Vince Leusner, B2B CFO®
Providing B2B CFO® services in Cherry Hill, NJ and surrounding areas

If you’re reading this, then chances are that you’re no stranger to investing your
money wisely. You know from firsthand experience that every smart investment
requires careful research, consideration and forethought to be successful. Making
an investment of any sort without asking the right questions and seeking out the
guidance of experts more often than not results in subpar returns or, worse, a
significant loss.

Angel investing is no different than stocks and bonds in this respect. Before you
get started, it’s important to know a few things first. In an effort to provide you with
the expert guidance and information you need to ensure that your angel investment
group experience is profitable, rewarding and fulfilling, we’ve compiled the top 3
things you need to know before investing with an angel group.

1. Risk vs. Reward – As with any investment, angel groups offer members the
possibility of significant rewards in terms of both financial ROI as well as personal
fulfillment. Of course, where there’s the possibility of great reward, there’s also the
reality of significant risk.

Not every business is successful and not every angel investment results in a return.
That’s why it’s important to choose an angel investment group with a thorough and
robust due diligence program in place to help its members vet every opportunity and
verify the likelihood of each entrepreneur’s success. A strong due diligence program,
coupled with the fact that your investment risk is mitigated by the presence of capital
from multiple members, helps make angel investment safer than many alternatives.

2. Low Pressure. No Rush. – Take your time. This isn’t the stock market. There’s
no broker calling you every day with high-pressure “buy-now-or-miss-out” deal
opportunities. In fact, the best angel investments are made after careful and deliberate
consideration. Don’t be in a hurry to invest. Before you jump in with both feet, attend
several meetings to get a feel for the group’s approach, gauge the frequency and
quality of the deal flow and, most importantly, learn from your fellow members before
investing your hard-earned capital.

3. Satisfaction & Fulfillment – It’s every investor’s goal to realize a return on each
and every deal they help finance but, for angel investors, the rewards are much greater.

Ask any angel investor out there and they’ll tell you: there’s no greater satisfaction than
seeing an entity that you helped nurture achieve strong and lasting success.
Angel investment groups offer you the opportunity to make lasting contributions to
the greater business community. By helping young businesses elevate their innovative ideas to the level of a thriving enterprise, you are taking part in a valuable and fulfilling process of entrepreneurial mentoring, guidance and development.

If you’d like further info contact Vince Leusner at VLeusner@b2bcfo.com

On Friday, October 19, 2012, the Rotary Club of Haddonfield will hold a dinner to celebrate the 300th anniversary of Haddonfield, NJ at Tavistock Country Club to which all are invited.

The evening will include:

• Cocktails from 6pm

• Surf or turf dinner from 7pm

• Musical entertainment during dinner by Class Act Duo

• A preview of plans for Haddonfield’s Tricentennial Celebration in 2013

• Drawing of the Rotary Reverse Raffle with a Grand Prize of $10,000 (if all 450 tickets are sold).

For a description of the Reverse Raffle, click on “Rotary Reverse Raffle” in left column.

To download the Dinner Invitation and Order Form for Dinner and/or Raffle tickets, go to:

http://www.haddonfieldrotary.org/DinneronOct19.cfm

Please Purchase Combo or Individual Tickets Below:

——————————————————————————–

COMBO TICKETS*

The more the merrier! Join with family, friends, neighbors, business associates, club members. And save!
4 Dinner + 4 Raffle $ 520 • SAVE $20
6 Dinner + 6 Raffle $ 750 • SAVE $60
8 Dinner + 8 Raffle $ 960 • SAVE $120
10 Dinner + 10 Raffle $ 1,200 • SAVE $150

The success of today’s complex global economy depends largely on the innovative
ideas and initiatives of entrepreneurs worldwide. Of course, in order to be successful,
even the best business ideas require funding.

Most startups depend on seed financing from friends and family to get off the
ground. Eventually, the goal of those startups is to secure the venture capital
investments necessary to bring their business ideas to the next level.

The problem is: it’s usually difficult to raise more than a few hundred thousand
dollars from friends and family and most traditional venture capital funds don’t
consider investments under $1-2 million. Without an alternative funding source,
countless new businesses won’t make it. Angel capital fills the funding gap and
provides the vital resources that innovative entrepreneurial business ventures need
to succeed.

