The Jonathan Mills Patrick Show

Hi, folks. The SBA has just announced an increase to the maximum EIDL loan amount. In fact, they quadrupled the maximum amount!

But, there are some requirements you may have to meet depending on the loan amount you ask for.

Timestamps

2:10 The increase amount for the program

2:45 A reminder about the program

3:37 UCC filing requirements

4:37 Real estate requirements

5:21 Personal guarantee requirements

6:36 How the grant component works

7:40 Links to the application process and a checklist

Links mentioned in the episode

Low-income verification map - https://sbaeidl.policymap.com/newmaps#/

Application process and checklist - https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl#section-header-5

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Some people point to a lack of financing as the #1 reason startups fail. That can hurt, but it isn't the top reason for failure. 

A lack of product market fit is the thing that will keep your startup from launching.

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In today's episode I am sharing the differences, and a few similarities, between private equity and venture capital.

A lot of people lump all investors in one bucket. This creates a problem because, as a founder, you aren't going after the right investors if you don't understand the stages that these groups focus on.

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I been selling courses through Udemy for years now. Because of my involvement the company recently asked if I would be interested in investing in their Initial Public Offering (IPO) through a Direct Share Program.

In this episode I cover what that is and what the benefit is to such a program.

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Since investors are focused on investing in proven teams, it is critical that you hire top talent for your startup.

Here are four recommendations for recruiting the best candidates.

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This week I had the opportunity to participate, virtually, in Hubspot's annual inbound marketing conference, Inbound 2021. Originally I was going to be busy with my company's annual conference. But, that went virtual as well and had the agenda slimmed down. So, I found my calendar having more availability than I thought it originally would. The conference was really worth the money, a premier pass to all the sessions was only $150, so I would higher encourage you to think about attending next year. Especially if inbound marketing is part of, it should be part of, your marketing strategy.

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There are lots of resources about what goes into a good investor pitch deck 📊.

Your business can have, does have, its own credit score and characteristics. Building up business credit is a lot like building personal credit. But there is one place that builds business credit that many people forget about.

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Getting a large business loan usually requires submitting a business plan. Although the documents have differences, a business plan isn't much different than a pitch deck in that they both tell stories.

Here are the pieces that mattered when I was helping a company get a $4.3M business loan.

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I was honored to get the chance to sit down with a young professional, Chandra, and discuss how we should go about making the decision of working for a startup or a larger company.

Here are some things you should think about.

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Today I'm answering a listener's question - how does a pitch deck's design vary if you are raising a seed round versus a later round of funding.

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• Why startup valuations matter
• Why valuing a pre-revenue startup is hard
• Ways to value a pre-revenue startup
• Alternatives to setting a valuation

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If you aren't familiar with the product management profession that is ok. What matters is that you take the time to learn the processes and skills they have. Because there are no better skills for growing a startup.

Some of the resources I mention include:

I have six criteria that make up about 80% of the decisions factors I use when thinking about investing in a startup.

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I've been a part of multiple online communities. Some have worked great, while others...not so much.

The ones that I have enjoyed have allowed me to build deeper relationships with people by creating a space for on-demand discussions, idea sharing, etc.

Right now I'm not part of an online community.

So, I decided to start my own.

Head to ibicommunity.slack.com to join me.

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One of my listeners, Sachin, asked me to share a bit more about Entrepreneurs-in-Residence (EIRs). 

EIR roles can take a variety of shapes but the overall purpose is the same. Allow an entrepreneur to work on growing their business while providing them a "day job" helping other entrepreneurs.

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Being first in a market has its advantages. But, first mover advantage can also turn into first mover disadvantage.

I've personally experienced this and it sank my first startup.

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The reality is that investors don't put money into ideas. No matter how good they are. They invest in business models that show promise. That requires execution. Which in turn leads to milestones. Which leads to investments.

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Whey you work with businesses to help them attract capital you typically get paid via a success fee. Which means you only get paid if the deal closes. 

But who pays that fee? There are two possible options.

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There are two types of capital that startups can leverage - debt and equity. 

Believe it or not, startups can get startup loans. But they can be expensive and are approved based on untypical factors when compared to normal business loans.

