Monday, November 24, 2008

College Athletics Recruiting: “Getting Out Of The Gates”

College Athletics Recruiting: “Getting Out Of The Gates”


Parents, prospects and coaches often ask me to identify the ideal time a prospect should launch his or her college quest. Although each prospect initiates their recruiting plans at different times, I would say a good date to “get out of the gates” is January 1 of the junior year. But before you hit the pavement running, let’s run through a simple checklist of pre-launch tasks that will assist you in organizing for an important life decision.

Organization

Creating a user friendly organizing system for the college recruiting process will serve as a helpful tool, especially when information begins to pile in from different college coaches. Not only will this system assist you in keeping track of the steady stream of paper and e-traffic, it will act as a great resource for future contacts and important coach-prospect communications. Trust me, coaches will be requesting information (transcripts, high school profile, standardize test results, tax information for financial pre-reads etc.) at about the same time, and the family who develops an efficient access system to this information will navigate the process with more success and with greater confidence.

Create a filing system that provides you with easy access to pertinent information. I suggest storing the following information in your individual college program folders:

· Updated contact information for coach, assistant coach, financial aid representative etc. Include name, address, e-mail, phone number etc.).
· Materials the coach has sent (brochures, articles, etc.).
· Team competition schedule. You should add important events to your calendar and stay updated on the team’s accomplishments, especially before any correspondence with the coach.
· College catalogs, applications and/or other marketing materials.
· Updated notes from your phone conversations and meetings with representatives from the school.
· A list of pertinent questions or follow-up items you need to address for the program. Set aside regular time to review outstanding tasks you have for each college program and list these items on your calendar.
· Copies of all the information you have provided to the school – your application, the data sheet you may have to fill out for the coach, the last resume you provided etc. By keeping these copies handy, you can easily reproduce them if they are misplaced.

The aim in this stage of college recruiting is to develop a well organized and efficient system that you understand and can work effectively. “Lift off” is the most demanding part of any worthy project and requires the most energy. Prepare well here by developing solid plans and executing them with vigor and you will be well positioned and confident moving forward. Beware of the flip side of the coin!

Executing the Plan

OK. Your plans are complete, well constructed and clearly spelled out in a language everyone understands. Your calendar is updated and you are proud that you have listed everything from the next round of SAT’s to the fall homecoming dance! Now it’s time to take the plunge.

You can have the best organized and most highly detailed approach to the college quest, but it won’t amount to a hill of beans if you lack confidence and the desire and the ability to “execute the plan.” If your strategy is to wait by the phone for the coach to call, in most cases, it’s going to be a long wait. Top prospects will get their fair share of attention, but the majority of athletes will increase their chances in getting on the radar screen of the college coaches by taking a proactive stance and initiating communication with college coaches.

College coaches are strictly bound by a myriad of NCAA contact and evaluation rules that limit them in initiating contact with prospective student-athletes and their families. What few families realize is that although college coaches may have their “hands tied” to some degree, prospects may initiate contact with the college coaches, early on and with very few exceptions.

Effective communication between the family and the college coach can be critical to the level of support the prospect will receive in the recruiting process. It can make or break a coach’s decision to offer an athletic scholarship or provide that extra “push” in the admission process. If your mission is clear, communication becomes the vehicle to move with definite purpose in your chosen direction. On the other hand, ill-prepared communication can cause confusion and misdirection. Your ship moves, but with a weak rudder.

The college recruiting process is both exciting and potentially overwhelming. It requires a disciplined and yet flexible approach, especially when timelines get tight and situations become challenging. Developing and executing recruiting plans are crucial to success and no different from preparing for a championship game! Communication with coaches is vital and a proactive effort will only get you on the radar screen faster and more effectively. That being said, the family that approaches the college recruiting process with an organized and proactive effort, will have the best chances in building mutually strong and respectful relationships with college coaches and position themselves best as they navigate the college search.

