I appologize for taking so long to post. I have been pretty busy and am just now catching up.
Last night, the Waynesboro City Council approved my request for rezoning on the DeWitt Crossing Project.
I am now working on getting Adin Circle, from the Silver Ridge Development accepted into the state road system. This is unlike anything I have ever done before. There are way too many details. Of course, I won't go into how I got screwed over by a guy who was supposed to pay for this work. I will leave that until after all the dust settles.
Back to blog stuff:
I have found that using Microsoft Project is really helpful in these large projects. Just being able to map out the dependent tasks is worth the price tag. I have built a pretty hefty plan and timetable for the DeWitt Crossing development. Of course, you can take it too far, but having a plan and measuring it make life alot easier. For instance, when will you need financing? Or when will you be able to sell a lot? All these answers come from the time table.
I promise to keep the updates coming more frequently.
Tuesday, November 29, 2005
Thursday, November 10, 2005
Proud of my Rotary Club
Today, I made a pitch to my Rotary club to raise funds for relief in Pakistan from the earthquake. This has been a terrible disaster that has already killed thousands and may kill even more as winter sets in.
Rotary is a great organization where clubs work together to aid those less fortunate. In our 101st year, we have seen quite a bit of natural disasters. Rotary has stepped up to the plate. Spefically, so has my club.
I am very proud of them. Our foundation board approved sending $5,000 to the affected areas directly. Today, in a matter of 20 minutes, I raised more than $6,000 additional from our club members.
This isn't the first time I have seen these fine men and women dig deep to help. After Hurricane Katrina, they quickly passed the hat and raised a good bit of money that went to the Salvation Army.
After the Tsunami, our club raised better than $25,000 in a matter of a week.
Bad things happen, but how we deal with them defines who we are. I am proud to say that I am a past-President of the Waynesboro Noon Rotary Club in District 7570.
Rotary is a great organization where clubs work together to aid those less fortunate. In our 101st year, we have seen quite a bit of natural disasters. Rotary has stepped up to the plate. Spefically, so has my club.
I am very proud of them. Our foundation board approved sending $5,000 to the affected areas directly. Today, in a matter of 20 minutes, I raised more than $6,000 additional from our club members.
This isn't the first time I have seen these fine men and women dig deep to help. After Hurricane Katrina, they quickly passed the hat and raised a good bit of money that went to the Salvation Army.
After the Tsunami, our club raised better than $25,000 in a matter of a week.
Bad things happen, but how we deal with them defines who we are. I am proud to say that I am a past-President of the Waynesboro Noon Rotary Club in District 7570.
Thursday, November 03, 2005
Funding Your Business with Angel Investors and Banks
Since I am a professional entreprenuer (self-annointed), access to capital has always been important. Here are a few ways that I have gained access to capital over the years.
Angel Investors
In the early days of RentQuick, I knew I would run into a problem where I could have a nice big order, but not enough projectors to fill it. So I needed to have a "war chest" to buy equipment on short notice. Of course, with a new business, banks were out of the question. Funding a business on credit card debt is stupid. The obvious choice was to find an angel investor to loan me money.
Luckily, I had some contacts who could help. I started by putting together a nice little proposal that showed income statements and balance sheets. I was able to cut a deal with two angels who would be paid interest annually. The loans amounted to $75,000.
Why debt? Debt is far superior to equity at that level simply because I would be able to retain 100% ownership and pay them off over time. Interest is deductable, unlike equity deals. Finally, I would not need to worry about having a partner in the business.
Banks
Later, when the business was more mature, I was able to start working with banks. The normal method of working with banks is to walk in to the branch with your hat in your hand and wait until a loan officer would meet with you. Usually, you would need to fill out lots of forms and wait until some faceless loan committee tells you if you can have some money.
I found that building a relationship with your bank, not just your loan officer, was helpful. Get to know the higher-ups in the bank. Let them know what you are up to. Let them see you in action. Talk to them weekly so they know about your during good times and bad. Don't just call them when you need the money. Banks take risks in lending to people. You can help them mitigate that unknown by letting them know you better.
On my earliest real estate deal, I needed alot of money to pull it all together. So what I did was pledge my savings (stocks, bonds, and CD's) as collateral. This helped reduce the risk to the bank and give them the assurances that I was committed to the project.
Another thing I have done with the banks is make sure they are paid back quickly. Paying the banks back quickly reduces the monthly interest expense and reduces the overall risk of the project. Sometimes, this upsets the banker, who only makes money when you pay interest.
