Finding the Funding

§ November 1st, 2026 § Filed under Uncategorized § No Comments

You’ve done all the pre-work on this business. This is where some Next Act and Accidental Entrepreneurs diverge. If you are a Next Act Entrepreneur who has owned a successful business, you may have a number of advantages such as ongoing revenue from the existing business, savings, connections, and access to partners and investors who bring not only funding but customers. 

I try to discourage anyone from starting unless they have enough savings or other income to cover basic living expenses. Very few businesses can support you for the first six months (or longer). I learned this the hard way. When I started my own business, the only thing that saved me in those early months was turning my previous employer into my first customer. 

Think of Funding as a Ladder

If you have fewer resources, start with the least risky source of money and move up only when you need to.

1. Let customers fund your business. If you are starting a consulting, training, or other low-cost service business, sell something first. Do the work, get paid, and reinvest as much as you can. You may start smaller and grow more slowly than you imagined, but starting without debt is a very good place to be. 

2. Use savings carefully. If you need more to launch, you may have to use personal savings. Decide in advance how much you can safely invest without draining everything. Be especially careful with credit cards. A zero-interest offer can look wonderful until the promotional period ends before the business can pay it off. Plus high utilization rates and personally guaranteed debt can hurt your ability to qualify for other financing. 

3. Ask about a personal loan. A new business has no track record, so in some cases a personal loan may be more realistic. Talk with your bank or credit union. Be clear that the money will be used for a business and make sure the loan terms permit that use. While you’re there, ask what they would require for a future business-loan application. You may hear, ‘We don’t fund startups,’ or you may leave with a useful checklist. 

4. Ask friends and family, but with paperwork. If they are willing to help, put the agreement in writing including the repayment terms. I don’t care if you have been best friends since elementary school or it’s your grandmother. It’s much better to have a written agreement that you both have signed than to avoid family events until you pay them back.  

5. Learn how SBA-guaranteed loans work. The SBA generally does not make business loans directly. Instead, it guarantees a portion of loans made by participating lenders, which can make it easier for some startups to qualify. SBA Microloans are made through nonprofit intermediary lenders. 

6. Be very cautious about putting major personal assets at risk. Home-equity loans and retirement funds may be available in some circumstances, but losing your business is painful enough without also losing your home or retirement security. Get professional financial and tax advice before using either one. 

A Word About Grants

If your plan depends on finding a grant to start the business, rethink the plan. Grants for ordinary startups are exceptionally rare. Federal programs generally focus on specialized areas such as research, technology, manufacturing, exporting, or specific public-policy goals. Private grants and competitions do exist, but treat them as bonuses, not as your funding strategy.

Final Thoughts

Traditional startup thinking:  “How much money can I raise?”

Next Act thinking:  “What’s the smallest amount I can risk to find out whether this business works?”

Later This Month

Rather than pack too much information in one newsletter, I’ll send a second one this month, in addition to the mid-month tip. We’ll look at business plans: when you need one, what it should include, how long it should be, and whether using AI is a good tool for creating it. We’ll also cover what lenders look for in deciding to fund your business.  

Know Your Numbers Before You Open

§ October 1st, 2026 § Filed under Uncategorized § No Comments

You are about to start an “official” business. This month, we dig into the numbers. 

In my 15 years of advising small businesses, I have found that the most frequent mistakes that new and prospective business owners make is underestimating how much it will cost to start up and operate the business from month to month. 

Start With a Simple Rule

The secret to a successful business is simple. Bring in more revenue than you spend. Easy, right? The problem frequently is that new business owners underestimate the startup and ongoing costs. I have had very few who have set their prices too high. There are definitely a large number who overestimate how many sales they will make, however. 

Startup costs are those that you have to spend before you open the doors or sell your first item or service. Ongoing expenses keep the business running after you open. 

It is difficult for a business to turn a profit in the first year. No matter what industry you are in, you will likely need some money (working capital) beyond the startup costs to get you through the first six months to a year. 

Of course, all of these costs vary depending on the business. A home-based business may avoid rent and build-out costs, while some industries require licenses, certifications, equipment, or specialized training.

Use AI to Build a Starting Estimate

AI can help you create a first-pass list of likely startup and operating expenses. Give it specific details such as your location, business size, number of employees, square footage, and anything unusual about your operation. Then ask it to separate ongoing costs into fixed and variable expenses.

·       Fixed expenses: Costs that stay relatively consistent from month to month, such as rent, software subscriptions, and some insurance.

·       Variable expenses: Costs that rise or fall with sales, such as inventory, credit-card fees, commissions, packaging, and shipping.