Tom Kovic is a former Division I college coach and the current director of Victory Collegiate Consulting, where he provides individual advisement for families on college recruiting. Tom is the author of “Reaching for Excellence” An educational guide for college athletics recruiting. For further information visit: www.victoryrecruiting.com.

MIGS Program/CGA Activity and Call to Action

MIGS Program/CGA Activity and Call to Action



The Men's Intercollegiate Gymnastics Support Program (MIGS Program) in conjunction with the College Gymnastics Association (CGA) has been working hard to preserve, protect and expand collegiate gymnastics opportunities for our young gymnasts. It is our goal to have at least one men's varsity college gymnastics team in every State. With all of our junior gymnasts in mind, we work toward that end.

The overriding questions regarding this effort are: "What can you realistically do?" and "What have you done?"

In answer to the first question, here's what we can do and what needs to be done:

1. Call the question Nationally
2. Educate the Gymnastics Community about the situation
3. Build positive relationships with College/University AD’s and Administrators
4. Marketing
5. Fundraising
6. Investing the Endowment to ensure an annual growth rate of 5%
7. Negotiate with colleges/universities to bring programs on line
8. Revenue Distribution (athlete scholarships, training of coaches, and creating self-sufficient team programs)
9. Build coalitions with other organizations and entities
10. And more and more and more...

With regard to the second Question;

The MIGS Program has engaged in an effort to inform the gymnastics community of the need to expand opportunities for young male gymnasts through the retention and expansion of collegiate programs. Bob Wuornos & Mike Burns have set out on a mission to present information at Regional Congresses throughout the country. Bob has attended Region 1 (Santa Clara, CA), Region 2 (Portland, OR), Region 4 (Iowa City, IA), Region 6 (Boston, MA) and GAT (Gymnastics Association of Texas in Austin, TX). Mike attended Region 5 (Indianapolis, IN) as well as making a presentation at the ECAC Convention in late September in Albany, NY. The purpose of these efforts was to inform and generate support for this effort.

Bob's effort have included a significant amount of travel to large meets around the country to make presentations and encourage the gymnastics community to get involved in this effort. He has also engaged in a dialog with the College Sports Council (www.collegesportscouncil.org) and has been appointed to the Board of Directors of this organization. Furthermore, his efforts have created an Endowment Fund that had accumulated $50,000+ by the end of 2007.

Distributions to date include:

· $2500 to the University of Minnesota "Save Gopher Sports" fund with was instrumental in keeping the University of Minnesota as a viable varsity college gymnastics program

· $15,000 to the College Sports Council to help this organization continue the battle for equity in sports

· $500 donation to the College Gymnastics Foundation for the Nissen-Emery Award Endowment

Near term goals include channeling resources to some viable college club teams that are coached but not recognized as varsity programs. The intent is to help these coaches elevate their respective programs to varsity status.

The MIGS Program/CGA is also actively pursuing the re-establishment of programs at some major universities with real potential (sorry, names of institution cannot be revealed at this time).

These are all major efforts requiring money. It is the intent of the MIGS Program and the CGA to ensure that at least 80% of funds donated go into and stay in the endowment fund. For operations costs, however, the MIGS Program sells t-shirts and host a National Invitational and National Open Optional (L-10 rules) in March at the University of Minnesota. All meet information is posted on the opening page of the MIGS Program website (www.migsp.org).

FUND RAISER

The MIGS Program is currently engaged in a fund raising effort through t-shirt sales. For this purpose, "J O Dynamo" was created. J O Dynamo is a Junior gymnast aged 16-18. He has been training for ten years in hopes of competing in college. J O asks that you help him reach his goal. He asks that you and every gymnast, judge, coach, and parent buy a "College Gymnastics...tuned in" t-shirt for this purpose (www.migsp.org/shop/). His goal is to sell 12,000 t-shirts by Thanksgiving. he asks that every coach of every team have his/her gymnasts buy a t-shirt and each parent buy a t-shirt. So, please consider this request and act on it promptly.

