Business Finance Solutions – 512-990-8756 http://bfs-usa.com Creating cash flow for businesses Fri, 15 Apr 2016 23:17:33 +0000 en-US hourly 1 Creating cash flow for businesses Business Finance Solutions – 512-990-8756 clean Creating cash flow for businesses Business Finance Solutions – 512-990-8756 http://bfs-usa.com/wp-content/plugins/powerpress/rss_default.jpg http://bfs-usa.com How to double your business without doubling your costs, time, or stress http://bfs-usa.com/double-business-without-doubling-costs-time-stress/ http://bfs-usa.com/double-business-without-doubling-costs-time-stress/#respond Fri, 15 Apr 2016 04:30:52 +0000 http://bfs-usa.com/?p=1751 Ready to double your business? Would you like to double your business – and do it without doubling your costs, time, or stress?   If doubling your business seems daunting or impossible, check out this free talk by Reuben Swartz, that will show you how...

The post How to double your business without doubling your costs, time, or stress appeared first on Business Finance Solutions - 512-990-8756.

]]>
Ready to double your business? Would you like to double your business – and do it without doubling your costs, time, or stress?  

If doubling your business seems daunting or impossible, check out this free talk by Reuben Swartz, that will show you how you can achieve great results without killing yourself.

Reuben Swartz, Mimiran

“I originally started consulting because I was really good at helping companies solve certain kinds of problems that they had trouble solving themselves. Like a lot of people who start consulting companies, I didn’t put nearly as much thought into growing my own business as I did helping my customers grow theirs. So, I had to learn things the hard way”, said Reuben.

Join us to hear Reuben tell us about his top 5 or so key learning moments like:

  • Thinking about technical problems, business problems, and growing a business
  • Selling for engineers
  • How NOT to write proposals
  • Automating the right things
  • Getting beyond commoditization (and more than tripling my rates)
  • Growing beyond feast-or-famine

 

Reuben Swartz, Founder of Mimiran (and SalesForNerds), spent more than a decade helping companies like GE, Dell, Nike, and others sell better. With more irony than an Alanis Morissette song, he was pretty terrible at selling his own services, relying on word-of-mouth. With the arrival of his twins, he started building the software he wished he’d had to help services companies sell.

(Check out his software at mimiran.com.) Reuben has presented well-received talks on sales around Austin and for the Professional Pricing Society. Mimiran won the Innovation and Technology Award for Small Business from the Austin Chamber of Commerce in 2015.

FREE MEETUP
(Lunch is on your own)
Thursday, April 28, 2016 – 11:30a-1:00p
Sherlock’s Baker Street Pub
9012 Research Blvd, Austin, TX 78758
RSVPhttp://www.meetup.com/Austin-Small-Business-Gorilla-Operations-and-Finance-Jungle/events/230390069/

The Austin Small Business Gorilla Operations and Gorilla Finance group has been meeting for six years. Many of our members are original to the group, and each week we welcome newcomers. Our goal is to provide business owners with free business education that they can immediate use in the operations of their businesses. In exchange we learn from great local experts and build a strong business network for our members.

Be sure to actually “join” our Meetup, by registering on the site and completing your profile. Each month you will receive an email notice announcing the topic for the month. Stop by for those meetings that interest you and let us know if you have any suggestions on topics or speakers. It’s free to join.

Register today!


Francoise Luca, Chief Marketing Officer, Business Finance Solutions, is co-organizer of the Austin Small Business Operations and Gorilla Finance Group.


 

Share

The post How to double your business without doubling your costs, time, or stress appeared first on Business Finance Solutions - 512-990-8756.

]]>
http://bfs-usa.com/double-business-without-doubling-costs-time-stress/feed/ 0
Business Snapshot Tool Available for Download http://bfs-usa.com/business-snapshot-tool/ Wed, 27 Jan 2016 18:02:47 +0000 http://bfs-usa.com/?p=1608 Business Snapshot Tool – Excellent way to help you plan your strategic and tactical edge for the new year. Business Finance Solutions’ Business Snapshot Tool is designed to help business owners and entrepreneurs conduct a self-assessment of the strengths and weaknesses of their business. Business Finance...

The post Business Snapshot Tool Available for Download appeared first on Business Finance Solutions - 512-990-8756.

]]>
Business Snapshot Tool – Excellent way to help you plan your strategic and tactical edge for the new year.

Business Finance Solutions’ Business Snapshot Tool is designed to help business owners and entrepreneurs conduct a self-assessment of the strengths and weaknesses of their business.

Use the Business Snapshot Tool to help you assess your business enterprise strengths and weaknesses.

Use the Business Snapshot Tool to help you assess your business enterprise strengths and weaknesses.

