There’s no escape route A ROADMAP TO …...SBA loan programs make it possible for qualified small businesses to obtain financing that may not be available otherwise. The SBA offers

a publication of TruWest® Business Services

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There’s no escape routewhen it comes to financing

a business; you needmoney to make money.

Knowing your options forfinancing can help you

make informed decisionswithout losing sight of

your long-term objectives.

WHERE’S THE MONEY?

Angel investors are typically high-net-worth individuals who invest in start-up or young companies. Angel investors take a risk in exchange for equity or partialownership, giving promising young companies a boost they hope will pay off.Angel investors may provide more than financial backing – the right investor may also offer advice, experience and networking opportunities.

Venture capital firms also provide cash to young companies, usually on a largerscale than angel investors. The decision-makers who comprise a venture capitalfirm may be successful entrepreneurs or business people with experience in start-ups or large corporations. They typically review hundreds of business proposals and only invest in a handful.

SBA loan programs make it possible for qualified small businesses to obtainfinancing that may not be available otherwise. The SBA offers financial assistancethrough participating lenders in the form of loan guarantees. Loans are availablefor most business purposes including purchasing real estate, machinery, equipmentand inventory or for working capital. You can contact a business lender at TruWest Credit Union to find out how we can help you secure an SBA loan for your business.

Strategic partnerships can help you tap new ways to fund your business goals.You may not have the cash on hand to launch a new product, explore new ideasor add staff, but partnering with another company could put you in a position to

do so. Joining forces with a company that complements your business mayhelp you become a stronger competitor in the marketplace.

Direct public offerings (DPOs) are another potential source for capital.DPOs are registered security offerings with simpler procedures and lower

costs than a full registration with the SEC (as needed for an initial publicoffering, or IPO). Stock sold through a DPO is purchased directly by individuals,not brokers or investment companies. DPOs usually require publicity campaigns toget off the ground, which differs from other forms of financing. DPOs often drawinvestors who share your vision and motivation for the company’s success – family,friends, employees, suppliers and clients.

A ROADMAP TO FINANCING

FALL 2007

A ROADMAP TO FINANCING to page four

2 TRUWEST.ORG

A greener approach to business allows you tobuild a reputation for being environmentallyresponsible while enjoying the satisfaction ofdoing your part. And if that’s not enough, there’splenty of money to be saved by going green.

Get an energy audit. An on-site consultationcan help reveal energy waste and generate alist of suggestions for saving money. Smallchanges such as improving insulation andinstalling fluorescent lighting and timers forautomatic shutoff can go a long way.

Buy office equipment with the EnergyStar label. Energy Star-qualified computers,copiers, fax machines, printers and scannersuse 40% to 70% less energy than standard

models.* This could translate into thousandsof dollars saved in energy bills.

Purchase sustainable, recycled andnontoxic supplies. Ask suppliers for products

made from recycled materials. Find out ifthere are nontoxic alternatives for productsyou use. Keep in mind that creating greaterdemand for earth-friendly materials may help

drive down costs as manufacturersincrease supply.

Reduce and recycle.Conserve energy by dialingback the thermostat during

non-business hours and turningoff computers and lights not in

use. Encourage employees to useless paper and make recycling office

paper and other materials a priority. Inaddition, be sure to dispose of toxic substancessuch as used batteries and copier toner properly.

Consider transportation alternatives.Provide bike racks and preferred parking spotsfor carpoolers. To save on fuel and travelexpenses, consider arranging a teleconferenceinstead of driving or flying when possible.

Get employees on board. Employeeinvolvement is key to implementing eco-friendlyoffice policies that really work. Consider creatinga team within your company to identify eco-friendly ideas that may be unique to youroperation. Keep the lines of communicationopen to let employees know what changesare being made and why.

Start a ripple effect. Tell customers andvendors about your efforts, and communicatewith your local regulatory agencies. You maydiscover even more rewards for “greening up”your business.

WE’RE ON YOUR SIDE

TruWest Credit Union is your ally when itcomes to growing a green business. Withonline banking and direct deposit, you’realready reducing trips to the Credit Union.

If you’re considering making any earth-friendlyrenovations or upgrades, talk to one of ourcommercial loan officers about financingoptions. We are happy to help you realize yourbusiness goals for efficiency, cost savings anda cleaner environment.

* Source: www.energystar.gov.

7 WAYS TO GO GREENMaking earth-friendlychoices isn’t just good for

the environment – it’sgood for business.

