Living the Dream - Living the Dream - LiveLive

““18 Ways to Raise Money 18 Ways to Raise Money

for YOUR Business”for YOUR Business”

March 24, 2010

E-Seminar / Conference Call

Host:Mark Kohler, CPA, Attorney At Law

www.kkolawyers.comTelephone 435.586.9366Facsimile 435.586.9491

© KKO Lawyers, LLP 2009

www.kohlereyrecpas.comTelephone 435.865.5866Facsimile 435.586.9491

© Kohler & Eyre CPAs, LLC 2009

www.numberwonaccountants.comTelephone 435.865.7820Facsimile 435.586.7702

© NumberWon Accountants, LLC 2009

Here’s what to ExpectHere’s what to Expect

I.I. Borrowing (5)Borrowing (5)II.II. Partners (2)Partners (2)III.III. Investors (3)Investors (3)IV.IV. Subsidies (2)Subsidies (2)V.V. Corporate CreditCorporate CreditVI.VI. Qualified MoneyQualified MoneyVII.VII.Miscellaneous (4)Miscellaneous (4)

Borrowing

#1. Borrow from Family and Friends– Document everything– Is their ‘security’?– Make realistic promises

#2. Use Credit Cards– Interest Rates can be

dangerous– Not recommended

Borrowing

#3. Small Business Administration

(“SBA”) Loan– 504 / Seasoned borrower / fixed

assets (as low as 10% down)– 7A / Equipment / 30% down – www.sba.gov– Will Jones Special Guest Wells Fargo

Borrowing

#4. Home Equity Line– Home Equity lines of Credit are still

available– HELOC’s are LTV restricted and

subject to change.– You must have good credit history.– Line of Credit vs Traditional second

mortgage. – Martin Rodriguez Special Guest

Borrowing

#5. Business Line of Credit – Not “Corporate Credit”– Conventional up to 100k (tough

to get)– Secured loan on Inventory and

A/R (may use SBA)– Personally guaranteed– Will Jones Special Guest Wells Fargo

Borrowing

#6. Joint Venture Agreement– Document every aspect

carefully– Watch out for Vicarious Liability– Use your entity instead of YOU– May have to do tax return– 1099 may work (not to avoid

employee role)– Special Guest Kenny Childs

Partnering

#7. Limited Liability Company– Flexible– Vicarious liability protection– Tax Return– More efficient and

comprehensive in the long run– Special Guest Kenny Childs

Partnering

#8. Angel Investor- an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organize themselves into angel groups or angel networks to share research and pool their investment capital.

- Remember the importance of Business Plans, Brochures and Executive Summaries

To find: Google and Networking

Investors

#9. Venture Capital- is a type of private equity capital typically provided for early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. Venture capital typically comes from institutional investors and high net worth individuals pooled together in dedicated investment firms. List of top 100: List of top 100: www.entrepreneur.com/vc100/index.htmwww.entrepreneur.com/vc100/index.html l

Investors

#10. Securities Offering – Be careful making promises– Reg D / PPM– Consult with a Securities Attorney– Special Guest Mat Sorensen,

Attorney

Investors

#11. State Grants exist in EVERY state for a variety of businesses. Also minority and women owned business can often times get streamed lined service or specific opportunities.

www.usgovinfo.about.com/od/www.usgovinfo.about.com/od/smallbusiness/a/stategrants.htm smallbusiness/a/stategrants.htm

Subsidies

Subsidies

#12. Federal Grants and subsidies are also a huge option. An Example SBIR Small Business Innovation Research Program is a government-funded award system that provides funding to qualified small business concerns that meet research and development needs of the Federal Government.

www.usgovinfo.about.com/od/smallbusiness/a/stategrants.htm

#13. A ‘SCAM’ 99% of the time– Don’t pay up front– Review all applications for

accuracy and fraud– Understand what terms you

will be getting on the credit

Corporate Credit

#14. Self-Directed Retirement Plan– Qualified monies include IRAs,

401ks, SEPs, Simples, Keoghs, HSAs, and DB plans

– Watch out for Prohibited Transactions

– Have Legal/Tax support throughout the process

Qualified Money

#15. Save up your own money– Keep your ‘Day job’– Be Patient– Cut all possible costs– Use Sub-Contractors when

possible

Miscellaneous

#16. Sell Something– E-Bay / Craigs List– Yard Sale– Real Estate

Miscellaneous

#17. Gift or Inheritance– Get it when you can– No guarantees

Miscellaneous

#18. Charitable Donations– Form a Charity out of your

business– Must have Charitable Purpose– Beware of Prohibited

Transactions and Self-Dealing– Salaries must be reasonable

and have market comparables

Miscellaneous

Thank YouFor more information, please contact us

at:

KYLER KOHLER OSTERMILLER & SORENSEN, LLPTel: 435.586.9366 Fax: 435.586.9491

www.kkolawyers.com