Ivy Tech Community College Presents ECONOMIC DEVELOPMENT LECTURE SERIES #1

This Tuesday, October 25^th at 2:30P and 5:30P at Ivy Tech Community College in Evansville, IN Mission Vision Partner, LLC. (MVP)’s will present its first of four in an Economic Development Lecture Series entitled Brand Development 101. There are many reasons why startup/existing business owners, professionals, students, faculty and staff should attend.

For the sake of brevity, here are 3+1 significant reasons/takeaways and VALUE for you to attend:

·      To better understand branding’s value and benefits

·      To learn the basics that can improve you, your business’ or organization’s brand and hopefully higher income

·      To grow and expand your capacities, knowledge, skills, abilities and resources

·      (Bonus) Networking

What is cool about this workshop is its inspiration. Brand Development 101 was designed after MVP’s founder and Principal Partner, Henry Snorton, III, CEcD heard a song, Diamonds From Sierra Leone (Remix) produced by Kanye West, Devo Springteen and Jon Brion according to genius.com. In verse 3, hip-hop mogul Jay-Z rhymes, “I’m not a businessman; I’m a business, man! Let me handle my business damn… Thus, MVP’s founder (Snorton) was inspired to design a workshop that helped professionals, business owners, etc. to learn and better understand branding and its the value and benefits.

Previously, MVP presented this Economic Development training workshop to such clients as the Clarksville (TN) Brides, MEDI, Inc. (Hopkinsville, KY) and Lake Barkley Chamber of Commerce (Eddyville, KY). It can be viewed online on YouTube at https://youtu.be/ZwMU6BAdYBk.

To register for Ivy Tech Community College’s Economic Development Lecture Series visit https://ivytechsouthwest.wordpress.com/2016/10/11/economic-development-lecture-series-designed-to-aid-entrepreneurs/ or email smatchem@ivytech.edu.

You can reach MVP, an innovative, practitioner-based full service economic development services firm by calling 270-839-3426, emailing henry@missionvisionpartner.com or visiting www.missionvisionpartner.com.

3 Things That Every Borrower Should Know Before Applying for a Small Business Loan

By Henry Snorton, III, CEcD, Principal Partner, Mission Vision Partner, LLC. (MVP)

I was fortunate to participate in Kentucky’s 5^th Annual Women in Business Expo at the prestigious Galt House Hotel, just a few blocks away from Louisville happening “4th Street Live” venue. My session was a clinic entitled, “The Clinic: Tips That Every Borrower Should Know About a Business Loans.” The clinic was well attended and participants asked question after question. This led me to believe to write this article to expound upon this topic, “the clinic.”

I started the clinic by asking the attendees to reach into their pocket or pocketbook (because this was a women’s conference) and pull out a bill of some sort and raise it high into the air. They displayed ones, tens, twenties and hundreds. Then I said, “let me borrow that money that you have in the air until next year’s Women in Business Conference and I will repay you with interest.” You should have seen the expressions on their faces. Needless to say, my loan request was denied!

My analogy applies to a borrower walking into a bank or credit union and applying for a small business loan without any account or relationship with the bank or credit union to which they are applying. In life and business, relationships are simply important. Then, I told them about the 3 things that every borrower should know before applying for a business loan. The 3 “secret” and underlying test questions lenders and underwriters attempt to answer in order to make small business loan are listed below:

Question #1: Can the applicant/perspective borrower repay the loan?

Question #2: Will the applicant/perspective borrower repay the loan?

Question #3: What happens if the applicant/perspective borrower does not repay the loan?”

Each of the three (3) questions directly corresponds to what is known as the 5 Cs: capacity, character, collateral, capital and conditions:

·      Capacity is how much money is available to repay the loan, debt ratios, etc.

·      Character is the credit worthiness of the applicant, such as their payment history, credit (beacon) score, etc.

·      Collateral is the assets, property, wealth, etc. that a borrower has to pledge or to use to “secure” the loan. This can include a home, vehicle, real estate, financial instrument, etc. Please note that lenders typically do not want your house or pledged collateral, but they do want to properly motivate the borrower to do all they can to repay their loan accordingly.

·      Capital is the funds/money that you have or that will be contributed to the project’s (business’) total cost. For example, if the loan is for $50,000, do you have 2% capital ($1,000) or %10 ($10,000). It is rare, but possible to obtain an 100% loan because lenders want borrowers to have “skin in the game.”

·     Last but certainly not least, conditions are trends, environmental issues or concerns, political implications, etc.

The process goes something like this… you visit a lender and inform them that you are interested in a business loan. They will ask you for a number of “prerequisite documents” such as a business plan, 2-3 years tax returns, governing documents, maybe form SBA 413 and of course their very own application. Once you submit this paperwork, then the underwriting process beings.

As noted above, the underwriter tries to answer question #1 using the provided documents, “can you repay the loan?” The answer is provided for by your “capacity.” Do you or will you have enough money to simply repay the loan. If no, then the loan is denied.

If yes, then the underwriter proceeds to answer question #2, “will you repay the loan?” This answer is determined by analyzing your “character/credit” and what you have available to pledge to secure or guarantee the loan, “collateral.”

