Posts Tagged ‘financials’

Isisara: Changing the Frame

Wednesday, November 4th, 2009

frame It seems I’m often confessing in these blogs.  Well here’s another one.  First I’ll reveal another limiting belief I’ve been holding, and then how that faulty picture has been reframed.

Okay, out with it: I don’t like keeping track of my financials.  I’ve never done my own taxes; I always have someone else do them.  The ability to balance a checking account has eluded me.  I estimate how much money I have at any given time. Keeping an exact budget feels like a straitjacket.  I think the stock market is the real voodoo economics.

Now, I do love having and spending money.  I have always come in under budget in my professional life.  I have a personal investment manager who does my investing for me.  I’ve always participated in company 401Ks to the maximum allowed.  When it comes to cash, my general attitude is that I have enough skills to keep myself employed, that I always have enough, and that money turns up when I am in need.  But the details of that money remain in fantasyland, out of my incapable hands.

So you get the conceptual frame around my finances.   Money is always there, sometimes in abundance, sometimes a bit scarce, but I always survive.  Do you see the gilding around the frame? I have built my financial life on a foundation of occasional lack and inconsistency, mystery, illusiveness, unpredictability and dependency on what I can earn or raise.

What’s at the bottom of it all?  Fear, plain and simple.   When my coach, Rha, asked me what this fear felt like and where it came from, the elements I named sounded crazy and puny all by themselves, even untrue.  I know I’m not really incapable, untalented, incompetent or unworthy.  I realized the fear is bigger and badder, darker and meaner when I leave it as a nameless, murky, all encompassing haze.

Then Rha asked me to imagine what knowing my numbers could mean to me.  As I quietly felt deep into that state, amazing responses bubbled up to the surface:

When I know my numbers I have power.
When I know my numbers I have the facts, and I can consciously choose what to spend and how much. I don’t have to wish, guess or hope.
When I know my numbers I can see when I need to make more.
When I know my numbers I can shape my life, I can control my time.
When I know my numbers I have the clarity to dream bigger, and the ability to make those dreams real.
When I know my numbers I have peace of mind and spirit.  I rest easy at night and walk with confidence during the day.
When I know my numbers I can teach my daughter by my example and set her on a path to her own true independence.
When I know my numbers I can be free.

frame2

The next step in Rha’s process was to encourage me to write these revelations down as a series of affirmations, and post them right where I pay my bills and input my numbers in Quick Books.    So when I open the envelopes, write my checks and create my budget, I am no longer just fulfilling some onerous chore.  These affirmations help me reframe the context for my financials, making them much more attractive to me and much more resonant with my values and the vision I hold for my life.

What I am really doing when I look at the facts of my figures is stepping into my power on new terms.  I am saying amen to clarity.  I am fanning the fires of my deepest desires and helping them manifest.   I am enlivening the energy of abundance in my wallet and my bank accounts.   I am co-creating a new reality.  I am walking in freedom.

Annie Leibovitz, We Understand

Monday, August 10th, 2009

How does a world famous photographer end up owing $24million to what has been described in newspaper annie-leibovitz_1stories as “art world/underworld pawn shop”- the Art Capital Group? It sounds like Annie Leibovitz may have done, on a very grand scale, what millions of talented women artist and entrepreneurs do with their businesses. They focus on taking their photos, making their art, selling their products and paying way too little attention to the money side of their business. Sometimes they hire professionals to help them sometimes they don’t. By avoiding her financials while she was capturing incredible moments on film, Annie has jeopardized her economic and artistic independence. At Count Me In, we help women everyday to seize their financial freedom by making friends with their financial information and digging their way out of years of neglect and denial when it comes to sound business practices. Too many women walk around thinking they don’t have a head for numbers; that they are the creative ones. We either try to ignore our numbers and just hope we end up with some money. Annie, your photos are legendary. Now you have the opportunity to inspire millions of women to take control of their businesses and their hard earned money. Join us at Count Me In for Women Economic Independence.