Business Finance Solutions helps small and lower middle-market businesses obtain working capital and private equity to grow. During our decades of combined experience in finance, marketing, management, sales, and business education, we have learned the score your enterprise receives on this self-assessment is a good predictor of your potential for the ability to attract outside investment as well as overall sustained success.

The tool asks both strategic and tactical questions about how you view and operate your business.

The Business Snapshot Tool is made of four sections:

Part 1: Enterprise Management

This section asks you to examine your business practices, processes, accounting and financial strength, and ability to adapt to changing marketplace. Your management team provides the strength and backbone of your enterprise.

Part 2: Business problem your enterprise solves or is going to solves

All business enterprises are created to meet demand in their market. We call this demand the business problem your business solves or in the case of start-up businesses, plans to solve. Having a solid knowledge and vision of the challenges your business will help solve is critical to understanding the best way to meet your market’s demand.

Part 3: Your solution to the business problem

Experienced airplane pilots plan their flight plan before starting a cross country trip. They design a route that will get them there with a minimum amount of risk, on time, and with the appropriate resources employed. As they make their way across the country, they evaluate new data that develops during their trip. They may have to navigate around turbulence, avoid storms, or take advantage of following winds to get to their destination using less fuel. Think of your solution to the business problem you are solving as an aircraft pilot might think about carrying a plane across the United States. This is your short, medium and long-term solution to the business problem.

Part 4: Enterprise performance return on investment (ROI)

If your business is a for-profit business, then you should have a measurable goal for obtaining a return on your investment of time and money. There are many ways to measure return on investment. Different kinds of companies might use different measurements of success. The important consideration is that your enterprise decides which measurement metrics best help you manage your business for profitable growth.

Questions are not ordered in any priority, and not all questions apply to every business. If a question doesn’t apply to your company, put a large X in the scoring blank for that question. This way your average score will not be affected by those questions that don’t apply to you.

Business Snapshot Tool – Business Finance Solutions (lite version download)

If you would like to know more about the Business Snapshot Tool or want to discuss having us help you conduct a comprehensive interactive evaluation of your business, please use our contact form or call us. 512.990.8756.

 

 

Share

The post Business Snapshot Tool Available for Download appeared first on Business Finance Solutions - 512-990-8756.

]]>
Using our Business Snapshot Tool For A Stronger Business http://bfs-usa.com/business-snapshot-tool-helps-evaluate-overall-strength/ Sun, 17 Jan 2016 19:13:23 +0000 http://bfs-usa.com/?p=1560 “Having a snapshot of where your business is, can help you get to where you are going.” Periodically using the Business Snapshot Tool ™ will help your business sustain profitable growth. This concept is not a new business concept; however, it is often overlooked practice...

The post Using our Business Snapshot Tool For A Stronger Business appeared first on Business Finance Solutions - 512-990-8756.

]]>
“Having a snapshot of where your business is, can help you get to where you are going.”

Business Finance Solutions can help you identify your company's weaknesses using the Business Snapshot Tool.

Business Finance Solutions can help you identify your company’s weaknesses using the Business Snapshot Tool.

Periodically using the Business Snapshot Tool ™ will help your business sustain profitable growth.

This concept is not a new business concept; however, it is often overlooked practice among owners of rapidly growing businesses.

The beginning of the year is a traditional time to access your condition, make resolutions and commit to new and healthier practices.  It should also be a time to reevaluate your business’ health and your marketplace opportunities.

Periodic business assessments are essential to the well-being of a company. Understanding the economic and operational drivers within your company can mean the difference between success and failure.  Business Finance Solutions has developed a tool that helps owners of small to mid-sized businesses assess their strengths and weaknesses in four key areas. Using our Business Snapshot tool™ an owner can evaluate the current condition of his business and help identify areas that need improvement.

How to use the Business Snapshot Tool to Analyze your business’ strengths and weaknesses

Our easy to use business assessment tool reviews four of the most important characteristics of your business.

The four broad areas of your that are addressed in the Business Snapshot Tool are:

  • Your company’s management strengths and weaknesses
  • The business problem being solved
  • Your company’s solution to the business problem being solved
  • Financial performance and measurement
Sam Thacker is a co-owner of Business Finance Solutions and the author of Business Snapshot Tool.

Sam Thacker, President, Business Finance Solutions

Although this list may seem fundamental to some, there are key indicators within each section that determine the exact condition of your business.  Sam Thacker, co-owner of Business Finance Solutions with 30+ years of business improvement and banking experience will review these areas with our guests at our monthly Meetup on Thursday, January 28, 2016.

 

FREE MEETUP
(Lunch is on your own)
Thursday, January 28, 2016 – 11:30a-1:00p

Sherlock’s Baker Street Pub
9012 Research Blvd, Austin, TX 78758

RSVP: at: Austin Small Business Gorilla Operations and Finance Jungle

During this hour-long presentation, Sam will help you fill out your own Business Snapshot Tool, the areas it addresses, why these are important, and how to score your business using the tool. All attendees will receive a copy of the tool to work along and to use later with their management teams. After the meetup, Sam will be available for individual questions, or you can make an appointment for free consultation at a more convenient time.

