Identifying Generational Markers

There is some debate as to the start and end dates of each generation, these are the generally accepted demarcations usually associated with each American age cohort:

•The Silent Generation or Traditionalists (born late-1920s through 1945)

•Baby Boomers (born 1946 through 1964)

•Gen-X (born 1965 through 1980)

•Gen-Y, or Millennials (born 1981 through 1993)

•Gen-Z, or Generation Next (born 1994 through 2004)

Want Your Product Featured on 40 Morning Talk Shows?

Toys, Strollers, Electronics and Household products! It's a PTPA Media Blitz Alert! PTPA Media (Parent Tested Parent Approved) is on the hunt for the top products for parents and kids for their fall and holiday campaigns. From gadgets and games, clothes and toys and household appliances, PTPA is looking for it all. PTPA is the leading awards company in North America with over 40,000 parent testers. These guys know how to pitch a product. They have been featured on over 40 morning shows.

Submission deadline is August 8th so hurry up and submit here:

http://ptpamedia.com

What is EBITDA?

If you’re not familiar with the term EBITDA, don’t worry. EBITDA is actually pretty simple – it’s simply defined as – Earnings Before Interest, Taxes, Depreciation and Amortization.

With that in mind, you can pre-calculate your historical and projected EBITDA as follows:

+ Net Income (or Loss) from your Income Statement

+ Interest Expense (if any) from your Income Statement

+ Taxes (if any) from your Income Statement

+ Depreciation (if any) from your Income Statement or Cash Flow Statement

+ Amortization from your Income Statement or Cash Flow Statement

10 YouTube Videos Every Entrepreneur Should Watch

Inc.com compiled a list of videos that every entrepreneur should watch and Business Insider compiled them at:

www.businessinsider.com/10-youtube-videos-that-every-entrepreneur-should-watch-2011-6#developing-the-ceo-within-you-1

Becoming a CEO is all about constantly learning and improving oneself—and later, others—to establish a true role within a company, instead of merely being a placeholder.

I have watched them all and it’s true, these really are videos that Every Entrepreneur Should Watch.

June Promo

•Accordion Awareness Month, Natl
•Adopt-A-Shelter-Cat Month
•Aphasia Awareness Month, Natl
•Audiobook Awareness Month
•Bathroom Reading Month, Natl
•Camping Month, Natl
•Cancer from the Sun Month
•Candy Month, Natl
•Caribbean-American Heritage Month, Natl
•Child Vision Awareness Month
•Childhood Cancer Campaign Month, Intl
•Children's Awareness Month
•Dairy Alternatives Month
•Effective Communications Month
•Entrepreneurs "Do It Yourself" Marketing Month
•GLBT Book Month, Natl
•Great Outdoors Month
•Iced Tea Month, Natl
•June Dairy Month
•June Is Perennial Gardening Month
•Lesbian, Gay, Bisexual and Transgender Pride Month
•Men's Month, Intl
•Pharmacists Declare War on Alcoholism Month
•Professional Wellness Month
•Rebuild Your Life Month
•Rivers Month, Natl
•Rose Month, Natl
•Safety Month, Natl
•Skyscraper Month
•Soul Food Month, Natl
•Sports America Kids Month
•Steakhouse Month, Natl
•Student Safety Month
•Surf Music Month, Intl
•Vision Research Month

Funding a Restaurant Franchise?

It’s raining and raining. Like the sunshine, good loan opportunities are hard to come by for restaurant franchises or franchisees. Whether the collateral is commercial or residential, the pool of good quality well collateralized, stabilized loan opportunities are small and, along with employment numbers, shrinking. Costs, meanwhile, and the regulatory burden on small businesses are climbing. Tough times to be a banker, not to mention a small business owner. Some have had loans called in by lenders, foreclosed on and others have walked away but the times are a changing. You can negotiate on the restructuring of your loan, and in some cases, buy back the loan at a sharp discount.

According to Tom Mullaney, founding principal with Huntley Mullaney Spargo & Sullivan, Inc. (HMS) specialized in debt restructuring for companies and high-net worth individuals having trouble paying back their lenders:

“If you have the appetite to think about growing again, now is the time to strike. If that great location is at $90,000 this year, it will be at $120,000 next year. Banks make loan loss reserves every quarter, so it’s a good time to go to the bank and buy your loan back because as time goes by and reserves increase, you odds of getting a discounted loan payoff improve. And, if you do it right, you can buy back your debt at a significant discount. Of course, it all depends on the situation—including personal and corporate guarantees. But there are ways of dealing with guarantees. Now is the time to horse trade with a landlord. The landlords need to show their lenders they have signed tenants with lots of lease term. They don’t want their loans called in, either. The window of opportunity will be gone soon.”