Believe In You,
Nell

Check Your Business Plan

Tuesday, June 23rd, 2009

We are almost 6 months into 2009 - Has your business model changed? Have you seen surprises in customer and sales that beg you to update your business plan and your projections? Read your current plan see if it would be helpful to update it so you ate ready for that next opportunity. If you don’t yet have a written plan with financials, today is the day. Writing down the reality of your business today will get your further along the path to your business dream.

A well-done business plan is a road map to business success. In writing a business plan, you start the process of turning your business idea into a revenue-generating reality. A business plan helps you determine what your business will be, how you are going to get it off the ground, how your business will function and what your goals for the future are.

A business plan is a good way to trouble shoot and anticipate possible problems before they arise. This gives you a chance to prepare how to deal with or, better yet, avoid these issues. Writing a business plan also helps both you and potential investors figure out how the amount of money that will be needed to start and run the business and predict the size of the business’ revenue generating potential.

How to write a business plan:

    1. Before beginning to write, skim the Business Plan Outline here .
    2. Determine the purpose and use of your business plan. Is it an internal document? Is it for the partners to develop a working plan? Do you need it to apply for a loan? Who will need to read your plan, and who will determine the style, formality, and to some extent the content of your document? Remember that this is one of the first communications tools about your business.
    3. Create an outline for your business plan, using the outline here. This outline can be general or very specific; although the more detailed the outline, the easier it is to write the plan.
    4. Determine what research you will need to do. Can you use the Internet for research on your target market? What data or information do you need on your product, suppliers, or vendors? How will you determine who the competition is?
    5. Begin the research for your plan. Keep notes and files of information as you go through this step.
    6. Write a draft of the plan as you gather the information. Keep writing each section; add more information as you gather more research. Plans can be from 5 to 40 pages long, with an average of about 12 pages of narrative and 4 to 6 pages of financial information. The narrative section-including the products, the target market, marketing strategies, and management of the business-is usually completed before the financial section.
    7. Ask a few friends to read your business plan. To get a fresh view, ask people who are not familiar with your business. Correct all of the errors, clarify, and revise based on feedback from your readers.
    8. Prepare the cash flow projections. Start with expenses and include all of the known items. (It is easiest to go month by month for the first year.) This is a cash flow projection, so it reflects when you will incur the expense or pay the bills. Then look at revenue and determine how many units you will sell by the day, week, or month. No business has the same revenue every month; don’t forget to plan for seasons of high and low sales. Plan for growth- these become your sales goals for the business.

      For the next step for writing your business plan, read Make Mine a Million $ Business’s full guide here .

      More SBA Loans Available

      Wednesday, June 3rd, 2009

      Since when is borrowing money a newsworthy event?  When a woman like Linda Russell, who once took refuge at a women’s shelter with her two children, is now able to get a SBA loan for $300,000 and grow her business.  I’ve shared the first leg of Linda’s journey with getting an SBA loan through the last few months, and I hope that you’ve seen Linda’s blog where she’s been helping other women in the M3RACE understand how to get a loan, and then what to do with it.

      She’s now telling her story to the rest of the business world.  I could not be more proud!

      Once A Homeless Mom, This Entrepreneur is Highlighting Recovery Act Successes

      Oakland, CA – San Francisco SBA District Director Mark Quinn and Linda Russell, owner of Mugshots School Photography, will host a press conference June 3 at One California Bank in Oakland to highlight how small businesses are taking advantage of the changes SBA made to its loan programs as a result of the American Recovery and Reinvestment Act.

      The SBA provisions in the Recovery Act were designed not only to help small businesses keep the doors open, but also to help them grow and create jobs. The Recovery Act programs are now reaching the small businesses and beginning to have an impact, helping them retain and create tens of thousands of jobs nationwide.

      Average weekly SBA loan volume is increasing and more lenders are responding by making SBA-backed loans to small businesses.

