Table of
Contents
Chapter 1: Start-up Financing
The Way It Is
Sell Assets
Borrow Against Your Home
Borrow Against Insurance Policies
Friends And Family
Borrow Against Your Investments
Credit Cards
Chapter 2: Equipment Leasing
A Case In Point
Advantages Of Leasing
Not A Bank
Improving Your Chances Of Getting A Lease
Scoring The Lease
Letís Make A Deal
Chapter 3: Community Development Financial Institutions
The Power Of The People
Real Businesses, Please
5 Steps To CDFI Financing
Chapter 4: SBA-Guaranteed Microloans
Small Is Beautiful
When Small Isnít Beautiful
The Microloan Application Process
Chapter 5: Asset-Based Loans
Asset-Based Lending-What Is It?
Estimating Your Borrowing Capacity
Asset-Based Loans-How They Work
Requirements And Scenarios
Chapter 6: Bank Term Loans
Term Loans Are Still The Cheapest Vehicle
How Do You Qualify?
Be Prepared
Financial Statements
Red Flags
The Great Divide
You Know You Should Look Elsewhere When. . .
What Else You Need To Know
Choosing A Bank
Chapter 7: SBA-Guaranteed Business Loans
The SBA Bridges The Gap. . .
. . . And Lowers The Cash-Flow Hurdle
A Word On Posture
How To Find An SBA Lender
Onerous But Unavoidable Features
SBA-Guarantee Fees
Chapter 8: Private Loan Guarantees
Why Loan Guarantees Work
Silver Linings
End Game
Chapter 9: 504 Certified Development Company Loans
Pros And Cons
Certified Development Companies
Whoís Involved, And Whatís Qualified?
Applying For A CDC Loan
Chapter 10: Royalty Financing
Royalty Financing: The Secret Weapon
A Case In Point
Itís A Good Thing
Not For Everyone
Chapter 11: Venture Capital, Federal Government Style
Is This Option Right For Me?
More Verve Than A Lender
Making Debt Behave Like Equity
Chapter 12: Angel Investors
Why Angels?
Stalking Angels
Dealing With Federal Securities Laws
Types Of Angels
Chapter 13: Electronic Matching Services
The Dawning Of A New Era
The Network Revolution
How It Works
How To Get Started
The Limitations Of Cyberspace
Chapter 14: Business Incubators
A Case In Point
Deep Roots, Lots Of Services
Why Incubators Attract Investors
Only The Lonely
Chapter 15: 401(k) Financing
A Case In Point
Pros And Cons
Assembling The Team
Chapter 16: Direct Public Offerings
The DPO Orientation
A Case In Point
DPO Limitations
Characteristics Of DPO Candidates
Regulatory Filings For A DPO
Planning A Trading Market
How To Get Started With A DPO
Chapter 17: Reverse Mergers
The Reality Of The Situation
A Case In Point
The Benefits Of Going In Reverse
The Drawbacks Of A Reverse Merger
Next Steps For A Reverse Merger
Chapter 18: Initial Public Offerings
Why Go Public?
Broad Brush: Finding The Investment Banker
Fine-Tooth Comb: Finding Your Investment Banker
Getting Introductions
Selling The Underwriter
Common Deal Breakers
Evaluating Investment Bankers
Chapter 19: Institutional Venture Capital
Take This Test
Using A Shotgun Approach
The Rifle Approach
Chapter 20: Preparing A Loan Request
More Than Just Numbers
Doing The Legwork
What Do Banks Really Want?
Loan Proposals
Chapter 21: How Investors Use Your Financial Statements
LENDERS VS. EQUITY INVESTORS
HOW LENDERS ANALYZE FINANCIAL STATEMENTS
DETERMINING SOURCES OF REPAYMENT
Margin Analysis
Net Flow Of Funds Calculation
BALANCE SHEET ANALYSIS
Calculating Working-Capital Needs
Determining The Secondary Source Of Repayment
HOW EQUITY INVESTORS ANALYZE
FINANCIAL STATEMENTS
Equity Investor Balance Sheet Analysis
Income Statement Analysis For The Equity Investor
Cash Flow Analysis For The Equity Investor
Chapter 22: Raising Equity Capital
Business Planning
Lead Generation
Making Contact And Following Up
Closing The Deal
Chapter 23: Writing A Business Plan
BUSINESS PLAN STRUCTURES
The Company And Its Business
MARKET ANALYSIS
MARKETING OPERATIONS
Marketing Operations For Established Companies
Marketing Operations For Start-up Companies
KEY PERSONNEL
Getting The Right Spin On Biographies
Overcoming A Thin Management Team
Financial Analysis
Valuation Analysis
Use Of Proceeds
Summary Projected And Historical Financial Statements
Historical And Projected Financial Statements
Assumptions To The Financial Projections
Pricing Assumptions
Direct Cost Assumptions
Selling Cost Assumptions
Administrative & Engineering Cost Assumptions
Appendices
Executive Summary
Glossary
Appendix A: Financial Resources
Appendix B: Government Listings
Appendix C: Small-Business-Friendly Banks
Index
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