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If you are going to be raising money for your startup then you will want to understand what defines an investor as an accredited investor. That is because raising money from an accredited investor can open the door to all kinds of exemptions when it comes to filing and reporting requirements with the SEC.

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Investors need a lot of deals to look at in order to find the few that they are willing to back. We call this deal flow.

There are a variety of ways that investors find this deal flow. While I talk briefly about those, there are two main ways that investors use to meet interesting startups. 

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Raising even a seed round can be expensive. Some estimates put the cost at between $40k-$60k. 

But who pays that cost? The investor or the startup raising the money?

The truth is, opinions vary.

However, there are a few ways to cover that cost if it is passed on to your startup.

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I've talked a lot about how to meet investors and even what investors look for in a startup.

As a startup founder, you should be looking for more than just a check from an investor. You want to work with an investor that offers more value than that.

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I was recently interviewed for an upcoming article on the skills entrepreneurs need to be successful.

Instead of sharing multiple skills I actually shared a trait that I think is critical.

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I spent 20+ years of my career in the banking industry. The last five of those was as a commercial loan officer where I did over $500M in deals. 

Since that time I have continued helping companies raise capital including brokering loans through my lending network.

One way to make either some side hustle money or even grow a business is to be a commercial loan broker. 

In this episode I share some details about how you might become one.

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Most of the experts agree that we will see a rise in inflation over the next year or more. 

So, as an investor, I started to think about how to "inflation-proof" my portfolio.

Here is what I learned.

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I've been studying passive income for some time now. In fact, I have multiple streams of income. Some of which are now pretty passive.

In this episode I share why the idea of a stock portfolio full of dividend paying stocks may not be the best passive income source.

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Yesterday Coinbase (one of the earliest cryptocurrency trading platforms) went public via a direct listing. 

I bought into the IPO at the opening price of $381. But now I am not so sure I should have. And that isn't because the stock price was down on day one.

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Today I want to share with you my review of the latest social media app taking over the internet, Clubhouse. I've got a few suggestions for improving the experience as well as my overall take of the platform.

I also wanted to remind you both why you should consider creating a Board of Advisors and what type of professionals you might add.

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Business is full of risks. There are some you can avoid and others that you just have to plan for. The key is planning for them...

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This type of line of credit will make your real estate investing, buy and flip or buy and hold, efforts much easier. 

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I am a veracious reader. These are the six books I recommend you read as an entrepreneur.

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Entrepreneurs need to be on a continuous learning curve. Fortunately there are a lot of resources out there that can help with that process.

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Entrepreneurship takes a lot of skill to be successful. More than likely you have one or two skills where you excel. But running a business means that you will have to learn a lot of new skills. Here are some of the key skills I believe an entrepreneur should have at least a basic understanding of.

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There is something intoxicating about imagining that you create the latest and greatest innovation that the world benefits from and that makes you a lot of money.

Yet, not every entrepreneur is that creative. In fact, people make a living or even build empires off of traditional business models.

Going full time in your business is an exciting thing to think about.

The more time you can devote to focusing on your business the better your chances for success.

But making the leap too soon can be a recipe for financial disaster.

Entrepreneurship is tough. So, you have to be ready to face adversity. In fact, you have to embrace the reality that you might fail.

The good news is that failure often times leads to success.

Some believe that the only way to be an entrepreneur is to work, full-time, for yourself.

I disagree.

In fact, I see that as a recipe for financial ruin in many instances.

Some entrepreneurs like to fly by the seat of their pants. While others are more calculated. 

Whichever type entrepreneur you are, the fact is that you should anticipate some level of risk.

They key is mitigating that risk.

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I get the opportunity to connect with new and/or young entrepreneurs on a regular basis. I love having those opportunities because they can often teach you as much as you teach them.

Recently, I connected with two young entrepreneurs in Nepal. The lessons I took away from that call were mind shifting. So, I thought to share them.

Starting a business is a dream for a lot of people. The challenge is that many don't know where to start.

In today's episode I talk about three questions you should ask yourself before starting a business. These questions are designed to make sure that your assumptions and expectations are realistic.