      Russell received a $300,000 loan from Oakland’s One California Bank to market her company, expand its online presence, and potentially franchise it in other parts of the country.  Russell, who was homeless with two young children 20 years ago and living in a women’s shelter, started Mugshots Photography in 1993.  Her first job involved photographing 200 students for one school in Marin County.  Today, she contracts with several photographers and shoots over 5,000 students a year in public and private schools throughout the Bay Area.  The Recovery Act saved Russell about $8,100 in fees to reinvest in her company.

      And here’s what she said about us:

      “My business and my knowledge of business have been transformed since becoming a part of the Make Mine a Million community.  Before M3 I was a self employed photographer today I am a business woman with a thriving photography company.  The mentoring, coaching and education I have gained from this organization has been the cornerstone to my success.  Without what I have learned regarding financials- profit and loss, balance sheets, pricing, as well as marketing over the last 3 years I don’t believe the SBA would have considered me as a candidate for their loan program regardless of how great an idea Mugshots School Photography represented.  Thanks M3!!”

      You can meet Linda Russell at the M3RACE and NAWBO “Power Your Dream” event on June 24th in Chicago, IL.  Linda will be offering her services there, shooting headshots for M3 Racers for free!  To join us, register here.

      Damned If I Know

      Thursday, May 14th, 2009

      I shared a podium yesterday with Aldonna Ambler - an award winning entrepreneur and founder of www.thegrowthstrategist.com.  She has the BESTDamned if I know... ADVICE for writing a business plan that I have ever heard. When you start, she said, keep it simple. Before you start answering the questions though she strongly recommended taking a pile of about 10 sticky notes or sticky mailing labels and write DAMNED IF I KNOW on each one.  Just write as fast and as much as you can. You CAN DO THIS - it is your business, your dream, your passion. As you are quickly whipping through the questions - when you come to one you can’t answer just stick your Damned If I Know sticker on it and keep going, answering the questions that you can.

      Once you finish all the questions with written answers or a Damned If I Know sticker, talk with your accountant or CFO, seek expert advice on the M3 Message board or talk with your coach to help you with those answers. Most of the Damned If I Know questions will probably be financial ones, and that’s OK. You will quickly complete you plan and be ready to learn from the reactions, questions and suggestions you get by showing it to others.

      By the way, if you need more than your 10 Damned If I Know stickers you probably need to do more work on your basic business concept, target market and financials before you can move the plan to completion.  You can find more help on getting your financials ready for your business plan here.

      Believe in you.

      Getting a SBA Loan

      Wednesday, March 25th, 2009

      If you need additional credit to grow your business, you’re not alone. But you don’t have to wait until we award the Make Mine a Million $ Business RACE Grand Prize to get six-digit help for your business growth.

      President Obama and Treasury Secretary Timothy Geithner are freeing up credit for small businesses by raising the loan guarantees through the SBA. The SBA currently guarantees payment on 85 percent of a loan up to $150,000 and as much as 75 percent on loans of more than $150,000. The administration is raising the guarantee to 90 percent, reducing lender risk as an incentive to make loans.

      Linda Russell, owner of Mugshots School Photography, M3 Racer, previous Make Mine a Million Awardee and the official Count Me In photographer has applied for an SBA Loan and is sharing her so far positive experience with all of us through her blog. You can read her ongoing story on her M3 Racer blog here.  I want to share it with you directly with the hope it inspires and informs any reader who is thinking about applying for a business loan to go for it.

      SBA Loan- Journey to revenue

      My local community bank let me know earlier in the week that SBA loans were being guaranteed by the feds up to 90% and banks are feeling very much better about loaning money. After hearing this I immediately began the journey toward funding and thought it might be fun to share this process with my Count Me In sisters, so here goes:

      SBA Loan

      Monday Morning-3/9- Spoke to Robert, the bank SBA loan rep. Made an appointment to meet on Friday. He provided me with forms to fill out.

      Tuesday 3/10- Filled out application. Pulled P&Ls and balance sheets.

      Wednesday 3/11- Made copies of 3 years of personal tax returns. Copied LLC corp materials. Began updating 2009-10 projections. Reviewed and updated executive summary. Was really glad I had spent as much time with Ellen Rohr and Libby Ladu who taught me the value of having a working business plan. It was easy to bring things up to date. Once again gave me focus.