Business Finance Solutions is committed to providing continued support and educate our clients and business network. One of the tools we use to help you is the Business Snapshot Tool. We hope you will attend this presentation and take away some insight on how to grow your business and make it stronger. We realize that not all of our 800+ Meetup members will be able to join us on January 28, 2016, so we have decided to offer a free online version (webinar) of this material.

If you would like to attend our free webinars on: How to Analyze your business’ strengths and weakness, please email us directly at info (at) bfs-usa.com of call us at 512-990-8756.


 

The Austin Small Business Gorilla Operations and Gorilla Finance group has been meeting for over six years. Many of our members are original to the group, and each week we welcome newcomers. Our goal is to provide business owners with free business education that they can immediate use in the operations of their businesses. In exchange, we learn from great local experts and build a strong business network for our members.

Be sure to actually “join” our Meetup, by registering on the site and completing your profile. Each month you will receive an email notice announcing the topic for the month. Stop by for those meetings that interest you and let us know if you have any suggestions on topics or speakers. It’s free to join.

Register today and invite a fellow business owner or entrepreneur.

 

Meet-up Agenda
11:30 – Noon –  Networking
12:00n – 12:45p – Presentation
12:45p – 1:00p – Group Q&A
1:00p-1:30p – one-on-one Q&A


 

Francoise Luca, Chief Marketing Officer, Business Finance Solutions, is co-organizer of the Austin Small Business Operations and Gorilla Finance Group.


 

Share

The post Using our Business Snapshot Tool For A Stronger Business appeared first on Business Finance Solutions - 512-990-8756.

]]>
Financing Management Buyouts http://bfs-usa.com/financing-management-buyouts/ Mon, 23 Nov 2015 13:22:55 +0000 http://bfs-usa.com/?p=1549 Financing management buyouts requires a certain amount of strategy and knowledge of how to leverage a company’s current and long-term assets. Business Finance Solutions has experience using a variety of financing methods for assisting management of small business land lower middle-market companies successfully acquire their...

The post Financing Management Buyouts appeared first on Business Finance Solutions - 512-990-8756.

]]>
Financing management buyouts requires a certain amount of strategy and knowledge of how to leverage a company’s current and long-term assets. Business Finance Solutions has experience using a variety of financing methods for assisting management of small business land lower middle-market companies successfully acquire their businesses.

Financing Management Buyouts for Small Businesses

For businesses with annual gross revenues less than $5 million, financing small business management buyouts can be more challenging than much larger companies. Private equity is generally not available at for that small sized business, but other more traditional financing methods are.

Using a small capital stack of the management’s personal resources, bank or commercial debt, and a small amount of owner financing is all that is necessary to effect the ownership change. The key to a safe, cost effective management buyout is having at least 20% of the total cost of the buyout in cash between the management team members available for the purchase. When less cash is available for initial equity, it may be necessary to use commercial asset-based finance methods rather than bank financing. For example, if the sale price is $2.5 million, having $500,000 in cash to inject into the total purchase price will greatly enhance chances for traditional bank debt. If 20% of the total transaction isn’t available in cash, leveraging substantial assets like machinery, real estate, and large equipment can be used to collateralize a commercial finance loan.

Financing Management Buyouts for Lower-Middle Market Companies

Wholesale distributors that have substantial amounts of inventory can often use the value of the inventory and accounts receivable to finance management buyouts

Wholesale distributors that have substantial amounts of inventory can often use the value of the inventory and accounts receivable as collateral to finance management buyouts

Companies that have between $5 million and $50 million in annual revenues are the sweet spot for financing management buyouts. Companies of this size are big enough to get the attention of SBICs and private equity funds that are interested in investing in companies that can grow to the next level with the right management team.

Like small businesses, having some personal cash assets to use for the management buyout will help keep the amount of equity given to the financing source to a minimum. In the last few years, though, some private equity funds have begun employing a strategy to “waterfall” their equity stake downwards as they earn back their investment. It isn’t unusual in today’s financing environment to have a transaction where the private equity fund may start year one with 60% to 80% of the company’s capital, but by year five, have no stake in the enterprise. The more EBITDA the company has in the two years before the beginning of the buyout, into the management buyout; the less initial investment the private equity fund is likely to require.

Structuring The Management Buyout Financing Method

Since most management teams that begin a management buyout don’t have prior experience engaging in management buyouts, it pays to engage a team dedicated to assist the acquisition team structure the transaction with the lowest risk and highest chance of reward. Business Finance Solutions has been using multiple types of company assets assisting management teams in buying out their employer. In nearly all cases, our fee is recovered in reduced costs and less risk to the buyout group.