Please order these t-shirt by November 25. Orders received by November 25 will be processed in time for the Holidays. Wear the t-shirts to practice, meets (for warm-ups) and especially, find a college meet to attend and wear it there in support of the men's collegiate gymnastics program.

Thanks for taking the time to read all of this. The fact of the matter is, we need your active support of this effort. Please "tune in". The future of men's college gymnastics depends on YOU. You can make a difference.


Bob Wuornos
MIGS Program
612-270-9507
www.migsp.org


Mike Burns
CGA
President
612-419-7922

Friday, October 31, 2008

College Athletics Recruiting 101 By Tom Kovic

The college experience is, in many cases, the most important four years in our children’s lives, as it will shape their future personal and professional direction. That being said, securing admission to a college or university that best match students’ desires, strengths, and aspirations is essential. Today more than ever, high school athletes are strategically marketing themselves to college coaches not just for scholarships, but in hopes of gaining entry into their top college choices in a highly competitive arena. And it’s working. By realizing the potential leverage families of prospective student-athletes have in the college admissions process, especially as it pertains to non-scholarship schools and for student-athletes who may not qualify for athletics aid, should develop increased confidence and hope as families begin the college quest. Then, knowing how to close on this opportunity is, without question, essential.

Student-athletes bring a unique quality to the table when it comes to college admissions. They offer a special talent that can improve the institution’s visibility and raise the level of popularity among future attendees. College officials understand this and in many cases, offer strong support to student-athletes both in admissions and financial aid.

The college recruiting process can be a daunting effort if it is not well planned and executed with organization and enthusiasm from start to finish. As a coach of a Division I team for 19 years, I would say that roughly 75% of my former student-athletes gained entry to the university because, in part, they were viewed as “special interest.” I’ve learned, first hand, what works and what does not. What follows are insights on how to maximize the student athlete’s best chances in gaining admission to their top college choice.

Gather Information
Gathering information is critical to the successful organization of any worthy project. Building a college recruiting information base can begin as early as the ninth grade as a family hobby and increasingly grow into a highly organized, disciplined project by the end of the junior year.

Begin by gathering information on the student-athletes colleges of choice including team and coach profiles, statistics, ranking, and academic offerings. Continue to update and maintain individual e-files on these favorite college programs.

Build your Team
Parents, prospect, high school/club coach, college advisor, guidance counselor and a personal mentor should all be part of your team in the college recruiting process. Each team player will have a specific role to play in order to ensure the prospect’s best chances. Advance goals should be set with clarity and purpose that compliment the organizational structure of the recruiting process.



Team members will need to oversee the following:
· Financial aid/scholarships
· Admissions
· Development of target calendar
· Research (schools, majors, athletic programs, rankings)
· Video and profile development
· Planned communication and contact log
· Campus visits
· Scheduling standardized testing
· Organizing communication “role play”
· Researching college profiles and determining potential compatibility

By selecting the team approach, the responsibilities are equally distributed to the area experts. All assignments should be clearly spelled out and communication between the team members should be frequent and consistent. This will help streamline the college quest and assist in avoiding any confusion that could contribute to unclear thinking, misdirection and potentially poor choices.

Develop and Execute your Plan
A knowledgeable consumer will have a clear edge in the pursuit of the attainment of any worthy product. I believe that the same holds true in the college search and I encourage families to make every effort and commitment to organize pertinent information regarding this process and to execute well-designed plans.

Develop timelines that will target general events in the beginning of the college search (making unofficial visits, maintaining your data base, and attending competitions) and continue through more specific events (compiling a video and player profile, communicating with coaches, and making official visits, etc.) as time progresses. This will increase the chances of “hitting targets” throughout the process.

Communication
Effective communication between the family and the college coach can be critical to the decision made by the coach. It can make or break a coach’s decision to offer an athletic scholarship or to provide that extra “push” in the admission process.

