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Tuesday, December 28, 2010

Single Parent Tax Credit: Kick off the Tax Refunds

Refunds for many taxpayers will be the bridge funds that pave the way to the new car, new home, new business or needed vacation.  This year the child tax credit is $1,000 per child.  The difference between this tax credit and most other tax credit is that it results in a refund check.  Most tax credits are used to reduce tax liability and are these credits are applied to tax liability which could increase your refund or lower the payment to the IRS. 

There are ways to increase your refundable tax credits, but that is a plan that must be implemented during the tax year and the benefits will be captured at the end of the tax year.  Self Employment Tax will be higher this year. Switch to a payroll system which would generate a W-2 instead of a 1099 to capture your earned income then you will give less to Uncle Sam and your refund will be higher. 

Make plans during the tax year that will give you a higher refund so that you can get the most out of your spending.  The spending moves that result in higher refunds or not expensive and can be implemented by the average person.  Make plans for your success and eliminate failure from your future.  Find out more by emailing questions to or by following and commenting at this blog.

by Chet Jones

Thursday, November 25, 2010

Lower Tax Liability - 5 Things to do before year end.

Self Employed Individuals will be hit with a higher tax liability.  Many individuals are sole stock holders in their LLC, S Corp or Sole Proprietorship.  Avoiding the higher tax liability can occur by simply implementing a payroll system or contracting a 3rd party to prepare your pay checks so that you treat yourself as an employee of your company.  At Year End your will receive a W 2. 

 Assets that have been fully depreciated and still in service should be sold to LLC's, S Corp's or Sole Proprietorship's that are in need of depreciation shields.  This will start the depreciation clock ticking again and shield future income with non-cash deductions.

Invest in projects or vehicles that provide tax credits.  Tax credits offset tax liability.  Spend extra cash on vehicles that provide you with lower expenses in the upcoming year and tax credits that offset tax liability such as energy efficient appliances, mechanical, capacitors and solar panels.

Year End Profits should be placed in deferred compensation.  Year End IRAs with gold acquisitions would be an excellent direction for your money if year end profits are huge.  Year End Real Estate transactions should be executed as 1031 Exchanges to avoid taxes.

More information can be provided by contacting Chet Jones at 770-895-4385.

Saturday, October 2, 2010

Renewable Energy Dependent on Subsidies

Development of wind and solar energy is greatly dependent on government economic support in the form of subsidies and outright grants. Dependence on foreign oil is dangerous to our survival. Natural gas is abundant, clean and cheap. Gas can provide our independence from foreign sources of oil.

Wind sources in many parts of the country are limited by restrictions on wind farm locations. Further, the costs are prohibitive without large government subsidies. The wind and solar industries lobby wants a legislative imperative on the percentage of wind and solar that we must use. This is a so-called renewable energy standard. If all energy taxation were applied to wind and solar, wind and solar could produce only enough energy for a small part of our needs. American Wind Energy Association CEO Denise Bode has said that Oklahoma has wind resources to provide more than 30 times of the state's current electricity needs. She fails to say what the subsidies and grants would cost taxpayers.

Natural gas is greatly needed now to fuel our industrial machine. Renewable energy standards restrict a free market. We need to let the free market run its course with no renewable energy standards.

Sid M. Groom Jr., Edmond

Monday, September 27, 2010

Modify Save Your Home

Mortgage Modification is a good option to save your home from foreclosure or to just make your home affordable.  Many homeowners have received forbearance agreements which are temporary solutions and have considered this a mortgage modification.  Forbearance agreements are mortgage modifications, but not in the since that the term is used by house counselors. 

House counselors generally consider mortgage modifications a permanent solution.  When a homeowner receives the a lower interest rate or a payment lowered by $100 or is given terms resulting in a higher payment, but repays the past due balance; a homeowner is typically grateful.  This is not the optimal situation for the homeowner, but some are satisfied because of the payment reduction relief or because they of a feeling of self worth for repaying a past due balance. 

House counselors would generally get a modification with permanent favorable consequences.   Past due payments are placed on the back as a silent second.  Silent seconds can also occur if house value has been reduced because of foreclosures in their neighborhood.  In most cases, modifications can occur that have the most favorable results with the assistance of  a house counselor.   