Write or call Sam Thacker at 512.990.8756 today to discuss your company’s management buyout opportunity.

Share

The post Financing Management Buyouts appeared first on Business Finance Solutions - 512-990-8756.

]]>
Intellectual Property Strategies for Entrepreneurs http://bfs-usa.com/intellectual-property-strategies-for-entrepreneurs/ Wed, 16 Sep 2015 02:04:21 +0000 http://bfs-usa.com/?p=1536 One of the most common fears of inventors and entrepreneurs is that their product designs will be stolen. Inventors, designers and entrepreneurs struggle with how to share their product designs and processes with business partners, yet protect their intellectual property from competitors and unscrupulous vendors....

The post Intellectual Property Strategies for Entrepreneurs appeared first on Business Finance Solutions - 512-990-8756.

]]>
One of the most common fears of inventors and entrepreneurs is that their product designs will be stolen. Inventors, designers and entrepreneurs struggle with how to share their product designs and processes with business partners, yet protect their intellectual property from competitors and unscrupulous vendors.

This month’s Meetup topic is an overview on how entrepreneurs can protect their intellectual property during the development and commercialization phase of their businesses. Our expert guest speaker, will give us an overview of  intellectual property strategies for entrepreneurs and small business owners. Whether you are an inventor, or software programmer, or a foodie with a new salsa, this free seminar will be worth your time.

Austin Small Business Gorilla Operations and Finance Meetup host IP attorney for a seminar called: Protect your Innovations: Intellectual Property Strategies for Entrepreneurs.

Austin lawyer Andrew Eisenberg, will share an overview on trademarks, copyrights, patents, and other strategies to protect your inventions, designs, and formulations. He will guide us through some of the most useful strategies and debunk some common myths about the patent process.

Our September 2015 meetup will cover topics like:

  • What types of intellectual properties should you protect
  • What are trademarks and copyrights
  • When to use Copyrights vs trademarks
  • The patent process

 

Andrew_Eisenberg, Austin, TX

About Andrew Eisenberg
Andrew is a partner and patent attorney with Lee & Hayes, as well as a former General Counsel and programmer. Andrew is a named inventor on three issued patents and is primarily engaged in the development of strategic IP portfolios. Andrew has been featured as a guest speaker on the radio broadcast the Struggling Entrepreneur, a guest expert on the television series Austin Business Matters, and a guest columnist with the Austin Business Journal.

Today, Andrew particularly enjoys working with startup companies and, due to his time as General Counsel, is able to provide clients with unique insights regarding the legal challenges associated with starting a business. Andrew also volunteers as a mentor with the First Looks Forum sponsored by the Texas Entrepreneurs Network, co-founded a presentation series called First Success to help small businesses achieve a first business success and has founded a legal presentation series called Startup Law Austin for inventors and entrepreneurs.

FREE MEETUP
(Lunch is on your own)
Thursday, September 24, 2015 – 11:30a-1:00p
Sherlock’s Baker Street Pub
9012 Research Blvd, Austin, TX 78758
RSVP: at: Austin Small Business Gorilla Operations and Finance Jungle

The Austin Small Business Gorilla Operations and Gorilla Finance group has been meeting for over six years. Many of our members are original to the group, and each week we welcome newcomers. Our goal is to provide business owners with free business education that they can immediate use in the operations of their businesses. In exchange we learn from great local experts and build a strong business network for our members.

Be sure to actually “join” our Meetup, by registering on the site and completing your profile. Each month you will receive an email notice announcing the topic for the month. Stop by for those meetings that interest you and let us know if you have any suggestions on topics or speakers. It’s free to join.

Register today and invite a fellow inventor or entrepreneur.

Meet-up Agenda
11:30 – noon –  Networking
12:00n – 12:45p – Presentation
12:45p – 1:00p – Q&A


Francoise Luca, Chief Marketing Officer, Business Finance Solutions, is co-organizer of the Austin Small Business Operations and Gorilla Finance Group.

Share

The post Intellectual Property Strategies for Entrepreneurs appeared first on Business Finance Solutions - 512-990-8756.

]]>
1st Looks Business Mentoring Program http://bfs-usa.com/1st-looks-business-mentoring-program/ Tue, 08 Sep 2015 04:08:27 +0000 http://bfs-usa.com/?p=1527 The 1st Looks Mentoring program from Austin’s Business Success Center will visit San Marcos this week. The program offers pre-startups and early stage companies an opportunity to chat with experts in law, accounting, finance, marketing, sales, social media and other key operational areas for free....

The post 1st Looks Business Mentoring Program appeared first on Business Finance Solutions - 512-990-8756.

