hi guys it’s Evan Carmichael welcome to a special presentation now just over an
a special presentation now just over an
a special presentation now just over an hour ago I was sitting in the offices of
hour ago I was sitting in the offices of
hour ago I was sitting in the offices of Intuit and we were all getting ready to
Intuit and we were all getting ready to
Intuit and we were all getting ready to have this awesome webinar on sharpening
have this awesome webinar on sharpening
have this awesome webinar on sharpening your financial skills and then WebEx
your financial skills and then WebEx
your financial skills and then WebEx died on us and people can see the screen
died on us and people can see the screen
died on us and people can see the screen but they couldn’t hear the audio so I
but they couldn’t hear the audio so I
but they couldn’t hear the audio so I ended up writing this message hi guys
ended up writing this message hi guys
ended up writing this message hi guys everything iweapons is having major
everything iweapons is having major
everything iweapons is having major problems I’m gonna go back to my office
problems I’m gonna go back to my office
problems I’m gonna go back to my office and record this for you right now and
and record this for you right now and
and record this for you right now and we’ll send the presentation I’ll answer
we’ll send the presentation I’ll answer
we’ll send the presentation I’ll answer any questions afterwards so sorry we’ll
any questions afterwards so sorry we’ll
any questions afterwards so sorry we’ll send by email stay tuned so I drove back
send by email stay tuned so I drove back
send by email stay tuned so I drove back I’m at my office and I’m ready to record
I’m at my office and I’m ready to record
I’m at my office and I’m ready to record so hopefully you get some good
so hopefully you get some good
so hopefully you get some good information here and – thank you for all
information here and – thank you for all
information here and – thank you for all your patience we had over 700 people
your patience we had over 700 people
your patience we had over 700 people sign up for this webinar and I was
sign up for this webinar and I was
sign up for this webinar and I was really excited to talk to you guys
really excited to talk to you guys
really excited to talk to you guys because part of the the best part of my
because part of the the best part of my
because part of the the best part of my job really that you know best part of my
job really that you know best part of my
job really that you know best part of my business is being able to talk to you
business is being able to talk to you
business is being able to talk to you guys and help answer your questions so I
guys and help answer your questions so I
guys and help answer your questions so I was really excited and looking forward
was really excited and looking forward
was really excited and looking forward to it and we did have over seven people
to it and we did have over seven people
to it and we did have over seven people signed up I’m gonna include a couple of
signed up I’m gonna include a couple of
signed up I’m gonna include a couple of free bonuses that weren’t initially
free bonuses that weren’t initially
free bonuses that weren’t initially supposed to be included but I’m going to
supposed to be included but I’m going to
supposed to be included but I’m going to put them in because of all the great
put them in because of all the great
put them in because of all the great reaction that you guys have and your
reaction that you guys have and your
reaction that you guys have and your patience and understanding so really
patience and understanding so really
patience and understanding so really appreciate it and without further ado
appreciate it and without further ado
appreciate it and without further ado let’s get started so this was something
let’s get started so this was something
let’s get started so this was something that we wanted to put together as a
that we wanted to put together as a
that we wanted to put together as a partnership between myself into it and
partnership between myself into it and
partnership between myself into it and staples
staples
staples just to give some more information
just to give some more information
just to give some more information entrepreneurs and help them understand
entrepreneurs and help them understand
entrepreneurs and help them understand that the numbers side better their
that the numbers side better their
that the numbers side better their business it’s something that you know
business it’s something that you know
business it’s something that you know entrepreneurs run away from we don’t
entrepreneurs run away from we don’t
entrepreneurs run away from we don’t like talking about the numbers we’d
like talking about the numbers we’d
like talking about the numbers we’d rather go out and make sales and run our
rather go out and make sales and run our
rather go out and make sales and run our business but it is really important so
business but it is really important so
business but it is really important so this is that was a part of the
this is that was a part of the
this is that was a part of the presentation and we’re gonna have
presentation and we’re gonna have
presentation and we’re gonna have another webinar later that I’ll tell you
another webinar later that I’ll tell you
another webinar later that I’ll tell you about later on and stay tuned at the end
about later on and stay tuned at the end
about later on and stay tuned at the end for all the free bonuses that we’re
for all the free bonuses that we’re
for all the free bonuses that we’re going to talk about so just moving on so
going to talk about so just moving on so
going to talk about so just moving on so quickly a little bit about me for those
quickly a little bit about me for those
quickly a little bit about me for those of you who don’t know me I’m Evan
of you who don’t know me I’m Evan
of you who don’t know me I’m Evan Carmichael I have entrepreneurs when I
Carmichael I have entrepreneurs when I
Carmichael I have entrepreneurs when I was 19 I built and sold the biotech
was 19 I built and sold the biotech
was 19 I built and sold the biotech software company 22 I became a venture
software company 22 I became a venture
software company 22 I became a venture capitalist and was raising 1/2 million
capitalist and was raising 1/2 million
capitalist and was raising 1/2 million to 15 million for companies and my goal
to 15 million for companies and my goal
to 15 million for companies and my goal is to help a billion entrepreneurs so a
is to help a billion entrepreneurs so a
is to help a billion entrepreneurs so a big goal I love helping entrepreneurs is
big goal I love helping entrepreneurs is
big goal I love helping entrepreneurs is what I do a couple of miscellaneous
what I do a couple of miscellaneous
what I do a couple of miscellaneous facts about me they you can read at your
facts about me they you can read at your
facts about me they you can read at your leisure if you want but that’s a little
leisure if you want but that’s a little
leisure if you want but that’s a little bit about me and I want to talk
bit about me and I want to talk
bit about me and I want to talk about into it so into it is a partner
about into it so into it is a partner
about into it so into it is a partner company that I’ve worked with for a
company that I’ve worked with for a
company that I’ve worked with for a little bit
little bit
little bit they have accounting software to help
they have accounting software to help
they have accounting software to help entrepreneurs so the financial backbone
entrepreneurs so the financial backbone
entrepreneurs so the financial backbone for a lot of businesses accounting
for a lot of businesses accounting
for a lot of businesses accounting payroll tax basically that their idea
payroll tax basically that their idea
payroll tax basically that their idea behind their company is to help save you
behind their company is to help save you
behind their company is to help save you time and let you focus on what you do
time and let you focus on what you do
time and let you focus on what you do best
best
best you know I think accounting is one of
you know I think accounting is one of
you know I think accounting is one of the things that entrepreneurs hate the
the things that entrepreneurs hate the
the things that entrepreneurs hate the most we don’t want to do our books we
most we don’t want to do our books we
most we don’t want to do our books we don’t you know and understand our
don’t you know and understand our
don’t you know and understand our numbers we just want to go and run our
numbers we just want to go and run our
numbers we just want to go and run our business and so instead of using Excel
business and so instead of using Excel
business and so instead of using Excel or a shoebox or whatever you’re using
or a shoebox or whatever you’re using
or a shoebox or whatever you’re using having a financial software to help you
having a financial software to help you
having a financial software to help you run your business makes such a big
run your business makes such a big
run your business makes such a big difference right now I spend about 20
difference right now I spend about 20
difference right now I spend about 20 minutes every quarter doing my
minutes every quarter doing my
minutes every quarter doing my accounting net because of accounting
accounting net because of accounting
accounting net because of accounting software and it’s so much easier and the
software and it’s so much easier and the
software and it’s so much easier and the story is really cool and into it is an
story is really cool and into it is an
story is really cool and into it is an awesome company started by a guy named
awesome company started by a guy named
awesome company started by a guy named Scott could Scott cook and he started
Scott could Scott cook and he started
Scott could Scott cook and he started the business because he was watching his
the business because he was watching his
the business because he was watching his wife pay her bills at the kitchen table
wife pay her bills at the kitchen table
wife pay her bills at the kitchen table and saw how time-consuming it was and
and saw how time-consuming it was and
and saw how time-consuming it was and thought well I got to make some software
thought well I got to make some software
thought well I got to make some software to help her do this better and I think
to help her do this better and I think
to help her do this better and I think that’s a something a lot of
that’s a something a lot of
that’s a something a lot of entrepreneurs can relate to you know you
entrepreneurs can relate to you know you
entrepreneurs can relate to you know you saw it you see a need and you solve it
saw it you see a need and you solve it
saw it you see a need and you solve it and so he’s a great entrepreneur it’s an
and so he’s a great entrepreneur it’s an
and so he’s a great entrepreneur it’s an entrepreneurial company here are some of
entrepreneurial company here are some of
entrepreneurial company here are some of the products that they have
the products that they have
the products that they have so QuickBooks QuickBooks Online payroll
so QuickBooks QuickBooks Online payroll
so QuickBooks QuickBooks Online payroll go payment turbo tax business a lot more
go payment turbo tax business a lot more
go payment turbo tax business a lot more on the website but they help partner
on the website but they help partner
on the website but they help partner with me for this webinar so wanted to
with me for this webinar so wanted to
with me for this webinar so wanted to give them a quick shout out the three
give them a quick shout out the three
give them a quick shout out the three things that I wanted to talk about in
things that I wanted to talk about in
things that I wanted to talk about in this webinar understanding your balance
this webinar understanding your balance
this webinar understanding your balance sheet so what is a balance sheet how can
sheet so what is a balance sheet how can
sheet so what is a balance sheet how can you make business decisions from it how
you make business decisions from it how
you make business decisions from it how you can quickly boost your cash flow for
you can quickly boost your cash flow for
you can quickly boost your cash flow for short-term and long-term success and
short-term and long-term success and
short-term and long-term success and then also how you can raise capital
then also how you can raise capital
then also how you can raise capital now usually questions I like their
now usually questions I like their
now usually questions I like their answer them as they come up this is now
answer them as they come up this is now
answer them as they come up this is now I guess not a webinar more of a seminar
I guess not a webinar more of a seminar
I guess not a webinar more of a seminar so there’s no questions you know
so there’s no questions you know
so there’s no questions you know obviously during the presentation but I
obviously during the presentation but I
obviously during the presentation but I do want to be able to take your
do want to be able to take your
do want to be able to take your questions afterwards and I’m gonna do a
questions afterwards and I’m gonna do a
questions afterwards and I’m gonna do a video mashup with all the answers so if
video mashup with all the answers so if
video mashup with all the answers so if you have questions let me know and I’d
you have questions let me know and I’d
you have questions let me know and I’d be happy to answer them for you so the
be happy to answer them for you so the
be happy to answer them for you so the three things we’re going to talk about a
three things we’re going to talk about a
three things we’re going to talk about a little bit of background information
little bit of background information
little bit of background information let’s start and then the three things
let’s start and then the three things
let’s start and then the three things your balance sheet boosting your cash
your balance sheet boosting your cash
your balance sheet boosting your cash flow raising capital and at the end I’m
flow raising capital and at the end I’m
flow raising capital and at the end I’m going to give you a model to evaluate
going to give you a model to evaluate
going to give you a model to evaluate your business so if you’re looking at
your business so if you’re looking at
your business so if you’re looking at raising capital and thinking about how
raising capital and thinking about how
raising capital and thinking about how much is my business worth I’m gonna give
much is my business worth I’m gonna give
much is my business worth I’m gonna give you the model that I use when I was in
you the model that I use when I was in
you the model that I use when I was in the
the
the Capital world and also a free worksheet
Capital world and also a free worksheet
Capital world and also a free worksheet on how you can raise your first $50,000
on how you can raise your first $50,000
on how you can raise your first $50,000 for your business so some quick
for your business so some quick
for your business so some quick background information into it’s awesome
background information into it’s awesome
background information into it’s awesome because they put out a lot of studies
because they put out a lot of studies
because they put out a lot of studies and reports and they’re really trying to
and reports and they’re really trying to
and reports and they’re really trying to learn more about the entrepreneur market
learn more about the entrepreneur market
learn more about the entrepreneur market and so they had two really cool reports
and so they had two really cool reports
and so they had two really cool reports one was called the five thousand dollar
one was called the five thousand dollar
one was called the five thousand dollar question and the other is bridging the
question and the other is bridging the
question and the other is bridging the gap and basically just trying to figure
gap and basically just trying to figure
gap and basically just trying to figure out what are the problems of
out what are the problems of
out what are the problems of entrepreneurs and how can they help
entrepreneurs and how can they help
entrepreneurs and how can they help solve them so the first one was I found
solve them so the first one was I found
solve them so the first one was I found that 50% of entrepreneurs started with
that 50% of entrepreneurs started with
that 50% of entrepreneurs started with less than 5,000 ducts so so we’re not
less than 5,000 ducts so so we’re not
less than 5,000 ducts so so we’re not starting with a lot of money we’re
starting with a lot of money we’re
starting with a lot of money we’re starting with a little bit of money
starting with a little bit of money
starting with a little bit of money bootstrapping our way up and eventually
bootstrapping our way up and eventually
bootstrapping our way up and eventually building successful companies half of
building successful companies half of
building successful companies half of entrence take financial risk and that’s
entrence take financial risk and that’s
entrence take financial risk and that’s getting you know line of credit we drain
getting you know line of credit we drain
getting you know line of credit we drain out our savings we maxed out our credit
out our savings we maxed out our credit
out our savings we maxed out our credit cards we pull out our rsps as much as we
cards we pull out our rsps as much as we
cards we pull out our rsps as much as we can to you know take take our business
can to you know take take our business
can to you know take take our business forward the number one regret and that a
forward the number one regret and that a
forward the number one regret and that a lot of entrepreneurs have is they didn’t
lot of entrepreneurs have is they didn’t
lot of entrepreneurs have is they didn’t spend more time learning and financial
spend more time learning and financial
spend more time learning and financial management and if you look at why
management and if you look at why
management and if you look at why businesses fail you’ll see that most
businesses fail you’ll see that most
businesses fail you’ll see that most entrepreneurs don’t make it you know
entrepreneurs don’t make it you know
entrepreneurs don’t make it you know it’s one of the sad truths you know we
it’s one of the sad truths you know we
it’s one of the sad truths you know we we have great intentions we want to help
we have great intentions we want to help
we have great intentions we want to help people but a lot of entrepreneurs just
people but a lot of entrepreneurs just
people but a lot of entrepreneurs just don’t make it and a big reason is
don’t make it and a big reason is
don’t make it and a big reason is because we don’t understand the number
because we don’t understand the number
because we don’t understand the number side of our business and you know you
side of our business and you know you
side of our business and you know you can be profitable and still go out of
can be profitable and still go out of
can be profitable and still go out of business because you know you’re your
business because you know you’re your
business because you know you’re your negative cash flow and you just run out
negative cash flow and you just run out