Wednesday, September 22, 2010

Don’t Worry About China, Japan Will Finance U.S. Debt

I am posting this because the treasury bonds have been getting investors that offset China's shedding of the dollar.  I told this story in a much different way a month ago, but this was my meaning.  I actually called the Japanese Yen, Chinese...of course I know that the Yen is Japanese.   Forgive me for the currency confusion, but the substance of my conversation is referenced in this article.

By Alex Frangos

China has been diversifying its $2.5 trillion reserves away from the dollar, causing some to worry that less Chinese buying of Treasurys would cause U.S. interest rates to rise and make it more difficult for the government to borrow.

National flags of Japan and the U.S. are seen near a graph displaying the movements of the U.S. dollar and the Japanese yen foreign exchange rates at a dealing room in Tokyo September 15.But Japan’s dollar buying in currency markets Wednesday shows Chinese reserve diversification might actually lead to even more demand for Treasurys.

Here’s how. As China diversifies out of U.S. dollar-denominated assets such as Treasurys, it is buying debt denominated in the currencies of some of its biggest trading partners. Not wanting to lose competitiveness themselves, those trading partners in turn buy dollars to keep their currencies cheap.

As part of the diversification push, China has been a major buyer of yen, snapping up $27 billion in yen so far this year according to Japan’s Ministry of Finance. Analysts say China’s buying has helped an already strong yen get stronger.

Now, Japan, feeling under pressure to weaken its currency, turned around and bought dollars, most likely in the form of Treasurys. It isn’t clear exactly how much dollar buying Japan will have to do to protect the yen from getting stronger, but it’s likely to more than offset China’s diversification into the yen. If the past is a guide, Japan spent $320 billion in its last intervention from 2003 to 2004. And this time the currency markets are 73% far larger, with $568 billion dollar-yen trading a day, according to the Bank for International Settlements.

Japan is not alone in this phenomenon. China has also bought South Korea’s currency, the won. And South Korea routinely intervenes in currency markets, buying dollars to keep its currency from rising too quickly, again offsetting China’s move out of the dollar.

Read this post in Japanese/日本語訳はこちら≫

Sunday, September 19, 2010


There are many things happening economically locally and worldwide that require action by every day citizens.  Which makes my quote for the day "Your cost is the choices that you make".  Inactivity is just as bad as activity involving a bad decision. Jobs are increasing in the private sector nominally.  Government jobs will decrease and be replaced by technological advancements between military divisions and contractors.  Major contractors with prior experience will be the first in line for most contracts.

Private jobs will increase but they will be related to business start ups that support privatized industries for outsourced operational tasks.  Other jobs will be related to service industries that operate and grow as a result of referrals.  Familiarity creates the comfort zone for clients.  Tax business, insurance business, administrative support operations, green technology exposure, health, wellness, intellectual property monetization, certified professional jobs, fish farming, import/export, investment in residual opportunities, unconventional funding operations, online business and staffing services are some of the businesses that can generate revenue from familiarity (referrals ) and social networking.  Money is available from a variety of sources, including grants, investors and capitalization platforms.

Getting access to these businesses and opportunities is a matter of choices.  Get prepared and align yourself with the right organizations, people, places and opportunities.  Act now because the world market is shifting and moving fast in the underbelly of the existing economy. The current economy will shed it's skin and the under skin will slowly become the skin that seamlessly becomes our reality. As this occurs, tax law's will change that will require new ways of doing business.  What will you do and what choices will you make?

Friday, September 17, 2010

Super Support Services and Opportunities Firm

Global Enterprises Trust is a company established to counsel individuals on financial matters. Our focus is on loan modification with banks for homeowners, payroll processing and tax services for small to mid-size businesses and home business opportunities nationally.  Speak with one of our HUD certified house counselors to see if you qualify for mortgage loan modification.  A team of accountants are available to assist your business in payroll processing and tax preparation. Global Enterprises has flexible and affordable payroll services for single individuals or national organizations. Global Enterprises will identify labor related tax credits going back up to five years.  Global Enterprises is seeking to expand in all areas of our business by providing those interested in home business opportunities with training, certification and support nationally.