]]>
The 1st Looks Mentoring program from Austin’s Business Success Center will visit San Marcos this week. The program offers pre-startups and early stage companies an opportunity to chat with experts in law, accounting, finance, marketing, sales, social media and other key operational areas for free. In a “speed dating” type format, entrepreneurs get one on one time with mentors to ask questions and get free advice.

Lower middle market companies need a team of trusted advisers whether they are in-house or consultants from outside the business.

If you are looking to move your business ahead, check out this special business mentoring program on Sept. 10 in San Marcos, Texas.  The Business Success Center in cooperation with the Greater San Marcos Partnership, will present the 1st Looks Mentoring program from 1-4 p.m. in San Marcos.

1st Looks Mentors available for this special event will be:

MENTORS:

 

How to apply for the 1st Looks Mentoring Program:

  • Submit it to marsha@ownersview.com no later than September 8
    (The earlier you submit, the better your chance to be one of the 6 selected)
  • You will be contacted by September 9 if you have been selected.

ONLY 6 companies will get to talk about their business goals and concerns for free with these business experts.

What?   Where?   When?   How?

1st Looks Free Mentoring Program
September 10 • 1 – 4 PM
Community Room, Central Texas Medical Center
1301 Wonder World Dr., San Marcos, TX

Brought to you by: Business Success Center | Austin TX

 

In cooperation with:

San Marcos PartnershipCan’t make it to San Marcos?  No worries, the 1st Looks Business Mentoring program is held every month in Austin, Texas.  Simply fill out an application and submit it before the 10th of the month to be considered for the program.  The 1st Look Mentoring program is free and offers business owners an opportunity to validate their business concepts and ask key questions to our business expert mentors.

This unique Austin business program has helped hundreds of local business owners navigate the perils of growing their businesses. The Business Success Center also offers networking and other free resources to small business owners, as well its ongoing business mentoring program. For more information visit: www.ownersview.com

Share

The post 1st Looks Business Mentoring Program appeared first on Business Finance Solutions - 512-990-8756.

]]>
Speed Pitch Practice Session http://bfs-usa.com/speed-pitch-practice-session/ Tue, 18 Aug 2015 03:36:23 +0000 http://bfs-usa.com/?p=1503 Most business owners and professionals know they need an elevator pitch, to promote their business.  The challenge is creating a compelling story about your company’s products and services and delivering it in less than a minute.  It sounds easy, but it can be very difficult...

The post Speed Pitch Practice Session appeared first on Business Finance Solutions - 512-990-8756.

]]>
Most business owners and professionals know they need an elevator pitch, to promote their business.  The challenge is creating a compelling story about your company’s products and services and delivering it in less than a minute.  It sounds easy, but it can be very difficult to distill your company’s capabilities into a concise and interesting message.  This month, our “Gorilla Meetup” will give 15 business owners an opportunity to practice delivering their speed pitches to a friendly crowd.

speed-pitch-practiceOn Thursday, August 27, 2015 our Meetup will host a Speed Pitch forum. This will be a great opportunity to tell your story in one minute or less. Join us for this showcase of local companies, learn about their businesses (and partnership opportunities) and network with other business professionals.

Fifteen companies will have one minute to tell us about their products and services during the speed pitch portion of the meeting. Speed pitchers will also tell us what they are looking for in business partners or customers.  Then immediately after the elevator speeches, we will host an open meeting for one on one questions and networking with presenting companies.

To participate in the speech pitch portion of the meeting, you must register your company by sending us an email to: info @ bfs-usa.com. In the email tell us:

  • your company name
  • what your company does
  • who you are (include our phone number)

 

Speed pitch competitions have become a popular format in the funding world of entrepreneurs and start-ups. Shark Tank and other shows make it look easy to present your company’s value to investors or buyers in a few moments. However, it is not as easy as you think.

Here is your chance to practice your elevator speech and get immediate feedback. It is also a great opportunity to meet local business owners to partner with or find unique products and services to support your business growth.

This will be an exciting Meetup. Be sure to invite your colleagues to cheer you on and give you feedback.

FREE MEETUP
(Lunch is on your own)
Thursday, August 27, 2015 – 11:30a-1:00p
Sherlock’s Baker Street Pub
9012 Research Blvd, Austin, TX 78758
RSVP: http://www.meetup.com/Austin-Small-Business-Gorilla-Operations-and-Finance-Jungle/events/224057214/

The Austin Small Business Gorilla Operations and Gorilla Finance group has been meeting for six years. Many of our members are original to the group, and each week we welcome newcomers. Our goal is to provide business owners with free business education that they can immediate use in the operations of their businesses. In exchange we learn from great local experts and build a strong business network for our members.

Be sure to actually “join” our Meetup, by registering on the site and completing your profile. Each month you will receive an email notice announcing the topic for the month. Stop by for those meetings that interest you and let us know if you have any suggestions on topics or speakers. It’s free to join.

Register today!


