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
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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.