Funding Your Business

1
Funding Your Business

• Bob Savage
• Rocket Venture Fund Manager

2
Funding Strategy

• How much money do you need?
• When do you need it?
• What will the funding be used for?
• Should you use Equity or Debt financing?
• Where should you go for financing?

3
Value in the Eyes of the Investor

• Strength of the Management Team
• Successful Start-Up Experience
• Demonstrated Sales Success
• Technology Experience
• Need for Capital
• Do you have several potential funding partners?
• Can you boot strap?
• Stage of Product Development
• Sustainable Competitive Advantage
• Intellectual Property
• Customer Interest/Market Validation
• Demonstrated Operating Metrics

4
Key Documents Putting Your Business in Writing

• Presentation
• Term Sheet
• Legal Documents
• Closing Documents

• Executive Summary
• Business Plan
• Financials
• Pro-forma and Actual

5
Key Documents Putting Your Business in Writing

• Write executive summary first
• Write an outline first
• Think of your audience investors
• Multiple versions
• Using software packages
• Appearance matters
• Length, tabs, cover, graphics, formatting,
  appendices
• Ask someone who has been through process before

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Most Important Elements of a Business Plan

• Management Team
• Economics of the Business
• Financial Projections

• Executive Summary
• Market Assessment
• Marketing Sales Plan

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Funding Your Venture

• Put together a realistic, Stress Tested
  Business Plan
• Seek out Funding Sources (DD on each group)
• a) Each group is different
• b) VCs usually interested in more mature
  companies or a specific niche
• Presentation Clear, Concise
• a) Iron Clad strategy first then emphasis
  on growing value
• b) Must be smartest person in the room on your
  topic
• c) Be prepared to disarm the Monday morning
  QB
• d) Create a definable Exit Strategy
• Develop a Funding Timetable
• a) Determine how long it will take to get the
  funds you need to start your business
  then double it!
• b) Keep reminding yourself why you wanted to do
  this in the first place be patient.

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Financing Sources

• Pre-Seed Rocket Venture Fund
• Seed Funds
• Angel CoreNetwork
• Venture Capital
• Friends and Family
• Unconventional Funding
• City
• County
• State

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Other Financing Sources

• Grants and government programs
• Vendor financing
• Leases
• Banks and traditional lenders
• Credit cards and lines of credit
• Factoring Invoices

• Revolving Loan Fund
• Micro Loan
• 7(a) Loan Program
• 504
• Community Express
• State of Ohio 166 Loans

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Resources

• Universities
• Port Authority
• U.S. Small Business Administration (SBA)
• State of Ohio

• Incubators tech, food, manufacturing
• Regional Growth Partnership
• Chambers of Commerce

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Resources

• SBA 8(a) Program
• for minority or disadvantaged businesses
• Procurement
• Hub Zone Program
• Enterprise Zone Program
• Ohio Employee Tax Credit

• Ohio Third Frontier Program
• RGP Launch Program
• CoreNetwork
• Women Business Enterprise (WBE) Certification
• Minority Business Enterprise (MBE) Certification

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Training and Workshops

• Start-up Workshop
• SBA Loan Seminar
• IRS Tax Workshops
• Chamber Seminars
• New taxation issues (Ohio)
• Workforce Development

• Finding Your Way Procurement Basics Seminar
• Certification Workshops
• Matchmaking Events
• Seminars on entrepreneurial issues such as
  marketing, Quickbooks, intellectual property, and
  much more

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Contact Information

• Robert J. Savage
• savage_at_rgp.org
• Telephone [phone]
• Fax [phone]