If your mission is clear, communication becomes the vehicle to move with definite purpose in your chosen direction. On the other hand, ill-prepared communication can cause confusion and misdirection. Your ship moves, but with a weak rudder.

Communication should be initiated early on by the family and by the prospect. Although college coaches have clear restrictions as to when and where they may contact prospects, a prospect may call or e-mail a coach early, with few exceptions.

An initial letter of introduction accompanied by a profile is a great way to begin, but it is very important to follow this up by e-mail and by phone. The prospect that practices persistence with respect, will grab the college coach’s attention.

Provide the college coach with everything he or she requests (profile, DVD, transcripts etc.) in a timely manner. This will make the evaluation of athletic talent and academic credentials an easy task for the coach, and they will develop a level of appreciation that could be the “tie breaker” when it comes down to support for the prospect. Remember: cultivating a strong and genuine relationship with coaches, based on honesty and sincerity, is critical to building trusting relationships.

Player Profile
As one can imagine, college coaches receive hundreds of personal profiles annually from prospects, and they will begin to prioritize their recruiting file based on the initial cover letter and profile. These documents will usually be placed in one of three files of importance:

“A” file: blue chip, top-tier recruits
“B” file: second-tier recruits; still have excellent opportunity
“C” file: little chance of impact; admissions risks

It is important to streamline your portfolio into a comprehensive and efficient format that stands above the rest. Keep your profile simple, neat and professionally formatted. Make the job of initial evaluation easy for the college coach by highlighting pertinent information including:
Personal and school contact information
Academic standing, awards, and test results
Physical characteristics
Athletic clubs and level, showcase tournaments, and elite camps
Athletic Statistics, Records, and Awards
Mission Statement
Coach’s Comments

Maintain a copy of your generic player profile to send to the majority of schools and then personalize 5-10 profiles to be sent to your top schools with additional information that will help you gain admission and/or scholarship attention, such as family legacy or a connection to the coach indirectly through your club coach, for example. Commit to making a strong impression with a professional approach in all written correspondence. Remember, your goal is to move your profile to the “A” contact folder.

Videos
A video is another means of developing a first impression and trust me when I say that first impressions are remembered. Typically, a coach will roughly evaluate a recruit within the first 2 minutes of the video. They need to! Along with the hundreds of profiles, they are being bombarded with hundreds of videos.

Make your video succinct, professional, and yet attention grabbing. Follow these guidelines:

· Introduction: Tell coaches who you are, where you are from and what your specific goals are. Show confidence and project a mature image (20 seconds).
· Video footage: The coach will have a good indication of your talent within the first 2 minutes of your video. Highlight outstanding moments and technical mastery of your talent, which will grab the coach’s attention.
· Show 5-7 minutes of your finest game clips, along with training highlights.
· Finish your video with 15 seconds of direct contact information for you, your club and/or high school coach.

Keep in mind that as individual collegiate sports differ, it is important to communicate with the college coaches about their requirements for DVD footage.

The profile and video will initially define you in the eyes of the college coach. These tools should be crisp, clean and to the point. Give the coach every reason to filter your information into the active recruit file.

Be sure to continue with timely communications to the coaches. Inform them of new awards, accolades, records, or landmark achievements. Don’t call after every big competition; keep your communications succinct and focused. Remember: cultivating a strong and genuine relationship with coaches, based on honesty and sincerity is critical to building trusting relationships.

The college recruiting process is both exciting and potentially overwhelming. It requires a disciplined and yet flexible approach, especially when timelines get tight and situations become challenging. Developing and executing plans are crucial to the success, no different from preparation for a championship competition! Communication (both offering and receiving) is vital, and the working participants should build a mutually strong and respectful relationship in order to maximize results.

The bottom line is that through a systematic college recruiting process, you and your child can identify, work toward, and hopefully secure admission to the college of his or her choice – one that is an ideal academic and athletic “fit”. It will be well worth your efforts knowing that you were part of a team that guided your child as he or she embarks an important and meaningful process that will have great effect on their future careers and personal growth.

