GUIDE TO ACQUIRING STARTUP FINANCING Presented By: Kristian Ward

2

Getting Your Ducks In A Line

YOU WILL NEED:INCORPORATE NOW www.corp95.comTrademark/Patents www.legalzoom.comA written business plan www.Liveplan.com

• Objective• Management team• Market• Products and services• Competitive advantage• Financial forecast

3

FORECAST REVENUE, EXPENSES AND OPERATING CAPITAL REQUIREMENTS

CALCULATE:– Monthly projected sales revenue (minimum of 36 months)

• Break down by cash sales and credit sales (accounts receivable)• Include assumptions

SUBTRACT:– Monthly expenses

• Product costs• Salaries• Rent• Utilities• Insurance• Software subscriptions

• Travel• Interest on loans (assume market rates)• Credit card processing fees• Any other significant expenses (except

depreciation)

• Non-financed fixed asset purchases• Product purchases that remain in

inventory

• Principal payments on loans.

– Other monthly cash outflows

RESULT:Operating capital required

4

WHAT DO YOU NEED THE MONEY FOR?

FACILITYEQUIPMENTTECHNOLOGYFURNITURE AND FIXTURESVEHICLESFRANCHISESTAFFSALESPRODUCT DEVMANUFACTURING / SUPPLYMARKETING / ADVERTISING

5

LETS GET REAL

PERSONAL FINANCIAL STATEMENTDEMONSTRATE FINANCIALCOMMITMENT BY:– Investing personal cash in the business– Signing a personal loan guarantee– Pledging personal assets as collateral

WHAT IS YOUR CREDIT SCORE? DO YOU KNOW?Whens The Last Time You Checked Under The Hood?

Get Real and Get Professional Credit Help Don’t Do it Alone!

6

SME/Start Up Financial Products

All Loans REQUIRE a minimum $10,000/mth In Revenue

Medium Term LoanA medium-term loan is a simple interest business loan with a low rate and flexible terms ranging from one to five years, with no prepayment penalties. No collateral is required for a medium-term loan, but a personal guarantee is needed.

Benefits

- Low rates and flexible terms

- No prepayment penalties

- No collateral required

- Personal guarantee required

Short Term FundingShort-term funding can help you take care of immediate needs in your business, whether that is a cash-flow shortfall or a new business opportunity. No collateral is required for short-term funding, the required documentation is limited and perfect credit not needed. Nearly every industry can get short-term funding.

- No collateral required- Limited documentation needed- Perfect credit not required- Nearly every industry accepted

Invoice FinancingInvoice financing is based on your outstanding invoices or receivables, and the underwriting process is based on your customer, not your business. Minimal documentation is required and there are no pre-payment penalties.

- Quick access to future receivables

- Customer based underwriting process

- Minimal documentation required

- No pre-payment penalties

7

POTENTIAL FUNDING SOURCES

Medium Term LoanA medium-term loan is a simple interest business loan with a low rate and flexible terms ranging from one to five years, with no prepayment penalties. No collateral is required for a medium-term loan, but a personal guarantee is needed.

- Only pay interest on funds drawn- Credit is available when needed- Nearly every industry accepted- May require collateral

SBA LoanAn SBA loan is a low-interest, government-backed loan, with the longest terms and lowest rates available. Repaid monthly, it is available to businesses that have been in business for at least two years. Collateral is required for loans of more than $26,000.

- Longest terms and lowest rates available

- Monthly repayment structure

- Minimum 2 years in business

- Collateral required above $25,000

8

MORE POTENTIAL FUNDING SOURCES

Medium Term LoanA medium-term loan is a simple interest business loan with a low rate and flexible terms ranging from one to five years, with no prepayment penalties. No collateral is required for a medium-term loan, but a personal guarantee is needed.

- Only pay interest on funds drawn- Credit is available when needed- Nearly every industry accepted- May require collateral

SBA LoanAn SBA loan is a low-interest, government-backed loan, with the longest terms and lowest rates available. Repaid monthly, it is available to businesses that have been in business for at least two years. Collateral is required for loans of more than $26,000.

- Longest terms and lowest rates available

- Monthly repayment structure

- Minimum 2 years in business

- Collateral required above $25,000

Equipment FinancingYou need to add equipment to your business but you don’t want to tie up your capital. Equipment finance is available with little or no down payment, in both lease and loan options. The approval process is fast approval, the payment schedule is affordable and there are potential tax advantages.

- Fast approval process- Potential tax advantages- Lease and loan options available- Affordable payment schedule

9

Completely Done Online and Automated

Franchise FinancingFranchise financing is a short-term funding choice that can help you meet even the most substantial expenses of running a franchise business. The underwriting process is based largely on the strength of the franchisor.

- No collateral required- Minimal documentation

required- Most industries accepted Up to $500,000 per

location

CrowdfundingFor many startups, a crowdfunding campaign offers an outstanding way to raise growth capital that can help transform a prototype into a product and an idea into a viable business. For a new business, it can present some real advantages over traditional financing, like having a greater reach, requiring a smaller investment of time and money, and bearing a smaller barrier to entry.

- It generates traction, social proof, and validation.- It’s an opportunity for crowdsourced brainstorming to refine your idea.- It gains you early adopters and loyal advocates.- It doubles as marketing and media exposure.

10

HOW WARD&CO. CAN HELP YOUR BUSINESS

FREE One On One Consultation- Review your current Marketing and Sales Plan- Print and Branding Services

- Business Cards/Flyers etc- Work With You To Market Your Business Locally And Increase Revenue (Get to $10k/mth)- Provide Professional Guidance and business

assistance Through Our Partner Network- Web and App Development Assistance

Questions?

Kristian WardKristian.Ward@Wardnco.com321.289.1490