negative cash flow and you just run out of money we struggle with financial
of money we struggle with financial
of money we struggle with financial management you know 83% have a basic or
management you know 83% have a basic or
management you know 83% have a basic or lower grasp of our fundamentals we know
lower grasp of our fundamentals we know
lower grasp of our fundamentals we know that financial wrench is important we
that financial wrench is important we
that financial wrench is important we want more help from resources and the
want more help from resources and the
want more help from resources and the top food requests were spending time
top food requests were spending time
top food requests were spending time with an accountant networking with other
with an accountant networking with other
with an accountant networking with other entrepreneurs and on tutorials and we
entrepreneurs and on tutorials and we
entrepreneurs and on tutorials and we get help when that we need by using
get help when that we need by using
get help when that we need by using financial ninja software an accountant
financial ninja software an accountant
financial ninja software an accountant those who do that are five times more
those who do that are five times more
those who do that are five times more likely to feel confident about managing
likely to feel confident about managing
likely to feel confident about managing our finances so the people who are
our finances so the people who are
our finances so the people who are reaching out and who are learning about
reaching out and who are learning about
reaching out and who are learning about the financial management side of their
the financial management side of their
the financial management side of their business are having more success and
business are having more success and
business are having more success and that was part of the reason behind
that was part of the reason behind
that was part of the reason behind creating these webinars series was to
creating these webinars series was to
creating these webinars series was to help educate you guys so that you
help educate you guys so that you
help educate you guys so that you understand your numbers better you can
understand your numbers better you can
understand your numbers better you can make better decisions and it increases
make better decisions and it increases
make better decisions and it increases the chances of you being successful so
the chances of you being successful so
the chances of you being successful so these are just some of the findings that
these are just some of the findings that
these are just some of the findings that came out of those two reports you can
came out of those two reports you can
came out of those two reports you can check it out off into its blog but a lot
check it out off into its blog but a lot
check it out off into its blog but a lot more probably coming they do a lot of
more probably coming they do a lot of
more probably coming they do a lot of great work with their research and so
great work with their research and so
great work with their research and so let’s get started on the
let’s get started on the
let’s get started on the patient to help you understand your
patient to help you understand your
patient to help you understand your numbers better so the first one is your
numbers better so the first one is your
numbers better so the first one is your balance sheet and I think a lot of
balance sheet and I think a lot of
balance sheet and I think a lot of entrepreneurs you know if you use an
entrepreneurs you know if you use an
entrepreneurs you know if you use an accountant or if you have a bookkeeper
accountant or if you have a bookkeeper
accountant or if you have a bookkeeper you get your balance sheet at the end of
you get your balance sheet at the end of
you get your balance sheet at the end of the year and you look it over and say
the year and you look it over and say
the year and you look it over and say okay you know great but you don’t really
okay you know great but you don’t really
okay you know great but you don’t really understand what it means or how to make
understand what it means or how to make
understand what it means or how to make decisions from it right how do you know
decisions from it right how do you know
decisions from it right how do you know if you’re okay or not how do you make a
if you’re okay or not how do you make a
if you’re okay or not how do you make a important growth decision from your
important growth decision from your
important growth decision from your balance sheet so I want to quickly touch
balance sheet so I want to quickly touch
balance sheet so I want to quickly touch on what is a balance sheet and how you
on what is a balance sheet and how you
on what is a balance sheet and how you can make decisions from it so the first
can make decisions from it so the first
can make decisions from it so the first part of a balance sheet is your assets
part of a balance sheet is your assets
part of a balance sheet is your assets and the assets are basically everything
and the assets are basically everything
and the assets are basically everything that your company owns and it’s divided
that your company owns and it’s divided
that your company owns and it’s divided into current assets and fixed assets and
into current assets and fixed assets and
into current assets and fixed assets and what I did here is take a screen shot of
what I did here is take a screen shot of
what I did here is take a screen shot of QuickBooks Online accounts so if you’re
QuickBooks Online accounts so if you’re
QuickBooks Online accounts so if you’re using QuickBooks you’ll be able to find
using QuickBooks you’ll be able to find
using QuickBooks you’ll be able to find this in your settings you can go to
this in your settings you can go to
this in your settings you can go to assets and you can see what you have
assets and you can see what you have
assets and you can see what you have under here the current assets are
under here the current assets are
under here the current assets are basically assets that can be are either
basically assets that can be are either
basically assets that can be are either cash or can be converted into cash
cash or can be converted into cash
cash or can be converted into cash within one year a very short period of
within one year a very short period of
within one year a very short period of time so it’s almost like cash so in this
time so it’s almost like cash so in this
time so it’s almost like cash so in this case you’ve got various bank accounts
case you’ve got various bank accounts
case you’ve got various bank accounts and that’s set up as their current
and that’s set up as their current
and that’s set up as their current assets they have some accounts
assets they have some accounts
assets they have some accounts receivables as well so hopefully those
receivables as well so hopefully those
receivables as well so hopefully those are gonna get paid off pretty soon and
are gonna get paid off pretty soon and
are gonna get paid off pretty soon and then the fixed assets are assets that
then the fixed assets are assets that
then the fixed assets are assets that cannot be converted into cash very
cannot be converted into cash very
cannot be converted into cash very easily so example here we’ve got truck
easily so example here we’ve got truck
easily so example here we’ve got truck so that’s the main thing is a fixed
so that’s the main thing is a fixed
so that’s the main thing is a fixed asset for this business so you know when
asset for this business so you know when
asset for this business so you know when people are talking about current assets
people are talking about current assets
people are talking about current assets or fixed assets that’s basically the
or fixed assets that’s basically the
or fixed assets that’s basically the main difference current assets are cash
main difference current assets are cash
main difference current assets are cash or cash equivalent something you can
or cash equivalent something you can
or cash equivalent something you can easily turn into cash and fixed assets
easily turn into cash and fixed assets
easily turn into cash and fixed assets are things that are you know buildings
are things that are you know buildings
are things that are you know buildings land equipment trucks that kind of stuff
land equipment trucks that kind of stuff
land equipment trucks that kind of stuff that is harder to sell harder to trade
that is harder to sell harder to trade
that is harder to sell harder to trade for cash next is your liabilities so the
for cash next is your liabilities so the
for cash next is your liabilities so the other side of the balance sheet is going
other side of the balance sheet is going
other side of the balance sheet is going to be liabilities and here are gangs
to be liabilities and here are gangs
to be liabilities and here are gangs divided the current and long-term so
divided the current and long-term so
divided the current and long-term so your current liabilities are things that
your current liabilities are things that
your current liabilities are things that you owe within the next year so again
you owe within the next year so again
you owe within the next year so again things that are in a short term you have
things that are in a short term you have
things that are in a short term you have to pay back it could be debts that you
to pay back it could be debts that you
to pay back it could be debts that you have credit card statements that you
have credit card statements that you
have credit card statements that you have things they have to pay back
have things they have to pay back
have things they have to pay back quickly where long-term liabilities are
quickly where long-term liabilities are
quickly where long-term liabilities are things that are old beyond one year so
things that are old beyond one year so
things that are old beyond one year so if you have a loan
if you have a loan
if you have a loan paid out over five years or ten years or
paid out over five years or ten years or
paid out over five years or ten years or however many years you have it those
however many years you have it those
however many years you have it those gonna be your long-term liabilities and
gonna be your long-term liabilities and
gonna be your long-term liabilities and again I just quickly pulled up a
again I just quickly pulled up a
again I just quickly pulled up a QuickBooks Online balance sheet here for
QuickBooks Online balance sheet here for
QuickBooks Online balance sheet here for the company and you can quickly see what
the company and you can quickly see what
the company and you can quickly see what kind of liabilities they have current
kind of liabilities they have current
kind of liabilities they have current liabilities are here so it’s accounts
liabilities are here so it’s accounts
liabilities are here so it’s accounts payable credit cards you know others
payable credit cards you know others
payable credit cards you know others small loans sales tax payable and then
small loans sales tax payable and then
small loans sales tax payable and then your long term liabilities they’ve got
your long term liabilities they’ve got
your long term liabilities they’ve got one big loan for $25,000 that’s
one big loan for $25,000 that’s
one big loan for $25,000 that’s long-term liabilities the last piece of
long-term liabilities the last piece of
long-term liabilities the last piece of the puzzle here is your equity so it’s
the puzzle here is your equity so it’s
the puzzle here is your equity so it’s called the balance sheet because it
called the balance sheet because it
called the balance sheet because it needs the balance so your assets what
needs the balance so your assets what
needs the balance so your assets what your company owns has to equal the
your company owns has to equal the
your company owns has to equal the liabilities plus the equity so the
liabilities plus the equity so the
liabilities plus the equity so the liabilities again or what your company
liabilities again or what your company
liabilities again or what your company owes other people and the equity is what
owes other people and the equity is what
owes other people and the equity is what you have left in the business so that’s
you have left in the business so that’s
you have left in the business so that’s basically what you as the owner oh so
basically what you as the owner oh so
basically what you as the owner oh so you have your assets which is how much
you have your assets which is how much
you have your assets which is how much you know you own in the how many
you know you own in the how many
you know you own in the how many long-term and current assets that you
long-term and current assets that you
long-term and current assets that you have things that have value in the
have things that have value in the
have things that have value in the business the liabilities are things that
business the liabilities are things that
business the liabilities are things that you have to pay to other people and then
you have to pay to other people and then
you have to pay to other people and then the equity what’s left is what you own
the equity what’s left is what you own
the equity what’s left is what you own as you enter into business so everything
as you enter into business so everything
as you enter into business so everything at the end of the day has to add up and
at the end of the day has to add up and
at the end of the day has to add up and if you look at this example here we have
if you look at this example here we have
if you look at this example here we have our assets in our total assets so it’s
our assets in our total assets so it’s
our assets in our total assets so it’s gonna be here $26,000 684 is what the
gonna be here $26,000 684 is what the
gonna be here $26,000 684 is what the assets are the liabilities total 30,000
assets are the liabilities total 30,000
assets are the liabilities total 30,000 so he’s got in this company not in a
so he’s got in this company not in a
so he’s got in this company not in a great situation because got more
great situation because got more
great situation because got more liabilities and assets and so his equity
liabilities and assets and so his equity
liabilities and assets and so his equity is gonna be negative so he owns a
is gonna be negative so he owns a
is gonna be negative so he owns a negative amount in this business which
negative amount in this business which
negative amount in this business which is not a great situation to be in so
is not a great situation to be in so
is not a great situation to be in so that’s the basics that’s what it means
that’s the basics that’s what it means
that’s the basics that’s what it means that’s what assets and liabilities and
that’s what assets and liabilities and
that’s what assets and liabilities and equity mean and it always has to equal
equity mean and it always has to equal
equity mean and it always has to equal at the bottom if it doesn’t equal then
at the bottom if it doesn’t equal then
at the bottom if it doesn’t equal then something went wrong and you got to do
something went wrong and you got to do
something went wrong and you got to do it again or talk to cotton because it’s
it again or talk to cotton because it’s
it again or talk to cotton because it’s always got to equal up that’s great a
always got to equal up that’s great a
always got to equal up that’s great a lot of people will know this if you
lot of people will know this if you
lot of people will know this if you don’t know it already hopefully that
don’t know it already hopefully that
don’t know it already hopefully that helped but the big thing is now what
helped but the big thing is now what
helped but the big thing is now what okay I get that but so my accountant
okay I get that but so my accountant
okay I get that but so my accountant gives us to me at the end of the year
gives us to me at the end of the year
gives us to me at the end of the year what does that mean how do I make
what does that mean how do I make
what does that mean how do I make decisions from it and so there’s three
decisions from it and so there’s three
decisions from it and so there’s three main things that I want to talk about of
main things that I want to talk about of
main things that I want to talk about of how you can make important business
how you can make important business
how you can make important business decisions from your balance sheet the
decisions from your balance sheet the
decisions from your balance sheet the first one is look at your current assets
first one is look at your current assets
first one is look at your current assets – current liabilities and I pulled in
– current liabilities and I pulled in
– current liabilities and I pulled in our balance sheet here again from
our balance sheet here again from
our balance sheet here again from QuickBooks and I’ve just highlighted
QuickBooks and I’ve just highlighted
QuickBooks and I’ve just highlighted them with a red arrow current assets and
them with a red arrow current assets and
them with a red arrow current assets and current liabilities again the current
current liabilities again the current
current liabilities again the current assets are things like our cash or it
assets are things like our cash or it
assets are things like our cash or it can be converted in the cash really
can be converted in the cash really
can be converted in the cash really quickly and current liabilities are
quickly and current liabilities are
quickly and current liabilities are things that you owe to other people
things that you owe to other people
things that you owe to other people within a 1-year period so again very
within a 1-year period so again very
within a 1-year period so again very quickly and what this does is tell you
quickly and what this does is tell you
quickly and what this does is tell you the short term viability of your
the short term viability of your
the short term viability of your business basically can you survive the
business basically can you survive the
business basically can you survive the next year or not and if you look at this
next year or not and if you look at this
next year or not and if you look at this one they have more current assets and
one they have more current assets and
one they have more current assets and current liabilities so all the money
current liabilities so all the money
current liabilities so all the money that they owe other people they can pay
that they owe other people they can pay
that they owe other people they can pay back within that year so in the short
back within that year so in the short
back within that year so in the short term this company is pretty healthy and
term this company is pretty healthy and
term this company is pretty healthy and it’s a good idea just to run that quick
it’s a good idea just to run that quick
it’s a good idea just to run that quick little ratio on your business to see how
little ratio on your business to see how
little ratio on your business to see how are you gonna do in a short term because
are you gonna do in a short term because
are you gonna do in a short term because if you have a lot of debts coming up and
if you have a lot of debts coming up and
if you have a lot of debts coming up and not enough cash to be able to pay it
not enough cash to be able to pay it
not enough cash to be able to pay it you’re gonna run into a problem the
you’re gonna run into a problem the