Of course, from an investor’s standpoint, you need to know that your investment
is being put to the best possible use. That means finding and researching as many
potential deals as possible in order to find the opportunity that’s right for you. That’s
where an angel investment network like Keiretsu Forum can help.

We’ve compiled the top five reasons to join an angel investment group:

1. ROI – Receiving a return on your investment is the goal of every investor. Of
course, with every investment comes risk. Angel investment groups offer you the
ability to mitigate risk and channel your investment into deal opportunities with the
greatest likelihood of success, thereby helping you optimize investment returns.

2. Deal Flow – By channeling and sharing deal flow with investor members, angel
investment groups offer investors an unparalleled access to a greater number of
deal opportunities and the ability to pool funds for larger investments.

3. Due Diligence – Performing due diligence research on every single investment
opportunity can be time-consuming, but without this critical research you have
no way of gauging the likelihood of success for your investment. By sharing due
diligence responsibilities across their membership, angel investor groups offer greater access to an increased number of carefully vetted opportunities.

4. Community Contributions – Angel investment groups help you channel
your wealth to businesses still in the early stages of development, ensuring that
your contribution has the greatest possible impact on the growth and success of
the entrepreneurial efforts you are supporting. By offering startups the financing they
need to grow their businesses, you are helping to strengthen the entrepreneurial
community with your investment and taking part in the greater community.

5. Education and Involvement – Members of angel investment groups have
access to a dynamic network of knowledge resources, allowing them to stay current
with sophisticated new business and investing developments. What’s more, these
networks provide investors with the opportunity to mentor another generation of
entrepreneurs, making use of their experience and expertise on a less than full-time
basis. In addition to financing, angel investors are uniquely positioned to provide
valuable management advice and guidance to companies in need of senior leadership.

If you would like more information about this topic contact Vince Leusner at VLeusner@b2bcfo.com

Phoenix, Aug. 22, 2012 (GLOBE NEWSWIRE) – B2B CFO, the nation’s largest provider of CFO services, has been named to the prestigious Inc. 5000 list of fastest growing companies in America for the third consecutive year.

The annual ranking by Inc. Magazine judges US-based and privately held companies by their revenue growth. This year’s list was ranked on the percentage in revenue increase from 2008-2011. B2B CFO’s 111% growth over the three year time period earned the position on Inc’s 2012 list.

In a personalized letter congratulating B2B CFO, Eric Schurenberg, the new editor-in-chief of Inc. Magazine’s wrote “To be honored this year is a particularly notable achievement. To rank among the 2012 Inc. 5000, your company had to thrive through three of the toughest years this economy has seen in living memory. Your success in such times is eloquent testimony to your team’s creativity, resilience, and tenacity. Congratulations to you and your team. You should be proud of all B2B CFO has achieved to date.”

In addition to attending the Inc. 500/5000 conference as an honoree, B2B CFO will also once again sponsor the upcoming conference. B2B CFO will also hold a “Meet and Greet” reception for business owners and CFOs in conjunction with the Inc. 500/5000 conference on Wednesday, October 3rd. For location, time and to RSVP please visit www.b2bcfo.com/inc5000

“It’s a great honor to make Inc.’s 5000 list for the third consecutive year,” said Jerry L. Mills, founder and CEO of B2B CFO. “We look forward to participating in the conference this October as both honoree and exhibitor and celebrating all the entrepreneurs who build businesses that move America’s economy.”

B2B CFO has grown steadily and consistently despite the tough economic conditions. In August 2012, B2B CFO has grown to 213 Partners across 45 states, boasting more than 5,000 years of cumulative experience. Each Partner is a seasoned financial executive who serves as 1099 CFO to growing businesses on as-needed basis. Together, B2B CFO Partners work with more than 600 businesses in the nation with combined annual sales of more than $3 Billion.

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About Inc. Magazine

Founded in 1979 and acquired in 2005 by Mansueto Ventures LLC, Inc. is the only major business magazine dedicated exclusively to owners and managers of growing private companies that delivers real solutions for today’s innovative company builders. Inc. provides hands-on tools and market-tested strategies for managing people, finances, sales, marketing, and technology.