Franchisees are the great American story and franchise lenders are more willing to put capital to work in franchising. So here are some options to grow your business:

1) The answer to lackof-credit-access issue without becoming a lender. Franchise
Note Buyers purchases business-backed notes (IOUs) on the secondary market. They allow franchisors to drop the risk of being their franchisee’s lender while also helping buyers and sellers of existing small businesses to finance and cash-out their
resale transaction without requiring a buyer’s bank loan. They specialize in buying franchise-backed notes, but they also buy notes that are secured by non-franchised small businesses.

“We’re spreading the word that deals can get financed without bank loans – transferring some power from the banks back to business owners.” For more information on Franchise Note Buyers, contact Rich Kolman, president, at (855) 362-2274, or by e-mail at rich@franchisenotebuyers.com .

2) First Franchise Capital specializes in lending to the franchised restaurant industry, and works with well-known brands across the country. The company provides financial solutions to help franchisees purchase real estate and equipment, remodel,
finance new construction, acquire existing locations, refinance debt and restructure ownership. For more information, contact Tom Schuldt, president, at 201-326-4007, or at Thomas.Schuldt@firstfcc.com ; or contact Rick Riecker, first vice president, marketing development at (201) 326-4021, or at Richard.Riecker@firstfcc.com.

3) Infinity Franchise Capital will offer conventional financing for experienced
operators in the nation’s top restaurant brands. The firm will offer loans for equipment, real estate, new store development, partnership restructuring, refinancing and remodels from $100,000 to in excess of $20 million. For more information on contact Sharon Soltero at ssoltero@infinityfranchise.com .

4) GE Capital, Franchise Finance is a lender for the franchise finance market via direct sales and portfolio acquisition. With more than 30 years of experience and $14 billion in served assets, they serve more than 5,000 customers and more than 22,000 property locations. For more information, call 866-GET-GEFF (438-4333).

5) Wells Fargo Restaurant Finance provides capital to corporate restaurant brands, multi-unit restaurant franchises, private equity firms and other financial investors in restaurant companies. For more information, contact Becky Brown, managing director, at (858) 756-8422 or by e-mail at becky.d.brown@wellsfargo.com.

6) United Capital Business Lending, which recently acquired the small business lending operations of Butler Capital, is a subsidiary of BankUnited, the largest bank in Florida with $11 billion in assets. The newly formed United Capital Business Lending now brings the prior experience of Butler Capital together with the financial strength of BankUnited. For information on United Capital Business Lending, contact Trey Grimm 866-218-4793.

7) CG Commercial Finance finances equipment for middle and large-ticket deals for larger or multi-unit restaurant companies, both through debt financing and tax leases. For more information on CG Commercial Finance, contact Jon Albin, senior vice president at 949-720-9511 or by e-mail at jon.albin@cgcommercial.com.

8) Guidant Financial is a provider of 401(k) rollovers as business start-ups (ROBS). Guidant’s services allow entrepreneurs to invest their existing IRA or 401(k) funds into a small business or franchise without taking a taxable distribution or getting a loan. Guidant also offers franchisees the option of matching their financing needs with an appropriate lender. For more information on Guidant Financial, contact Jerry Darnell at 888-472-4455, or by e-mail at jerry.darnell@guidantfinancial.com.

9) AEF is an equipment financing and leasing company, operating in multiple locations across the U.S. and headquartered in Warren, NJ. AEF provides same-day approvals for up to $250,000, and specializes in leases and loans ranging from $25,000 to $1.0 million. AEF is an independent commercial finance company specializing in financing to the QSR franchise and retail petroleum industries. For more information on American Equipment Finance, contact Richard A. Baccaro, president, at 800-785-3060, ext. 203 or by e-mail at rbaccaro@aefllc.com.