Francoise Luca, Chief Marketing Officer, Business Finance Solutions, is co-organizer of the Austin Small Business Operations and Gorilla Finance Group.

Share

The post Speed Pitch Practice Session appeared first on Business Finance Solutions - 512-990-8756.

]]>
Small Business Investment Companies (SBIC) are Attractive Alternative to Private Equity http://bfs-usa.com/sbic-funds-are-attractive-alternative-to-private-equity/ Thu, 06 Aug 2015 14:02:32 +0000 http://bfs-usa.com/?p=1491 Small Business Investment Companies (SBIC) were created by Congress in 1958 to ensure that small and lower middle-market companies have access to long-term capital. Many business owners and even most bankers don’t know the program exists or how it can benefit a business owner. SBIC...

The post Small Business Investment Companies (SBIC) are Attractive Alternative to Private Equity appeared first on Business Finance Solutions - 512-990-8756.

]]>
Small Business Investment Companies (SBIC) were created by Congress in 1958 to ensure that small and lower middle-market companies have access to long-term capital. Many business owners and even most bankers don’t know the program exists or how it can benefit a business owner.

SBIC Organizations are Private Equity Funds That Are Chartered by the Small Business Administration

Unlike SBA guaranteed bank loans that many business owners are familiar with, the SBIC program is organized through the SBA to protect investors in the SBIC fund. Institutions and private investors that invest in SBIC funds are guaranteed by the SBA program that they will not lose their principal investment. SBA rules require a minimum of $20 million in equity capital to start a SBIC fund. That is the same amount of money required by federal regulators to start a bank. Many SBIC organizers acknowledge that the application process to start a SBIC fund is a long complicated process.

SBIC Funds are Organized Geographically, by Type of Investment they Make and Often by Industry Focus

SBIC funds are highly regulated to protect small and middle-market businesses from unreasonable rules and requirements. There are about 300 SBIC funds in the United States. Each is chartered in a specific state by the SBA, but a SBIC may elect to operate in a regional area or throughout the U.S. SBIC funds can help small and mid-sized companies:

  • Early Stage Equity. Funds that invest equity into small companies generally make an investment that will allow an entrepreneur with a great idea to commercialize the idea with minimal equity given up by a business.
  • Senior Lending. SBICs can make senior loans to credit worthy, established businesses.
  • Subordinated Debt. Funds can elect to make a special type of loan to a business needing growth capital. Subordinated debt means the SBIC agrees to have less security in the business collateral in favor of a senior lender (normally a bank). Subordinated debt is often called “growth capital.”
  • Mezzanine Debt/Capital. Mezzanine financing can be structured either as debt (typically an unsecured and subordinated note) or preferred stock. It is typically used when a company is cash flow positive but has high growth opportunities.
  • Turnaround Capital. SBIC funds can elect to make debt or equity investments into companies that have experienced a non-operational event that has created financial difficulties. When a SBIC fund believes a company can turn around, they may invest or make a loan to assist it to complete its return to profitability.
  • Growth Capital. Companies that have very steep growth rates often cannot fund their growth out of profits. Growth capital helps a business dramatically increase profitable growth.
  • Leveraged / Management Buyouts. When a company is in ownership transition, either because a member of management or outside party is planning to acquire the majority shares of a company, SBIC funds can step in and provide some or all of the capital necessary to make the ownership transition occur.

Examples of Major Companies that Started with SBIC Investments

SBIC Funds have helped many successful companies start and grow over the 58 years of the program.

SBIC Funds have helped many successful companies start and grow over the 58 years of the program.

SBIC funds have a great deal of flexibility about the types of investments it makes as long as it follows its charter which outlines its investment plan. They are highly preferred over venture capital.

Finding a SBIC with a Program Tailored for your Business can be Difficult

SBIC funds naturally tend to focus on vertical markets they feel comfortable with. For example, some focus on oil and gas service company investments, but most shy away from the industry because they don’t have the expertise to manage their loan/investment.

Some SBIC funds are extremely highly focused. For example, at one time there was a SBIC that focused 80% of its investments in businesses that created material science technology. Examples include adhesives, coatings, polymers, and carbon fiber. The fund would not likely be interested in working with companies that create software apps or other companies that are not in the material science space.

How Business Finance Solutions can help you secure a SBIC investment or loan

Business Finance Solutions has placed out tens of companies with SBICs over the last 20+ years. We understand the complex process of finding and packaging an investment/loan for SBIC approval.

  • We have an extensive database of SBICs, their investment staffs, and their vertical market priorities.
  • Over the many years we have been working with clients seeking SBIC investment, we have developed a very effective process of developing the materials SBICs want to see.
  • We coach our clients before presenting their investment needs to an investment committee.
  • We understand the term sheet negotiation process and can help save you thousands of dollars in costs over the life of the loan or investment.
  • We can assist when your company reaches a stage of growth that requires a follow-on investment.

