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About Smoke signals. (Grand Ronde, Or.) 19??-current | View Entire Issue (May 1, 1994)
May 1994 Page 11 SMALL BUSINESS DEVELOPMENT NEWS Smoke Signals Entrepreneur By Tracy Olson Steve Ibabao, a tribal member living in Cosmopolis, Washington, has started his own trucking business. He has owned his own truck since 1992,and does excavation work and gravel hauling. . Said Steve, "I put in a bid to general contractors, and offer my services to companies who get the really big jobs." , Steve said there is a lot of competition, and many of the bigger, more well-known companies sometimes can put in a better bid, but he is still staying busy. . .. "I have my office in my house and work from there," he said. "My family helps me out, too. And so has . SmallBusinessDevelopmenLMitch Conley worked with me to set up a business plan. That's my . recommendation to all tribal members who want to start their own business.. never try to do anything without a plan." Business Financing Brokers can be intimidating--it's a fact of life for those of us who dont interact with them ona regular basis. Wouldn't it be nice to know what they are looking for, and how they will judge your loan application? With that information, you could plan ahead, anticipate their questions, and have ready responses. The April 1994 issue of Entrepreneur Magazine suggests having ready answers to the following questions when meeting your banker about a business loan: How big of a loan do you want? Don't be vague. Know exactly what you need, and add a little extra for inevitable oversights arid emergencies. ',: Whatwill you do with the money? There are four specific uses for a loan: to pay off debts, substitute new debt for equity, buy newassets, or pay for expenses that will create new revenue. Pinpoint one or more of them. How will this loan help your company? Provide a thorough explanation of Seminar will explain cash If your money runs out long before the month does, the May Small Business Development , seminar could help you manage your funds ' better. Most of us don't sit down and : plan our expenditures and analyze : our revenue cycles. With a little : planning, money management could become less of an ill to you and your ; business. of the Month: Steve said that because of his minority status, he has been able to get the funds he needs to work for himself. He got a bank loan through the Bank of Gray's Harbor, which is nearly all paid off now. In the near future, he plans to upgrade his truck, and buy a three-axle pup trailer. This new equipment will put him in a different class of hauler. He'll be what's known as a "heavy hauler", and that means . more work. . . Steve feels comfortable in this line of work because he said he's "' worked alone most of his life. "I fell timber for many years," he said. "Even though it wasn't . my own business, I was by myself most of the time." Steve attended a conference for people in his lineof work in Seattle . last month. They offered seminars explaining a new mentor program being established with some of the larger companies, and they gave information on how to work with general contractors. 101 what the loan will do for you and why your company is a good credit risk. When will you pay the loan back? Using your cash flow projections, you'll be able to show when the loan should pay off, and when you can begin to pay it back. How will you repay the loan? Be specific. Use your financial projections and business plan to show the banker your business will be profitable. . What if your plans don't work out? ... Here's where the collateral comes in and you'll probably need a lot of it. Your goal here is convince the banker of the value of your collateral in case the business doesn't work out. Financing a business isn't impossible, but it does need , planning. The Small Business Development department staff is available to assistyou in your goals. If you need assistance in preparing to work with a bank, give us a call. management Join the Small Business Development department May 12 from 3-6 p.m. at the Tribal Community Center for this seminar. Tony Beebe and Galen Sarvinski of the Portland Small Business Development Center will give an informative arid entertaining presentation. Steve Ibabao Trucking ,v ' lit! . $ r hL r y jL - j . ' J j ! ' y ' V'V .. xX Krj Steve Ibabao and his truck Seminar on financing business gave valuable pointers As a business owner looking for expansion financing, or as a new businessowner, financing can seem like an impossible dream. John Safstrom, Business Finance Specialist for Mid-Willamette Valley Council of Governments spoke April 14 about how to ready yourself for financing, and the various options available. The Mid Willamette Valley Council of Governments serves Marion, Polk, and Yamhill counties and administers over $19 million in business loan funds. The three primary business loan purposes are: 1. Real estate acquisition 2. Equipment (to buy or lease) 3. Working capital Lenders have three main criteria when reviewing loan applications: 1. Demonstrated repayment ability history; a three year track record with Federal Tax Returns. They Business Registry: sign up now If you are a tribal member waiting to do business with Spirit Mountain Development Corporation, you can become part of the tribal business registry. To contract with Spirit Mountain on any future projects, your business needs to be registered with the Tribal Small Business Development department. Tribal member businesses that are not registered will not be considered for bid. Small Business Development will be responsible for maintaining a list of current tribal businesses, assisting them in meeting bid requirements, and sending bid packets to eligible members. Register now! Call Dcbby at 1-800422-0232 for more information about the registry, and getting your business involved. are looking for an income to debt ratio of about 2: 1 or better (income is net income, interest, and depreciation). 2. The applicant must have a secondary source of repayment in either personal property orbusiness equity. 3. Because banks value collateral as a quick sale value, no market value, they are looking for collateral coverage of about 130 percent of the loan amount. For those of you who missed the seminar, it is not too late to get the information. Loans are available for a variety of uses, with varying terms and interest rates. For copies of loan program information, call the Small Business Development department.- Also remember your departmental staff: Mitch Conley, Shelley Hanson, Elaine Moore, and Debby Childers are all available to assist you. Computer training schedule The Business Development Department is offering several computer training classes in May. Space is limited to three people per class, so call Dcbby and reserve a spot now. The numbers arc: 879 2476or 1-800-422-0232. Ifyouare interested in a specific computer training not offered, call and make an appointment with a staff member. BASIC COMPUTERS: Come learn the basics of the computer. We cover an overview of the computer, learn to use the mouse, and do a brief overview of Word For Windows. Instructor: Shelley Hanson. Offered May 4, 6-8:00 p.m. and May 16, 10:00 a.m. until noon. WORD FOR WINDOWS: Word for Windows is an easy to use, quick learn word processing system. If you are wanting to write letters or memos, or create reports, Word for Windows is an ideal program for those projects. Instructor: Mitch Conley. Offered May 11, 1-3:00 p.m. and May 19, 1-3:00 p.m. QUICK BOOKS: If you are looking for a simple, inexpensive accounting program, Quick Books is for you. You can use it to write checks, and maintainyour business and personal books. If you have ever considered using a personalized system, come check thisprogramout. Instructor: Elaine Moore. Offered May 12, 9-11:00 a.m. MICROSOFT WORKS: Microsoft Works includes a database program, a word processing system, and a spreadsheet system. Come learn how to use each of the components, and how they work together to meet your personal and business information needs. Instructor: Elaine Moore. Offered May 25, 2 5:00 p.m. Upcoming seminars MAY 12 "Budgeting & Cash Flow Management" .JUNE 9 "Legal Aspects Of Doing Business" JULY 14 "Arts & Crafts Marketing" SEPT. 8 "HowTo Start A Business In Oregon" OCT. 13 "Budgeting and Cash Flow Management" NOV. 10 "Business TaxPlanning" All seminars are held from 3-6 p.m.