Global Enterprises is your connection to success.  GET gives you access to a knowledge base that allows you to be successful in starting your own business by educating you and certifying you to join us in developing your own business opportunity.  We can operate as your business engine or agent.  As an agent of your business we connect you to our relationships and opportunities.  As an engine of your business you are allowed to outsource the financial administration of your operation so that you have ongoing support and are postured for growth.   

Get information, direction, strategy, relationships and success.  The cost of it all is your choice.  Our organization is committed to building over 1,000,000 operations nationally that are owned and operated by everyday people seeking wealth and opportunity that can provide our services through there relationships.  Contact us now 770-895-4385 for the how, the who, the when and the where.

Saturday, September 11, 2010

65--Dental Gold

Ref: 629199 Buyer: Department of the Army, Georgia
Solicitation: W91YTV10T0287
Title: 65--Dental Gold
Category: 339 - Miscellaneous Manufacturing
Ends: 12 days 16 hrs 2 mins
(9/24/10 12:00 AM EST)
Buyer: Department of the Army, Georgia, USA
Location: Georgia, USA
Contact: Carla Horsager, 706-787-7723 begin_of_the_skype_highlighting 706-787-7723 Southeast Regional Contracting Office
Southeast Regional Contracting Office, ATTN: MCAA SE, Building 39706, Fort Gordon, GA 30905-5650


The US Army Medical Command Southeast Region has a requirement various Dental Gold Alloy items. The Government intends to award a sole source contract for this requirement. The suggested contractor is Jensen Industries, 50 Stillman Road, North Haven CT 06473.

77 ounces JCB Gold Alloy with the following alloy content: 62% Au, 9% Cu, 25% Ag, 3% Pd and must contain les than 1% Zn, Iu and Ir.

7 ounces Premiere Gold Alloy with the following alloy content: 85% Au, 12.4% Pt and must contain less than 1% ZN, Iu and Ir.

This is not a request for proposal. However, companies that can provide an equal product must submit their technical capabilities to include technical specifications of their product, past performance information, price and delivery time. This information will be reviewed by the Government technical representatives for consideration for future requirements

4th Annual SDVOSB/VOSB/SB Conference & Match Making Expo

When: 28-29 October 2010
Where: Tampa Convention Center 333 South Franklin Street Tampa FL 33602 813-274-8511/800-426-5630
Theme: "Building Relationships through Teamwork"

Back by popular demand, the 4th Annual Service Disabled Veteran Owned Small Business (SDVOSB)/Veteran Owned Small Business (VOSB) and ALL other Small Business (small, small disadvantaged, 8(a), HUBZone, Woman Owned) Concerns and Educational Institutions are cordially invited to attend this event.

This conference will be held at Tampa's world-class, Tampa Convention Center located in downtown Tampa, Florida!!!

The focuses of this initiative are to partner with these small business concerns to: increase outreach participation, conduct market research for products and services, match making with industry and government agencies, meet with buyers from federal, state and local government agencies, as well as large corporations, provide educational training contracting and procurement processes and develop new long-term contractual relationships.

This site, has been launched and online registration is available for Attendees, Exhibitors and Sponsors. All Federal, State, County and City Employees will receive complimentary attendee with proper ID at time of registration.

Registration fees are determined for early, advance, late and on-site registration.

POLICY FOR REGISTRANT CANCELLATION: Registration cancellation before October 1, 2010 will incur a $25.00 administrative fee. Cancellation after October 1, 2010 and before October 20, 2010 will incur a $100 cancellation fee. No refunds will be provided after October 20, 2010 or for a "no show." Substitute attendees are encouraged. A credit card is required for reserving your attendance/space/sponsorship and verification emails will confirm your reservations. We are looking forward to seeing you again this year!

Contractor Award

This a MATOC award. 
Contact GSC for opportunities.
Solicitation Number:
W912HN-09-R-0051 Notice Type:
Award Contract Award Date:
September 7, 2010
Contract Award Number:
Contract Award Dollar Amount:
Contractor Awarded Name:
GSC Construction, Inc.
Contractor Awarded DUNS:
Contractor Awarded Address:

Initial Task Order for Infrastructure Support, Increment 3 (PN 76080) at Fort Benning, GA awarded for $1,999,965.00 to GSC Construction. The contact information for the awardee is as follow:
Mr. John Phillips
1727 Wrightsboro Road
Augusta, GA 30904-4074
(706) 736-1885
Additional Contract Numbers awarded within this MATOC pool are as follows:

W912HN-10-D-0050, Copper Construction, 410 McIntosh Street, Vidalia, GA 30474-3111, POC: Sam Page (912)537-6420

W912HN-10-D-0051, Dorado Services, 195 W. Seminole Blvd, Sanford, FL 32771-1272, POC: Fernando Neris (407) 688-0600.

