FREDERICK PEARCE
Pearman Cooperation Alliance

Business Building and Promotion
Strategic and Tactical Planning

Q: What did you do for start-up capital and the pros and cons of this strategy from your prospective?

A: I used money I had saved over the previous 12 years or so working in the industry.

I worked in the industry in which I eventually opened my own business. I worked hard and saved. When I was ready - that is to say, when I had learned enough, was sufficiently skilled and had enough money, I started. I tried to get a loan from a bank but was refused, and although I would have liked to have had more money than I had, I decided to start anyway.

• No debt repayment burden to hold us back.
• Whoever provides the money controls the business. I thought it would be better that I control the business and not the bank.
• Taking on new contracts before previous contracts were complete had to be done carefully so as to not over-extend ourselves.

Q: How did you finance your business over its first couple of years (was it different from your start-up and how so) and the pros and cons of this strategy from your prospective?

A: This was the construction industry (large projects.) Monthly progress payments are the norm, so it was necessary to finance only a couple of months before progress payments starting coming in. With very tight cash flow control, I was able to finance project start-ups from the money I had invested to start the business. It really only took 6 months or so to be totally cash flow positive.

• A good head for numbers and discipline to control the money is essential.
• A good reputation with suppliers was also needed. That meant making sure we paid them regularly and on time.

Q: What are you doing now regarding financing your business and the pros and cons of this strategy from your prospective?

A: I am effectively retired and help small businesses as a Business Coach. I do not need financing.

Q: What are your future financing plans for growth?

A: None - See above.

Q: Your results?

A: I grew a start up subcontracting business into a multi-million dollar company in five years. After a few more years, I liquidated my investment, handed the business over to the next senior officer and retired.

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