you’re gonna run into a problem the second one I want to talk about is fixed
second one I want to talk about is fixed
second one I want to talk about is fixed assets to long-term liabilities so again
assets to long-term liabilities so again
assets to long-term liabilities so again I’m just pulling off our balance sheet
I’m just pulling off our balance sheet
I’m just pulling off our balance sheet and what the arrows I’ve marked it off
and what the arrows I’ve marked it off
and what the arrows I’ve marked it off and our fixed assets here are $13,000
and our fixed assets here are $13,000
and our fixed assets here are $13,000 and our long-term liabilities are
and our long-term liabilities are
and our long-term liabilities are $25,000 this is a problem so the fixed
$25,000 this is a problem so the fixed
$25,000 this is a problem so the fixed assets to long-term liabilities ratio
assets to long-term liabilities ratio
assets to long-term liabilities ratio here will tell you the long-term
here will tell you the long-term
here will tell you the long-term liability a long-term sustainability of
liability a long-term sustainability of
liability a long-term sustainability of your business can you survive in the
your business can you survive in the
your business can you survive in the long run and basically what it’s showing
long run and basically what it’s showing
long run and basically what it’s showing here is I have more money that I have to
here is I have more money that I have to
here is I have more money that I have to pay out that I have actually in my
pay out that I have actually in my
pay out that I have actually in my business in my fixed assets so this is
business in my fixed assets so this is
business in my fixed assets so this is gonna be a challenge for me I need to
gonna be a challenge for me I need to
gonna be a challenge for me I need to find a way to make more money to my
find a way to make more money to my
find a way to make more money to my business in my first year my next year
business in my first year my next year
business in my first year my next year I’m gonna be okay because in my first
I’m gonna be okay because in my first
I’m gonna be okay because in my first ratio the current assets the current
ratio the current assets the current
ratio the current assets the current liabilities we have enough money to pay
liabilities we have enough money to pay
liabilities we have enough money to pay our short-term debts but our long-term
our short-term debts but our long-term
our short-term debts but our long-term debts are big so we got to find a way
debts are big so we got to find a way
debts are big so we got to find a way within the next year to solve this
within the next year to solve this
within the next year to solve this problem or we’re gonna be facing a major
problem or we’re gonna be facing a major
problem or we’re gonna be facing a major cash crunch and it’s good to know this
cash crunch and it’s good to know this
cash crunch and it’s good to know this in advance because you know otherwise
in advance because you know otherwise
in advance because you know otherwise you may not plan for it and be stuck in
you may not plan for it and be stuck in
you may not plan for it and be stuck in a year where now our complaint for it
a year where now our complaint for it
a year where now our complaint for it and try to make sure I have the cash if
and try to make sure I have the cash if
and try to make sure I have the cash if you will to support these debts that
you will to support these debts that
you will to support these debts that I’ve taken on the last book thing I want
I’ve taken on the last book thing I want
I’ve taken on the last book thing I want to talk about here we’re looking at the
to talk about here we’re looking at the
to talk about here we’re looking at the balance sheet is about raising capital
balance sheet is about raising capital
balance sheet is about raising capital and anytime you go to raise capital if
and anytime you go to raise capital if
and anytime you go to raise capital if you’re looking at getting any kind of
you’re looking at getting any kind of
you’re looking at getting any kind of debt from a bank or a lender or if
debt from a bank or a lender or if
debt from a bank or a lender or if you’re trying to raise equity from an
you’re trying to raise equity from an
you’re trying to raise equity from an investor
investor
investor they’re gonna want to see your balance
they’re gonna want to see your balance
they’re gonna want to see your balance sheet and so you better have it ready
sheet and so you better have it ready
sheet and so you better have it ready and you better be able to explain every
and you better be able to explain every
and you better be able to explain every item on that balance sheet when I was in
item on that balance sheet when I was in
item on that balance sheet when I was in a venture capital business we could ask
a venture capital business we could ask
a venture capital business we could ask about any line item on here and we’d
about any line item on here and we’d
about any line item on here and we’d expect the entrepreneur be able to
expect the entrepreneur be able to
expect the entrepreneur be able to answer it and know exactly what each
answer it and know exactly what each
answer it and know exactly what each item was and if they didn’t it would
item was and if they didn’t it would
item was and if they didn’t it would really reduce their chance of be able to
really reduce their chance of be able to
really reduce their chance of be able to get the money from us
get the money from us
get the money from us so you have to explain every single item
so you have to explain every single item
so you have to explain every single item on your balance sheet before you go talk
on your balance sheet before you go talk
on your balance sheet before you go talk to investor but one of the main things
to investor but one of the main things
to investor but one of the main things are gonna look at is your equity they
are gonna look at is your equity they
are gonna look at is your equity they want to see that you have a lot invested
want to see that you have a lot invested
want to see that you have a lot invested in this business and that that there’s
in this business and that that there’s
in this business and that that there’s there’s something here that you know if
there’s something here that you know if
there’s something here that you know if you’ve put money in and you have a lot
you’ve put money in and you have a lot
you’ve put money in and you have a lot into it then you know there’s some skin
into it then you know there’s some skin
into it then you know there’s some skin in the game and they’re more likely to
in the game and they’re more likely to
in the game and they’re more likely to invest as well here it looks like you
invest as well here it looks like you
invest as well here it looks like you have negative equity which isn’t which
have negative equity which isn’t which
have negative equity which isn’t which is not good it means your liabilities is
is not good it means your liabilities is
is not good it means your liabilities is more than your assets you own more than
more than your assets you own more than
more than your assets you own more than you own this is not a good business to
you own this is not a good business to
you own this is not a good business to put money into so it’s gonna be really
put money into so it’s gonna be really
put money into so it’s gonna be really hard for this company here to go out and
hard for this company here to go out and
hard for this company here to go out and raise capital because they have negative
raise capital because they have negative
raise capital because they have negative equity so something to think about is
equity so something to think about is
equity so something to think about is you know thinking about how you can
you know thinking about how you can
you know thinking about how you can raise your equity so that the next time
raise your equity so that the next time
raise your equity so that the next time you are going out looking for capital
you are going out looking for capital
you are going out looking for capital it’s gonna be easier to get a yes so
it’s gonna be easier to get a yes so
it’s gonna be easier to get a yes so that’s about looking at the balance
that’s about looking at the balance
that’s about looking at the balance sheet the next thing I want to talk
sheet the next thing I want to talk
sheet the next thing I want to talk about is boosting your cash flow and a
about is boosting your cash flow and a
about is boosting your cash flow and a big reason why entrepreneurs fales have
big reason why entrepreneurs fales have
big reason why entrepreneurs fales have run out of money you know you may have a
run out of money you know you may have a
run out of money you know you may have a great plan you have great ideas your
great plan you have great ideas your
great plan you have great ideas your customers love you but you just run out
customers love you but you just run out
customers love you but you just run out of money too soon you need to find ways
of money too soon you need to find ways
of money too soon you need to find ways to keep it going and get that cash flow
to keep it going and get that cash flow
to keep it going and get that cash flow coming in again you can be a profitable
coming in again you can be a profitable
coming in again you can be a profitable company but still go out of business
company but still go out of business
company but still go out of business because your cash flow sucks it means
because your cash flow sucks it means
because your cash flow sucks it means basically that you’re you’re getting
basically that you’re you’re getting
basically that you’re you’re getting you’re taking too long to get paid and
you’re taking too long to get paid and
you’re taking too long to get paid and you’re paying out too quickly so with
you’re paying out too quickly so with
you’re paying out too quickly so with cash flow we’re trying to figure out
cash flow we’re trying to figure out
cash flow we’re trying to figure out ways to pay out other people less
ways to pay out other people less
ways to pay out other people less quickly and also find ways to make more
quickly and also find ways to make more
quickly and also find ways to make more money more quickly so I’m gonna look at
money more quickly so I’m gonna look at
money more quickly so I’m gonna look at 15 quick ways that you can boost your
15 quick ways that you can boost your
15 quick ways that you can boost your cash flow that will help you both in the
cash flow that will help you both in the
cash flow that will help you both in the short term and also the long term so the
short term and also the long term so the
short term and also the long term so the first two one is hammer sale so if
first two one is hammer sale so if
first two one is hammer sale so if you’re in a really big cash barn you
you’re in a really big cash barn you
you’re in a really big cash barn you need money right away to pay off some
need money right away to pay off some
need money right away to pay off some kind of debt have a sale you don’t want
kind of debt have a sale you don’t want
kind of debt have a sale you don’t want in something where you’re gonna you know
in something where you’re gonna you know
in something where you’re gonna you know lose money on it make it unprofitable
lose money on it make it unprofitable
lose money on it make it unprofitable but if you have some kind of sale it’s a
but if you have some kind of sale it’s a
but if you have some kind of sale it’s a great way to be able to quickly
great way to be able to quickly
great way to be able to quickly in some money people who are already
in some money people who are already
in some money people who are already customers know you like you you know can
customers know you like you you know can
customers know you like you you know can potentially buy more from you and maybe
potentially buy more from you and maybe
potentially buy more from you and maybe also tell their friends about you they
also tell their friends about you they
also tell their friends about you they see a sale they’re gonna come into your
see a sale they’re gonna come into your
see a sale they’re gonna come into your your website or your store hopefully buy
your website or your store hopefully buy
your website or your store hopefully buy whatever is on sale and hopefully buy
whatever is on sale and hopefully buy
whatever is on sale and hopefully buy some other stuff as well
some other stuff as well
some other stuff as well number two is cross sale upsell and this
number two is cross sale upsell and this
number two is cross sale upsell and this is great because anytime you have any
is great because anytime you have any
is great because anytime you have any kind of customer base those are the
kind of customer base those are the
kind of customer base those are the easiest guys to go back to and sell to
easiest guys to go back to and sell to
easiest guys to go back to and sell to them again
them again
them again you know people who’ve already bought
you know people who’ve already bought
you know people who’ve already bought from you hopefully you’ve given them a
from you hopefully you’ve given them a
from you hopefully you’ve given them a good experience and they know you they
good experience and they know you they
good experience and they know you they like you they trust you they want to buy
like you they trust you they want to buy
like you they trust you they want to buy from you again and that’s a great way to
from you again and that’s a great way to
from you again and that’s a great way to be able to reach out to them and say hey
be able to reach out to them and say hey
be able to reach out to them and say hey we’ve got either a new product or
we’ve got either a new product or
we’ve got either a new product or service or try to sell them again and
service or try to sell them again and
service or try to sell them again and what they’ve already purchased depending
what they’ve already purchased depending
what they’ve already purchased depending on what you what you’re what you’re
on what you what you’re what you’re
on what you what you’re what you’re selling but a great way to be able to
selling but a great way to be able to
selling but a great way to be able to boost your cash flow in the short term
boost your cash flow in the short term
boost your cash flow in the short term is to go out and talk to your existing
is to go out and talk to your existing
is to go out and talk to your existing customers who’ve bought from you from
customers who’ve bought from you from
customers who’ve bought from you from the past and also try to convince them
the past and also try to convince them
the past and also try to convince them to buy from you again I love this
to buy from you again I love this
to buy from you again I love this picture that I saw on the internet and I
picture that I saw on the internet and I
picture that I saw on the internet and I wanted to find a way to incorporate it I
wanted to find a way to incorporate it I
wanted to find a way to incorporate it I thought this was the best slide to put
thought this was the best slide to put
thought this was the best slide to put it on this is a complaint jar at a store
it on this is a complaint jar at a store
it on this is a complaint jar at a store and if you want to write a complaint you
and if you want to write a complaint you
and if you want to write a complaint you have to write it on a bill that’s a
have to write it on a bill that’s a
have to write it on a bill that’s a dollar or larger so another great way to
dollar or larger so another great way to
dollar or larger so another great way to boost your cash flow is have a complaint
boost your cash flow is have a complaint
boost your cash flow is have a complaint jar where they have to put in bills now
jar where they have to put in bills now
jar where they have to put in bills now hopefully you’re not getting complaints
hopefully you’re not getting complaints
hopefully you’re not getting complaints you’re only getting compliments and
you’re only getting compliments and
you’re only getting compliments and people want to give you more money and
people want to give you more money and
people want to give you more money and buy more products and services from you
buy more products and services from you
buy more products and services from you okay number three and this is a big one
okay number three and this is a big one
okay number three and this is a big one look at your accounts receivable so I
look at your accounts receivable so I
look at your accounts receivable so I just pulled up again QuickBooks Online
just pulled up again QuickBooks Online
just pulled up again QuickBooks Online and was able to pull up a collections
and was able to pull up a collections
and was able to pull up a collections report and what this will basically show
report and what this will basically show
report and what this will basically show you is who owes you money and are they
you is who owes you money and are they
you is who owes you money and are they overdue or not so this is a list of
overdue or not so this is a list of
overdue or not so this is a list of everybody who owes this company money
everybody who owes this company money
everybody who owes this company money and how much money so they have almost
and how much money so they have almost
and how much money so they have almost nine thousand dollars that’s owed to
nine thousand dollars that’s owed to
nine thousand dollars that’s owed to them and it shows you the past due and
them and it shows you the past due and
them and it shows you the past due and this is the important thing to look at
this is the important thing to look at
this is the important thing to look at here this is number of days past due so
here this is number of days past due so
here this is number of days past due so you know this person Alden
you know this person Alden
you know this person Alden he owes me twenty two bucks and it’s
he owes me twenty two bucks and it’s
he owes me twenty two bucks and it’s been 60 days past so that’s a long time
been 60 days past so that’s a long time
been 60 days past so that’s a long time not a lot of money but a long time 68
not a lot of money but a long time 68
not a lot of money but a long time 68 days 38 days 126 days like these are
days 38 days 126 days like these are
days 38 days 126 days like these are people you have to follow up on this one
people you have to follow up on this one
people you have to follow up on this one customer here owes you know
customer here owes you know
customer here owes you know half half of the money that is owed
half half of the money that is owed
half half of the money that is owed total 4500 bucks and look how long it’s
total 4500 bucks and look how long it’s
total 4500 bucks and look how long it’s taking them to pay one hundred and
taking them to pay one hundred and
taking them to pay one hundred and twenty six days they seldom paid and
twenty six days they seldom paid and
twenty six days they seldom paid and fifty days haven’t paid so you have to
fifty days haven’t paid so you have to
fifty days haven’t paid so you have to get on your customers I mean you’re
get on your customers I mean you’re
get on your customers I mean you’re ideally you want good customers who are
ideally you want good customers who are
