs before a business opens. Determining Start-Up Costs The costs a business incurs before a business opens. Determining Start-Up Costs Suppliers Vendors Manufacturers Distributors Other businesses in your industry

11. Start-Up Costs Rent Security deposit Equipment Furniture, Fixtures, Phones, Computers, Counters, etc. Fees and Licenses Permits, Licenses, Legal Fees Promotion Expenses Business, Cards, Brochures, Forms, Contingency Rent Security deposit Equipment Furniture, Fixtures, Phones, Computers, Counters, etc. Fees and Licenses Permits, Licenses, Legal Fees Promotion Expenses Business, Cards, Brochures, Forms, Contingency