Here’s a sample prompt for a coffee shop:

“What startup and ongoing expenses are usual for a coffee shop in Northwest San Antonio? Separate ongoing expenses into fixed and variable costs. What are typical sales for a 2,400-square-foot shop? What additional revenue streams could increase sales?”

Replace the coffee-shop details with your own. You may also want to compare responses from more than one AI tool. Treat the results as a starting point, then verify important numbers with vendors, landlords, industry sources, and professionals.

Watch the Timing of Cash Flow

Not every expense arrives monthly. Insurance, licenses, taxes, subscriptions, and other bills may be due quarterly or annually. A business can look profitable on paper and still run short of cash when a large payment comes due.

For example, if you pay a six month premium on your insurance, you need to make sure you will have the cash needed. Budgeting ahead of that payment will make you less likely to have to purchase items on credit or fall behind on monthly expenses. 

Remember: Estimates Are Still Estimates

Understand that these are all estimates. Estimates = Guesses. Research makes the numbers more realistic, but prices, sales, and timing will change. But remember that they are still estimates with validity. Expect them to change over the course of the business.. As you start to open, prices may be significantly higher than you expected. As a result, it’s always a good idea to build a contingency cushion. 

Coming Next Month

Now that you have an idea of how much you need to start and operate the business, where will the money come from? Next month, we’ll talk about sources of startup funding. 

Becoming an Official Business

§ September 1st, 2026 § Filed under Uncategorized § No Comments

Now that you’ve identified ways that your skills can turn into a business and you’ve taken steps to future-proof your business so that AI is an advantage, does it feel like time to officially start?

Make Sure the Idea is Feasible

Before you spend money, be clear about the problem you solve and who you solve it for. Use this simple formula: “I help [specific customer] solve [specific problem] by providing [product or service].” Define your ideal customer as specifically as possible. Consider age, income, location, education, interests, or other traits that affect buying decisions. The clearer your target, the easier it is to reach the right people. 

Know Your Competition – and Your Difference 

Study your competitors. Is the market crowded? What will make customers choose you? San Antonio has thousands of Mexican food restaurants, yet many thrive because they are known for something specific: great tortillas, memorable salsa, excellent service, or a strong neighborhood following. Define what makes your business different before you invest heavily. 

Choose the Right Planning Tool 

You may not need a full business plan unless you are seeking a loan or investment. For many small businesses, a one-page plan or Lean Canvas is enough to get started. At minimum, answer three questions:  What are you selling, and who will buy it?  How will customers find and choose you?  What will it cost to start and operate, and how much can you realistically earn? Also decide how much you can invest and whether you have enough personal income or savings to support yourself until the business becomes profitable. 

If you have determined there is a market for what you are selling, then move to making it official. 

Choose a Strong Business Name 

A good name should be: 

• Memorable and easy to say 
• Easy to spell and search 
• Relevant to your customers 
• Flexible enough to grow with the business 
• Available online and for registration 
• Free of serious trademark conflicts

Try this test: Tell several potential customers the name without explaining the business. Ask, “What would you expect this company to sell?” Their answers may reveal whether the name is clear.  Their answers can be surprisingly educational.

Think Beyond the Logo 

A branding professional can help you shape your name, message, positioning, and visual identity – not just design a logo. Because business owners are often too close to their own ideas, outside perspective can prevent expensive mistakes. 

Choose a Business Structure 

Depending on your situation, you might operate as a sole proprietorship with an assumed name (DBA) or form an LLC, S corporation, or C corporation. Your choice can affect taxes, liability, and legal requirements, so professional advice from an attorney or CPA may be worthwhile. 

Helpful resources: SBA guidance on business structure and the State of Texas “Start a Business” guide.

Remember: Forming an LLC or corporation does not replace business insurance. Insurance is what protects business property and helps cover many operating risks. 

Follow the Steps in the Right Order 

1. Choose your business structure 2. Register the business 3. Get an EIN from IRS.gov 4. Obtain required licenses, permits, and tax accounts 5. Open a business bank account 6. Purchase appropriate insurance 7. Begin operating 

You can apply for an EIN directly through IRS.gov at no charge. Be cautious of websites that charge separately for an EIN unless the fee is clearly part of a broader formation service. 

Texas Veteran-Owned Businesses 

Texas veterans may qualify for certain business-formation benefits, including a waiver of the filing fee. The process may require veteran verification and supporting documentation. Check current requirements with the Texas Veterans Commission, Texas Comptroller, and Texas Secretary of State before filing. 

Next month, we’ll dig into all the numbers. 

If you want one-on-one guidance, please connect with me at Launch SA. Click on Request Assistance and specify you want to meet with me.