ideally you want good customers who are paying on time and who are buying Lots
paying on time and who are buying Lots
paying on time and who are buying Lots from you but the ones who aren’t paying
from you but the ones who aren’t paying
from you but the ones who aren’t paying on time you got to get after them and
on time you got to get after them and
on time you got to get after them and make sure that you’re making the phone
make sure that you’re making the phone
make sure that you’re making the phone calls and reaching out to them until
calls and reaching out to them until
calls and reaching out to them until they do eventually pay their bills
they do eventually pay their bills
they do eventually pay their bills that’s a it’s a great way to be able to
that’s a it’s a great way to be able to
that’s a it’s a great way to be able to boost your cash flow short term because
boost your cash flow short term because
boost your cash flow short term because that’s money that’s already owed to you
that’s money that’s already owed to you
that’s money that’s already owed to you you’ve already made those sales now you
you’ve already made those sales now you
you’ve already made those sales now you got to go out and collect next number
got to go out and collect next number
got to go out and collect next number four give incentives to pay early and
four give incentives to pay early and
four give incentives to pay early and this is something you can do depending
this is something you can do depending
this is something you can do depending on what your margins are you know how
on what your margins are you know how
on what your margins are you know how profitable you are with each sale that
profitable you are with each sale that
profitable you are with each sale that you make but you can give them a
you make but you can give them a
you make but you can give them a discount if they pay earlier or or in
discount if they pay earlier or or in
discount if they pay earlier or or in advance and again if you work with
advance and again if you work with
advance and again if you work with bigger companies they’ll typically
bigger companies they’ll typically
bigger companies they’ll typically stretch you out
stretch you out
stretch you out you know you’ll be 60 days 90 days 120
you know you’ll be 60 days 90 days 120
you know you’ll be 60 days 90 days 120 days before you get paid and a lot of
days before you get paid and a lot of
days before you get paid and a lot of times you’re at their mercy that’s their
times you’re at their mercy that’s their
times you’re at their mercy that’s their policy and if you want to work with them
policy and if you want to work with them
policy and if you want to work with them that’s how it’s going to be but you may
that’s how it’s going to be but you may
that’s how it’s going to be but you may really give incentives and especially
really give incentives and especially
really give incentives and especially the smaller clients that you work with
the smaller clients that you work with
the smaller clients that you work with if they pay in advance or if they pay
if they pay in advance or if they pay
if they pay in advance or if they pay upfront that they pay right away they
upfront that they pay right away they
upfront that they pay right away they get a certain percentage off the bill
get a certain percentage off the bill
get a certain percentage off the bill and sometimes that’s gonna be good for
and sometimes that’s gonna be good for
and sometimes that’s gonna be good for them and sometimes it’s not going to
them and sometimes it’s not going to
them and sometimes it’s not going to work for them but you give them the
work for them but you give them the
work for them but you give them the option and the benefit to you is you get
option and the benefit to you is you get
option and the benefit to you is you get your money up front so something to
your money up front so something to
your money up front so something to think about
think about
think about the next thing number five is one that
the next thing number five is one that
the next thing number five is one that is really important that a lot of
is really important that a lot of
is really important that a lot of entrepreneurs make the mistake on make
entrepreneurs make the mistake on make
entrepreneurs make the mistake on make sure you invoice on time you know a lot
sure you invoice on time you know a lot
sure you invoice on time you know a lot of entrepreneur so busy figuring out how
of entrepreneur so busy figuring out how
of entrepreneur so busy figuring out how to go and make sales and take care of
to go and make sales and take care of
to go and make sales and take care of the customers and do all the crazy
the customers and do all the crazy
the customers and do all the crazy things that we need to do to run our
things that we need to do to run our
things that we need to do to run our business I know it’s hard you’re you’re
business I know it’s hard you’re you’re
business I know it’s hard you’re you’re wearing every hot in the company and
wearing every hot in the company and
wearing every hot in the company and even if you have a team it’s still a you
even if you have a team it’s still a you
even if you have a team it’s still a you know 24 hour a day business almost and
know 24 hour a day business almost and
know 24 hour a day business almost and one thing that you often forget to do is
one thing that you often forget to do is
one thing that you often forget to do is invoice you know we heat invoicing
invoice you know we heat invoicing
invoice you know we heat invoicing that’s not that’s not the fun part of
that’s not that’s not the fun part of
that’s not that’s not the fun part of the job we’re not really servicing our
the job we’re not really servicing our
the job we’re not really servicing our clients needs there and and you’re
clients needs there and and you’re
clients needs there and and you’re getting a high from send out an invoice
getting a high from send out an invoice
getting a high from send out an invoice but you got an invoice on time you know
but you got an invoice on time you know
but you got an invoice on time you know as soon as you’re able to you want to
as soon as you’re able to you want to
as soon as you’re able to you want to make sure you invoice because if they
make sure you invoice because if they
make sure you invoice because if they have a 30 day or 60 day policy of pain
have a 30 day or 60 day policy of pain
have a 30 day or 60 day policy of pain that doesn’t start until you invoice you
that doesn’t start until you invoice you
that doesn’t start until you invoice you if you complete a job or you give
if you complete a job or you give
if you complete a job or you give somebody a product and it’s a 60-day
somebody a product and it’s a 60-day
somebody a product and it’s a 60-day period until you get paid it’s not from
period until you get paid it’s not from
period until you get paid it’s not from when they give they get the product or
when they give they get the product or
when they give they get the product or from when you finish the service it’s
from when you finish the service it’s
from when you finish the service it’s from when you send the invoice out to
from when you send the invoice out to
from when you send the invoice out to them so you got to make sure as soon as
them so you got to make sure as soon as
them so you got to make sure as soon as you can
you can
you can you invoice you don’t want to be this
you invoice you don’t want to be this
you invoice you don’t want to be this guy was its license plate where you’re
guy was its license plate where you’re
guy was its license plate where you’re always late you want to make sure always
always late you want to make sure always
always late you want to make sure always invoicing on time that’s an easy fix
invoicing on time that’s an easy fix
invoicing on time that’s an easy fix that can impact a lot of entrepreneurs
that can impact a lot of entrepreneurs
that can impact a lot of entrepreneurs next change your billing structure and
next change your billing structure and
next change your billing structure and this is where you basically try to get
this is where you basically try to get
this is where you basically try to get it so that your clients have paying you
it so that your clients have paying you
it so that your clients have paying you in advance and what I do with my clients
in advance and what I do with my clients
in advance and what I do with my clients and I work with some some major clients
and I work with some some major clients
and I work with some some major clients you know huge companies with long
you know huge companies with long
you know huge companies with long periods of waiting I don’t do work until
periods of waiting I don’t do work until
periods of waiting I don’t do work until we’ve got an agreement in place and I
we’ve got an agreement in place and I
we’ve got an agreement in place and I have I work off a retainer system so I
have I work off a retainer system so I
have I work off a retainer system so I get paid in advance
get paid in advance
get paid in advance for the work that I’m going to do and
for the work that I’m going to do and
for the work that I’m going to do and then every time I do a job that gets
then every time I do a job that gets
then every time I do a job that gets deducted from the total and that’s not
deducted from the total and that’s not
deducted from the total and that’s not how a lot of the companies will work but
how a lot of the companies will work but
how a lot of the companies will work but I say to work with me that’s what I do
I say to work with me that’s what I do
I say to work with me that’s what I do and you know also they’ll deliver good
and you know also they’ll deliver good
and you know also they’ll deliver good results for them so they’re willing to
results for them so they’re willing to
results for them so they’re willing to do that but you may want to think about
do that but you may want to think about
do that but you may want to think about ways you could change your structure
ways you could change your structure
ways you could change your structure just so that you make your money upfront
just so that you make your money upfront
just so that you make your money upfront I need to deliver over a period of time
I need to deliver over a period of time
I need to deliver over a period of time so think about ways you could have
so think about ways you could have
so think about ways you could have bundles or ways that you can have
bundles or ways that you can have
bundles or ways that you can have prepaid packages
prepaid packages
prepaid packages maybe subscription services and give
maybe subscription services and give
maybe subscription services and give them some kind of incentive so that they
them some kind of incentive so that they
them some kind of incentive so that they pay all upfront in advance for a year or
pay all upfront in advance for a year or
pay all upfront in advance for a year or a month or however long makes sense for
a month or however long makes sense for
a month or however long makes sense for your business it gives you cash flow
your business it gives you cash flow
your business it gives you cash flow right away that you can use to grow your
right away that you can use to grow your
right away that you can use to grow your business and often it’s good for the
business and often it’s good for the
business and often it’s good for the customer as well if they get some kind
customer as well if they get some kind
customer as well if they get some kind of deal as a result of it so look at
of deal as a result of it so look at
of deal as a result of it so look at ways you might be able to change your
ways you might be able to change your
ways you might be able to change your structure so that you get more money
structure so that you get more money
structure so that you get more money upfront in advance next one accept
upfront in advance next one accept
upfront in advance next one accept credit cards a lot of companies don’t
credit cards a lot of companies don’t
credit cards a lot of companies don’t accept credit cards because as a fee and
accept credit cards because as a fee and
accept credit cards because as a fee and it’s true there is a fee to have credit
it’s true there is a fee to have credit
it’s true there is a fee to have credit cards you know there’s a merchant
cards you know there’s a merchant
cards you know there’s a merchant account you have to get set up and you
account you have to get set up and you
account you have to get set up and you got to pay you know every time the
got to pay you know every time the
got to pay you know every time the transaction goes through but studies
transaction goes through but studies
transaction goes through but studies have shown that when you accept credit
have shown that when you accept credit
have shown that when you accept credit cards when people are spending with a
cards when people are spending with a
cards when people are spending with a credit card they’re gonna spend more you
credit card they’re gonna spend more you
credit card they’re gonna spend more you know when they’re spending with cash
know when they’re spending with cash
know when they’re spending with cash they see the cash going out and so
they see the cash going out and so
they see the cash going out and so they’re they’re gonna be more hesitant
they’re they’re gonna be more hesitant
they’re they’re gonna be more hesitant to spend it but with credit cards people
to spend it but with credit cards people
to spend it but with credit cards people are more likely to be
are more likely to be
are more likely to be purchases so you may be saving a few
purchases so you may be saving a few
purchases so you may be saving a few pennies here and there but you’re
pennies here and there but you’re
pennies here and there but you’re missing out on the big dollars so you
missing out on the big dollars so you
missing out on the big dollars so you want to make sure you can accept credit
want to make sure you can accept credit
want to make sure you can accept credit cards if you can and usually find a
cards if you can and usually find a
cards if you can and usually find a credit card companies you get money
credit card companies you get money
credit card companies you get money pretty quickly from them as well
pretty quickly from them as well
pretty quickly from them as well so that leads to instant cash flow into
so that leads to instant cash flow into
so that leads to instant cash flow into your business number eight factor your
your business number eight factor your
your business number eight factor your receivables not a huge fan of this one
receivables not a huge fan of this one
receivables not a huge fan of this one but basically when people owe you money
but basically when people owe you money
but basically when people owe you money you could have brand-name clients that
you could have brand-name clients that
you could have brand-name clients that owe you money that’s going to come 60
owe you money that’s going to come 60
owe you money that’s going to come 60 days or 90 days you can go to a
days or 90 days you can go to a
days or 90 days you can go to a factoring company and they’ll pay you a
factoring company and they’ll pay you a
factoring company and they’ll pay you a percentage of the total they won’t take
percentage of the total they won’t take
percentage of the total they won’t take they won’t give you a hundred percent
they won’t give you a hundred percent
they won’t give you a hundred percent they’ll give you a percentage and then
they’ll give you a percentage and then
they’ll give you a percentage and then they’ll collect when that money comes in
they’ll collect when that money comes in
they’ll collect when that money comes in so they’re basically taking a few points
so they’re basically taking a few points
so they’re basically taking a few points off of your total so that you can get
off of your total so that you can get
off of your total so that you can get the money upfront and quickly and
the money upfront and quickly and
the money upfront and quickly and they’re gonna wait on the receivable to
they’re gonna wait on the receivable to
they’re gonna wait on the receivable to come in I don’t really like that idea if
come in I don’t really like that idea if
come in I don’t really like that idea if you can avoid it but it is a way that
you can avoid it but it is a way that
you can avoid it but it is a way that you can get money and quickly if you
you can get money and quickly if you
you can get money and quickly if you absolutely need to number nine sell
absolutely need to number nine sell
absolutely need to number nine sell excess inventory so if you have
excess inventory so if you have
excess inventory so if you have inventory that you bought that you don’t
inventory that you bought that you don’t
inventory that you bought that you don’t need anymore or it’s seasonal it’s going
need anymore or it’s seasonal it’s going
need anymore or it’s seasonal it’s going out of stock sell it out you know sell
out of stock sell it out you know sell
out of stock sell it out you know sell have a sale sell that inventory if you
have a sale sell that inventory if you
have a sale sell that inventory if you don’t need it to grow your business
don’t need it to grow your business
don’t need it to grow your business anymore a great way to turn something
anymore a great way to turn something
anymore a great way to turn something that might just be sitting at your
that might just be sitting at your
that might just be sitting at your office or in your storage room in your
office or in your storage room in your
office or in your storage room in your garage and turn it into money for your
garage and turn it into money for your
garage and turn it into money for your business number ten negotiate supplier
business number ten negotiate supplier
business number ten negotiate supplier terms and this one I want to put a
terms and this one I want to put a
terms and this one I want to put a strong caveat on and so the idea here is
strong caveat on and so the idea here is
strong caveat on and so the idea here is you want to slow down the amount of
you want to slow down the amount of
you want to slow down the amount of money that you’re paying to other people
money that you’re paying to other people
money that you’re paying to other people so if you can delay payments to other
so if you can delay payments to other
so if you can delay payments to other people then that improves your cash flow
people then that improves your cash flow
people then that improves your cash flow because you’re not spending as quickly
because you’re not spending as quickly
because you’re not spending as quickly the challenge I have here with it is it
the challenge I have here with it is it
the challenge I have here with it is it makes sense in theory but it depends on
makes sense in theory but it depends on
makes sense in theory but it depends on who you’re doing it to and I usually
who you’re doing it to and I usually
who you’re doing it to and I usually advise doing this against small
advise doing this against small
advise doing this against small businesses I wouldn’t do it if your
businesses I wouldn’t do it if your
businesses I wouldn’t do it if your suppliers are entrepreneurs the reason
suppliers are entrepreneurs the reason
suppliers are entrepreneurs the reason is they’re facing a cash crunch – right
is they’re facing a cash crunch – right
