Small Business Financing

About 1.5 years ago I was looking for ways to get some financing for my company other than a bank load or venture funding.  One area I was researching was grants.   Grants are gifts from nonprofit foundations (which can include government organizations and private foundations) that are typically made for a particular purpose that fits within the mission of the foundation.  Because a nonprofit needs to meet certain IRS guidelines to maintain their tax free status, they need to give money away annually.

I found a company called National Growth Funding, which is out of San Antonio, Tx.   They said there was some $500 billion in grant money available in 2015, $30 billion for small business and $9 billion for entrepreneurs.  The grant money was available for business start-up, expansions, etc.  I looked at their BBB rating (see another post on this), and it was an A.  After discussing my business and a particular angle for a grant, I decided to have them write a grant proposal.  I did negotiate their initial fee way down and I felt like it was worth the risk for the fee involved.



The process started off slow.  I called several times. I was always able to talk to someone, so that gave me some assurance, but the process moved like molasses.  I finally got a grant proposal after about 3 months.  The first draft was poorly written.  It was faxed to me.  Who uses faxes in an edit process anymore?   Anyway, I make a complete re-write, emailed it back, and we went back and forth like this through several iterations.

I got copied on a few letters to some of the foundations.  No responses.  I followed up, they sent more letters.  No responses.  Finally I called and talked to my account rep Daniel Baca and he said he would have someone else call to follow-up.   Joe Armstrong then called back.  He said he was the guy that did the big dollar grants, and that really, in order to get a grant, I needed to create a non-profit company, have that company write the grant request, and then use that money to fund the grant mission via my other company.   He said foundations like giving to other foundations and non-profits because it is a a lot less risky.  It kind of made sense, however, he wanted another $10,000 plus to create the entity, get the tax exempt status, etc.

I didn’t do it.  Needless to say, nothing else has ever happened.  I just recently checked out what was happening with National Growth Funding, and it looks like they have shut their doors.

So, I got duped.   I knew going into it that there was a risk nothing would ever come out of this, and I was willing to gamble with the small initial fee.  But I have learned a valuable lesson.



1. If it sounds too good to be true, it probably is.  They made it sound pretty easy and highly likely I could get a grant.

2. If ANYTHING seems a little fishy about the “who” or the “what” you are dealing with…run.  In hindsight, the whole edit process of the grant seemed really strange to me, however, I didn’t know this until after I paid them some money.  Also, people did not have a real email from the company.  They were using email addresses from Yahoo.  Any reputable company should have its own branded email.  This is a basic MUST Have today.  If you do not know how to get one, I can help you do it.

3. Do the work yourself.  There still might be grants out there.  You can find federal grants at  There are other sources as well.

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The #1 Reason For Starting A Home Based Business

Are products and services important?  Of course.  If you have a great product or service that can stand alone even without a great compensation plan, that’s great.  Myself I want to know how quickly and easily that product or service can make money, and if it appeals to the masses.  Look, your business must be set up to make money for you,  otherwise it is just a good hobby. When I look at a business opportunity, there are several things I look for.Is It Affordable To The Masses – look there is no doubt that there are big ticket programs out there that can make you large commissions that cost $1000 dollars or more to get into.  Now if you can afford that kind of investment hey go for it.  I will look more at a program that cost between $200 and $500, with commission ranging from $100 – $400.

Group of business people having a business meeting
Group of business people having a business meeting

Now with that investment, and commissions,  you will have many, many more people able to afford to get involved, thus more of an opportunity to make money quicker.Fast Payouts – I like quick payouts.  Things like fast start bonuses are great for me, because I want to get paid as soon as possible after recruiting some one or making a sale.  I look for companies that pay weekly fast start bonuses, or pay commissions weekly

Simple To Understand Business – Look I’m not the sharpest tool in the shed, but I’m not the dullest either.  A business that is to complicate to explain or that has a complicated compensation structure is going to take longer to learn and longer to make money with.  Remember I want to make money with my business as quickly as possible.

Automated – Duplicatable

Marketing Plan – The marketing plan should be easy to understand and more importantly easy to teach and train someone else to do it.  Learning how to promote your business is essential in your success.  With good marketing tools that you can put on auto-pilot will free up your time for some of the detailed follup of your prospects or customers.  An  easily duplicatable and automated marketing system will help your business grow quicker with less drop outs.

Ok that lays out a few areas that I think are important when looking for a home based business.  To clarify I usually am more interested in businesses that deal with network marketing, simply because they tend to use the leverage of other people’s effort as well as your own to help build business.  They also have a better potential to develop a huge residual income over a longer period of time. I actually ran across a fantastic new program that fits all the criterias listed above.  Now normally I don’t look at a program that is less than 6 months old, but this one has really proven it’s self over the last 4 months.


The program is called   REGENISIS 2×2. It’s a 2×2 matrix which pays out $400 when your matrix is filled with 6 people and and additional $800 of matching bonuses when your first 2 recruits fill their matrix with 6 people, for a total of  $1200.  The whole process has only been taking 30 days to complete.  This is a great program as is but the company is doing something that no other company is doing.  They have developed what they call an Automatic Recruiting System.   Using the  ARS Regenisis will build your first matrix for you.  You heard me right….Regenisis will build your first matrix for you by using the ARS to recruit and place your first 2 people in  your downline.

Not only will Regenisis  put 2 people in your downline to start your matrix, but the 2 people they place under you will also have 2 people placed under them which will fill your matrix of 6 people and generate your first $400 commission.  Now when your 2 recruites have their matrixes built for them by the company, you will receive an extra $800 in matching bonus commissions.


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Critical for Financial Planning

The main strategy is to know deeply, especially if growth plans are and the competitive (likely actions of competitors and the company’s competitive position) in which to operate.

Understanding the likely future economic environment. This is reflected in the key assumptions of economic growth, inflation, exchange rates, interest rates, and those that are needed to make the financial projection.


Financial Projection needs a base from which to depart. This database is the history of the company and specifically, that the financial projection of the numerical results we need the Statement of Financial Position or Balance Sheet of the previous year. At this point the Financial Planning is an extrapolation of the story. This, the story gives us the information that is inherited to the future, for example the amount of existing debt and repayment schedules. This is taken into account necessarily. The story also gives us the experience of how they have behaved according to certain other variables but this is not all there is to do. From the past we take what is relevant and necessary for the future and this, all changes are made that involve business strategies and operational plans.


Once you have the sales and cost of sales, or the contribution margin, may begin to see indicators for comprehensive rates, compared to history, to “benchmarking” and other types of analysis, for example, a contribution margin analysis by product or product line.
Already having sales, cost of sales or contribution margin, selling expenses and administrative expenses leads to the determination of operating income. This is an ideal time to take a break soon on the road and make a careful analysis of the results. This is the heart of the business and the analysis is made in this part can identify those concepts of cost or expense which may sensitize to see the impact on profits and then in the cash flow. They can also analyze the relevant indicators and to “benchmarking” with competitors or the industry in general.

A financial projection is the ideal way to see the effect of growth or in the case of divestment of assets. Strategic investments or growth included in the projection are those that are consistent with the business strategy. In this stage can not stop thinking about whether there will be resources for funding. This will be resolved at a later stage of the analysis. We also estimate all investments, called normal investment practice, whose purpose is to maintain current operating conditions in optimal conditions.


Finally, the model has to balance sources and uses of resources. The end result is adjusted according to the goals and objectives of the company.

The reports resulting in financial planning, are the financial statements (results, flow and financial situation), in addition to indicators, summary tables, graphs and all that ask for the address of the company. Must be an additional product, the calculation of the value of the company.

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