TIM – Week 7

Well, hello week seven!  Although it seems like many of the original moguls haven’t been at class for several weeks, BizWorks Members and guests have been attending.  Full room tonight!

After organizing the snack table [chips, granola bars and water bottles] with Thaddeus Huff (BizWorks Center, Executive Director), Tanner A. Collins, Jr. (BizWorks Center, Assistant Director and Incubator Manager) opened up with some great quotes and a great introduction for our first speaker…

I wish I could remember the quote from his mom… it was SO good!!  But, I shared the other on Twitter…

 TWEET:  “There are no bumps in the road if you take the extra mile.” @tacollins

Now, remember… these are just my notes to recap what I recorded as noteworthy and for those who couldn’t attend tonight.  If any of the information is incorrect, feel free to leave a comment below!  Let’s go…

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NATHALIA ARTUS

After a very complimentary introduction from Tanner, Nathalia told us more about herself and began to tell us about what she does for the VSBFA (and her connection with the SBA).  She shared about the following forms of federal assistance:

Loans (SWaM Business Micro-loan)

  • up to $25,000
  • only a $100 fee
  • 6.5% rate
  • business has to be registered for at least 24 months
  • owners credit score has to be 650+

Economic Development Loan (for fixed assets like property)

  • 60 month repayment
  • $500 application fee
  • fixed rate of 4%
  • start up and/or existing business
  • focus on job creation

Direct Loan Program

  • child care loan
  • up to $150K per location center
  • $10K for home-based businesses
  • partnership with VA Dept. of …..

Bank Credit Support Program

  • indirect loans

Cash collateral

  • VBFA pledges cash collateral to back up a bank loan

Loan Guaranty

  • VSBFA provides add
  • guaranty to the bank
  • up to 75% of the amount up to 7 years
  • $200 app fee
  • 1.5% fee off the guaranteed portion
  • no credit score requirement

How to get a loan?

  1. Be prepared!
  2. Talk to 3 bankers, who understands your business & business owner.  If you find a good fit, understand your requests and you can pay
  3. VSBFA can help assist w/ additional funding
  4. Have your banker call the VSBFA or work with SBA

NOTE:  A great resource and a new kind of business loan to fund your business is Street Sharp.

If you have any questions, feel free to contact Nathalia at (804)371-8208 or nathalia.artus@sbsd.virginia.gov

TWEET: When you go to a lender, know how much you need! Don’t go & ask them how much they can lend you! #BWStartSmart @VaDHCD @BizWorksCenter

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BREAK TIME!

Talking tweets with Nathalia Artus.  Got my coke. Got my grilled chicken (w/several helpings of sour cream) and ready for round two!

TWEET:  #BWBreakTime Again, Minnie Events made the night yummy! If you missed tonight, you missed some yummy chicken! #BWStartSmart @BizWorksCenter

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FREDAERiCK WILKERSON

Well, this was a bit unexpected!!  The second presenter of the night started his session with some music, handouts and give-a-ways… and a funny story abut “dancing with Justin Bieber”… well, you needed to be there.

After his intro music stopped, Fredarick sat down in the front of the room and opened a discussion [surprisingly, yet somewhat appropriately] with a picture of Justin Bieber… I wondered what it would feel like with him sitting down, but he really created a comfortable and open environment!

He introduced himself and asked each of us to share our names and what we do.  It is fun… each week, the moguls get more precise about our businesses.  He works at the Bank of McKenny and helps small businesses with credit analysis (i.e. crunches the numbers).

Here are the notes I recorded from his time at Start Smart:

How to get money from a bank…

  1. What are your options in loans?
  2. How much money do I need to borrow?
  3. What is the lender looking for to make a loan decision?

Financing options to consider:

  • Line of credit
  • Term note
  • Short term note

TWEET:  #BWStartSmart Good advice: Pay a business loan back as soon as you can! Fredaerick Wilkerson @BizWorksCenter @virginiasbdc

How much do I need?

  • How much you WANT to borrow
  • How much you NEED to borrow
  • How much you CAN/MAY borrow

…those are totally different amounts!

TWEET: 1-2-3 OF LENDING: Determine what you need. Determine what the cost is. Determine if you can afford it. #BWStartSmart @BizWorksCenter

Does what you want to do determined by needing a loan? 

  • Well, “If it’s not broke, don’t fix it.”

Lenders are looking to see if you are serious: (and they are looking for specific things)

  • Credit history
  • Sweat equity
  • Collateral
  • Business plan… be very realistic and up front
  • Down payment… doesn’t have to be money. It can be property, stock, life insurance, etc.
  • Debt ratio… monthly debt out of your income
  • Experience… the longer you have been in business, the more respected you will be in the bank’s eyes
  • Business track history
  • Financial trends
  • Loan to value

Other questions:

Is your business sustainable? Is your business in a good location? Is your business in demand?

TWEET:  Business owner: find the niche that will set you apart from the rest. #BWLending #BWStartStart @BizWorksCenter

FCC, SWaM

TANNER COLLINS

TWEET:  “If you have bad credit… take everything you learned tonight and throw it out.” TC

TWEET:  “Before you make the money, you got to have somewhere to put it.” TC #ohno #BWStartStart @BizWorksCenter

Introduced….

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 SHANNA KABATZNICK

Shanna from C&F Bank continued the unique introduction with a “move it” session!  Everyone!  Get up and stretch!!  Staying awake at 8:30!  Shanna introduced herself as a banker and entrepreneur, then made her presentation to us about business banking accounts:

 Cash management & relationship banking:

  1. Business vs personal bank accounts — “Don’t mix the two, keep money separate.”
  • Budgeting savings
  1. C&F has FREE business bank accounts

TWEET:  Welcome, Shanna Kabatznick from C&F. #BWStartSmart #BWshakeit #entrepreneurship @CandFBank @fabwomenrva  https://youtu.be/tYnemLPMCA0

  1. What is a budget?
  2. Spending money (credit vs debt)
  3. Establish good savings habits
    • Pay yourself first, pay bills on time, etc.
  1. Needs vs Wants
  2. Budgeting (helps you reach your goals)
  3. Credit – use it as a budgeting tool and learn how it impacts you
  • How much money do you have?
  • How many bills do you have?
  • Make informed choices!

TWEET:  Have you wondered – how can you possibly be over-drawn if you have all those checks left? #budget @fabwomenrva @CandFBank @BizWorksCenter

A business plan vs a dream:

  • Business plan:  Ex. I want to go to the Greek Islands, but I can’t go now.  So, I make a plan… put a certain amount in savings each month.  At some date, I’ll be there.
  • Dream:  I wish this would happen

**Don’t spend money you don’t have!**

Make choices and be aware where your money is going…

Credit impacts your..

  • Buying power
  • Job opportunities
  • Getting loans

 NOTE:  A great resource for being serious about your business, your budget and your numbers, this is a GREAT resource:  http://www.budgetworksheets.org.

TWEET:  Thought of the night… BE REALISTIC!!! #BeRealistic #Entrepreneurship #BWBudget #BWStartSmart @BizWorksCenter @fabwomenrva

  1. Borrowing money
  2. Identity theft (you can use credit carma w/o using a credit cards… it may not be exact, but it will be close)
  3. Internet scams – If it is too good to be true, it is!!

That’s a wrap!!  Work on your Pitch Deck slides and we’ll see you next week!

Darla

Don’t forget to follow me next week at 6:30 EST on for #BWTwitterChat as I tweet my way through class!!  You can find me at @ImbeddedMogul and @SocialMarketLLC

 

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