is they’re facing a cash crunch – right and you know what it’s like being an
and you know what it’s like being an
and you know what it’s like being an entrepreneur you you love working with
entrepreneur you you love working with
entrepreneur you you love working with clients who are on time who pay well and
clients who are on time who pay well and
clients who are on time who pay well and who you know kind of respect your time
who you know kind of respect your time
who you know kind of respect your time where you don’t like work with the guys
where you don’t like work with the guys
where you don’t like work with the guys who try to stretch you out haggle over
who try to stretch you out haggle over
who try to stretch you out haggle over every single penny and want to pay you
every single penny and want to pay you
every single penny and want to pay you in 90 days right those are not great
in 90 days right those are not great
in 90 days right those are not great clients for you so why would you want to
clients for you so why would you want to
clients for you so why would you want to be that client for somebody else right
be that client for somebody else right
be that client for somebody else right do you think you’re going to get
do you think you’re going to get
do you think you’re going to get best service do you think you’re gonna
best service do you think you’re gonna
best service do you think you’re gonna be on call for you and do their very
be on call for you and do their very
be on call for you and do their very best to help you if you’ve negotiated
best to help you if you’ve negotiated
best to help you if you’ve negotiated every last penny of profit out of the
every last penny of profit out of the
every last penny of profit out of the deal and you’re paying them in 90 days
deal and you’re paying them in 90 days
deal and you’re paying them in 90 days probably not you know when I work with
probably not you know when I work with
probably not you know when I work with entrepreneurs as suppliers
entrepreneurs as suppliers
entrepreneurs as suppliers I usually don’t negotiate too much and I
I usually don’t negotiate too much and I
I usually don’t negotiate too much and I usually try to pay them right on time
usually try to pay them right on time
usually try to pay them right on time and that makes sure that when I need
and that makes sure that when I need
and that makes sure that when I need something they’re there for me you know
something they’re there for me you know
something they’re there for me you know if there’s some kind of emergency I need
if there’s some kind of emergency I need
if there’s some kind of emergency I need their help they’ve got my back and so I
their help they’ve got my back and so I
their help they’ve got my back and so I hate doing you know big negotiations on
hate doing you know big negotiations on
hate doing you know big negotiations on terms when it’s working with smaller
terms when it’s working with smaller
terms when it’s working with smaller companies when you’re working with the
companies when you’re working with the
companies when you’re working with the bigger guys go for it you know they have
bigger guys go for it you know they have
bigger guys go for it you know they have a budget but a lot of times it’s not
a budget but a lot of times it’s not
a budget but a lot of times it’s not going to make a big difference in their
going to make a big difference in their
going to make a big difference in their own business and the quality of service
own business and the quality of service
own business and the quality of service you’re gonna get from isn’t gonna make a
you’re gonna get from isn’t gonna make a
you’re gonna get from isn’t gonna make a difference from the person you’re
difference from the person you’re
difference from the person you’re dealing with
dealing with
dealing with so get the best deal you can out of them
so get the best deal you can out of them
so get the best deal you can out of them but for the smaller guys that really
but for the smaller guys that really
but for the smaller guys that really watch out and I think it’s worth
watch out and I think it’s worth
watch out and I think it’s worth investing in the relationship to make
investing in the relationship to make
investing in the relationship to make sure that you always get really good
sure that you always get really good
sure that you always get really good service from them so that’s my rant on
service from them so that’s my rant on
service from them so that’s my rant on negotiating supplier terms number 11
negotiating supplier terms number 11
negotiating supplier terms number 11 Creed referral program so again if
Creed referral program so again if
Creed referral program so again if customers love you they like what
customers love you they like what
customers love you they like what they’re buying from you then chances are
they’re buying from you then chances are
they’re buying from you then chances are they’re gonna have people who they know
they’re gonna have people who they know
they’re gonna have people who they know who they can refer to your business as
who they can refer to your business as
who they can refer to your business as well who can also hopefully help grow
well who can also hopefully help grow
well who can also hopefully help grow your business so if you create a program
your business so if you create a program
your business so if you create a program give them either an incentive to do it
give them either an incentive to do it
give them either an incentive to do it it could be points it could be dollars
it could be points it could be dollars
it could be points it could be dollars it could be products services something
it could be products services something
it could be products services something think of ways that you may be able to
think of ways that you may be able to
think of ways that you may be able to entice your current customers to tell
entice your current customers to tell
entice your current customers to tell their friends about you number twelve
their friends about you number twelve
their friends about you number twelve refinance short-term debt and the idea
refinance short-term debt and the idea
refinance short-term debt and the idea here is remember when we look back at
here is remember when we look back at
here is remember when we look back at our balance sheet and we saw current
our balance sheet and we saw current
our balance sheet and we saw current liabilities and long-term liabilities
liabilities and long-term liabilities
liabilities and long-term liabilities the current liabilities are what’s due
the current liabilities are what’s due
the current liabilities are what’s due within the next year and that’s really
within the next year and that’s really
within the next year and that’s really critical because if we have a lot of
critical because if we have a lot of
critical because if we have a lot of money owed in the next year we don’t
money owed in the next year we don’t
money owed in the next year we don’t have a lot of money coming in we could
have a lot of money coming in we could
have a lot of money coming in we could go under right this could be our last
go under right this could be our last
go under right this could be our last year so the idea here is to refinance
year so the idea here is to refinance
year so the idea here is to refinance some of your short-term debt and turn it
some of your short-term debt and turn it
some of your short-term debt and turn it into long-term debt so you talk to the
into long-term debt so you talk to the
into long-term debt so you talk to the people who you owe money to and maybe
people who you owe money to and maybe
people who you owe money to and maybe you add a few more years on to the deal
you add a few more years on to the deal
you add a few more years on to the deal basically they get that short term that
basically they get that short term that
basically they get that short term that lowered even though it may increase your
lowered even though it may increase your
lowered even though it may increase your long-term debt but it proves your
long-term debt but it proves your
long-term debt but it proves your situation for the next
situation for the next
situation for the next year so something to think about if you
year so something to think about if you
year so something to think about if you find that your current assets are a lot
find that your current assets are a lot
find that your current assets are a lot less than your current liabilities
less than your current liabilities
less than your current liabilities number thirteen cell and leaseback the
number thirteen cell and leaseback the
number thirteen cell and leaseback the idea here is if you have any fixed
idea here is if you have any fixed
idea here is if you have any fixed assets so if you own a building or you
assets so if you own a building or you
assets so if you own a building or you have equipment or you have land that
have equipment or you have land that
have equipment or you have land that isn’t really making you money you could
isn’t really making you money you could
isn’t really making you money you could sell it to somebody and then rent it
sell it to somebody and then rent it
sell it to somebody and then rent it back from them so you get a big cash in
back from them so you get a big cash in
back from them so you get a big cash in infusion into your business so if you
infusion into your business so if you
infusion into your business so if you have an office that you own you could
have an office that you own you could
have an office that you own you could sell the office to somebody and make
sell the office to somebody and make
sell the office to somebody and make money right away and then you make an
money right away and then you make an
money right away and then you make an agreement to rent the office from them
agreement to rent the office from them
agreement to rent the office from them so it adds to the expenses on a regular
so it adds to the expenses on a regular
so it adds to the expenses on a regular basis but you get that big cash influx
basis but you get that big cash influx
basis but you get that big cash influx that can boost your cash flow short-term
that can boost your cash flow short-term
that can boost your cash flow short-term you can only do that once because once
you can only do that once because once
you can only do that once because once it’s giving up your ownership that’s it
it’s giving up your ownership that’s it
it’s giving up your ownership that’s it you can’t do it again fourteen convert
you can’t do it again fourteen convert
you can’t do it again fourteen convert debt to equity the idea here is you look
debt to equity the idea here is you look
debt to equity the idea here is you look at who you owe money to and if you can
at who you owe money to and if you can
at who you owe money to and if you can convince your supplier or your lender
convince your supplier or your lender
convince your supplier or your lender that you have a really good business
that you have a really good business
that you have a really good business opportunity then you can potentially
opportunity then you can potentially
opportunity then you can potentially convert that debt and have it become
convert that debt and have it become
convert that debt and have it become equity where they become a partner in
equity where they become a partner in
equity where they become a partner in your business so instead of owing you
your business so instead of owing you
your business so instead of owing you so-sorry instead of you owning join them
so-sorry instead of you owning join them
so-sorry instead of you owning join them ten thousand dollars as an example you
ten thousand dollars as an example you
ten thousand dollars as an example you could give them a certain percentage of
could give them a certain percentage of
could give them a certain percentage of your business and so they become a
your business and so they become a
your business and so they become a smaller partner in your company very
smaller partner in your company very
smaller partner in your company very dangerous one you know very dangerous
dangerous one you know very dangerous
dangerous one you know very dangerous method to go after you want to make sure
method to go after you want to make sure
method to go after you want to make sure that you want that supplier on board
that you want that supplier on board
that you want that supplier on board with your business you know do you want
with your business you know do you want
with your business you know do you want this person who’s always gonna have a
this person who’s always gonna have a
this person who’s always gonna have a percentage of your company ongoing do
percentage of your company ongoing do
percentage of your company ongoing do you want to make them part of your
you want to make them part of your
you want to make them part of your management team or not there’s a lot of
management team or not there’s a lot of
management team or not there’s a lot of things to think about but it is an
things to think about but it is an
things to think about but it is an option and I won’t let you guys know
option and I won’t let you guys know
option and I won’t let you guys know about number 15 bootstrap this is my
about number 15 bootstrap this is my
about number 15 bootstrap this is my favorite one basically you’re not
favorite one basically you’re not
favorite one basically you’re not spending money until you’re making money
spending money until you’re making money
spending money until you’re making money I really hate spending money until I
I really hate spending money until I
I really hate spending money until I found a way to make money and I’ll
found a way to make money and I’ll
found a way to make money and I’ll invest my time energy efforts into
invest my time energy efforts into
invest my time energy efforts into trying to make something work and then
trying to make something work and then
trying to make something work and then if I see that I can get even a little
if I see that I can get even a little
if I see that I can get even a little bit of money out of it then I start
bit of money out of it then I start
bit of money out of it then I start investing a little bit of money back in
investing a little bit of money back in
investing a little bit of money back in and a lot of the best businesses in the
and a lot of the best businesses in the
and a lot of the best businesses in the world have been built by bootstrapping
world have been built by bootstrapping
world have been built by bootstrapping basically find ways to make money by
basically find ways to make money by
basically find ways to make money by hustle and you know blood sweat and
hustle and you know blood sweat and
hustle and you know blood sweat and tears goes into it and then as you start
tears goes into it and then as you start
tears goes into it and then as you start making money you pour back into the
making money you pour back into the
making money you pour back into the business and you can see the growth and
business and you can see the growth and
business and you can see the growth and that way you’re making sure that your
that way you’re making sure that your
that way you’re making sure that your spending money on things that you know
spending money on things that you know
spending money on things that you know are gonna make you money back so those
are gonna make you money back so those
are gonna make you money back so those are my quick 15 tips on how to raise
are my quick 15 tips on how to raise
are my quick 15 tips on how to raise cash flow if you need to and bind and I
cash flow if you need to and bind and I
cash flow if you need to and bind and I want to move on to the third topic now
want to move on to the third topic now
want to move on to the third topic now which is raising capital and this is a
which is raising capital and this is a
which is raising capital and this is a common question I get you know how do I
common question I get you know how do I
common question I get you know how do I raise money for my business it could be
raise money for my business it could be
raise money for my business it could be startup funds it could be expansion
startup funds it could be expansion
startup funds it could be expansion funds it could be trying to get a loan
funds it could be trying to get a loan
funds it could be trying to get a loan or could be trying to get an equity
or could be trying to get an equity
or could be trying to get an equity investor into the business and I’m going
investor into the business and I’m going
investor into the business and I’m going to give you some quick tips to help you
to give you some quick tips to help you
to give you some quick tips to help you with all of those scenarios the first
with all of those scenarios the first
with all of those scenarios the first thing I want to quickly look at is small
thing I want to quickly look at is small
thing I want to quickly look at is small businesses and say SMEs small and medium
businesses and say SMEs small and medium
businesses and say SMEs small and medium enterprises are typically under financed
enterprises are typically under financed
enterprises are typically under financed it’s it’s usually the high you know high
it’s it’s usually the high you know high
it’s it’s usually the high you know high growth but young companies that have the
growth but young companies that have the
growth but young companies that have the hardest time getting money because
hardest time getting money because
hardest time getting money because there’s no track record the more
there’s no track record the more
there’s no track record the more established you are in business easier
established you are in business easier
established you are in business easier it is to get money because they can make
it is to get money because they can make
it is to get money because they can make some kind of prediction if all you have
some kind of prediction if all you have
some kind of prediction if all you have is a business plan and kind of a dream
is a business plan and kind of a dream
is a business plan and kind of a dream it’s a lot harder to get money and a lot
it’s a lot harder to get money and a lot
it’s a lot harder to get money and a lot of people are gonna say no if you’re
of people are gonna say no if you’re
of people are gonna say no if you’re looking at debt financing and debt
looking at debt financing and debt
looking at debt financing and debt financing is basically where you are
financing is basically where you are
financing is basically where you are borrowing money and you have to pay
borrowing money and you have to pay
borrowing money and you have to pay interest typically and give that money
interest typically and give that money
interest typically and give that money back at some point
back at some point
back at some point so if you’re looking any kind of loan
so if you’re looking any kind of loan
so if you’re looking any kind of loan from a bank or friends or family as an
from a bank or friends or family as an
from a bank or friends or family as an example that’s debt financing and here
example that’s debt financing and here
example that’s debt financing and here are some of the most common types of
are some of the most common types of
are some of the most common types of debt financing so line of credit
debt financing so line of credit
debt financing so line of credit business loan commercial mortgage credit