10) Pinnacle Commercial Capital, founded in 2002, is a commercial finance company that specializes in financing franchisees throughout the U.S. Pinnacle’s clients include multi-unit operators of national and regional restaurant concepts and specialty retail brands, and provides and manages franchisor-sponsored loan programs to assist with franchisee acquisition and conversion initiatives. For more information, contact William Wildman, president, at (317) 472-2828 or by e-mail at ildman@pincomcap.com; or James B. Railing, vice president, at railing@pincomcap.com

11) BoeFly is the online marketplace connecting lenders with business borrowers, secondary market loan buyers and professional service providers. For more information on BoeFly, contact Mike Rozman, executive vice president, at (646) 755-7433, or by e-mail at mrozman@boefly.com.

May Promo Month Ideas

•Allergy/Asthma Awareness Month, Natl
•Arthritis Awareness Month
•Asian/Pacific American Heritage Month
•Awareness of Medical Orphans Month
•Barbecue Month, Natl
•Better Hearing Month, Natl
•Better Hearing and Speech Month
•Bike Month, Natl
•Business Image Improvement Month, Intl
•Civility Awareness Month, Intl
•Creative Beginnings Month
•Ecodriving Month
•Family Wellness Month
•Fibromyalgia Education and Awareness Month
•Freedom Shrine Month
•Get Caught Reading Month
•Gifts From the Garden Month
•Good Car-Keeping Month, Natl
•Haitian Heritage Month
•Hamburger Month, Natl
•Heal the Children Month
•Healthy Vision Month
•Hepatitis Awareness Month, Natl
•Huntington's Disease Awareness Month
•Internal Audit Awareness Month, Intl
•Jewish American Heritage Month
•Latino Books Month
•Meditation Month, Natl
•Melanoma/Skin Cancer Detection and Prevention Month
•Mental Health Month, Natl
•Military Appreciation Month, Natl
•Motorcycle Safety Month
•Moving Month, Natl
•Older Americans Month
•Osteoporosis Awareness and Prevention Month, Natl
•Personal History Month
•Photo Month, Natl
•Physical Fitness and Sports Month, Natl
•Preservation Month, Natl
•REACT Month
•Revise Your Work Schedule Month
•Salad Month, Natl
•Salsa Month, Natl
•Smile Month, Natl
•Strike Out Strokes Month
•Stroke Awareness Month, Natl
•Sweet Vidalia Onion Month, Natl
•Teen CEO Month
•Tennis Month
•Ultraviolet Awareness Month
•Victorious Woman Month, Intl
•Vinegar Month, Natl
•Women's Health Care Month
•Young Achievers/Leaders of Tomorrow Month


May-June
•Family Month, Natl (May 8-June 19)
•Prepare Tomorrow's Parents Month (May 8-June 10)

Business Loans Aren’t Just About Money

Getting your business financed isn’t easy by any means. There are several types of loans and several types of financial institutions you can look to for financing.
Here are some options:

SBA 7 (a) loans
As you know, the SBA 7(a) loan guarantee program provides long term financing for small businesses not normally available through conventional commercial lending channels. This program provides the nation’s small business community with manageable long term debt service. Loans can be guaranteed to a maximum amount of $750,000. The originating bank, Credit Company or credit union keeps the non guaranteed portion and services the loan. The guaranteed portion is frequently sold on the secondary market. This is true of the SBA 7A and each of the loan types
discussed below.

Nearly 3,000 lenders have made 7(a) loans last year which is up 21% from 2008. The 7(a) program is the SBA’s largest loan program. The SBA is involved in less than 10% of all small business loans, however, and some banks won’t participate because of red tape. Lenders must follow the SBA’s rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.

7(a) Loan Program

The 7(a) Loan Program includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes.

•Special Purpose Loans Program
http://1.usa.gov/dXysSH

•Express & Pilot Programs
http://www.sba.gov/content/express-pilot-programs

•Export Loan Programs
http://www.sba.gov/content/export-loan-programs

•Rural Business Loans
http://www.sba.gov/content/rural-business-loans

Eligible Use of 7(a) Loan Proceeds Include (Non-Exclusive):

•The purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities

•The purchase of equipment, machinery, furniture, fixtures, supplies, or materials

•Long-term working capital, including the payment of accounts payable and/or the purchase of inventory

•Short-term working capital needs, including seasonal financing, contract performance, construction financing and export production

•Financing against existing inventory and receivable under special conditions

•The refinancing of existing business indebtedness that is not already structured with reasonable terms and conditions

•To purchase an existing business

Don’t ever forget that getting a loan isn’t just about the money. When you choose to apply for a loan make sure you use a lender with whom you have been saving your money, making mortgage or credit card payments with, writing checks to, or you have a special relationship with. Granted, sometimes this will not be possible because your best bet to obtain financing will be from a specialty lender, but most of the time, it will. But what if you need the money now? This Community Bank can finance nationally. They offer both SBA-guaranteed and conventional financing. They will finance up to $300,000 for FF&E, and up to $10 million for restaurant acquisitions, new build and equipment purchases. For more information on Equity Bank, contact Brad Elliott,CEO/President at 316-858-3106 or by e-mail at belliott@equitybank.com.