In 2014 we wrote a post about the differences between SBICs and BDOs. BDOs are also regulated entities but work entirely differently than SBICs.

For more information about using a SBIC fund to help your business grown, fill out our contact form or give us a call at 512.990.8756. We will be happy to discuss your specific situation.

 

Share

The post Small Business Investment Companies (SBIC) are Attractive Alternative to Private Equity appeared first on Business Finance Solutions - 512-990-8756.

]]>
Leveraging 5 generations in the workplace to improve your success http://bfs-usa.com/leveraging-5-generations-in-the-workplace-to-improve-your-success/ Wed, 17 Jun 2015 21:08:47 +0000 http://bfs-usa.com/?p=1463 Managing five generations in the workplace can be challenging for small business owners. Creating a culture that is productive for Boomers and Millennials alike can be done. Baby Boomers in the work place We have all heard about the Baby Boomers and their impact on...

The post Leveraging 5 generations in the workplace to improve your success appeared first on Business Finance Solutions - 512-990-8756.

]]>
Managing five generations in the workplace can be challenging for small business owners. Creating a culture that is productive for Boomers and Millennials alike can be done.

Baby Boomers in the work place

We have all heard about the Baby Boomers and their impact on the workforce and work culture. There are over 74 million Baby Boomers in the US today. They account for 31% of our workforce today and own over 60% of all businesses in the US, and Baby Boomers hold 56% of all the corporate leadership positions in American companies. Although, about 10,000 Baby Boomers turn 65 every day, they are still working and active in driving business decisions.

Millennials the next force to understand

A more amazing demographic trend is the 75+ million Millennials that will overtake the Boomers as the largest demographic cohort soon. This generation is perhaps the most studied of all the generations since they represent a huge shift in attitudes, diversity and economic potential. The Millennials are known for their appetite for technology and media. They multi-task across several devices and seek solutions that create more balance across their personal and work lives.

Sandwiched in the middle of these two large demographic groups are the Gen-X and Gen-Y. A fifth demographic group is just now entering the workplace. These are the children of the Gen-X, who will bring new communication expectations to the workplace.

Demographics are important to our businesses. Generational attitudes and work styles impact so many areas of our businesses from buying decisions, customer service expectations, to dress codes and office policies. Creating communication strategies for a multi-generational workplace that is as productive for Boomers and Millennials and everyone in between can be done. Susan Word, of ForWord Connections, will guide us through the topic of how to manage a multi-generational work force.

Free Meet-up on “How to leverage 5 generations in the work place – to improve your success” – June 25, 2015:

Multi-generational Meeting Topics:

  • Who are the 5 generations in the workforce today
  • Value sets for each generation & key motivators
  • Communication strategies for a multigenerational workforce

 

Susan Word

Susan Word, SPHR – ForWord Connections

Susan Word, SPHR, Founder, ForWord Connections

Susan began her career as a commissioned officer in the United States Army where she served as a helicopter pilot and maintenance test pilot. Through her civil service and private sector career, Susan has worked in various human resource and management functions.

Today, ForWord Connections provides clients human resource solutions that improve productivity, efficiency, and communication and employee morale. She has a Master’ degree in Human Resources from the University of Texas at Austin and is currently an Adjunct Instructor for Austin Community College.

Why attend this seminar on multi-generations in the workplace

If you have employees in your company, or if you plan on hiring contractors, part-time or full-time employees, you need to hear this presentation. Understanding generational work styles and communication needs is critical to the success of your business. This information is also vital to your customer service and marketing efforts. Let us guide you through these demographic information. Join us to hear Susan insight in the communications strategies in the work place.

If you are going to hire a contractor or new employee this during the next year, come out and learn about how to create communication strategies for a multigenerational workplace.

FREE MEETUP (Lunch is on your own)
Thursday, June 25, 2015 – 11:30a-1:00p
Sherlock’s Baker Street Pub
9012 Research Blvd, Austin, TX 78758

RSVP: http://www.meetup.com/Austin-Small-Business-Gorilla-Operations-and-Finance-Jungle/events/223203690/

The Austin Small Business Gorilla Operations and Gorilla Finance group has been meeting for almost six years. Many of our members are original to the group, and each week we welcome newcomers. Our goal is to provide business owners with free business education that they can immediate use in the operations of their businesses. In exchange we learn from great local experts and build a strong business network for our members.

Be sure to actually “join” our Meetup, by registering on the site and completing your profile. Each month you will receive an email notice announcing the topic for the month. Stop by for those meetings that interest you and let us know if you have any suggestions on topics or speakers. It’s free to join.

Register today!


Francoise Luca, Chief Marketing Officer, Business Finance Solutions, is co-organizer of the Austin Small Business Operations and Gorilla Finance Group.