business loan commercial mortgage credit
business loan commercial mortgage credit cards loan from family or friends if you
cards loan from family or friends if you
cards loan from family or friends if you look at the top ones line of credit
look at the top ones line of credit
look at the top ones line of credit business loan and commercial mortgage
business loan and commercial mortgage
business loan and commercial mortgage these are usually for older companies
these are usually for older companies
these are usually for older companies right in order to to qualify for a line
right in order to to qualify for a line
right in order to to qualify for a line of credit you have to have some business
of credit you have to have some business
of credit you have to have some business success already built in so you have to
success already built in so you have to
success already built in so you have to have you know at least three years
have you know at least three years
have you know at least three years typically of being in business before a
typically of being in business before a
typically of being in business before a bank will look at giving you a line of
bank will look at giving you a line of
bank will look at giving you a line of credit on your business it could be a
credit on your business it could be a
credit on your business it could be a personal line of credit but that’s a
personal line of credit but that’s a
personal line of credit but that’s a different way to finance it it’s not
different way to finance it it’s not
different way to finance it it’s not just off your business where the younger
just off your business where the younger
just off your business where the younger companies are typically looking for
companies are typically looking for
companies are typically looking for credit card balances loans from friends
credit card balances loans from friends
credit card balances loans from friends and family
and family
and family other ways basically to be able to
other ways basically to be able to
other ways basically to be able to borrow money one thing you want to look
borrow money one thing you want to look
borrow money one thing you want to look at if you are going to get any kind of
at if you are going to get any kind of
at if you are going to get any kind of debt financing is make sure you find out
debt financing is make sure you find out
debt financing is make sure you find out what’s going on and why you you get
what’s going on and why you you get
what’s going on and why you you get rejected or not this is a quick study
rejected or not this is a quick study
rejected or not this is a quick study that shows why banks are
that shows why banks are
that shows why banks are achtung people for for their loans so
achtung people for for their loans so
achtung people for for their loans so you go to a bank and they say no the
you go to a bank and they say no the
you go to a bank and they say no the biggest reasons too much outstanding
biggest reasons too much outstanding
biggest reasons too much outstanding debt lack of owner equity insufficient
debt lack of owner equity insufficient
debt lack of owner equity insufficient cash flow if you look at the first two
cash flow if you look at the first two
cash flow if you look at the first two too much outstanding debt lack of one or
too much outstanding debt lack of one or
too much outstanding debt lack of one or equity you can find that out from the
equity you can find that out from the
equity you can find that out from the balance sheet how they make that
balance sheet how they make that
balance sheet how they make that decision from your balance sheet they’re
decision from your balance sheet they’re
decision from your balance sheet they’re gonna see how much debt you have which
gonna see how much debt you have which
gonna see how much debt you have which is going to be your liabilities and how
is going to be your liabilities and how
is going to be your liabilities and how much equity you have and so the company
much equity you have and so the company
much equity you have and so the company that we showed an example of they had a
that we showed an example of they had a
that we showed an example of they had a lot of long-term liabilities a lot
lot of long-term liabilities a lot
lot of long-term liabilities a lot long-term debt and they had negative
long-term debt and they had negative
long-term debt and they had negative owner’s equity so this guy is gonna get
owner’s equity so this guy is gonna get
owner’s equity so this guy is gonna get rejected for sure and the top two
rejected for sure and the top two
rejected for sure and the top two reasons can you can pull right off your
reasons can you can pull right off your
reasons can you can pull right off your balance sheet
balance sheet
balance sheet the third is insufficient cash flow so
the third is insufficient cash flow so
the third is insufficient cash flow so the topic we just talked about was how
the topic we just talked about was how
the topic we just talked about was how to raise more cash flow and again with
to raise more cash flow and again with
to raise more cash flow and again with your QuickBooks software you’ll be able
your QuickBooks software you’ll be able
your QuickBooks software you’ll be able to figure out a cash flow statement that
to figure out a cash flow statement that
to figure out a cash flow statement that again your banks are gonna want to look
again your banks are gonna want to look
again your banks are gonna want to look at one thing that was really surprising
at one thing that was really surprising
at one thing that was really surprising to me on this was almost 12% had no
to me on this was almost 12% had no
to me on this was almost 12% had no reason so if you get rejected from a
reason so if you get rejected from a
reason so if you get rejected from a banker from an investor from anybody who
banker from an investor from anybody who
banker from an investor from anybody who you who’s you’re trying to get money
you who’s you’re trying to get money
you who’s you’re trying to get money from even for customers partner
from even for customers partner
from even for customers partner suppliers if you get rejected you want
suppliers if you get rejected you want
suppliers if you get rejected you want to find out why right you wanna be able
to find out why right you wanna be able
to find out why right you wanna be able to go back ideally and hopefully sell
to go back ideally and hopefully sell
to go back ideally and hopefully sell that same person on the idea but if not
that same person on the idea but if not
that same person on the idea but if not just take that feedback and to take it
just take that feedback and to take it
just take that feedback and to take it so you can improve yourself and go back
so you can improve yourself and go back
so you can improve yourself and go back on another time so if you’re going to a
on another time so if you’re going to a
on another time so if you’re going to a bank and you’re asking for a loan and
bank and you’re asking for a loan and
bank and you’re asking for a loan and they say no figure out why you know if
they say no figure out why you know if
they say no figure out why you know if it’s because you have insufficient cash
it’s because you have insufficient cash
it’s because you have insufficient cash flow then use those tips boost your cash
flow then use those tips boost your cash
flow then use those tips boost your cash flow and go back right make sure you
flow and go back right make sure you
flow and go back right make sure you really know why you’re getting rejected
really know why you’re getting rejected
really know why you’re getting rejected and not just letting the goal as a no
and not just letting the goal as a no
and not just letting the goal as a no the next few tips I want to give then
the next few tips I want to give then
the next few tips I want to give then this is for raising money in general if
this is for raising money in general if
this is for raising money in general if it’s gonna be debt equity sorry debt
it’s gonna be debt equity sorry debt
it’s gonna be debt equity sorry debt financing or equity financing we’ve
financing or equity financing we’ve
financing or equity financing we’ve talked about debt where it’s basically
talked about debt where it’s basically
talked about debt where it’s basically you’re borrowing money and you have to
you’re borrowing money and you have to
you’re borrowing money and you have to pay it back usually with interest equity
pay it back usually with interest equity
pay it back usually with interest equity is where you bring somebody on as a
is where you bring somebody on as a
is where you bring somebody on as a partner in your company so they’re
partner in your company so they’re
partner in your company so they’re paying you a certain amount of money and
paying you a certain amount of money and
paying you a certain amount of money and then they own a piece of your business
then they own a piece of your business
then they own a piece of your business and there’s usually not a component to
and there’s usually not a component to
and there’s usually not a component to it so you’re not paying them every month
it so you’re not paying them every month
it so you’re not paying them every month but they own a piece of your business so
but they own a piece of your business so
but they own a piece of your business so when you sell your company they’re
when you sell your company they’re
when you sell your company they’re taking a chunk of that and there’s
taking a chunk of that and there’s
taking a chunk of that and there’s usually some decision-making that they
usually some decision-making that they
usually some decision-making that they get as well so things to think about
get as well so things to think about
get as well so things to think about when you’re pitching investors or
when you’re pitching investors or
when you’re pitching investors or lenders number one it’s easier to lose
lenders number one it’s easier to lose
lenders number one it’s easier to lose and
and
and anybody can spend money it’s not hard to
anybody can spend money it’s not hard to
anybody can spend money it’s not hard to spend money if I gave you a million
spend money if I gave you a million
spend money if I gave you a million dollars you can find a million different
dollars you can find a million different
dollars you can find a million different ways to use it and that’s the fear that
ways to use it and that’s the fear that
ways to use it and that’s the fear that a lot of investors and lenders have is
a lot of investors and lenders have is
a lot of investors and lenders have is that you’re gonna go out and spend their
that you’re gonna go out and spend their
that you’re gonna go out and spend their money what you need to show is you have
money what you need to show is you have
money what you need to show is you have a solid plan in place to make money and
a solid plan in place to make money and
a solid plan in place to make money and show that you’ve already made a little
show that you’ve already made a little
show that you’ve already made a little bit of money they’re not expect me to
bit of money they’re not expect me to
bit of money they’re not expect me to have made tons of money yet because
have made tons of money yet because
have made tons of money yet because you’re going to them asking for help but
you’re going to them asking for help but
you’re going to them asking for help but you have to be able to demonstrate that
you have to be able to demonstrate that
you have to be able to demonstrate that you have a way to make money right
you have a way to make money right
you have a way to make money right that’s why if it’s just coming in with a
that’s why if it’s just coming in with a
that’s why if it’s just coming in with a plan on paper it’s really hard to get
plan on paper it’s really hard to get
plan on paper it’s really hard to get them to say yes because you haven’t
them to say yes because you haven’t
them to say yes because you haven’t shown anything even if you go and get
shown anything even if you go and get
shown anything even if you go and get one customer you’ve already separated
one customer you’ve already separated
one customer you’ve already separated yourself from most of the business plans
yourself from most of the business plans
yourself from most of the business plans that are coming in so show that you’re
that are coming in so show that you’re
that are coming in so show that you’re able to make money and not just spend
able to make money and not just spend
able to make money and not just spend the money next look at what you’re going
the money next look at what you’re going
the money next look at what you’re going to spend the money on
to spend the money on
to spend the money on so it’s called use of proceeds whenever
so it’s called use of proceeds whenever
so it’s called use of proceeds whenever you go and you’re looking for money from
you go and you’re looking for money from
you go and you’re looking for money from an investor or from a lender they’re
an investor or from a lender they’re
an investor or from a lender they’re gonna ask your use of proceeds which is
gonna ask your use of proceeds which is
gonna ask your use of proceeds which is basically looking at how are you
basically looking at how are you
basically looking at how are you spending the money and it better not be
spending the money and it better not be
spending the money and it better not be to pay yourself a huge salary
to pay yourself a huge salary
to pay yourself a huge salary I remember one business plan that we had
I remember one business plan that we had
I remember one business plan that we had come in when I was in the venture
come in when I was in the venture
come in when I was in the venture capital world they wanted $500,000 there
capital world they wanted $500,000 there
capital world they wanted $500,000 there were four of them they wanted to pay
were four of them they wanted to pay
were four of them they wanted to pay each of them a hundred thousand dollars
each of them a hundred thousand dollars
each of them a hundred thousand dollars a year and then they have a hundred
a year and then they have a hundred
a year and then they have a hundred thousand dollars to grow the business
thousand dollars to grow the business
thousand dollars to grow the business that’s not something people are gonna
that’s not something people are gonna
that’s not something people are gonna finance right they’re expecting you to
finance right they’re expecting you to
finance right they’re expecting you to pour everything you have into this
pour everything you have into this
pour everything you have into this business and take out a minimal amount
business and take out a minimal amount
business and take out a minimal amount of salary because the money that you’re
of salary because the money that you’re
of salary because the money that you’re gonna get as a salary is it should be
gonna get as a salary is it should be
gonna get as a salary is it should be tiny compared to the money you’re gonna
tiny compared to the money you’re gonna
tiny compared to the money you’re gonna get when you build a huge business and
get when you build a huge business and
get when you build a huge business and sell it or take it public all right so
sell it or take it public all right so
sell it or take it public all right so that’s what they that’s what they want
that’s what they that’s what they want
that’s what they that’s what they want to see is that you’re not spending a
to see is that you’re not spending a
to see is that you’re not spending a huge amount of money on yourself yeah
huge amount of money on yourself yeah
huge amount of money on yourself yeah you have to make enough you know pay the
you have to make enough you know pay the
you have to make enough you know pay the bills but it shouldn’t be a huge amount
bills but it shouldn’t be a huge amount
bills but it shouldn’t be a huge amount of money you want they want to see the
of money you want they want to see the
of money you want they want to see the money’s going to be used to grow the
money’s going to be used to grow the
money’s going to be used to grow the business next never say no competition
business next never say no competition
business next never say no competition there’s always competition you know
there’s always competition you know
there’s always competition you know whatever business you’re in there’s
whatever business you’re in there’s
whatever business you’re in there’s always always always going to be
always always always going to be
always always always going to be competition there may not be direct
competition there may not be direct
competition there may not be direct competition but there’s always an option
competition but there’s always an option
competition but there’s always an option for people right there’s always some
for people right there’s always some
for people right there’s always some kind of option for people to spend their
kind of option for people to spend their
kind of option for people to spend their money if it’s not going to be with you
money if it’s not going to be with you
money if it’s not going to be with you it’ll be with someone else so you never
it’ll be with someone else so you never
it’ll be with someone else so you never want to say that there’s no competition
want to say that there’s no competition
want to say that there’s no competition because it looks like you’re a child
because it looks like you’re a child
because it looks like you’re a child playing and adults game anytime we said
playing and adults game anytime we said
playing and adults game anytime we said we we had a business plan come in
we we had a business plan come in
we we had a business plan come in and the the people said they had no
and the the people said they had no
and the the people said they had no competition they got rejected right away
competition they got rejected right away
competition they got rejected right away because there’s always a competition so
because there’s always a competition so
because there’s always a competition so as an entrepreneur you should be
as an entrepreneur you should be
as an entrepreneur you should be different right if you want to stand out
different right if you want to stand out
different right if you want to stand out if you want to make money you want to
if you want to make money you want to
if you want to make money you want to you want to be a company worth investing
you want to be a company worth investing
you want to be a company worth investing in you should be doing something
in you should be doing something
in you should be doing something different if you’re doing the same thing
different if you’re doing the same thing
different if you’re doing the same thing as everybody else then how are you going
as everybody else then how are you going
as everybody else then how are you going to be successful right you have to be
to be successful right you have to be
to be successful right you have to be doing something different so from that
doing something different so from that
doing something different so from that point of view you are standing up with
point of view you are standing up with
point of view you are standing up with your competition but you have to
your competition but you have to
your competition but you have to recognize who your competition is you
recognize who your competition is you
