March 3, 1995
Page 3
Business
Smoke Signals
Preparing to Meet Your Lender
Could your business use some extra working capital? Are you leery of approaching your "friendly banker"
to ask for a line of credit? Here are some tips to make the most of your meeting with your lender.
In order to be fully prepared for the meeting, be prepared to answer the following questions in detail:
1. How big a loan do you want? Don't be vague. Know exactly what you need; add a little
extra for inevitable oversights and emergencies.
2. What will you do with the money? There are four specific uses for a loan; (1) to pay off
debts, (2) substitute new debt for equity, (3) buy new assets, or (4) pay for expenses (such as equipment) that
will create new revenue. Pinpoint one or more of them.
3. How will this loan help your company? Provide a thorough explanation of what the loan
will do for you and why your company is a good credit risk.
4. When will you pay the loan back? Using your cash flow projections, you will be able to
show when the loan should pay off-and when you can start paying it back.
5. How will you repay the loan? Be specific. Use your financial projections
and business plan to show the banker your business will be profitable.
6. What if your plans don't work out? Here is where collateral comes in-and you will
probably need a lot of it. Your goal here: convincing the banker of the value of that collateral in case
the business doesn't work out.
REMEMBER: If you are facing this awesome challenge, your Business Development staff members are here
to help. You can have them attend the meeting with you as moral support, or have them "quiz" you to get ready
for the meeting.
ONABEN offers spring 1995 classes
ONABEN (Oregon Native American Business and Entrepreneurial Network offers a series of classes for
tribal members interested in learning how to set up and operate their own businesses. For more information,
call Small Business Development at 1-8OO-422-0232.
Course 1 Classroom Site Date I Time Instructor Bt
Starting a Pioneer Trust Wednesday 6:30 to Mitch Conley $50
Successful Bank. Downtown 3895 9:30 pm
Business-Part I Salem (4 week course)
Starting a Pioneer Trust Wednesday 6:30 to Mitch Conley $100
Successful Bank, Downtown 4595 9:30 pm
Business-Part II Salem (10 week course)
Small Business Grand Ronde April 1995 6:30 to Staff $100
Management Business Dev. Or. (9 months-meets 9:30 pm
I once a month) I I
Tax season is here!
Small Business Development can help you
Five most frequently overlooked tax deductions
1) Educational Expenses
These include tuition, textbooks, supplies, and fees, if
the education maintains or improves your skills in your present
occupation. If you are self-employed, educational expenses are
deductible on Schedule C; use Schedule A (subject to the 2 percent
adjusted gross income limitation) if you are an employee.
2) Expenses For Volunteer Work
Everyone knows you can deduct charitable contribu
tions, but these also include out-of-pocket expenses
related to volunteer services you perform for charity,
such as purchasing and maintaining uniforms, buying
supplies, and providing refreshments. You also may
be able to deduct a portion of your travel expenses (if
you use your car, deduct 12 cents per mile or your
actual automobile expenses). Contrary to popular
belief, you cannot deduct your hourly wage for the
time you have volunteered.
3) Bad Debt
If someone owes you money, you can generally deduct
it in the year in which the debt becomes worthless. The
loss must be based on your inability to collect the debt
after having taken reasonable steps to do so.
4) Casualty Losses
If your property was damaged or destroyed due to
some unforeseen event - accident, theft, fire,
vandalism, and weather or related catastrophes- you
may be entitled to deduct part of your losses.
5) Credit Card Fees and Finance Charges
This applies only to credit cares used for business.
Fees and interest on personal credit cares are not
deductible.
(From the August 1994 issue of Home Office Computing)
ONABEN classes are being offered in North Bend, Klamath Falls, Warm Springs and Umatilla. For
registration or information about ONABEN classes, call Carolyn McFerrin, ONABEN's Administrative
Assistant at 1-800-854-8289 or 243-5015. The Small Business Development Division reimburses Grand
Ronde tribal members who successfully complete ONABEN classes.
Computer Training March Schedule
If you are interested in jumping into the "high tech" age, this is your chance. Debby Childers, Administrative
Assistant in Small Business Development, offers computer training classes each month. Non-tribal members
are welcome too! (There is a $1 0 registration fee for non-tribal members). In the next couple of months, classes
will be expanded to a four hour format, and the fee will increase to $50 per class. Bargain hunters: this is your
chance to take advantage of the lower fee. If you don't see the class you are interested in, or the times aren't
convenient call Debby or Penny DeLoe in Small Business Development at 1-800-422-0232 and request
additional classes. COMPUTER TRAINING CLASSES ARE FREE TO GRAND RONDE TRIBAL
MEMBERS!
Introduction to Personal Comp.
Beginning Windows
Advanced Windows
Advanced Word
Beginning Excel
Advanced Excel
Print Shop Deluxe
Tuesday, March 7 2 to 4 p.m.
Monday, March 13 2 to 4 p.m.
Monday, March 20 2 to 4 p.m.
Friday, March 3 2 to 4 p.m.
Tuesday, March 21 2 to 4 p.m.
Thursday, March 30 2 to 4 p.m.
Monday, March 27 2 to 4 p.m.
"Less Taxing" Tax Preparation
Taxes, who likes'em? Filling out your tax forms doesn't have to be a
chore! Small Business Development's computer lab lias "Turbo Tax"
preparation software loaded for your use. If you are interested in using
the simple, question-and-answer format program to prepare your tax
returns, call Penny in Small Business Development to set up an
appointment. It's easy and fast! Give it a try!
SEARS Retail Opportunities
If you are looking for a business opportunity in the retail sector, this
could be for you. Sears, one of the largest retailers in the US, offers an
Authorized Retail Dealer program. Participants act as independent retail
dealers offering appliance, electronics and lawn and garden equipment.
Sears sells Kenmore, Craftsman, Whirlpool, G.E., Amana, Zenith,
Pioneer, Magnavox and other national brands through these stores.
The program offers:
1) Merchandise - Sears provides and owns all inventory with no charges
or fees to the dealer.
2) Advertising - The dealer benefits from local, regional and national
Sears advertising programs.
3) Credit - Sears dealers are able to accept the Sears Charge card, as well
as American Express, Discover, MasterCard and Visa from its customers.
4) Compensation - Sears pays a variable commission rate based on the
merchandise volume sold.
5) Signing - Sears provides outdoor and indoor signing at no charge.
6) Equipment - Sears provides all point-of-sale equipment.
Dealers must provide a facility. If you are interested in this
opportunity, contact Penny DeLoe for informational materials.