Dell Technologies

Funding Your Business  Part 1- Self Funding

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In this series of articles, we will examine the financial options and programs available to business owners to fund their business.

By Debbie Gregory.

Whether you’re looking for start-up funds, capital to expand, or money to hold in reserve to get you through tough times, how you fund your business is one of the most important decisions you will make.

The term self-funding includes using your own money to invest directly in the company and using your personal assets as collateral for outside funding. If you are in a financial position to fund your business yourself, this option allows you to be independent and retain complete control of your business.

These monies could come from sources such as your savings, equity in your home, credit cards or even your retirement account.

Saving up the money to fund your business ahead of time saves you money since you will not be paying any interest, although it does involve risking your personal savings.

If you have equity in your home, a home equity loan or home equity line of credit (HELOC) is another option. Home equity loans provide a one lump-sum payment, while a HELOC works similarly to a credit card, where you only pay interest on the outstanding balance. But keep in mind that you are at risk by using the family home as collateral, something you wouldn’t want to lose.

One of the most expensive ways to self-finance your business is by using credit cards. Many successful business owners have used this method and made it work, but again, this is very risky, and depending on the interest rate, could be very expensive.

For a short burst of cash, you can withdraw money from your IRA interest and tax free, as long as you replace it within 60 days. However, make sure you pay back the money on time. If you’re just one day late in replacing the money for any reason, you’ll have to pay a 10 percent penalty and taxes on any of the money you haven’t paid back.

You may also be able to get funds from family members and friends. But please consider, each one of these methods does have a potential down-side should your business be slow to show a profit.

Veteran and Military Business Owners Association, VAMBOA,


The Value of a Business Plan

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By Debbie Gregory.

Chances are you would never leave for a road trip without your GPS device, or if you’re old school, your map is in the glove compartment. The same holds true for starting a business; your business plan is the road map that will guide you through each stage of starting and managing your business.

Your business plan determines how you will structure, run, and grow your business.

Business plans are essential if you are trying to secure funding or investors. Your business plan is the tool you’ll use to convince people that investing in your company is a smart choice.

So how do you write a business plan? First you will need to determine the format by choosing either a traditional business plan format or a lean startup business plan.

The traditional business plan is very detailed and very comprehensive. You will want to include a description of your company, your service or products, an executive summary, your organization’s structure, key personnel, your future projections and if you are requesting funding, how much you are asking for and how you will use it.

The lean startup format is less detailed and advantageous over the traditional business plan if you want to explain or start your business quickly. This works best if your business is relatively simple, or you plan to refine your business plan at a later date.  Be sure to describe your company’s value proposition, infrastructure, customers, and finances.

The good news about writing a business plan? It isn’t carved in stone. If you’re not satisfied with the format or need to make changes, you can always revise your plan as needed.

Regardless of which format you choose, the important thing to remember is to be concise. Your business plan works as a guide for you and your team, making it easier to identify goals and allowing you to work towards a common vision for your company. Having this kind of document contributes to the success of the business; all while enabling you as the CEO to have more confidence in your overall business goals.

Veteran and Military Business Owners Association, VAMBOA,


Attention Retail Vetrepreneurs

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Westfield’s upcoming free lecture series “The Retail Vetrepreneur” will be held at the Westfield Corporate Office, 2049 Century Park East, Los Angeles,90067. There is also an option to view the series remotely via Video Conference units at two locations.The series contains three presentations covering Marketing, Real Estate, Legal, HR & Finance. Seating is limited.
LA- Corporate Office – Visit to RSVP.
San Diego- Westfield Regional Office – (via video conference) – Visit to RSVP.
Seattle, WA Westfield Southcenter- (via video conference) – Visit to RSVP.