Share

The post Leveraging 5 generations in the workplace to improve your success appeared first on Business Finance Solutions - 512-990-8756.

]]>
Top Secret for Making Investor and Lender Presentations http://bfs-usa.com/top-secret-for-making-investor-and-lender-presentations/ Thu, 11 Jun 2015 15:34:20 +0000 http://bfs-usa.com/?p=1445 The top secret to making an investor and lender presentation is understanding the four parts of your enterprise they want to understand. Most companies spend considerable money developing brochures, videos, presentations for their clients they sell their product or service to. Unfortunately for most owners...

The post Top Secret for Making Investor and Lender Presentations appeared first on Business Finance Solutions - 512-990-8756.

]]>
The top secret to making an investor and lender presentation is understanding the four parts of your enterprise they want to understand.

Making investor and lender presentations requires research, preparation, and practice to get the capital you need for your business!

Making investor and lender presentations requires research, preparation, and practice to get the capital you need for your business!

Most companies spend considerable money developing brochures, videos, presentations for their clients they sell their product or service to. Unfortunately for most owners seeking capital or loans, they spend very little time thinking about how they need to prepare for an investor or lender presentation and what the investor wants to know.

The same principals that apply to selling your product or service apply to presenting your case about why a lender or investor would risk their money with your company. The process though is not all about explaining your product or service to the person(s) you are trying to convince.

Investors and lenders want to know about four broad areas of your enterprise and they give approximately the same weight to each area.

Investors and Lenders want to understand Your Company Management Expertise and Skills (25% value)

Investors and lenders want to understand that your management TEAM has a much better than average chance of succeeding in the business enterprise, especially after they invest or loan your company money. Spend time in your presentation discussing the depth and width of your company team.

If you are light on talent within your company, discuss how you have surrounded yourself with the best trusted advisors you can. Trusted advisers generally include your business and/or intellectual property attorney, your CPA, your banker or other financing consultant, and finally your risk manager (insurance agent). If your company is going to have many employees you might need to have an HR consultant. If your enterprise involves potentially dangerous processes or products, a safety manager may be important.

Investors want to understand your marketplace and the businesses your company serves (25%)

You may have a geographical marketplace, a vertical marketplace or both. Use accurate market anaysis statistics about the market(s) you serve. Discus how large they are. If geographical proximity is important to how your customer purchases your product or service, consider using a map showing the number of potential customers in your geographical area and the potential number of service opportunities you have with those customers. If your market is more vertical than geographic, customize your presentation to emphasize the various vertical markets you operate in.

The business problem you solve and how you are going to solve it better with an investor / lender helping you (25% value)

Let’s assume you manufacture very complex, expensive parts for undersea oil exploration. Your precision machine shop has to be concerned with extremely close tolerances and absolutely perfect quality control. Companies that buy products like yours have millions if not billions of dollars at risk in their own projects and a catastrophic failure could result in a disaster like the BP Gulf of Mexico Deepwater Horizon disaster.

Your precision manufacturing machine shop may have a stellar reputation for the highest quality products produced with the best quality control processes and checks. An example of the business problem you are going to solve might be providing the highest quality work on-time, without defects, and within budget when other machine shops don’t have the same quality track record you do.

Your presentation would include describing the business problem, i.e. lack of machine shops capable of providing the quality required for the harsh undersea environment. Spend time explaining the way your company can solve the business problem. Be elegant, be concise. Make sure you understand the most important business problem and how you can solve it better than other machine shops.

Investors and lenders want to know how much money you will make and how they will be rewarded or paid back

Although this section is last, don’t cut corners in describing your projected EBITDA and return on investment. Use well designed charts that show your projected results you plan to achieve with their infusion of capital. Plan on explaining how an investor is going to share in the profits of the company. Lenders are more concerned about making sure you can always make your loan payment on time. Customize this part of of the presentation based on your audience. Below is an example of a projected EBITDA chart our company likes to use:

Use easy to read charts like this EBITDA chart for your investor and lender presentations.

Use easy to read charts like this EBITDA chart for your investor and lender presentations.

Final Tips for Making Investor and Lender Presentations

  • The four parts of your presentation are about equal to each other. If you have 20 minutes to make your presentation (an ideal length) spend about five minutes on each main part.
  • If you don’t have the skills to create charts and graphs consider using a professional to help you get them to tell the best story you can.
  • Make sure you can answer any questions about the material you have put together. Try to think like an investor would think.
  • Practice your presentation with an audience that can help you improve your content or presentation style.

 

Business Finance Solutions has been successful in helping hundreds of companies with their capital needs because we have 20+ years experience understanding the process of what investors and lenders want to see. If you are trying to raise your next round of equity or debt let us help you present your ideas using our proven methods of analysis and presentation.

Share

The post Top Secret for Making Investor and Lender Presentations appeared first on Business Finance Solutions - 512-990-8756.

]]>