recognize who your competition is you know where will people spend their money
know where will people spend their money
know where will people spend their money if they’re not going to spend it on you
if they’re not going to spend it on you
if they’re not going to spend it on you so never say no competition a little bit
so never say no competition a little bit
so never say no competition a little bit of financial wisdom that might help you
of financial wisdom that might help you
of financial wisdom that might help you save some money when you are getting
save some money when you are getting
save some money when you are getting equity investment is try to stretch the
equity investment is try to stretch the
equity investment is try to stretch the time period so if you ask for all the
time period so if you ask for all the
time period so if you ask for all the money you need right away upfront that’s
money you need right away upfront that’s
money you need right away upfront that’s gonna cost you a big chunk of your
gonna cost you a big chunk of your
gonna cost you a big chunk of your company because it’s the riskiest time
company because it’s the riskiest time
company because it’s the riskiest time for the investor so upfront financing
for the investor so upfront financing
for the investor so upfront financing always cost you the most amount of your
always cost you the most amount of your
always cost you the most amount of your business so here’s a quick example if I
business so here’s a quick example if I
business so here’s a quick example if I needed to raise half a million dollars
needed to raise half a million dollars
needed to raise half a million dollars and you could fudge these numbers to
and you could fudge these numbers to
and you could fudge these numbers to whatever fits your business but say I
whatever fits your business but say I
whatever fits your business but say I want to raise half a million dollars if
want to raise half a million dollars if
want to raise half a million dollars if I wanted that up front
I wanted that up front
I wanted that up front I might have to settle for evaluation of
I might have to settle for evaluation of
I might have to settle for evaluation of a million dollars which means I’m giving
a million dollars which means I’m giving
a million dollars which means I’m giving up half of my business because it’s the
up half of my business because it’s the
up half of my business because it’s the riskiest time for the investor right if
riskiest time for the investor right if
riskiest time for the investor right if I’m right at the beginning of my
I’m right at the beginning of my
I’m right at the beginning of my business I haven’t built a lot of
business I haven’t built a lot of
business I haven’t built a lot of momentum it’s riskier for them to come
momentum it’s riskier for them to come
momentum it’s riskier for them to come in then if I already have some momentum
in then if I already have some momentum
in then if I already have some momentum built in so the optional way here they
built in so the optional way here they
built in so the optional way here they say I need half a million dollars but I
say I need half a million dollars but I
say I need half a million dollars but I don’t need it all up front I want
don’t need it all up front I want
don’t need it all up front I want $150,000 now and I’ll take that million
$150,000 now and I’ll take that million
$150,000 now and I’ll take that million dollar valuation and then I want
dollar valuation and then I want
dollar valuation and then I want $150,000 in three months and I want a
$150,000 in three months and I want a
$150,000 in three months and I want a better valuation because I’m gonna go
better valuation because I’m gonna go
better valuation because I’m gonna go out and get momentum I’m gonna go and
out and get momentum I’m gonna go and
out and get momentum I’m gonna go and get sales I’m gonna show you that can
get sales I’m gonna show you that can
get sales I’m gonna show you that can build a business and then in six months
build a business and then in six months
build a business and then in six months I want another $200,000 at a two million
I want another $200,000 at a two million
I want another $200,000 at a two million dollar valuation so I’m still getting my
dollar valuation so I’m still getting my
dollar valuation so I’m still getting my half a million dollars but I’m
half a million dollars but I’m
half a million dollars but I’m stretching that the time periods and I’m
stretching that the time periods and I’m
stretching that the time periods and I’m I’m basing it on goals so I’m gonna say
I’m basing it on goals so I’m gonna say
I’m basing it on goals so I’m gonna say and three months and in six months I’m
and three months and in six months I’m
and three months and in six months I’m gonna reach these sales targets I’m
gonna reach these sales targets I’m
gonna reach these sales targets I’m going to show you that I can build a
going to show you that I can build a
going to show you that I can build a better business and that reduces the
better business and that reduces the
better business and that reduces the risk for the investor so they’re more
risk for the investor so they’re more
risk for the investor so they’re more likely to say yes if you go and hit
likely to say yes if you go and hit
likely to say yes if you go and hit those goals because it’s a it’s an
those goals because it’s a it’s an
those goals because it’s a it’s an easier bet for them to make now your
easier bet for them to make now your
easier bet for them to make now your challenge is on because you got to go
challenge is on because you got to go
challenge is on because you got to go and hit those numbers that you said
and hit those numbers that you said
and hit those numbers that you said you’re gonna hit
you’re gonna hit
you’re gonna hit that’s a good challenge you’re betting
that’s a good challenge you’re betting
that’s a good challenge you’re betting on yourself and hopefully you don’t make
on yourself and hopefully you don’t make
on yourself and hopefully you don’t make the number so unrealistic that you can’t
the number so unrealistic that you can’t
the number so unrealistic that you can’t go out and hit those numbers but they
go out and hit those numbers but they
go out and hit those numbers but they didn’t here is I’m still getting the
didn’t here is I’m still getting the
didn’t here is I’m still getting the same amount of money there’s half a
same amount of money there’s half a
same amount of money there’s half a million dollars but I’m only giving up
million dollars but I’m only giving up
million dollars but I’m only giving up 35% of my company instead of half of my
35% of my company instead of half of my
35% of my company instead of half of my company so as much as you can stretch
company so as much as you can stretch
company so as much as you can stretch that time period
that time period
that time period next thing write your plan in plain
next thing write your plan in plain
next thing write your plan in plain English I can’t tell you how many
English I can’t tell you how many
English I can’t tell you how many business plans we got and this applies
business plans we got and this applies
business plans we got and this applies to getting debt equity or or I’m sorry
to getting debt equity or or I’m sorry
to getting debt equity or or I’m sorry that the lending or equity financing in
that the lending or equity financing in
that the lending or equity financing in your business where the business plan
your business where the business plan
your business where the business plan was too complicated to read and if they
was too complicated to read and if they
was too complicated to read and if they can’t understand it quickly they’re not
can’t understand it quickly they’re not
can’t understand it quickly they’re not going to say yes and it all starts with
going to say yes and it all starts with
going to say yes and it all starts with your executive summary the executive
your executive summary the executive
your executive summary the executive summary is usually one the three pages
summary is usually one the three pages
summary is usually one the three pages the beginning of your business plan that
the beginning of your business plan that
the beginning of your business plan that explains what it is that you do in a
explains what it is that you do in a
explains what it is that you do in a very high level and if the people like
very high level and if the people like
very high level and if the people like it and they think it’s interesting
it and they think it’s interesting
it and they think it’s interesting they’re gonna read on if you can’t sell
they’re gonna read on if you can’t sell
they’re gonna read on if you can’t sell them an executive summary they’re gonna
them an executive summary they’re gonna
them an executive summary they’re gonna throw away your business plan so here’s
throw away your business plan so here’s
throw away your business plan so here’s an example of one that came in this is a
an example of one that came in this is a
an example of one that came in this is a real executive summary that came in to
real executive summary that came in to
real executive summary that came in to me when I was at the venture capital
me when I was at the venture capital
me when I was at the venture capital business XYZ company I left their name
business XYZ company I left their name
business XYZ company I left their name out has developed collaboration
out has developed collaboration
out has developed collaboration applications that are based on a
applications that are based on a
applications that are based on a flexible modular and extensive and sorry
flexible modular and extensive and sorry
flexible modular and extensive and sorry extensible software framework our
extensible software framework our
extensible software framework our products are ideally suited to cross
products are ideally suited to cross
products are ideally suited to cross enterprise cross-platform applications
enterprise cross-platform applications
enterprise cross-platform applications our system architecture gives us a
our system architecture gives us a
our system architecture gives us a strategic advantage for deploying
strategic advantage for deploying
strategic advantage for deploying collaboration and writing platforms
collaboration and writing platforms
collaboration and writing platforms including the latest generation of
including the latest generation of
including the latest generation of wireless handheld devices while
wireless handheld devices while
wireless handheld devices while providing organization with a strongly
providing organization with a strongly
providing organization with a strongly encrypted collaboration capabilities
encrypted collaboration capabilities
encrypted collaboration capabilities fine-grained security and access control
fine-grained security and access control
fine-grained security and access control who let me breathe now this is crazy
who let me breathe now this is crazy
who let me breathe now this is crazy this is the first paragraph of their
this is the first paragraph of their
this is the first paragraph of their executive summary and I came from a
executive summary and I came from a
executive summary and I came from a software background I had to read that
software background I had to read that
software background I had to read that five times before I even got a sense of
five times before I even got a sense of
five times before I even got a sense of what they did I found myself reading it
what they did I found myself reading it
what they did I found myself reading it and drifting off and when you’re kind of
and drifting off and when you’re kind of
and drifting off and when you’re kind of reading something you start thinking
reading something you start thinking
reading something you start thinking about something else and you have to
about something else and you have to
about something else and you have to come back to it that’s what I get from
come back to it that’s what I get from
come back to it that’s what I get from here these guys got to know and
here these guys got to know and
here these guys got to know and absolutely they’re gonna get a note
absolutely they’re gonna get a note
absolutely they’re gonna get a note because this is something that does not
because this is something that does not
because this is something that does not imply English a lot of them a lot of
imply English a lot of them a lot of
imply English a lot of them a lot of entrepreneurs if you read it yourself
entrepreneurs if you read it yourself
entrepreneurs if you read it yourself you say yeah that’s what we do it makes
you say yeah that’s what we do it makes
you say yeah that’s what we do it makes sense this how does this not make sense
sense this how does this not make sense
sense this how does this not make sense this is exactly what we do but you got
this is exactly what we do but you got
this is exactly what we do but you got to step out of your zone and remember
to step out of your zone and remember
to step out of your zone and remember that any investor lender they’re not
that any investor lender they’re not
that any investor lender they’re not experts at what you do they don’t
experts at what you do they don’t
experts at what you do they don’t understand all these terminology and
understand all these terminology and
understand all these terminology and jargon that you know make sense to you
jargon that you know make sense to you
jargon that you know make sense to you so you have to dumb it down and write it
so you have to dumb it down and write it
so you have to dumb it down and write it in plain English and one test
in plain English and one test
in plain English and one test that we see often the VC world is called
that we see often the VC world is called
that we see often the VC world is called a grandmother test and basically the
a grandmother test and basically the
a grandmother test and basically the thought here is show your executive
thought here is show your executive
thought here is show your executive summary to your grandmother if she can
summary to your grandmother if she can
summary to your grandmother if she can understand the opportunity then you’ve
understand the opportunity then you’ve
understand the opportunity then you’ve done a good job and these basically you
done a good job and these basically you
done a good job and these basically you show it to somebody who doesn’t know
show it to somebody who doesn’t know
show it to somebody who doesn’t know your business right show it to a family
your business right show it to a family
your business right show it to a family member a stranger you know a colleague
member a stranger you know a colleague
member a stranger you know a colleague somebody who you know kind of
somebody who you know kind of
somebody who you know kind of understands a little bit maybe but what
understands a little bit maybe but what
understands a little bit maybe but what you do but doesn’t really understand so
you do but doesn’t really understand so
you do but doesn’t really understand so if they can understand the opportunity
if they can understand the opportunity
if they can understand the opportunity and see that this is something that has
and see that this is something that has
and see that this is something that has potential then you’ve done a good job
potential then you’ve done a good job
potential then you’ve done a good job and you’re able to start serving it to
and you’re able to start serving it to
and you’re able to start serving it to investors and I would do that before you
investors and I would do that before you
investors and I would do that before you start sending your business plan out to
start sending your business plan out to
start sending your business plan out to people have somebody who you know you
people have somebody who you know you
people have somebody who you know you trust a little bit and have them look at
trust a little bit and have them look at
trust a little bit and have them look at it and see if they understand what you
it and see if they understand what you
it and see if they understand what you do and see an opportunity or not make
do and see an opportunity or not make
do and see an opportunity or not make sure you pass the grandmother test okay
sure you pass the grandmother test okay
sure you pass the grandmother test okay next valuation so the last main thing I
next valuation so the last main thing I
next valuation so the last main thing I want to talk about in this presentation
want to talk about in this presentation
want to talk about in this presentation and thank you for staying with me
and thank you for staying with me
and thank you for staying with me through the whole thing is the valuation
through the whole thing is the valuation
through the whole thing is the valuation and how do you evaluate your business
and how do you evaluate your business
and how do you evaluate your business and so how do you come up with a number
and so how do you come up with a number
and so how do you come up with a number if you’re looking at raising any kind of
if you’re looking at raising any kind of
if you’re looking at raising any kind of equity financing you’re gonna have to
equity financing you’re gonna have to
equity financing you’re gonna have to say my business is worth X amount of
say my business is worth X amount of
say my business is worth X amount of dollars a hundred thousand dollars ten
dollars a hundred thousand dollars ten
dollars a hundred thousand dollars ten thousand dollars a million dollars
thousand dollars a million dollars
thousand dollars a million dollars whatever it is so I want to share with
whatever it is so I want to share with
whatever it is so I want to share with you the valuation model that we use when
you the valuation model that we use when
you the valuation model that we use when we were when I was in the venture
we were when I was in the venture
we were when I was in the venture capital business now from here you can
capital business now from here you can
capital business now from here you can adjust the numbers to make make it make
adjust the numbers to make make it make
adjust the numbers to make make it make sense for what you’re doing but
sense for what you’re doing but
sense for what you’re doing but basically what I would do is project
basically what I would do is project
basically what I would do is project five years out so five years down the
five years out so five years down the
five years out so five years down the line what do my earnings look like so
line what do my earnings look like so
line what do my earnings look like so how much am I going to be making with my
how much am I going to be making with my
how much am I going to be making with my business so in this example the
business so in this example the
business so in this example the projections of the company was almost
projections of the company was almost
projections of the company was almost six million dollars you take out the tax
six million dollars you take out the tax
six million dollars you take out the tax rate and you have your net earnings you
rate and you have your net earnings you
rate and you have your net earnings you think about how much he’s seeking to
think about how much he’s seeking to
think about how much he’s seeking to raise today so that’s what I’m going to
raise today so that’s what I’m going to