Hedge Funds

To hedge means to minimize risk or insulate oneself. Generally the term 'hedge fund' is used to refer to a type of private investment vehicle that invests all or most of its assets in publicly traded securities and hedges the investors’ risk from market exposure. These investment vehicles are commonly structured as limited partnerships in which the investment manager, or the investment manager's capital management company, acts as the general partner while the investors act as the limited partners. These funds are alternative investment vehicles and are generally available to high net worth individuals and institutional investors. For the investors who make up the fund, there is usually little or no market liquidity. In fact they usually have a minimum lock in period ranging from one to three years.

Hedge funds are broadly defined by their structural characteristics. They are considered to be an asset class that aims in producing absolute (not relative) returns, irrespective of how the markets perform. The best of these funds offer greater diversification, less risk and more stable returns than conventional equity investments moreover some offshore hedge funds can offer plan sponsors a third advantage: tax-free hedge fund investing.

The conventional equity and bond manager’s performance is largely related to the
performance of the underlying markets. On the other hand, performance of hedge funds
depends on the skills of the fund manager, who risk his own as well as his clients’ capital. The manager receives a fee for managing the fund, only if it is productive.

Strategies of Hedge Funds aka Hedgers
Hedgers use the futures market to protect themselves from risk. Similarly the portfolio managers hedge stock fund risk. Commonly, prices in the cash markets have a fundamental relationship to the futures prices. When the forces of demand and supply change the prices in the cash market, the future prices are supposed to move in a parallel fashion. But in reality they do not move.

Hedgers take advantage of this relationship between cash and futures prices. Analysts attempt to classify them into a number of different strategies and sectors, but each set of managers is essentially looking to exploit pricing anomalies through trading, rather than through simply buying and holding of the assets. Hedge fund managers aim to exploit price differentials, remaining market-neutral. Successful funds with good track records make money and prosper, although limits to the size of trades and the need to stay nimble do limit a manager's size.

The size of the hedge fund industry, relative to the markets in which the funds operate, is too small for hedge funds alone to move the market. However, it is
possible that they may move the market because other investors follow their lead.

http://en.wikipedia.org/wiki/Hedge_fund

http://www.barclayhedge.com/research/educational-articles/hedge-fund-strategy-definition/what-is-a-hedge-fund.html

http://money.cnn.com/2008/12/18/news/economy/hedge_fund_liquidations/?postversion=2008121817

http://www.hennesseegroup.com/releases/release20100119.html

http://online.wsj.com/article/BT-CO-20110304-711526.html (Trillions)

http://www.hedgeworld.com/

http://www.hedgefund.net

Investor Presentation

Wondering what types of information that could be useful in helping you secure funding? Well, there are numerous different types of investor presentation material that you can use. The kind you select simply depends on your needs. Will you use the business plan to secure funding from a venture capitalist or angel investor? Perhaps you're considering a loan? I suppose it just depends on who you talk to as to who wants what. Some investors want an Investment Overview which is used in conjunction with your Long Version of an Executive Summary aka Business Summary. This is used to not just solicit interest from an investor or venture capital firm (VC) about your investment opportunity, but it gives an investor the facts about your opportunity so it can be quickly qualified and vetted.

The process of looking for money can be lengthy, but by providing the right documentation from the get-go, you will shorten the VC process and get the attention your deal deserves. The following is what I suggest:

Investment Overview aka One Pager following this format:
https://angelsoft.net/pdf/sample_application.pdf

This is probably the single most important document you will send to prospective investors, so ensure it is targeted, concise, complete and accurate, with no mistakes or sloppiness. Develop the Investment Overview last, after you have completed your Business Plan, Executive Summary, and PowerPoint presentation.

A PowerPoint presentation, 12 slides is all you need:
1. Cover Page/Intro
2. Overview
3. Problem
4. Market
5. Team
6. Solution
7. Customers/Revenue Model
8. Go to Market
9. Competition
10. Financials
11. Milestones
12. Summary

Long Version Executive Summary aka Business Summary:
Generally this is detailed, yet it should be brief and concise. Your Business Plan will provide the next levels of detail the Investor or VC requires. Venture Capital firms provide their investment criteria and requirements on their website so that prospective entrepreneurs can provide them the information necessary to determine the deal’s qualifications in view of their investment parameters.