Tom Kovic is a former Division I college coach and the current director of Victory Collegiate Consulting, where he provides individual advisement for families on college recruiting. Tom is the author of “Reaching for Excellence, an educational guide for college athletics recruiting. For further information visit: www.victoryrecruiting.com.

Friday, October 10, 2008

PureSport Protein Sports Drink

Bob Bowman

PureSport
October 9, 2008
Puresport is a new sports and recovery drink developed by some of swimming's top coaches and swimmers. I think anything that invests this much in our sport is at least worth looking into.

Visit Floswimming For More Videos

Saturday, May 24, 2008

WHAT YOU NEED TO KNOW BEFORE YOU BORROW MONEY

Written by Ken Wood, Published in Technique, May 2008.

WHAT YOU NEED TO KNOW BEFORE YOU BORROW MONEY

THE FIVE C’s OF LENDING AND LEASING:

We all know that money and our ability to manage it is what keeps our facilities running smoothly. Usually how we handle our cash flow needs can be the primary factor in whether the business runs smoothly and in some cases whether we, as owners, get paid. In the course of arranging financing for businesses all over the country, including some Children’s Activity Centers (CACs), I have found that many gym owners have not prepared themselves and their businesses for borrowing money when the time comes to expand, consolidate debtor make purchases. The process of borrowing money for financing a building, equipment, or refinancing existing debt is similar in that all can be time consuming for the CAC owner, and even more so when the owner is busy with teaching classes or coaching competitive programs.
In an attempt to help CAC’s be better prepared when it comes time to borrow money, I have developed a five-step checklist for the borrower to refer to before the search for funding. All five are equally important and must be addressed ahead of time. Deficiency in any one category can sink the borrower’s ability to get financing. By addressing these five specific areas early, the CAC owner can make the financing process go much more smoothly and greatly enhance their ability to get funding.

CREDIT

Credit is probably the single most problematic area that I have seen. While all of us know we have a credit score and that it is important, I have found that many don’t realize just how important it is, or how to protect and enhance it. First, there are two different types of credit ratings you need to be concerned with, your personal credit and your business credit. Personal credit is what we are most familiar with. Unfortunately, it is widely misunderstood by the very consumers who depend on it. Even when you are applying for a business loan or lease, your personal credit is just as important as your business credit. While I have to stress to you that I am not a licensed credit counselor, there are a few pointers I can share with you. First, in many cases the rate charged to you for borrowing is a direct reflection of your credit score. The better the score, the lower the rate. In order to get the best rates your credit score must be in the mid 700’s.

1. Credit cards with high balances hurt your score, but so do not having any revolving credit. Try to keep all credit card balances between 25%-50% of the credit limit to maximize your score. Even if you have to carry a lot of revolving debt, it is better to have four cards at 50% of the high credit limit rather than two cards that are maxed out.
2. Late payments kill your credit score. In addition, you will have to write a detailed explanation justifying every late payment on your credit report, even those dating back several years. Avoid rolling lates, which happens once you get behind by more than 30 days and it rolls over to the next month. As you make the payment, you are actually paying last month’s bill and this recurs over several months, thus creating several sequential 30 day late notices on your credit report.
3. Collections and judgments, especially within the last two years, drop your score dramatically. That medical bill that you disputed and refused to pay can end up in collections and will show up on your report. Avoid this at all costs. When paying off collections (or any debt for that matter) be sure to get a receipt or written letter showing the balance is paid and in good standing, or closed. Collection agencies are notorious for reporting negative but not positive credit activity.
4. A lack of diversity in types of credit will hurt your credit score. Having only one type of credit is not going to build your score. You need to have revolving (credit cards), installment (car loans, etc) and mortgage lines all in good standing for at least 24 months in order to create the best possible credit file.
5. Too many lines of credit and/or too many inquiries. If you have too many open lines, even though you may not be using them, can also trigger a reduction in score. But even more important is the number of inquiries on your credit file. Whenever you apply for a credit card, get an insurance quote, shop for a mortgage refinance, get a new cell phone, rent a car using a debit card, or sometimes even apply for a job, there will be a coinciding inquiry to your credit status. Too many inquiries in a ninety day period can be detrimental to your credit score. In general, a score will go down approximately five points for thirty days with each inquiry. Additionally, when applying for credit, recent inquiries may have to be explained in a letter to the lender.

