Isn’t that the way it always is?  We dream and plan for the big deal that is going to launch us into financial freedom.  But it always requires us to invest our own capital, which most of us have a hard time coming up with.  So do you borrow the down payment too, and head into the project quickly, with a large debt load?  Or do you wait until you have the capital to fund the initial launch?   That is the eternal question………after all, if you miss this opportunity, you might never see another one.  And if you move on it before you should, then you spend years struggling with the debt service.  Certainly with the current credit climate, banks and lenders are not as quick to fund ventures without sufficient capital, even apparent lucrative real estate deals.  So do your homework before you ask for a loan.

Some suggestions for success in funding your project:

SAVE money!  Alot of it.  One thing I have discovered in the last 20 years is that the clients I work with that are “wealthy” later in life, are the ones that saved regularly throughout their whole life.   They didn’t just wake up one day at age 58 and say “now I can retire with my million”.   Starting early in life, they saved a little out of every paycheck and tucked it away without ever touching it.  They didn’t even buy houses and cars until they could afford “most” of it with cash.  And they never overused or abused credit cards.  It’s never too late to start saving – so if you’re “savings challenged” – get started now.  A good rule of thumb, save 10% of your income, give 10% away (givers gain in life) and live on the other 80%.  Do this for a lifetime – say 20 to 30 working years, and you’ll be rich – no matter what your income level.  I’ll be happy to run the numbers for you and prove it if you want to shoot me your details  SO SAVE!

Do a Cash Flow Analysis of your project before you ask for a loan.  By putting forth the time and effort to project the cash flow, your banker will be impressed and you will affirm the likelihood of success.  In simple terms, make a spreadsheet with cash inflows at the top and cash outflows at the bottom to determine positive or negative net cash flow for each month of the project.  For more details on Cash Flow Management and charting cash flow for your banker, take a look at my online seminars at www.AfterBusinessPlanning.com  There’s a good 1-2 hour Cash FLow workshop there.

Don’t over borrow.  Funding loan payments within your budget is one thing – but you’ll never know the stress of over borrowing until you do it. 

Just another story from the ‘ville……………

* Check the effect marriage will have on your tax bill.   If both spouses work and earn about the same income,   you may pay higher taxes due to the “marriage penalty.”    You may need to adjust your tax withholding to avoid  a big tax bill next April, and perhaps even penalty and interest charges for underpayment of taxes.

* Notify the Social Security Administration if you change your name.

* Notify the IRS of your address change if you move to a new home.

* File new Forms W-4 at work to reflect your married status.

* Review your combined contributions to 401(k) plans to make sure you’re maximizing your company’s matching contribution.

* If either of you has an IRA, check the effect marriage will have on the deductibility of contributions.

* Update your estate plan, making appropriate changes to wills, powers-of-attorney, health care directives,
  etc.

* Review the beneficiary designations on your retirement plans and insurance policies.

For assistance with these items or with any tax concern, send me an email or give us a call.

I invited some of my clients and I had 9 visitors in the room.  I was glad to see some of them get really excited about the opportunity put before them.  In BNI, you only have one member from a business category, so if you apply and you become a member of a chapter, you don’t have any competition!  You get a chance every week to educate your 20+ new sales force and send them out looking for new business they can refer to you.  It’s a great day when one of them calls you up and says ” hey I was just talking to my (friend, family, client, vendor, supplier……) and he asked me if I knew who he could get to do (….whatever you do……) and I gave him your business card.  I told him you’d give him a call today………….  There’s no better way to get a business lead than word of mouth referrals. 

A couple of my clients filled out an application to join the BNI chapter yesterday, and a couple more are thinking about it – because they found the excitement and promise in building referral partners.  What about you?  What’s your marketing strategy for the next six months?  Does it include building your referral partner base? 

Networking groups like BNI and local chambers give you the chance to build trusted relationships with like minded business people.  Take the opportunity to ask how you can refer business to them, then do it………it’s a “givers gain” world.  You give them business, and they’ll want to give you business in return.

For more information about BNI or to find a local BNI chapter - check out www.BNI.com and www.BNI-Indiana.com

Let’s get back to the basics of business planning.   Let’s answer the what, who and why of your business….. what are you selling, who are you selling it to and why should they buy from you?  A good business plan is the foundation for successful business.  But it is only the foundation.  Because, let’s face it – it’s really what happens AFTER the BUSINESS PLAN that matters most!  What are you doing throughout the year to ensure your success? 

Enjoy better cash flow with improved record-keeping systems. Find wiser tax planning year-round. Work a better marketing strategy for controlled growth. Build a stronger team with better human resources support. Use your budgets and financial statements to make more timely management decisions. Increase sales and keep more of what you make.   By working ON your business and not just IN it, you can build better tomorrows for your family.   Are you running your business, or is it running you?

Hang around our blog for ideas and motivation to improve your business operation.  I hope you find your inspiration here.  Let’s get started………