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Home based mlm business opportunity

http://www.thecbbgroup.com | As advisors we are with you through the entire process. Our mission is to ensure your success. We do this by working with you and your team to ensure that your company is positioned in the best possible light for potential buyers. We have a six step process that has been developed over time that will guide you and your team through the sale.

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Home based mlm business opportunity

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  1. Companyleaderswhoarethemostsuccessfulinfindingandsecuringcapitalaretheonesthatunderstandtwothings.Howtoprepareaninvestmentrequest,morecommonlyknownasanofferingmemorandumandhowlendersorinvestorsevaluateriskandreturn.Thisarticlewalksthroughtheprocessofhowtoprepareanofferingmemorandumandhowtofindcapital.Whendealingwithcapitalplacement,itisparamountthatyouunderstandhowlendersevaluateriskandreturninadditiontothedifferentavailabilityofcapital.Companyleaderswhoarethemostsuccessfulinfindingandsecuringcapitalaretheonesthatunderstandtwothings.Howtoprepareaninvestmentrequest,morecommonlyknownasanofferingmemorandumandhowlendersorinvestorsevaluateriskandreturn.Thisarticlewalksthroughtheprocessofhowtoprepareanofferingmemorandumandhowtofindcapital.Whendealingwithcapitalplacement,itisparamountthatyouunderstandhowlendersevaluateriskandreturninadditiontothedifferentavailabilityofcapital. • OfferingMemorandum: • Thefirststepisthemosttimeconsumingbutisalsothemostimportant.Icannotoveremphasizethe • importanceofawellwrittenanddocumentedofferingmemorandum.Youwillonlygetonechancetomakeafirstimpressionregardingyourinvestmentopportunity.Acouplewordsofcautionwhenwritinganofferingmemorandum,beincrediblyhonestandupfront.Undernocircumstancehideanythingthatisnegative.Infact,informthecapitalgroupabouttheissueandexplainhowyouareovercomingtheissue.Thelastthingyouwanttocreateisanatmosphereofdistrustwithinvestors.Awellwrittenmemorandumshouldallowinvestorstocometoaveryquickdecisionregardingyouropportunity.Mostmemorandumsaresplitintofoursections. • SectionOne: • Inthissectionyouwillwanttopresentthepastthreeyears’financialhistorythatincludestaxreturns,year-endfinancialsincludingyourbalancesheetandProfitandLossstatement.Youwillhavetoperformsomelevelofanalysisandhaveadetailedwriteupofthefindings.Thisisashortlistofitemsthatyouwillwanttoinclude: • HistoryoftheCompanyoWhenfoundedoWhatentity • ListofCompanyOwnersandtitles • Locationofbusiness • Whatproductsorservicesthatyouprovide • CurrentCustomerBaseDescriptionofcurrentoperations • Listanddescriptionoffacilities • Assets • IntellectualpropertyincludingpatentsFinancialHistory: • SalesHistorybyMonth • GrossMarginAnalysis

  2. RecastIncomeStatements • CapXrequirements • ARAging. • Section2: • Thesecondsectionwilloutlinetherequestandpresenttheopportunity.Ifyou’relaunchinganew • productlinethatrequiresaninvestmentof$1,000,000,youwillwanttoclearlydefinethefollowing: • Amountofrequest • Timingoffundsneeded.Doyouneedallthefundsupfrontorcantheybedeliveredintranchesoveraperiodoftimeoragainstkeymilestones. • RateofReturnofyouroffering • Example:6%amortizedovera10yearperiodSecuritythatyou’rewillingofoffer • Securedagainstcompanyassets,equitypositioninthecompany. • Section3: • Dependingonyourrequest,youwillneedtoprepareaonetothreeyearbudgetthatshowshowthecapitalwillbeused.Ifthecapitalisgoingintoyourexistingcompany,usethelastyear’sfinancialsasastartingpoint.Showwhenthecapitalwillbeexpendedandtheassociatedexpenses.Youshouldbeabletoclearlydemonstratecashflowandsetmilestoneswithregardstomajoractivity.Inadditionyouwillwanttoprepareanindepthmarketanalysis. • OnetothreeyearbudgetMajorMilestonessetReturnonInvestment • Byyear • MarketAnalysiswithregardstoproductlaunch • Marketsegmentation • Marketsize • TargetCustomers • Step4: • WritinganExecutivesummaryisthelastthingyoudo.Havingwrittenmanyofferingmemorandumsoverthelasttwentyyears,Ihavefoundthatthisistheeasiestwaytowritetheexecutivesummary. • Havinggonethroughtheprocessofbuildingsectionsonethroughthree,thissectionisactuallythelastone,eventhoughitwillbethefirsttwopagesofthememorandum.Mostinvestorswillreadtheexecutivesummaryandgotothefinancials.Iftheylikewhattheyseetheywillthenreadtheentirememorandum.Itisimportanttokeeptheexecutivesummarytonomorethantwopages.Youshouldaddressthefollowing: • IntroductionFinancialHistoryFundsRequest • Amount&Terms • ReturnonInvestment • Highlevelthreeyearbudgetsummary • Milestones • Marketanalysis • Nowthatyouhaveacompleteofferingmemorandumwritten,takethetimetohaveitprinted,bound, • withacoverandatableofcontents.Don’tprintanymorethan10atatimetoavoidcosts.Youwillalso