CREDIBILITY

Credibility is all about the amount of experience you have in your industry. While it is always more difficult to finance a new business, the amount of time you have worked in the industry and what management positions you have held will be crucial to your ability to borrow money. A strong personal resume will go a long way in convincing a lender that you are worthy of their risk. If you are an existing facility, your time in business, the strength of your financial statements, community involvement, and business accomplishments all combine to create a type of resume for the business. Whether you are a start-up or an existing business, your personal resume is equally important in creating credibility for the company. Here are some things you can do to best present yourself and your company to potential lenders:

1. Make sure your personal resume shows roles in management, even if outside of the industry.
2. A well thought out business plan for both start-ups and existing businesses will speak towards your credibility. Beware of software programs designed to help you put together a business plan. Most are not for service-oriented businesses and will create a business plan with a cookie-cutter look to them. Many will include chapter and section headings that have little or nothing to do with a CAC. Unfortunately, instead of just deleting these sections, borrowers usually try to fill these sections in with irrelevant information that can confuse, distract or even bore a potential lender.
3. For existing businesses, make sure your business plan has a history of the business included. This history should note competitive accomplishments but also community involvement such as awards. If your gym feeds the homeless on Thanksgiving Day or sponsors community events, these things should be included. Include copies of news articles, brochures, and marketing materials.
4. Make sure your personal financial statement and all company financials are in good shape. When your house is in order, it speaks to your level of responsibility. The single biggest mistake CAC owners make is to wait too long to get financial assistance when things are tough. While breaking even or just showing a slight loss on your P&L’s will not completely kill your chances of getting funded, the stronger your financial position on paper, the better your chances.
5. What’s good for your tax return is not necessarily beneficial to your quest for new funding options. As small business owners, we want as much return from our business as possible, while showing the smallest net profit line possible. The reason for this is clear. If your net profit is low, you will have a lot less in taxes to pay. If you are an LLC or an S-corp, this profit shows up on your personal tax return. However, lenders look at the profitability of your company as an indication of the relative health of the business. So having a high net profit better ensures your viability to the lender as a good risk. By the way, a low net profit can also limit your return when you decide to sell the business.
6. Keeping your financials accurate and up to date on in-house accounting software will make your life much easier in the long run. When a lender asks for current or historical profit and loss statements, balance sheets, cash flow reports or even asset lists (equipment lists), having them essentially at your fingertips can save you time and money. Also, having up-to-date spreadsheets tracking all aspects of your business can help paint a fuller picture than can just your tax returns. There are spreadsheet templates out there for you to track different revenue and expense categories and allow you to compare them to the industry standards.

CAPITAL

Every lender wants to be comfortable knowing that you have the ability to pay back the loan or lease. And even though you need their money to buy the building or equipment, the lender will want you to contribute a portion of the purchase price. Even when restructuring debt where nothing new is being purchased, and even if you are getting loan proceeds for working capital, you will still have to provide some funds for a down payment. What’s interesting here is that the more money you have available (thus the less need you have for financing), the better chance you have of getting financed. In a variation of an old adage, ‘It takes money to borrow money’.
The amount of money you will need varies according to the type of transaction. For example, any loan that does not include real estate you can expect a requirement of at least 10% down payment and usually a 20% down payment. However, an equipment lease can require as little as a security deposit equaling one or two payments and will usually demand significantly less upfront cash than what is required for a loan. The down payment requirement for real estate loans can vary as well. Traditional commercial real estate lenders generally look for 20% down payment or more, depending on the type of property. But SBA programs can lower the down payment requirements to 10%. There are also some other, more aggressive programs out there where you can get as little as 3% required down payment, but those programs are at a higher interest rate and are difficult to qualify for. So no matter what you need money for, be prepared to provide some of your own funds, no matter the amount of collateral you may have.