Inc. Magazine’s 31st annual Inc. 5000 ranking of the fastest-growing private companies in the country is available online at www.inc.com/inc5000/list.

ABOUT B2B CFO

Headquartered in Phoenix, Ariz., the firm was founded in 1987 by Jerry L. Mills who pioneered the “1099 CFO” concept. Today, B2B CFO is the nation’s largest CFO services firm serving entrepreneurial, growth and mid-market companies. The firm’s partners have an average of 25 years of experience and each individual partner is a senior level executive with a broad range of expertise. Please visit online at www.B2BCFO.com to find out more about the company and B2B CFO careers.

Posted on Mon, Apr. 4, 2011

Angel investors may indeed be all around us, but I’m beginning to wonder if these wealthy investors have enough time to belong to all of the groups that want them as members.

Keiretsu Forum, an international angel network based in San Francisco.

Howard Lubert and financial adviser Vincent Leusner have brought the 21st chapter of the Keiretsu Forum to Philadelphia. Lubert, who is the brother of prominent local investor Ira Lubert, has been an angel investor with other groups over the years, but said he was impressed by how Keiretsu Forum’s process works.

Pennsylvania Angel Network, there are about 250 individual members in the eight angel groups in the Philadelphia area. Two of them have formed within the last 18 months.

Compliance Assurance Corp., a Pittsburgh-based financial-software company, raised $1.25 million last month from several groups, including West Philadelphia’s Robin Hood Ventures, an angel group that led the round. Delaware Crossing Investor Group, of Doylestown, and Mid-Atlantic Angel Group, of South Philadelphia, also participated.

Randy Williams, who founded the group in San Francisco in 2000, said members had invested more than $285 million in 265 companies worldwide.

Investors’ Circle Philadelphia, which now has about a dozen members, according to Tom Balderston, a Radnor investor. While Keiretsu will examine all sorts of industry sectors, including real estate, Investors’ Circle is focused on companies addressing social and environmental issues.

ad hoc exercise by individual investors who wanted to encourage and profit from new growth companies by committing several thousand dollars as well as their experience and contacts.

Entrepreneurs aren’t charged to submit an application or present at a deal-screening meeting, if they’re invited. But those selected to present at a member meeting must pay an administrative fee of $1,500.

When I told Randy Williams, who’d traveled to Philadelphia for the launch, that the fee sounded steep, he defended the charges as necessary to provide a high level of expertise and service to members as well as presenting companies. “You get what you pay for,” Williams said.

Open Angel Forum (again from the West Coast) sprang up in response to the fees being charged by groups to put investors and entrepreneurs together.

Gabriel Weinberg and IT consultant Antonio Tedesco held the first fee-free Open Angel Forum Philadelphia on March 16. Out of 80 applications, they picked six tech companies to demonstrate their products. They hope to hold another forum in September.

Haddonfield has a excellent event on New Year’s Eve called first night.  It is sponsored by the Rotary Club of Haddonfield – check out this link for more information.

http://www.firstnighthaddonfield.org/

One of the acts there will be an Irish Group called the Screaming Orphans – here is their website:

http://www.thescreamingorphans.com/

I’ve recently written an article related to factoring.  I haven’t had a client that used this form of borrowing for some time, but have recently been intimately involved with a client using factoring – and have been very impressed.  I hope you find it interesting.

Why It’s Time to Bring Factoring Into Your Financing Equation

By Tom Klausen and Vincent Leusner

In your search for commercial financing in the midst of the ongoing credit crunch, here’s something to factor into your consideration: It may be time to look at factoring in a whole new light.

It’s unfortunate that, for whatever reason, factoring has gotten a bad rap. A lot of the myths about factoring simply aren’t true—for example, that factoring is too expensive to be considered a viable commercial financing option for the average small business. In truth, factoring can make the difference between success or failure for companies operating without adequate working capital—at a cost that’s probably a lot less than most business owners think.