W912HN-10-D-0052, ENVIRO AgScience, 1190 Buckner Road, Columbia SC 29203, POC: Dr. Louis B. Lynn (803) 714-7290.

W912HN-10-D-0053, Better Built Construction Services, 1240 Central Avenue, Middletown, OH 45044, POC: Damon Halsey (513) 727-8637
United States
Added: Jun 12, 2009 10:41 am Modified: Jun 22, 2009 2:49 pmTrack Changes
Multiple Award Task Order Contract (MATOC), for Design/Build or Construction type task orders. Task orders issued under this MATOC can require performance of work anywhere within the South Atlantic Division Area of Operations (North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi). Projects will typically be located on military installations within North Carolina, South Carolina, and Georgia; however, performance of work is not solely restricted to such. A project requiring use of civil funds or otherwise termed as civil construction is not authorized under this contract.

This acquisition is being offered on a HUBZone set aside competitive basis. The life of the basic contract is for a base period of three (3) years with two (2) one-year option periods or $200M; whichever occurs first. The pool size (number of contracts that may be awarded) shall not exceed six (6) contractors. The pool of contractors which successfully receive an award will share the total contract capacity of $200M. The government will use a two-phase design build evaluation process. The order limitation of task orders, to include the seed task order that will be used for evaluation purposes and award of the initial contracts, shall range between $1M and $20M. Task orders issued under this MATOC will be firm-fixed price. The initial seed task order may include options.

Description of work: Task orders placed under this MATOC may be either of a design-build nature or that of a design-bid-build (construction only) nature. Work may include but is not limited to the design and construction of administrative facilities, recreational facilities, educational facilities, religious facilities, medical facilities, and training facilities to include ranges. Work is not solely restricted to new construction but may also include repairs, renovations, alterations, or additions to existing facilities, such as those already cited, or infrastructure such as roads, parking, drainage systems and utility systems. Generally, however, task orders anticipated to be issued under this MATOC will be primarily for new, vertical construction and associated site work.

Evaluation Criteria: As this is a solicitation for a Multiple Award Task Order Contract (MATOC), a seed task order will be provided to those Offerors invited to participate in Phase II for purposes of evaluation and in rendering the best value decision. Only that Offeror whose proposal provides the best overall value of those Offerors selected to be in the MATOC pool, if any, will also be awarded the seed task order. All other successful Offerors, if any, will be awarded a contract with a minimum guarantee of $2,500. The evaluation factors and their relative importance for both Phase I and Phase II of this solicitation and evaluation process are as follows:

Phase I: Factor 1-1 CORPORATE RELEVANT SPECIALIZED EXPERIENCE, Factor 1-2 PAST PERFORMANCE, and Factor 1-3 TECHNICAL APPROACH NARRATIVE. Factor 1-1 is more important than factors 1-2 and 1-3. Factor 1-2: is equal in importance to Factor 1-3. Factors 1-1, 1-2, 1-3, together are equal importance to Factor 2-1.

Phase II: Factor 2-1, BUILDING FUNCTION AND AESTHETICS. Factor 2-2, QUALITY OF BUILDING SYSTEMS. Factor 2-3, SITE DESIGN. Factor 2-4, SUSTAINABLE DESIGN. Factor 2-5 PROPOSED CONTRACT DURATION AND SUMMARY SCHEDULE. Factor 2-6 SMALL AND SMALL DISADVANTAGED BUSINESS UTILIZATION. Factors 2-1 and 2-2: Equal in importance to all Phase 1 factors. Factor 2-1: A most important factor equal in importance to Factor 2-2. Factor 2-2: A most important factor equal in importance to Factor 2-1. Factor 2-3: Slightly less important than Factors 2-1 and 2-2. Factor 2-4: Slightly less important than Factor 2-3. FACTOR 2-5: Slightly less important than Factor 2-4. FACTOR 2-6: least important.