CAPACITY

Your Profit and Loss Statement, Balance Sheet and business tax returns will all speak to the business’s ability to pay back any new debt. If these financial documents are not strong enough to demonstrate the business’s CAPACITY for repayment, then in order to give a level of comfort to the lender, the company will have to demonstrate new revenue in the form of projections or a Pro Forma. If the borrower is using the money to purchase equipment, he/she will have to demonstrate how the added equipment will generate more revenue for the company. The same holds true when adding on to your building or moving to a larger facility. But what if you are restructuring existing debt? In this case you are not adding new revenue, yet have to demonstrate the ability to pay back the loan. If your existing financial documents are not strong enough to carry the new debt load, the Pro Forma becomes critical once again. In every industry there are natural business cycles, usually based on the calendar year. But in the CAC industry, specifically gymnastics, there is a four year cycle as well. Currently we are a few months away from the Olympics and most clubs can expect a boost in revenues in the year following the Olympics. A Pro Forma showing the increased business, backed up by historical financial documents showing similar increases for past Olympic years might be enough to satisfy a lender, even if your financial documents do not show the company has the current ability to repay the loan and no new revenue streams are expected from the use of the loan proceeds. This scenario would be strengthened by a strong credit score for both the business and the borrower, as well as healthy reserves. In any case, even if your Credit and Credibility are perfect and you have healthy reserves, you will still have to prove your ability to pay back all funds borrowed.

COLLATERAL

For any loan request you have, the first question from the lender is always about your credit and the second is about COLLATERAL. Obviously if you are buying a building for your company then the building is your collateral. Similarly, equipment is the collateral for loans or leases used for that purpose. But what if you want to buy a building and need money for the build out? Most buildings are not suited for CAC use without renovations. And if there is not enough equity in the building for you to borrow more than the purchase price, then there could be some potential problems in getting the financing you want. On equipment loans and leases you may need as much as a two to one ratio of collateral to debt in some cases, especially if the borrower is weak in the other areas. In almost every situation other than some SBA loans, 100% collateralization is the minimum. Therefore in order to satisfy the lender, additional sources of collateral must be available. In fact, even on loans backed with an SBA guarantee you can expect the lender to ask to attach to all assets of the business (equipment, etc) and will in many situations put a lien on your home for even more protection. This lien should not alarm you, but you definitely need to be aware of it. It can prevent you from getting home equity loans or otherwise use your home’s equity. SBA loans may be easier to qualify for, but are not right for every borrower. The process is very time consuming and can easily tie up all of your business and personal assets (collateral) for the foreseeable future. However, SBA loans often have a longer term making the debt more manageable for the cash flow of a business, especially in the early years.

Almost every business will have opportunity or need for financing at some point. If you are not prepared for this possibility you could find yourself either not able to get financing or not prepared, which could lead to a tremendous amount of work and stress, ultimately affecting your desired timeline. Borrowing money for your business should be thoroughly thought out and planned for well in advance. By having a plan to borrow, you can help make the process proceed more smoothly. If you pay attention to the five areas I have outlined, you will be contributing to the overall health and success of your business. And when the time comes for financing, you will be prepared.


Ken Wood is the lending specialist for DGS Financing and the owner of Paragon Training Center, a Children’s Activity Center in Fredericksburg, VA. DGS Financing is a broker for dozens of funding sources across the country including leasing companies, commercial mortgage companies,and SBA lenders. He can be reached through the DGS website (www.gymsupply.com) or by emailing kwood@gymsupply.com.