How Factoring Works

With factoring, companies sell or borrow against their outstanding commercial accounts receivable. The cost is a fee called a discount—typically between 2-5% of the invoice or the amount borrowed. By factoring, companies immediately benefit from improved cash flow: Instead of waiting somewhere between 30 and 90 days or longer to receive payment, they will receive approximately 80 percent of the receivable in the form of an advance when the receivable is presented to the factor. 

In addition, the factor performs credit checks on customers and analyzes credit reports to uncover risks and help manage appropriate credit limits. Most factors will also provide a follow-up service to assist with keeping the debtors paying more promptly.

One thing to note is that factors need to be more insightful about the inner workings of their client’s business than traditional lenders are. Since they are lending against their client’s outstanding receivables, it’s their job to know all about the client’s customers, terms, backup and the billing process itself. Factors need to possess an in-depth understanding of their clients’ industries and the business nuances between their clients and the clients’ customers.

A Factoring Success Story

An industrial service business in Philadelphia recently entered into a factoring arrangement with a well-established factor because it was in need of short-term working capital assistance and decided on a factoring arrangement instead of a traditional line of credit

Since the business’ customers are of high credit quality, factoring was a logical credit facility for them to turn to. The business has been factoring invoices for several months now and is extremely pleased with the arrangement.

The owner especially likes the fact that he can use the factoring company’s online system to determine how much money he can borrow through factoring at any time, 24/7. This is a big help when it comes to daily cash flow and working capital planning.

Factors for Success

Here are a few areas you should concentrate on in order to increase your chances for factoring success:

• Financial statements, management reports and forecasts: It is important to generate accurate and timely financial statements, as well as for the owner to know exactly where the business is financially at all times—and where it’s headed. By accurately tracking factoring fees, the business is better able to build in and earn back those fees. Value will be gained via an increase in gross sales, discounts for paying vendors early and overhead reduction. Factoring will look expensive unless it is properly measured against the value it brings.

• The factoring contract: Be sure that you understand all details in any contract you sign with a factor, as well as the fees you will be charged. Beware of factors who issue a term sheet without doing proper due diligence. What may appear to be a low factoring rate at the outset could end up being very expensive when things like lockbox, minimum usage, credit checking, and wire transfer fees are included.

• Monitoring of factoring facility and working capital: Make sure that a senior financial person on your staff has sufficient time to monitor usage of the factoring facility and working capital-oriented items. By borrowing only what you absolutely need, you will be able to minimize your factoring expense. It’s also important to monitor the aging reports and become involved if any trade or payment disputes arise.

• Maximum efficiency: Increasing efficiencies in your backroom operation can have significant positive implications on your bottom line. By understanding all the services that your factor performs, you will be able to better utilize your staff and your own time. Understanding the reports and implementing controls and procedures will minimize errors and increase efficiency.

• Open communication: It’s important to have a clear channel of communication with your factor. You might be surprised at the flexibility your factor (and others) will provide when you are open and honest with them. It’s also important that you communicate directly with the factor if you are aware of any issues or problems with your invoicing or customers. A good factor can deal with most issues if aware of them—but like most lenders, factors don’t like to be surprised.

Since a factor will become an integral part of your business team, it’s important to select your partner carefully. Professional experience and adequate capitalization are especially crucial. Don’t be fooled by Internet claims of very low rates and a “24-hour application process.” Good factors are as choosy about their clients as you should be about your financial partner. When everyone performs their proper due diligence, you are more likely to build a foundation for a positive relationship for many years to come.

Tom Klausen is the Senior Vice President of First Vancouver Finance (FVF), which has offices in Vancouver, BC and Toronto, ON. FVF provides creative financing solutions to small and medium-sized businesses across Canada. Tom has worked in the alternative lending industry for more than 25 years and consults with businesses struggling to obtain traditional financing. You can reach him at TKlausen@FVF.ca or visit http://www.FVF.ca.

Vincent Leusner of B2B CFO® assists companies that are facing complex financial and strategic issues and are in need of senior financial talent.  Every company, regardless of size, needs a Chief Financial Officer (CFO). The best CFOs keep an eye on the whole company, not just the bottom line. As a B2B CFO^® partner, his job is supporting a client’s entire organization, including sales, marketing, production, operations, staffing and other relationships, both internal and external. Reach him at vleusner@b2bcfo.com.