Price: All non-cost factors, when combined, are significantly more important than Price.
Award will be made to those Offerors whose technical submittal and price proposal contain the combination of the criteria requested that offers the best value to the Government. Proposals shall include sufficient detailed information to allow complete evaluation. The Government reserves the right to reject any and all offers. Offerors are reminded that while the Government may elect to consider data obtained from other sources, the burden of proof of acceptability rests with the Offeror.

This solicitation will be issued in electronic format only. Paper copies of this solicitation will not be available. Other methods of requesting a package will not be honored. Phase I for this solicitation is anticipated to be available on or about 30 June 2009. Note: The Response Date referenced under General Information does not refer to the PROPOSAL DUE DATE. Information on the PROPOSAL DUE DATE will be stated in the solicitation. Offerors must register in the Central Contractor Registration (CCR) at After completing CCR, contractors and their subcontractors must register at in order to download RFP documents. Contractors with existing FedTeds logins should be able to use their existing logins. In order to locate this solicitation, Contractors can go to FedBizOpps and search for the solicitation number at Contractors can register to be put on a plan holders list that others can access through the FedBizOpps site. It is the Offerors responsibility to check the Internet address provided as necessary for any posted changes to this solicitation and all amendments.

Friday, August 13, 2010

Loan Modifications Top 5 Myths

Loan modification is quickly becoming a household word, commonly used and understood by almost everyone. And yet there are many misconceptions and myths about home loan modification that are still commonly held.

Home loan modifications have always been around, but most people don’t even know they existed until recently.

Here are Top 5 Myths that we consistently hear from our clients and various seminars:

Myth #1: You have to be late on your payments to get a loan modification.

You do not have to be defaulted on your mortgage in order to be granted a modification. You need to prove to your lender that you are in imminent danger of defaulting because of your financial situation.

Myth #2: Lenders would rather foreclose than modify your loan.

Not true! Lenders lose a lot of money whenever a house is foreclosed, especially in today’s wilting housing market. They have so many foreclosures on their hands right now that they definitely would rather adjust your loan terms and see successful payments. In fact, this is probably one of the best times to get a loan modification, especially after the passing of the President’s Making Home Affordable plan.

Myth #3: Loan modification will hurt my credit.

It really depends on the type of loan modification you get, but in general modification will not hurt your credit. Furthermore, you aren’t required to have good credit in order to obtain a loan modification. Just a steady job and proof of economic hardship should be sufficient.

Myth #4: You can easily get a loan modification by contacting your lender.

While you’re free to try it, going it alone is not advisable. Use a financial counselor to be your advocate. Choose a counseling company with legal representatives who will work for you and know the laws better than you do. Letting them work it out with your lender will get you the best solution.

Subscribe here or email info to for Loan Modification services.  Submit contact information so that a house counselor can determine if a Loan Modification is right for you. And there is no obligation whatsoever when you submit the contact form.

Myth #5: If you already received a foreclosure notice, it’s too late.

Again, foreclosure is not a profitable option for lenders. They send these foreclosure notices out not because they want to foreclose on your house, but because they want to impress on you the importance of paying up. While waiting until you’re extremely delinquent limits your options for modification, it certainly doesn’t preclude modification.

Stopping the foreclosure process on your home can be done with loan modification. There are a lot of myths about home loan modification swirling around homeowners right now, but knowing the facts can help you to stop foreclosure and keep your home.

Feel free to peruse the Forum for Enterprise Blog for more information and/or to request for a no obligation consultation and see if a Loan Modification is right for you.

Original article from Lindsey Emery.

Thursday, August 5, 2010

Grants Available - Become an Admissions Counselor

This is the beginning of a job/self-employment/entrepreneurial craze.   What is this opportunity?   This is an opportunity to become an admissions counselor and sale online educational classes in fundraising certification.  The admissions counselor certification is absolutely without cost provided that you obtain a grant to get enrolled to take the online training class.

The training course takes about 40 hours total and requires 1 week of intense study.  The course training will cover the techniques to selling our online educational course, the guidelines for maintaining your sales license upon completion of the course, the steps to setting up your website, how to generate leads using online marketing techniques and how to setup the phone campaign.  All of this will serve as the what, who, how, when and where that is needed to establish your online educational sales force. 