Angel Investors
In the early days of RentQuick, I knew I would run into a problem where I could have a nice big order, but not enough projectors to fill it. So I needed to have a "war chest" to buy equipment on short notice. Of course, with a new business, banks were out of the question. Funding a business on credit card debt is stupid. The obvious choice was to find an angel investor to loan me money.
Luckily, I had some contacts who could help. I started by putting together a nice little proposal that showed income statements and balance sheets. I was able to cut a deal with two angels who would be paid interest annually. The loans amounted to $75,000.
Why debt? Debt is far superior to equity at that level simply because I would be able to retain 100% ownership and pay them off over time. Interest is deductable, unlike equity deals. Finally, I would not need to worry about having a partner in the business.
Banks
Later, when the business was more mature, I was able to start working with banks. The normal method of working with banks is to walk in to the branch with your hat in your hand and wait until a loan officer would meet with you. Usually, you would need to fill out lots of forms and wait until some faceless loan committee tells you if you can have some money.
I found that building a relationship with your bank, not just your loan officer, was helpful. Get to know the higher-ups in the bank. Let them know what you are up to. Let them see you in action. Talk to them weekly so they know about your during good times and bad. Don't just call them when you need the money. Banks take risks in lending to people. You can help them mitigate that unknown by letting them know you better.
On my earliest real estate deal, I needed alot of money to pull it all together. So what I did was pledge my savings (stocks, bonds, and CD's) as collateral. This helped reduce the risk to the bank and give them the assurances that I was committed to the project.
Another thing I have done with the banks is make sure they are paid back quickly. Paying the banks back quickly reduces the monthly interest expense and reduces the overall risk of the project. Sometimes, this upsets the banker, who only makes money when you pay interest.
Money Matters and Banks
Since I am a professional entreprenuer (self-annointed), access to capital has always been important. Here are a few ways that I have gained access to capital over the years.
Angel Investors
In the early days of RentQuick, I knew I would run into a problem where I could have a nice big order, but not enough projectors to fill it. So I needed to have a "war chest" to buy equipment on short notice. Of course, with a new business, banks were out of the question. Funding a business on credit card debt is stupid. The obvious choice was to find an angel investor to loan me money.
Luckily, I had some contacts who could help. I started by putting together a nice little proposal that showed income statements and balance sheets. I was able to cut a deal with two angels who would be paid interest annually. The loans amounted to $75,000.
Why debt? Debt is far superior to equity at that level simply because I would be able to retain 100% ownership and pay them off over time. Interest is deductable, unlike equity deals. Finally, I would not need to worry about having a partner in the business.
Banks
Later, when the business was more mature, I was able to start working with banks. The normal method of working with banks is to walk in to the branch with your hat in your hand and wait until a loan officer would meet with you. Usually, you would need to fill out lots of forms and wait until some faceless loan committee tells you if you can have some money.
I found that building a relationship with your bank, not just your loan officer, was helpful. Get to know the higher-ups in the bank. Let them know what you are up to. Let them see you in action. Talk to them weekly so they know about your during good times and bad. Don't just call them when you need the money. Banks take risks in lending to people. You can help them mitigate that unknown by letting them know you better.
On my earliest real estate deal, I needed alot of money to pull it all together. So what I did was pledge my savings (stocks, bonds, and CD's) as collateral. This helped reduce the risk to the bank and give them the assurances that I was committed to the project.
Another thing I have done with the banks is make sure they are paid back quickly. In all of my land projects, I paid 100% of the net proceeds against the loan. This way, they were paid back faster and I was the last to benefit from the project. Of course, banks don't always want this. They only make money when they are paid interest. However, I prefer to keep the debt as low as possible to reduce the overall risk of the project. Debt means monthly or quarterly payments. If you aren't careful, too much will cripple you.
Angel Investors
In the early days of RentQuick, I knew I would run into a problem where I could have a nice big order, but not enough projectors to fill it. So I needed to have a "war chest" to buy equipment on short notice. Of course, with a new business, banks were out of the question. Funding a business on credit card debt is stupid. The obvious choice was to find an angel investor to loan me money.
Luckily, I had some contacts who could help. I started by putting together a nice little proposal that showed income statements and balance sheets. I was able to cut a deal with two angels who would be paid interest annually. The loans amounted to $75,000.
Why debt? Debt is far superior to equity at that level simply because I would be able to retain 100% ownership and pay them off over time. Interest is deductable, unlike equity deals. Finally, I would not need to worry about having a partner in the business.
Banks
Later, when the business was more mature, I was able to start working with banks. The normal method of working with banks is to walk in to the branch with your hat in your hand and wait until a loan officer would meet with you. Usually, you would need to fill out lots of forms and wait until some faceless loan committee tells you if you can have some money.