raise today so that’s what I’m going to be making in five years what am I
be making in five years what am I
be making in five years what am I looking for now and the company at this
looking for now and the company at this
looking for now and the company at this time was looking to raise three and a
time was looking to raise three and a
time was looking to raise three and a half million dollars next money in the
half million dollars next money in the
half million dollars next money in the future is worth less the money today
future is worth less the money today
future is worth less the money today right you’d rather have money right now
right you’d rather have money right now
right you’d rather have money right now the money in the future so you have to
the money in the future so you have to
the money in the future so you have to discount that money back so if you see
discount that money back so if you see
discount that money back so if you see what here we have a 30% discount rate
what here we have a 30% discount rate
what here we have a 30% discount rate applied to the valuation of the business
applied to the valuation of the business
applied to the valuation of the business the valuation is associated with a p/e
the valuation is associated with a p/e
the valuation is associated with a p/e ratio so the price to earnings ratio so
ratio so the price to earnings ratio so
ratio so the price to earnings ratio so you times your your earnings by 15
you times your your earnings by 15
you times your your earnings by 15 un okay 51 million and then you discount
un okay 51 million and then you discount
un okay 51 million and then you discount it by 30% every year
it by 30% every year
it by 30% every year back next we look at the companies I’m
back next we look at the companies I’m
back next we look at the companies I’m assuming we’re starting in in 2014
assuming we’re starting in in 2014
assuming we’re starting in in 2014 that’s our year right now
that’s our year right now
that’s our year right now so we have our valuation at 12 and a hat
so we have our valuation at 12 and a hat
so we have our valuation at 12 and a hat well villian dollars in change we take
well villian dollars in change we take
well villian dollars in change we take out the three and a half million that we
out the three and a half million that we
out the three and a half million that we are looking to get from investors and
are looking to get from investors and
are looking to get from investors and we’re left with eight point seven
we’re left with eight point seven
we’re left with eight point seven million dollars we take an additional
million dollars we take an additional
million dollars we take an additional discount of 40% because it’s a private
discount of 40% because it’s a private
discount of 40% because it’s a private company there’s a lot of risk associated
company there’s a lot of risk associated
company there’s a lot of risk associated with the startup and so it takes us down
with the startup and so it takes us down
with the startup and so it takes us down to five point two five million dollars
to five point two five million dollars
to five point two five million dollars and basically that’s what we end up with
and basically that’s what we end up with
and basically that’s what we end up with so the the business is worth eight point
so the the business is worth eight point
so the the business is worth eight point seven five million dollars five and five
seven five million dollars five and five
seven five million dollars five and five and change is what we get to keep as the
and change is what we get to keep as the
and change is what we get to keep as the owner and three and a half is what the
owner and three and a half is what the
owner and three and a half is what the investor gets the key so if you work
investor gets the key so if you work
investor gets the key so if you work through the numbers you can apply to you
through the numbers you can apply to you
through the numbers you can apply to you know whatever situation you’re looking
know whatever situation you’re looking
know whatever situation you’re looking at basically the two things you want to
at basically the two things you want to
at basically the two things you want to figure out is how much money you going
figure out is how much money you going
figure out is how much money you going to be making in five years you have some
to be making in five years you have some
to be making in five years you have some kind of projection and it has to be a
kind of projection and it has to be a
kind of projection and it has to be a realistic projection right you’re not
realistic projection right you’re not
realistic projection right you’re not going to be the next Microsoft in five
going to be the next Microsoft in five
going to be the next Microsoft in five years so what’s a realistic number for
years so what’s a realistic number for
years so what’s a realistic number for you what kind of earnings are going to
you what kind of earnings are going to
you what kind of earnings are going to be making in five years and then the
be making in five years and then the
be making in five years and then the next thing is how much you’re seeking to
next thing is how much you’re seeking to
next thing is how much you’re seeking to raise so if you can figure out this top
raise so if you can figure out this top
raise so if you can figure out this top number of how much your earnings are
number of how much your earnings are
number of how much your earnings are going to be and then this number of how
going to be and then this number of how
going to be and then this number of how much you want to raise from investors or
much you want to raise from investors or
much you want to raise from investors or lenders others who are investors for
lenders others who are investors for
lenders others who are investors for equity investors right here then you can
equity investors right here then you can
equity investors right here then you can just apply all the numbers and you’ll
just apply all the numbers and you’ll
just apply all the numbers and you’ll work out to how much your business is
work out to how much your business is
work out to how much your business is worth so that’s how we did it very quick
worth so that’s how we did it very quick
worth so that’s how we did it very quick overview but if you have questions on
overview but if you have questions on
overview but if you have questions on this I’d be happy to answer it more in
this I’d be happy to answer it more in
this I’d be happy to answer it more in detail with another video or with emails
detail with another video or with emails
detail with another video or with emails the last thing is oh there’s a worksheet
the last thing is oh there’s a worksheet
the last thing is oh there’s a worksheet that I want include for you guys it’s
that I want include for you guys it’s
that I want include for you guys it’s how to raise your first fifty thousand
how to raise your first fifty thousand
how to raise your first fifty thousand dollars for your business and it’s often
dollars for your business and it’s often
dollars for your business and it’s often called love money so this is coming from
called love money so this is coming from
called love money so this is coming from people you know or people within your
people you know or people within your
people you know or people within your network and sucia the people on the
network and sucia the people on the
network and sucia the people on the outer edges of your network that are the
outer edges of your network that are the
outer edges of your network that are the ones that end up investing into your
ones that end up investing into your
ones that end up investing into your business it can surprise you so it’s a
business it can surprise you so it’s a
business it can surprise you so it’s a worksheet that I usually charge for on
worksheet that I usually charge for on
worksheet that I usually charge for on my website but I’m going to give it to
my website but I’m going to give it to
my website but I’m going to give it to you guys for free and if you have any
you guys for free and if you have any
you guys for free and if you have any questions let me know normally around
questions let me know normally around
questions let me know normally around this time it’s question time and that’s
this time it’s question time and that’s
this time it’s question time and that’s my favorite part of any time
my favorite part of any time
my favorite part of any time doing a webinar I love hearing what you
doing a webinar I love hearing what you
doing a webinar I love hearing what you guys have to have to think and answering
guys have to have to think and answering
guys have to have to think and answering those questions for you obviously since
those questions for you obviously since
those questions for you obviously since this is a presentation now I can’t
this is a presentation now I can’t
this is a presentation now I can’t answer your questions but what I want to
answer your questions but what I want to
answer your questions but what I want to do is answer them in another video so if
do is answer them in another video so if
do is answer them in another video so if you have a question about anything we’ve
you have a question about anything we’ve
you have a question about anything we’ve talked about here or anything else for
talked about here or anything else for
talked about here or anything else for your business I’d love to hear from you
your business I’d love to hear from you
your business I’d love to hear from you if you want to leave a comment below or
if you want to leave a comment below or
if you want to leave a comment below or email us back and I’m gonna do a video
email us back and I’m gonna do a video
email us back and I’m gonna do a video afterwards of answering all the
afterwards of answering all the
afterwards of answering all the questions that have come in and
questions that have come in and
questions that have come in and hopefully be able to help you guys out
hopefully be able to help you guys out
hopefully be able to help you guys out with what’s next so final slide I
with what’s next so final slide I
with what’s next so final slide I promised you some extra bonuses and
promised you some extra bonuses and
promised you some extra bonuses and here’s what I’m gonna do along with the
here’s what I’m gonna do along with the
here’s what I’m gonna do along with the video responses I have a series of
video responses I have a series of
video responses I have a series of worksheets that I sell and these are
worksheets that I sell and these are
worksheets that I sell and these are usually for sale off my site and what
usually for sale off my site and what
usually for sale off my site and what I’m gonna do is give one worksheet for
I’m gonna do is give one worksheet for
I’m gonna do is give one worksheet for free to anybody within the next week who
free to anybody within the next week who
free to anybody within the next week who is you know sign up for the call and
is you know sign up for the call and
is you know sign up for the call and wasn’t able to make it on or who was on
wasn’t able to make it on or who was on
wasn’t able to make it on or who was on the was on the call and struggled there
the was on the call and struggled there
the was on the call and struggled there for half an hour as we tried to figure
for half an hour as we tried to figure
for half an hour as we tried to figure out the technical issues with WebEx I’m
out the technical issues with WebEx I’m
out the technical issues with WebEx I’m gonna give you any single worksheet for
gonna give you any single worksheet for
gonna give you any single worksheet for free so the website here let me load it
free so the website here let me load it
free so the website here let me load it up quickly if I go to my home page and
up quickly if I go to my home page and
up quickly if I go to my home page and you click on any of these these are our
you click on any of these these are our
you click on any of these these are our worksheets so we click here and then at
worksheets so we click here and then at
worksheets so we click here and then at the top there’s a link this is
the top there’s a link this is
the top there’s a link this is worksheets these are all the worksheets
worksheets these are all the worksheets
worksheets these are all the worksheets and these are all different things that
and these are all different things that
and these are all different things that can help you grow your business that
can help you grow your business that
can help you grow your business that we’re currently selling if you pick any
we’re currently selling if you pick any
we’re currently selling if you pick any individual worksheet that you want if
individual worksheet that you want if
individual worksheet that you want if you scroll down pick the one that you
you scroll down pick the one that you
you scroll down pick the one that you like the most I’m gonna send it to you
like the most I’m gonna send it to you
like the most I’m gonna send it to you for free there’s gonna be a lot of
for free there’s gonna be a lot of
for free there’s gonna be a lot of manual work for me but I’m really I’m
manual work for me but I’m really I’m
manual work for me but I’m really I’m really apologetic for what happened with
really apologetic for what happened with
really apologetic for what happened with WebEx it was completely out of our
WebEx it was completely out of our
WebEx it was completely out of our control but I know you guys took the
control but I know you guys took the
control but I know you guys took the time out of your day to spend it with me
time out of your day to spend it with me
time out of your day to spend it with me and to try to learn about something to
and to try to learn about something to
and to try to learn about something to help you grow your business and I know
help you grow your business and I know
help you grow your business and I know how frustrating it can be when people
how frustrating it can be when people
how frustrating it can be when people don’t deliver on things that they said
don’t deliver on things that they said
don’t deliver on things that they said they were gonna do I know that that
they were gonna do I know that that
they were gonna do I know that that bothers me a lot and so I really want to
bothers me a lot and so I really want to
bothers me a lot and so I really want to make sure you get the help that you need
make sure you get the help that you need
make sure you get the help that you need hopefully the webinar the presentation
hopefully the webinar the presentation
hopefully the webinar the presentation today was helpful you learn something
today was helpful you learn something
today was helpful you learn something new that you didn’t know before I want
new that you didn’t know before I want
new that you didn’t know before I want to throw one of these free worksheets as
to throw one of these free worksheets as
to throw one of these free worksheets as a bonus to again help you out pick any
a bonus to again help you out pick any
a bonus to again help you out pick any one you want there’s 30 or so on here
one you want there’s 30 or so on here
one you want there’s 30 or so on here how many do we have thirty thirty-two
how many do we have thirty thirty-two
how many do we have thirty thirty-two pick the one that the most resonates
pick the one that the most resonates
pick the one that the most resonates with you I’ll send it you for free and
with you I’ll send it you for free and
with you I’ll send it you for free and again I’d love to hear your question
again I’d love to hear your question
again I’d love to hear your question if you have one about this video about
if you have one about this video about
if you have one about this video about you know raising money or about the
you know raising money or about the
you know raising money or about the financial side of your business or
financial side of your business or
financial side of your business or anything else to help you grow your
anything else to help you grow your
anything else to help you grow your business let me know and I’ll do a video
business let me know and I’ll do a video
business let me know and I’ll do a video to answer those questions for you and
to answer those questions for you and
to answer those questions for you and then finally we’re going to be doing
then finally we’re going to be doing
then finally we’re going to be doing another webinar on March 12th and and
another webinar on March 12th and and
another webinar on March 12th and and hopefully all our technology will work
hopefully all our technology will work
hopefully all our technology will work its financial literacy part two so today
its financial literacy part two so today
its financial literacy part two so today was part one and we’re gonna do part two
was part one and we’re gonna do part two
was part one and we’re gonna do part two and watch 12 staples has a promo where
and watch 12 staples has a promo where
and watch 12 staples has a promo where you can get up to $140 off of QuickBooks
you can get up to $140 off of QuickBooks
you can get up to $140 off of QuickBooks if you want to check it out the staples
if you want to check it out the staples
if you want to check it out the staples out see a slash into a promo with this
out see a slash into a promo with this
out see a slash into a promo with this bonus code here 7 for 239 and we’ll be
bonus code here 7 for 239 and we’ll be
bonus code here 7 for 239 and we’ll be sending these slides and worksheets out
sending these slides and worksheets out
sending these slides and worksheets out as well to help you as you try to grow
as well to help you as you try to grow
as well to help you as you try to grow your business so thank you again for
your business so thank you again for
your business so thank you again for tuning in again my deepest apologies for
tuning in again my deepest apologies for
tuning in again my deepest apologies for everybody who was frustrated and we’ve
everybody who was frustrated and we’ve
everybody who was frustrated and we’ve received nothing but great comments from
received nothing but great comments from
received nothing but great comments from everybody saying and we realized this
everybody saying and we realized this
everybody saying and we realized this happened you know sharing their stories
happened you know sharing their stories
happened you know sharing their stories of how it’s happened to them in the past
of how it’s happened to them in the past
of how it’s happened to them in the past and I know it does happen
and I know it does happen
and I know it does happen it’s embarrassing and it sucks when it
it’s embarrassing and it sucks when it
it’s embarrassing and it sucks when it does happen but we’ve really appreciated
does happen but we’ve really appreciated
does happen but we’ve really appreciated all your support and I look forward to
all your support and I look forward to
all your support and I look forward to hearing from you with those questions I
hearing from you with those questions I
hearing from you with those questions I hope you enjoyed this video and I hope
hope you enjoyed this video and I hope
hope you enjoyed this video and I hope we’ll see you on the 12th for the next
we’ll see you on the 12th for the next
we’ll see you on the 12th for the next webinar thank you and we’ll see you soon
”
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