Friday, May 9, 2008

East Meets Midwest

A Chinese coach at an Iowa gym has helped build smart, spirited 16-year-old Shawn Johnson into the world all-around champion and the gold medal favorite. Now she wants to bring him glory in his homeland.

By E.M. Swift, Website (http://sportsillustrated.cnn.com/2008/olympics/04/29/johnson0505/)

Shawn Johnson should have been able to relax. She is, after all, the 16-year-old poster child for the world champion U.S. women's gymnastics team, the winner of three golds, including the all-around title, in Stuttgart, Germany, last September. With her big brown eyes and guileless smile, she's a hometown hero in Des Moines, where a local car dealer gave her the keys to a new Land Rover for her birthday in January. Not that Johnson needed the handout -- she has endorsement contracts with Adidas, Coca-Cola, McDonald's and Hy-Vee supermarkets, among others. An A student at Valley High in West Des Moines, the sophomore has her sights set on someday attending an Ivy League college. And if that isn't enough, the diminutive (4' 9", 94 pounds) Johnson has already been cast in bronze, with the life-sized statue to be displayed in the Iowa Hall of Pride in Des Moines, opposite the black-and-white photos of Mamie Eisenhower, Herbert Hoover and Andy Williams. All this comes before the Beijing Olympics, at which Johnson hopes to become the third American woman, after Mary Lou Retton and Carly Patterson, to win an Olympic all-around gold. The world, it would seem, is the young lady's oyster.

But Johnson didn't see it that way on this February night. With Beijing approaching and 2007 behind her, that old devil Doubt had wheedled its way into her psyche. She was at the well-known "ranch" -- Bela and Martha Karolyi's national-team training center 90 minutes north of Houston -- along with dozens of other Olympic hopefuls who are brought there monthly to show off routines and sharpen their skills under the critical eye of Martha, the team coordinator. No one is guaranteed a ticket to Beijing, not even a world champion.

So Johnson couldn't sleep. In 2007 she'd won every competition she had entered: the American Cup, the American Classic, the Pan Am Games, the national and the world championships. But now it was a new year. At 12:30 a.m. she sat up in her bed, grabbed her cellphone and typed out a poem. This is how she relieves stress: with creative spurts of writing, drawing or painting. "There are no guidelines to writing," she says. "It lets me be free and do whatever I want. I let it all out."

The activity is her escape from gymnastics, with its demands of precision and the pursuit of perfection, its exhaustively rehearsed and regimented routines. That night Johnson cranked out 33 lines of rhyming couplets in 10 minutes, spilling her doubts onto the tiny screen. The poem dealt with the fear of losing and the occasional impulse to give up the sport.

When behind the scenes you crumbled and prayed
For it all to simply just go away.
The doubt and regrets of what you went through
Sometimes just made you want to give it to
The next girl in line.....

She texted the poem to her mother, Teri, an accounting clerk for the West Des Moines school system, before going to sleep. Teri is frequently surprised and moved by what Shawn writes. "I don't know where her artistic side comes from," Teri says. "She's got a good little soul."

You remember the times when you thought to give up
But could never find a reason to disrupt
Anything and everything you had given to the sport
The heart's desire and all the support.

"Every day before practice, I reread it," Shawn says. "Writing that poem released a lot of the pressure. World champion is such a huge title to live up to."

Teri and Doug Johnson, an independent contractor specializing in interior trim work, didn't push Shawn up the gymnastics ladder. Quite the opposite. Every time Shawn's coach, Liang Chow, told Teri he wanted to advance Shawn a level, Teri asked him to reconsider. "Chow has told me I'm the only mom who asked him to hold her daughter back," Teri says. "I thought she'd be better off competing against kids her own age."

Chow knew better. He grew up in Beijing, which is why Teri believes destiny has been at work. "I have a gut feeling they were supposed to meet and do this thing," she says. "It's just been too easy. We haven't done anything to make this happen."