Grants are provided by Forum for Enterprises in association with FAO.  You have to  pass the test in order to activate your certification.  Currently, we are seeking over 100 AC's all over the nation.  Subscribe to our blog, complete the course, pass the test, setup your website and you can begin a new career as an AC.  Sale 3 clients, complete the AM course, pass the test and become an AM.  Projected salaries for AC's is approximately, $1,000 per week, AM salaries are projected at $10,000 per month.

Wednesday, July 28, 2010

Funds that are available for your business.

Currently, new financial products have hit the market as the world turns to rebound out of the recession.  Financing is now available for new and existing business for projects below $5M as well as financing > $5M.  Under $5M criteria is simple. 
  • Project must be for profit.   
  • Project must be for business acquisition, FF & E or development of commercial real estate.
  • Guarantor must have a history of cash flow. 
  • 3 years tax returns for existing business.
  • 5 years experience in the industry for new business.
  • Must have a prepared financial package with projections.
  • Minimum Loan requirement of $50K.
  • Must create 1 employee per $50K.
  • Credit must have legitimate explanations for negative hits.
  • High risk industries are not eligible.
Provided that you can meet this criteria for your project please don't hesitate to contact me at your earliest convenience.  Closing can take place in as little as 2 weeks to 30 days.  All projects that are >  $5M  have the same criteria and can close in 45 to 90 days. Any one that needs assistance or that is interested in applying submit project to .

Friday, July 2, 2010

Loan Modifications

Help for homeowners can come in a variety of ways.  The loan modification program exist for homeowners anywhere in the nation whether or not you are behind on your mortgage.  One of the greatest challenges facing homeowners will be establishing permanent cash flow after the loan has been modified in the event that the homeowner has lost permanent employment. 

Even though this remains a challenge the opportunities may lie in government contracting, entrepreneurship and enrolling in a certification program that guarantees placement or clients. The newest greatest emerging marketplace may very well be online because it has the greatest upside of all opportunities that I can think of on the market today.  One such reason is because online businesses and jobs will allow owners and employees to work from home.  This could translate into higher efficiency and cost reductions for all that are involved. 

Many who decide to become business owners may choose business opportunities that will result in short development life cycles that result in quick profits, but limited risk.  These types of businesses will be long on support and hand holding and heavy on participation in the bottom line.  Even so increases in emerging markets, profits and cash flow will be the result.  This will allow many who are disenfranchised to become involved in the stimulus bailout at multiple levels.  Exactly how these cash infusions into business will play out will be determined by the choices made by the business owner.  Some of the answers will be with your support channels and some will require one's own research and investigation.

Others that choose to become employed in work at home employment will find that they two will have ready markets which will buy online services and products.  The stay at home opportunities will begin to support some online purchase and sale opportunities.  Support provided by operatives that work from home will be critical and will increase as online activity increases. 

These are just a few examples of how many in this situation can successfully transition into a cash flow position that can become prominent.  The economy is evolving so many opportunities will come about over time.  I wouldn't wait to get things moving in the right direction.

Sunday, June 27, 2010

Master Acting and Music Classes at the Alliance Theatre

Helena-Joyce Wright is the Artistic Director for Works In Progress Productions, LLC.  WIPP is an International Arts Consultancy & Producing Entity, specializing in; professional development, education and training for the performing artist, developing new scripts for theatre; film and providing talent management.  Actors and Actresses seeking to sharpen and broaden their skills should seek out the Acting and Music Master Classes at the Alliance Theatre.  More information is available at:

Friday, June 4, 2010

New Market Tax Credits Presentation from the White House

GAAP for the Low-Income Housing and New Markets Tax Credits, 2005 Edition I am providing this link to those who are interested in learning more about this gap financing tool.  Please post questions and I am sure that I will be able to assist anyone that is interested and acheiving their goals relative to this product.  Share this link or share my blog with all interested parties.

Friday, May 28, 2010

New Market Tax Credits

New Market Tax Credits can be used to fund start up businesses and for the expansion of existing businesses.  In a nutshell, this applies to commercial projects.  The business must allocate 60% of their service to low income populations or be located in a neighborhood where 20% of the population is low income.  This can be done anywhere in the USA.  The key is to start up a business that will have sufficient cash flow to provide returns quickly so that it will be attractive to institutional investors. 