I found that building a relationship with your bank, not just your loan officer, was helpful. Get to know the higher-ups in the bank. Let them know what you are up to. Let them see you in action. Talk to them weekly so they know about your during good times and bad. Don't just call them when you need the money. Banks take risks in lending to people. You can help them mitigate that unknown by letting them know you better.
On my earliest real estate deal, I needed alot of money to pull it all together. So what I did was pledge my savings (stocks, bonds, and CD's) as collateral. This helped reduce the risk to the bank and give them the assurances that I was committed to the project.
Another thing I have done with the banks is make sure they are paid back quickly. In all of my land projects, I paid 100% of the net proceeds against the loan. This way, they were paid back faster and I was the last to benefit from the project. Of course, banks don't always want this. They only make money when they are paid interest. However, I prefer to keep the debt as low as possible to reduce the overall risk of the project. Debt means monthly or quarterly payments. If you aren't careful, too much will cripple you.
Tuesday, November 01, 2005
Interviewing for Fun and Profit!
Sometimes interviewing people is fun. They are usually quite nervous and you are usually hoping you aren't wasting your time. Interviewing people for positions is a necessary function of any business owner, however, it can be vexing sometimes.
I have had one at least three occasions, the interview questioning to go something like this:
Q: Tell me one of your faults or something you would change about yourself.
A: Well, sometimes I get into trouble because I care too much. I really try too hard to make the customer happy and to be the best employee possible. My co-workers sometimes hold this against me because they don't care about the company like I do.
At this point, I know I am dealing with a special someone who read a book or an article on interview questions. The people make life fun! So here is where I pull out my super-secret question that is sure to stump them:
Q: If you were a co-worker of yourself, and you, the co-worker, were to interview you, the other co-worker, for a possible promotion to be your new boss. (Not your boss, but your boss.) What questions would you not like to hear from yourself about you being in charge of you and as a second part to this question: how would you answer yourself in those questions in order not to completely answer those questions... that you asked... of yourself?
To this, the candidate would either freak out or worse, try to answer the question.
I also like the questions that ask people to think a little bit. I have tried this before after learning how Microsoft hires only the smartest people. (We know this because the employees of Microsoft in their PR department told us how smart they were. )
Here is my intelligence tester:
Q: Explain to me why manhole covers are round.
To this I have had a wide range of answers. Here are the best:
A: Manhole covers are round because they need to be round to cover the round hole.
A: They are round because that is what shape the holes are. (Same as above)
A: Manhole covers are round because the government requires them to be round.
A: Manhole covers are round?
Of course, the answers are pretty logical:
A: They are round because the round cover will not fall into a round hole. In addition, round covers require less material (steel) than square ones. Round covers fit regardless of how you turn them. A worker's body fits best into a round hole. The pipe system that they go into is also round thereby being easier to connect than a square hole.
Drop me a line or message this post with your favorite interview questions. I should note, I only ask the silly questions of jerks and arrogant SOBs.
I have had one at least three occasions, the interview questioning to go something like this:
Q: Tell me one of your faults or something you would change about yourself.
A: Well, sometimes I get into trouble because I care too much. I really try too hard to make the customer happy and to be the best employee possible. My co-workers sometimes hold this against me because they don't care about the company like I do.
At this point, I know I am dealing with a special someone who read a book or an article on interview questions. The people make life fun! So here is where I pull out my super-secret question that is sure to stump them:
Q: If you were a co-worker of yourself, and you, the co-worker, were to interview you, the other co-worker, for a possible promotion to be your new boss. (Not your boss, but your boss.) What questions would you not like to hear from yourself about you being in charge of you and as a second part to this question: how would you answer yourself in those questions in order not to completely answer those questions... that you asked... of yourself?
To this, the candidate would either freak out or worse, try to answer the question.
I also like the questions that ask people to think a little bit. I have tried this before after learning how Microsoft hires only the smartest people. (We know this because the employees of Microsoft in their PR department told us how smart they were. )
Here is my intelligence tester:
Q: Explain to me why manhole covers are round.
To this I have had a wide range of answers. Here are the best:
A: Manhole covers are round because they need to be round to cover the round hole.
A: They are round because that is what shape the holes are. (Same as above)
A: Manhole covers are round because the government requires them to be round.
A: Manhole covers are round?
Of course, the answers are pretty logical:
A: They are round because the round cover will not fall into a round hole. In addition, round covers require less material (steel) than square ones. Round covers fit regardless of how you turn them. A worker's body fits best into a round hole. The pipe system that they go into is also round thereby being easier to connect than a square hole.
Drop me a line or message this post with your favorite interview questions. I should note, I only ask the silly questions of jerks and arrogant SOBs.
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