      Thursday 3/12- Pressure is on. Must have all documentation ready by Friday 1pm. Worked until 12 AM on projections, assumptions and intentions. Basically telling the bank what I needed the money for and how I was going to pay it back. It is important to be crystal clear here. Having a working business plan with a Top Projects list made this easier. I knew what I wanted to do… complete website, consolidate debt and finance sales and marketing push. I outlined how I was going to use the money. The internet made this fast as I could estimate tradeshow and printing costs quickly. Other expenses I estimated from experience. Came up with a needed number $250K. Took a deep breath. Looked at projections, reviewed past year’s P&L’s. Everything looked good because we have been “ON” our numbers monthly. Friday 3/13- Woke up early and began printing, reviewing and organizing documentation. Put together a presentation package of marketing and press materials. Put on my Gayla Bentley clothes so I would feel grown up, tidy and professional. Left for bank nervous but optimistic. My daughter called and reminded me I was powerful and to leave any doubt about my business or self at home in bed. Good advice. Got to bank early. A good omen since I am regrettably one of those people who always try to put just one more thing into a minute and feel the pain of it frequently. Bank security guard greeted me by name. Wow. Go “One Cal Bank” Oakland! Robert wasn’t ready for me early so they let me in the break room for a cup of tea. Nice. Friendly. Darn right neighborly. Robert found me and we went into the conference room. I shared my passion of my company and my dreams. I explained my projections. Answered questions regarding my assumptions. Signed copies of paperwork. He gave me some great suggestions regarding ways to streamline my banking. I felt like I was meeting with a consultant instead of a loan officer. A bank partner in my success. With a warm handshake I left my plans, accounting records, tax returns and future opportunities in his hands. He told me things looked good and I would hear back from him by next Thursday with the bank’s decision.

      The security guard smiled as I left waving “see you soon”. I will update in real time here!!!

      SBA LOAN DAY 3

      March 17, 2009

      Like buying a house. There is a lot of paperwork requests to apply for this SBA loan. A few things I didn’t even know existed. In

      addition to documentation of LLC I needed an “Operating Agreement”.

      Since I am the only member of the MugsyClicks corporation I had not created one of these. I went online and found a free download and adapted it. I had to dig my fictitious business license out of the files as well as a lease agreement for my studio. Below is a complete list of necessary forms and documentation:¨ Application¨

      Personal Financial Statement ¨ Statement of personal History for

      each borrower or co-borrower (912 form)¨ Certification Regarding

      Debarment¨ Tax Transcripts Verification request ¨ Articles

      of Corporation¨ Operating Agreement¨ Copy of Business

      License¨ Fictitious name statement¨ Borrower resume¨

      Executed Lease¨ Signatures on all borrowers’ financials (can be

      sign after loan has been approved)¨ 159 Fee Compensation

      Disclosure (needed only after loan has been approved)I faxed most of the documents (took 30 minutes). I am nervous but excited, with money I can pursue my business dreams with pinpoint focus.

      SBA LOAN DAY 6

      March 20, 2009

      Linda Russell

      Email from SBA Business Loan Manager:”Prequal letter on way, just like promised.” My heart leaped, I wanted to call someone and celebrate. 30 minutes later I feel like throwing up. So much money, so much responsibility. What if, what if, I am “if-ing” all over myself. I am short tempered with staff. I jump in the car to occupy my racing mind with errands. I try to think who I can process this experience with, who do I know that has ever signed their name to a quarter of a

      million dollars in business debt. This is a M-3 sister moment cause

      my list of girlfriends does not include CEOs. Yoga instructors, photographers, flight attendants-I leave messages with a few M3’s who are thankfully unavailable because what I really need to do is just sit, breathe and go back to my business plan. The plan is there. No bank in this economy is going to loan me money if they don’t think I can do this…I get the car washed, eat lunch in a busy cafe where I can give out business cards and decide to sleep on it. Let my breath catch up to my imagination. Tune in tomorrow. Funding ahead.