Traverse Area District Library     

BUSINESS CONNECTION

Vol. 1 No. 3 ~ Summer 2000

Financing A Growing Business
by Matt Meadors

Being in business is a game of risk and reward. The risk is that your business may not be successful. The reward is marketplace acceptance and business growth.

Growing businesses often times require access to capital. Lending institutions are commonly viewed as traditional sources of financing while non-traditional sources include lenders such as venture capitalists.

As an administrator of a regional Small Business Development Center, I encourage my clients who are business owners seeking expansion financing to do the following:

1. Develop a business plan. The plan should describe in succinct layman's terms, the following:

   The nature and present state of the business;

   The planned expansion (use of funds);

   An overview of how much money is sought, and how the dollars will be invested.

   Financial information that reflects how the loan will impact the business (cash flow, profitability, net asset value, etc.).

    

2. Talk to your banker. If the client does not have a banking relationship, I encourage them to establish one.

If their initial request for funding is denied, I suggest they begin a process of meeting with every institution involved in commercial lending. I explain that banks are like people. They have experiences that shape their loan practices. As an example, some banks may have had success making loans to restauranteurs. They may have an individual on staff with expertise in that industry. Therefore, they may be more inclines to finance a restaurant expansion than a competing institution with a poorer track record in this industry. This is a "no stone unturned" approach to seeking financing. The plan should also assess the marketplace in which the individual is conducting his/her business (we call this an environmental scan), and a marketing strategy that details how the owner will achieve the sales levels forecasted in the plan.

Also, the plan should include the business' financial information from the past three years, and any other enclosures that support the owner's assertions regarding the opportunity that exists in the marketplace.

The Traverse Area District Library conducts courses and has software available to help you prepare a business plan. All of the office stores and bookstores have four different software products that will help you create a business plan. One word of caution; these products are designed as "one product services all" - and if you use the products off the shelf you will end with a 100-page document which will likely overwhelm you, as well as your baker. Your business plans should be as brief as possible, while clearly outlining the aforementioned components. In this issue, the library outlines some of the materials they have to assist you as you grow your business. Call your Reference Department (932-8502). There are only three questions they could not answer in 1999.

Matt Meadors is the Vice President of the Traverse City Area Chamber of Commerce.

Kids on the Net: Get Net Savvy - Program for Parents

A free Internet learning experience for parents is offered each month. 
Please call for details: 932-8503. 
Learn what you need to know to keep kids safe.

SELECTED RESOURCES FOR FINANCING YOUR BUSINESS

Financing your business expansion is much like financing a business start-up. The following titles may help you locate sources of funding for your growing business.

Financing the New Business Venture - Mark Long

• A complete guide to raining capital from venture capitalists, investment bankers, private investors, and other sources.

Financing Your Own Business - Iris Lorenz-Fife

• A nuts-and-bolts guide to planning, applying for, acquiring, and managing the financing of your business.

Guerilla Financing - Bruce Blechman, Jay Conrad Levinson

• Street-smart financing techniques for raising capital for any type of business, no matter what the circumstances.

The Ernst & Young Business Plan Guide - Eric S. Siegel, Brian Ford

• This second edition contains all new sections on funding and financing methods for provisions for restructuring.

Small Business Financing: How and Where to Get It - Alice H. Magos, editor

• How to get financing for small businesses, covering all the possible sources - in plain, easy-to-read, English.

Borrowing for Your Business: Winning the Battle for the Banker's "Yes" - George M. Dawson

How to Start Finance and Manage Your Own Small Business - Joseph R. Mancuso

• Build your business on a solid foundation.

Financial Decision-Making in Business - John W. Gibbs

• Big or small business, these tips and techniques will help you chart a sound financial course in good times or bad.

The Entrepreneur's Guide to Capital - Jennifer Lindsay

• Over 150 proven ways to finance new and growing businesses.

Simplified Small Business Accounting - Daniel Sitarz

• All the accounting and bookkeeping forms and instructions to successfully manage your small business finances.

WEB SITES

www.entrepreneurmag.com

www.inc.com

www.successmagazine.com

Small Business Administration:
    Financing Your Business
    www.sba.gov/financing/
    Expanding Your Business
    www.sba.gov/expanding/

Business Week Online:
    SOHO Guidebook, Getting Financing For Your Business:
    www.businessweek.com/smallbiz/lifestages/text/P10.0500.htm

Michigan Economic Development Corporation:
    Starting a business in Michigan
    Financing a Buisness
    http://medc.Michigan.org

Michigan Electronic Library
    http://Mel.org/business/BU-smallbiz.html
    Some of the sections are:
        Small business information collections
        Financing resources
        Franchise information
        Government resources
        Minority and women-owned small businesses

Computer Training at the Library

We are taking a break in July - classes will resume in August. For a small fee of $5.00 per class hour we offer training in some of the Office 2000 business software applications. The classes that are aimed at business users are Microsoft Word 2000 and Microsoft Excel 2000. The days and times for these classes will vary month to month. Special workshops for Mail merge and from letters using Word, business presentations using Microsoft PowerPoint and web page design using FrontPage 2000 will be offered in the fall. If you have 4 or more people to make up a class, we can schedule a time for you.

Monthly class schedules are available at the Library or call the Public Computing Center at 932-8511, and we will FAX one to you.

Register in the Public Computing Center. Call 932-8511 for more information.

Business Connection   is a  publication of the 
Traverse Area District Library, 610 Woodmere Ave., Traverse City, MI  49686
Phone (231) 932-8500    Fax (231) 932-8578
www.tadl.org

Director: Michael McGuire
Editor: Barbara Nowinski
Contributors: Shea Bonhag, Vicki Jones, Matt Meadors,
 Katherine Carrier, Vicki Carpenter

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