If no, then the loan is denied. If yes, then the underwriter proceeds to answer question #3, “what happens if you do not repay the loan?” The underwriter evaluates the value of your collateral if the lender should need to liquidate it. The underwriter also evaluates its own risk, if its loaning 100% or less, typically less which requires you to put some “skin in the game” called “capital.” Last, the underwriter/underwriting process considers your industry’s market conditions. For example, energy and environmental are growth industries along with pets and travel. The “conditions” can help or hurt your application depending. If when answering question #3, the lender’s likeliness for loss or loss potential is higher than its profit potential, then your loan may be denied.

Now you know what to expect prior to applying for a business loan. If I can help, simply give me a call or drop me an email, Henry Snorton, III, CEcD at 270-839-3426 or henry@missionvisionpartner.com

Snorton is the founder and principal partner at Mission Vision Partner, LLC. (MVP). MVP serves as the #1 economic development firm that assists rural communities and undeserved markets to create jobs through small business startup, expansion and development. MVP's experts apply a practitioner-based approach that produces results in four areas: economic development, entrepreneurship & small business startup and expansion, grants and application development and training and consulting. MVP has written grants scored/evaluated by USDA RD as #1 in the Natio and partners with the Small Business Administration (SBA) and Syracuse University to deliver "Boots to Business" Service to Startup training workshops at Fort Campbell and Fort Knox, Kentucky. MVP’s has internationally credentials, national, state and local awards and recognitions that have assisted in the creation, retention and expansion of more than 400 jobs and millions in capital investment in the USA.

What Does It Look Like To Pursue Opportunity?

The desire to pursue opportunity is shared by all mankind. All over the world, entrepreneurs, innovators, inventors, existing and potential small business owners pursue opportunity for their own reason. Some to gain wealth, others fame, freedom, peace of mind, or maybe to live in a dream realized. But, what does it look like to pursue opportunity?

Opportunity is illusive and subjective. The opportunity that I may pursue may look ridiculous to you or a complete waste of time. However, we can all agree that opportunity is positive, a set of circumstances that makes it possible to do something or an appropriate or favorable time or occasion. Thus, to pursue opportunity is also positive. However, that does not equate to achievement or success. Whether you achieve the opportunity that you pursue or not, there is one main thing that you must understand.

The most important thing that you must understand may very well be the most important key to pursuing any opportunity, movement! You must do something more than talk to achieve the opportunity in which you pursue. Faith or belief without works or action or demonstration is dead or non-existent or lifeless. So what does it look like to pursue opportunity?

I was inspired to blog about pursuing opportunity after listening to a Bishop TD Jakes sermon and watching the 1992 film, Far and Away, staring Tom Cruise and Nicole Kidman. In summation, the two were completely different but brought together in pursuit of opportunity. One was wealthy and the other poor, one educated and the other unlearned, one cultured and the other not, but they were both in Ireland and connected by the desire to own a piece of land being given away in the US in Oklahoma territory.

The photo above illustrates what it looks like to pursue opportunity. Can you imagine how more than 100,000 people felt on Cherokee Strip in Oklahoma on April 22, 1889, as they risk it all, lining up and awaiting a gunshot to race toward opportunity. History suggests that the race began with a single gunshot. Pioneers on horseback and carriages raced to stake their claims for the best acreage the area had to offer. The rush to the new lands, the pursuit of opportunity, helped establish towns such as Oklahoma City.

What do you look like as you pursue opportunity? Could it be as easy as 1 – 2 – 3? Here are a few suggestions that may help. One, you must know without a shadow of doubt “what” opportunity you are pursuing and then determine in your mind, body and soul that you are willing to do what is required to achieve it. Keep in mind that to pursue opportunity can be a short- or long-term process. If the opportunity develops for you to partner with a friend to startup a new entrepreneurship, then that is the “what” and you must determine within yourself to make it happen. Step one propels you to step two to builds momentum for step three.

Step two requires time and action or movement or activity or demonstration. Movement, activity or demonstration can include: research, preparation, investing, designing, testing, steps, often risky, that move you closer toward realizing an opportunity. Maybe you want to pitch your product or service to a certain person or company. This is the “what.” Step two requires you to discover how your product or service can add value or benefit that certain person or company. Who do you know that can help you make contact with that certain person or company? Step two demands movement. Now that you are moving-forward, you are more prepared for step three. Step three is the making it happen step.

Now that you have prepared yourself by performing research, testing, etc., it is time to do it; launch, apply or make that call. Step three can include: the launch, going to the bank to apply for the loan, signing the lease, applying for a provisional or full patent, setting up appointments to make the sale and more. Recall the picture above of what it looks like to pursue opportunity. Lets go back to the late 1800s and make the comparison using these three steps. Step one, the decision was made to travel to Oklahoma to claim a parcel of free land; step two required learning the process, procedures that will be used to claim the land, consider the competition (this was part of the wild west), review of the land to be claimed, choosing a good horse, etc; and step three, on your mark, get set, “POW,” go claim your land!

Henry Snorton, III, CNM, MPA, CEcD is founder of Mission Vision Partner, a full service economic development consulting firm that specializes in small business & entrepreneurial development, economic development and application development throughout the US that impacts communities and economies for improvement. Visit www.missionvisionpartner.com or call 270-839-3426 for more information.