  3. wantaPDFversionforelectronicdeliveryaswellas10to15slidepowerpointpresentationscoveringthehighlights.wantaPDFversionforelectronicdeliveryaswellas10to15slidepowerpointpresentationscoveringthehighlights. FindingCapital: Havingacompleteofferingmemorandum,you’rereadytostartyoursearchforcapital.Thesaying“ifit waseasyeveryonewouldbedoingit”appliestothisnextstep.Youmustbewillingtospendthetimetosecurecapital.Alessonlearnedfrommyyearsinmergersandacquisitionsasaninvestmentbankeristotalktoasmanyprospectsasyoucansimultaneously.Themoreactivityyoucancreatewithregardstoyourofferingthebetter.Asyoutalktopotentialinvestmentpartnersandlearnfromtheconversations,donothesitatetochangeyourofferingmemorandumtoreflectthoselearning’s.Unlessyou’reveryfortunateyouwillbeturneddownanumberoftimes.Dependingonyourcapitalneedsandcurrentfinancialpositionyoumaywanttoconsiderthefollowing: FinancialInstitutions:Community,RegionalandNationalBanksrepresentthelargestopportunityforcompanieswithgoodfinancials.Thecommercialbanksarenowstartingtolendagain,butverycautiously. PrivateCapitalCompanies:TheseareprivatelyownedinvestmentcompaniesthatactlikeacommercialbankwithregardstolendingbuttheywilltakemoreriskthanBanksandwillchargefortherisk.Theywillrequiresecurity.Thesecompaniesareusuallyrunbyex-commercialbankersthatunderstandtheneedinthemarketforcapitalandfillavoidthatthecommercialbanksareunwillingorunabletofill.Youprivateorbusinessbankeratyourcommercialbankshouldbeabletogiveyouseveralreferrals. FriendsandFamily:Toaccesswhatiscommonlyknownas“FriendsandFamily”,youwillmostlikelyneedtosecureabrokeroranInvestmentBanker.FriendsandFamilyareprivatelyownedinvestmentgroupsororganizationsthattendtohaveaccesstofundsthattakeadvantageofuniqueinvestmentopportunities.Theymayormaynotrequireanequitystakeinyourcompanybutwillmostlikelyrequireahigherreturnontheirinvestmentwithoutit.Dependingonthesizeofyourcompanytheymayrequireoneortwoinvestorsbeappointedtoyourboardofdirectors. PrivateEquityCompanies:Thesearefirmsthatwillmakeinvestmentsincompaniesbutwilllikelyrequireequityinyourcompanyinreturn.Mostofthesefirmsareverytransparentandwellmanaged,butyouneedtobecarefulwithregardstoequitypositionsandterms. Endowments:Theseareinvestmentfundsthataresetupandmanagedfornon-profits.Think,StanfordEndowmentFund,pastStanfordGraduatesorindividualsthatmaydonatelargesumsofmoneytotheuniversityendowmentfund.Thesefundsaremanagedeitherbytheuniversity/non-profitorbyaPrivateFundManager.Theycanbeasourceofcapitalforcompaniesthatarepositionedwiththefundsmissionstatementorpurpose.Theytraditionallydonottakeonmuchriskinassociationwiththeirinvestments. GovernmentGrants/LoansandorReinvestmentPrograms:Dependingonthesizeofyourbusinessandwhatthecapitalistobeusedfor,thiscanbeagoodsourceoflowinterestratefunds.Federal,StateandsomeCityprogramsexistthatcanbeusedinthismatter.Theymaysupplyaportionofthecapitalrequiredleavingyouwithadditionalcapitalrequirementtofill.Theymayalsohaverestrictionsthatassociatedwiththecapital.Justbepreparedtodoallofthepaperworkandbepatient.

  4. StateLotteryFunds:Iknowthislastonemayappeartobeoutthereabit,butsomeStateLotteryFundsweresetupwithaportionofthefundsgoingtosmallbusinessdevelopment.TheOregonInvestmentFundisoneofthem.StateLotteryFunds:Iknowthislastonemayappeartobeoutthereabit,butsomeStateLotteryFundsweresetupwithaportionofthefundsgoingtosmallbusinessdevelopment.TheOregonInvestmentFundisoneofthem. Asyoucansee,findingandsecuringcapitalisnotaseasyasitlooks.Todoitrightittakesalotofeffortandwork.Butthesidebenefitsofpreparinganofferingmemorandum,isthatyoucanusetheexercisetodigdeepinyourbusinessandunderstandwhatyoumayneedtodotoimproveyourcompany.Thismayseemlikeadauntingtaskbuttherewardsofgrowingyourcompanycanpaylargedividendsintheend. Aboutus: Withoveradecadeofexperience,TheCBBGroup,Inc.isaleaderinbusinessbrokerageandMergers&Acquisitionservices.Wespecializeinthelowermiddlemarket,servingprivatelyownedbusinesswithrevenuerangingfrom$1,000,000to$15,000,000. Asadvisorswearewithyouthroughtheentireprocess.Ourmissionistoensureyoursuccess.Wedothisbyworkingwithyouandyourteamtoensurethatyourcompanyispositionedinthebestpossiblelightforpotentialbuyers.Wehaveasixstepprocessthathasbeendevelopedovertimethatwillguideyouandyourteamthroughthesale. ©2011BrentFreeman.Allrightsreserved.http://thecbbgroup.com

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