Business Plans
Business plans vary as well. A Business Plan should be over 50 pages and can be upwards of 100+ pages. This is highly dependent on the size, background and complexity of the business, venture or project.

The Business Plan Package is specific to the audience. Be sure to include sections specific to that audience’s requirements and interests. Each Business Plan is packaged and edited for the type of plan and customized for the audience.

Comprehensive Plans are the long ones thus the name. Or you can write a shorter plan sometimes called an Ancillary Plan, typically these are no more than 30 pages with 20-25 pages being the goal. Ancillary Plan brevity forces you to decide what is most important and requirement for the type of plan and the intended audience. Some business plan software templates produce this types of plans.

Going for a bank loan? A basic business plan with an executive summary, market analysis, and three year financials is suitable for bankers. For venture capitalists or angel investors, you may need to expand your financial forecast to five years.

If you fail to grab the attention of the person reading the one pager, executive summary within the first five seconds, it’s quite likely that he or she will stop right there and move on to the next project. So think like a fisherman, you gotta hook'em.

Personal Gifts & Funding a Business

The Types 5 of Personal Gifts
• Cash (direct to you, paid on your behalf, etc.)
• Discounts (letting you piggyback on a deal…)
• Freebies (free use of something or someone)
• Sweetheart Deals (overpayment, 1st choice…)
• Loan Forgiveness (from debt to gift)

Making Personal Gifts Work
• Gifts always cost time, usually cost aggravation, and sometimes even money
• Gifts work best when leveraged
• Most start‐ups depend on gifts, but don’t notice them
• Restate them as “in‐kind payments” to realize their value
• Get it in writing, e.g. a promissory note, see: www.inc.com/guides/2010/10/how‐to‐write‐a promissorynote.html

A possible source of grants for small businesses is the White House Faith-Based and Community Initiative funding that comes from federal agencies like HUD down through to churches and non-profits, to which you apply for a grant for your business. Do not be misled by the name, the program is for any for-profit or non-profit business that qualifies. You can view the program at http://www.whitehouse.gov/government/fbci/

Investment Styles

I have a variety of companies that ask me what certain terms mean as it relates to investment styles, thought this may help.

Business Angels
Accredited angel are worth more than $1M
– Professionals, wealthy families, more established
– Think your church, schools, network from work

Everyday angels are people like you
– Friends, family, people in your neighborhood who might be willing to take a chance

Lists of Angel Groups:
http://bit.ly/g7xOqW

Private Equity
The investment focus of a private equity fund is generally on a specific style of investing, largely determined by either the portfolio company’s stage of development or industry focus. A key feature is that investments involve equity ownership in a business, in contrast to loans.

Equity investors generally receive a seat on a company’s board of directors and are involved in management and strategic decision-making. Private equity investment funds can be classified into the following three styles:

Venture Capital
Venture capital invests in companies early in development, ranging from seed
investments designed to develop a concept, to funding complete development of a product, to late stage investing where expanding a firm’s customer base is the investment goal. Venture capital is frequently deployed in technology-oriented companies. This investment strategy carries the highest risk; early stage companies are subject to numerous risk factors, including financial, market, operational, and technology. Venture capital investing can also provide spectacular returns.

Buyout/Corporate Finance
Investments in existing operating businesses make up a large portion of the private equity investment universe. These investments may include helping new owners finance the acquisition of a business (generally as a result of a sale by a corporate parent or a generational change in the ownership of a family business); finance expansion for an existing business, allowing it, for example, to acquire smaller competitors; or to recapitalize a business to provide it greater flexibility to operate. Buyout and growth equity investments frequently involve organizations with substantial
employment and prospects for job growth.

Mezzanine
Mezzanine investments are a form of corporate finance where the investment has
characteristics of both a loan and an equity investment. These investments are at the point in a company’s capital structure between debt and equity (hence the term “mezzanine”). The fundamental difference between private equity investing and investments in public securities is the manager’s participation in the growth and development of the portfolio company. The investment manager’s ability to devise strategy, hire key staff, implement an optimal capital structure, seek new customers, and identify possible acquisitions set private equity apart from passive investments in public securities.