How to fund your

San Diego Business

The Essentials

• Bootstrapping• Borrowing• Getting Investors

What is the promise?

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Cash Waterfall

COSTS

Equity

Revenue

Dividend

Start with a short business

plan that outlines your

sound idea and how and

when it will make a profit.

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KNOW the Income Statement$ REVENUE

- Costs

Operating Income

-Interest Expense

-Taxes

$ Net IncomeNet Income = Profit Use profits to buy assets that increase sales.

The Income Statement is the essential financial tool to monitor if you’re business is keeping its business promise.

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Bootstrapping

Wit dependent

barter for talent – share office – crowdfunding – win contests – get favorable terms – maintain your credit score

Focus on having enough cash, time and talent to increase sales and margin fulfill promise

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What’s your PROMI$E

to people who help

you bootstrap?

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Borrowing A lender is not an

A.T.M.

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They are partners but have no ownership

stake.

Borrowing A lender receives

-

• Interest

• Principal

• More Businesswww.moneynative.com

Borrowing

Show a longer business plan that demonstrates growth

How can revenue and margins grow?

Who are your clients (market)?

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Where to go:

• ACCION – accion.org• CDC - cdcloans.com

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What’s your PROMI$E

to a lender?

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Getting Investors An investor receives-

• An ownership stake

• Dividends / Sale proceeds (ROI)

• More Business

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Getting Investors

Show a longer business plan that demonstrates significant growth

How can revenue and margins grow?

Who are your clients (market)?

How can your business scale quickly?

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Where to go:

• Tech Coast Angels – techcoastangels.com• Hera Fund - hera-labs.com/funding• Golden Seeds - goldenseeds.com

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What’s your PROMI$E

to investors?

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Communicate To stakeholders

• Bootstrap

• Lender

• Investor

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Hope is not a good strategy

Common hope stories:• I can do it myself.• I don’t need a written plan or advice.• If I build it they will come.

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A Profit Plan is good strategy

Spend cash on assets that have a direct effect on ↑ revenues. Be accountable and show appreciation to all stakeholders.

A profit plan helps:• You negotiate your business’ worth• Keep the business on track to fulfill its

promise. • Attract lenders, investors, buyers of your

business.

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What’s your PROMI$E?

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