I am currently working on some projects that have the criteria that I believe will attract institutional investors.  One of the things that makes the cash flow businesses attractive is that qualified investors are interested in putting cash into these businesses, 1031 exchange investors are interested in cash flow type businesses and therefore, I believe institutional investors are looking at a project or start up that has sufficient cash opportunities at the on set. 

There are some things about these opportunities that are unique.  One of the things that I see as unique is that the company's stock is purchased and a loan is made which is collateralized by the stock which is very good for a start up operation.  As a result of institutional involvement, a transaction done in this way has little chance of securities violations occuring when capitalizing a project via a stock sale.  Nobody will say that is what is happening, but a stock sale is what is ultimately happening in this transaction.  

The organization steers clear of any securities violations and they have a solid investor in place which could provide a feeling of comfort for investors that don't know too much about how you are going to run your organization because it simply lacks financial performance history which is normal for a start up organization. 

The deal structure is something that will certainly attract money using the NMTC vehicle.  This vehicle is utilized for both profit and non profit organizations looking to capitalize their companies. The non profit organization has some additional compliance areas, but it is all worth while at the end of the day. 

I will be providing more information on the NMTC as time goes on and transactions pile up, but I believe we will all begin to see the benefits of the NMTC as new business pop up and begin to employ the unemployed in the marketplace so that production is stable. 

Tuesday, January 5, 2010


Capitalization needs will arise if you are starting a new business, expanding an existing business, buying a business or for day to day operations if your revenue is slumping.  Many vehicles are available for business capitalization.  Mainstreamers of the past went to banks, venture capitalist or the market place.  Based on the current days economic climate and the new restrictions placed on banks by the FDIC (newly implemented reserve requirements for banks lending on secured transactions) then many would wager your chances to be slim to none. 

I happen to be a guy that always started my business without a dime.  I capitalized my business with the market that I serviced.  This is difficult at best, but I survived and learned a lot of valuable lessons in the process.  One of the things I learned as a student in BOOM (Business Ownership Operations Management) is to make sure that if you are going into business that you are properly capitalized.  Now, I broke that rule a lot, but that is typically the golden rule.  Though exceptions exist and questions arise, such as; how much money do I need?  How will I allocate my funds and who will supply my funds?  Many of us are not born with a silver spoon in our mouthes and we may not have superior credit to obtain a bank loan, so how do you capitalize your business?

One of the first things that you should do if you are opening a business is to research who has money, how are they spending or loaning or investing their money, how much money does the lender or investor have and what is the criteria for this group to give you access.  Once I heard a guy blurt out in a conversation over coffee, "Man if I had a $100,000 I would open a liquor store".  I couldn't resist the question, "How do you know that a $100,000 will be amount that you will need to open a liquor store?". I didn't receive an answer.  Well you really have to do your homework to determine what you will need.  I am willing to bet the farm that you will need resources beyond money. 

Do your homework and your criteria for successfully starting and operating your business should change dramatically.  Doing your homework means that you should plan and if you are not willing to do this yourself then develop a team of like minded individuals and either pay them or offer them ownership in the company.  Upon identifying a team which should be diverse, then begin your research.  Break the research down into sections or categories and give each team member an assignment and a time limit to bring back information on their category or section.  Compile the information and formulate an executive summary, a budget, projections, supportive marketing and sales strategy based on feasibility studies or demographic buying habits and competition.  This compilation should allow you to plan based on your strengths and weaknesses. 

So whether you are seeking a grant, venture capital, a loan, private equity or market based capitalization you will have to begin by researching you needs based on what you desire to accomplish.  Either your goal will be adjusted or you will be able to formulate a dead on plan based on the affirmation or statement that you make concerning your business interest.  Of course positive thinking and affirmations are a big part of successful businesses, but you better have a hedge and an edge because I am sure the graveyard at the secretary of the states office is lined with many business interest that began with positive affirmations, but where not researched and planned.  One thing is for sure, once you have a plan in place you can take your business anywhere you want it to go and capitalize it with any one of the vehicles available on the open marketplace.