Ingredient^_|
By Audrey C. Lodato
Poat Staff Writer -
r So you'repUMdog^to atari yqw
identified a need you can fill better
I than anyone else. You’ve drafted a
; preliminary business plan and have
» thought about what form your
J business might take,
t Now it’s time to think about
1 money. Specifically, how will your
< fledgling company be financed?
: Warren Clyburn, Assistant Vice
: President of First Union National
• Bank, has some information to shari)
: with you. Clyburn was rospotfclble
v for com piling the chapter on finahc
* ing for “Resources for Making It Big.
.: in a'Small Business,” published by
: the Greater Charlotte Chamber of
Comgpirce.
There are a variety of financing
; sources, for business peeds/says
« Clyburn. The most common cate
: «**es of needs are frgjf asset
- financing (such as equipment and
rtal estate). working capital financ
ing (for seasonal or-abort term and
permanent or long term purposes),
and overall financial planning
“The key ingredteat,” Clyburn
asserts, “Is to property plan for the
amount and terms of financing re
quired, and the comfitioas necessary
to meet the overaflplana.”
An important first step, be ex
plains, is to identify not only ex
ternal sources of funds but an per
sonal sources available. Theee in
dude savings, family members,
potential Investors, end other pri
vate, **»«*., “Most lenders will
of
» outside fihancing is coo?
dered,” he points out. *
Commercial banks tend to be less
interested in dealing with start-up
businesses unless presented with
detailed financial plans with pro
jections of cash flows and budgets.
Commercial finance companies
charge higher Interest rates than
other sources, but they are also
generally mere willing to take risks.
The Small Businses Administra
tion (SBA) helps finance malt
businesses through direct loans
(limited funds mean a welting ttot)
•end through guaranteeing loam
made by other lenders, such as
banks.
_ Information on sources of venture
capital financing can be obtained
from tee business section of the
library, from accountants, at
torneys, and bankers. A Well
developed business' {dan is a must'
here. And, Clybum says, "It is
important to note that venture capi
tal businesses typically receive a
percentage of the ownership of the
business they finance in return for
that financing."
In ascertaining your financing
needs for fixed assets, you must first
determine the type and coat of
equipment you will need. Notes
Clybum, "Multi-purpose equipment
AppiUi
mm
________ . . . __., '2!p: . i.« , >i • -. ii-. -
Black Churches
Should Educate
Black People
Con tinned From Page 1A
.“code of silence” on this matter.
“Yet someone has to stand up from
the ranks, stand up for the truth: We
are our brother’s keeper. Break out
from the ranks of silence and apeak
out that our people need to open
businesses, put their money into the
community and create Jobs.”
The concentration on the spiritual
without a thought to the material
within the church, has created an
“imbalance,” Majeed points out.
“We are imbalanced and It shows In
our community. The church can
play a major role in informing and
teaching people to take responsibili
ty for their life. The black preach
er in the edifice has to seise the
opportunity to correct the im
balance."
Rev. Sutton agrees, "The pastor
can motivate people, telling them
they have the ability to be success
ful. We can teach them to utilize
their faith by believing in self. Paul
said, ‘I can do all things through
Christ who strengthens me.’ Soma
way or another, pastors must ori
entate black people to be more
conscientious about producing their
own Job market W« have the re-~
sources, energy, and mentality.”
“We’re on the verge of a great
movement," predicts Bishop
Sherman. "Either we will reach
upward which will unlock the door to
unlimited opportunity or we will
become little more than sounding
brass and a tickling cymbal *
He concludes, “What change may
coma, no mortal can toU. But that
some great change must come;
thoughtful men are baginning to
feel.”
payment a family receives depends
upon the number of people in the
household, their combined income*,
the region of the state where they
live, and the type of heating fuel they
use.
Syria Said a one-time payment wfll
be made in February after all low
income household* have applied and
eligibility has been determined.
For more Information about the
Low-Income Energy Assistance
Program, contact your coupty de
partment of social service or call
CARELINE toll-free from anywhere
in (he state at 1-000482-7090. Hear
ing impaired TTY-TDD users nuw
call the same number for informs- ■
tioo.
' * \yjrs.- ••••♦ iV vN: v > ) rid
Is easier to finance than apodal
purpose equipment.” ..*•••
Banks, the equipment manufac
turer or dealer, and lnasligf com
' panics are all possible sources of
equipment financing. Banks nsitally
lend up to 10 years for such needs.
Manufacturers and dealers may
offer either lease-purchase pi*— or
'direct financing.
If your needs will include reel
estate financing, you’ll have to de
termine how much money you’ll be
able to generate on a monthly basis
to be applied toward mortgage re
payment. Several options art avail
able: owner financing, which may
provide more favorable terms than
those offered by commercial insti
tutions; savings and loan associa
tions, a good source because of their
familiarity with the reel estate
market and their longrterm financ
ing; insurance companies, which
may provide long-term real estate
financing; mortgage companies,
which generally provide long-term
loans for small hnrrtnnssrs, the
Farmers Home Administration,
which, while financing real estate,
may place restrictions on the size!
location, and type of facility, and on
the length of the loan.
“A properly executed business
financing plan is an absolute neces
sity,” Clyburn stresses. This is true
not only for the physical aspects of
the business, but for the operations
as well. Most companies need capi
tal to carry them through tbs period
from obtaining the product to col
lecting the cash from the sale of the
product. “Lack of a sufficient
amount of initial capital is the pri
mary reason for a significant per
centage of business failures,”
Clyburn warns.
Cash flow problems can also be
treated through the extension of
credit to customers. Again, a
detailed financial plan or budget,
nyl Clyburn, “is the best means of
accurately assessing the amount of
funds needed for this purpose.’’
Seasonal fluctuations in a business
can necessitate additional capital
needs. Your financial plans will
show the need for additional money;
it will also indicate your ability to
repay the loan.
As we have suggested earlier in
this series, if you’re serious about
starting a business, get professional
adyme before you lump
Next week: Location.
- : - ■» - -
No Layaway*. Refund* or Ex*h*nge* on Sale Merchandise flM
T-m* 4*U'\
' 50% Off sweater*
n *'* ^99
Acrylic cr«wn*ek ctylM in m
»orttl colors Mi»— 8-M-L
m
Oxlortdaminmofcwtonmd
polyaatar. Miaaaa atzaa_
i «• /
, ••
t
%
m
'V