FALL 2007 3

NEW PRODUCTS AND SERVICES

TruWest Credit Union is proud to announce that we have expanded our business lendingoptions. For more details on these or any other TruWest business products, please contactus at 480.441.5900, or toll-free at 800.528.1441.

Secured Lines of Credit | Secured Real Estate Lines of Credit | Commercial RealEstate Loans | Unsecured Lines of Credit | Fixed-Asset Term Loans

Go green. For property placed in servicein 2006 through 2008, you may be able todeduct the cost of energy-efficient buildingproperty, including interior lighting systems,heating, cooling, ventilation and hot watersystems. The maximum deduction is$1.80 per square foot of the building.

Use hybrid vehicles. A tax credit of up to $3,400 is available for certain energy-efficient vehicles, including qualifiedhybrid vehicles. But credit amounts beginto phase out for a given manufactureronce it has sold 60,000 eligible vehicles.

The phase-out has already begun for Toyota and Lexus vehicles.Find more information about the tax credit, which vehiclesqualify and the credit phase-out at the Department of Energy’ssite, www.fueleconomy.gov.

Manufacture a deduction. Two yearsago, a deduction for qualified income fromdomestic manufacturing activities wasintroduced. This year, it increases from3% to 6%. The deduction encompassesmore than traditional manufacturing; it

also applies to construction, engineering, energy production,computer software, sound recordings and certain films andprocessing of agricultural products.

Expense it. You may choose to deduct thecost of qualifying equipment purchasedand put into service in 2007, rather thandepreciate it over several years. Eligibleproperty includes machinery and otherequipment, furniture and fixtures, and

off-the-shelf computer software. The Section 179 expensinglimit for 2007 is $125,000.

Take a healthy exclusion. You may beable to exclude some contributions to thehealth savings accounts (HSAs) of qualifiedindividuals from federal income tax withholding, Social Security tax, Medicaretax and FUTA (unemployment) tax. For

2007, the contribution limits are $2,850 for self-only coverageor $5,650 for family coverage. For those age 55 or older, thelimits are $800 greater.

Retire some tax burden. If your businessdoesn’t already have a retirement plan,consider putting one in place. You may beable to deduct contributions you make toSimplified Employee Pension (SEP), SavingsIncentive Match Plan for Employees (SIMPLE)

and other qualified plans for yourself and employees. Smallemployers (100 or fewer employees) may also be eligible for atax credit of 50% of the first $1,000 of start-up and administrativecosts if you begin a new qualified plan, including a 401(k).

In 2006, businesses paid the IRS about $351 billion in income taxes. Consider these potential tax-saving ideas to help keep yourcompany from paying more than its share. Of course, always discuss strategies with your tax advisor before taking any actionthat will affect your tax situation.

COUNT ON US

TruWest can help you take full advantage of potential tax savings with loans and lines of credit to help you go green, buy vehicles or fund retirement plans to make the deductions add up. Talk to TruWest Credit Union today for more information.

Note that TruWest Credit Union does not give tax advice. Please consult your tax advisor.

YEAR-END TAX-SAVING IDEAS FOR BUSINESS

This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher norany other party assumes liability for loss or damage due to reliance on this material. ©2007 TruWest Credit Union.

For business owners who depend on customer loyalty, that can be a real problem – it certainlycosts more money to bring in new customers than to retain existing ones. Try these tips to makesure the service your company provides will keepcustomers coming back.

Provide individual attention. Greet customerswhen they walk through the door, and learn anduse names when appropriate. Smile.

Keep employees informed. Make sure your workers are well trained and knowledgeable with customers.

Focus on the customer.Create a customer-centeredenvironment where servicealways comes first and forming long-lasting

relationships is top priority.

Be a valuable resource. Go beyondfulfilling the customer’s requests,

and be available to answer questionsand offer advice.

Listen to complaints. The customer will feelbetter if his or her voice is heard, and it’s a

great opportunity to make improvements.

5 WAYS TO DELIVER GREATCUSTOMER SERVICE

Business loans from TruWest CreditUnion remain one of your bestoptions for cost-effective financing.We take pride in moving your business forward with loans that fit your unique borrowing needs.

LOOK NO FURTHER

Looking for start-up capital? A line of credit for cash flow? Or financingfor new technology or equipment?Wherever you’re headed, TruWest’scommercial loan officers are happy to help map out your plans. Contactus at 480.441.5900 or toll-free at800.528.1441, visit us online attruwest.org or stop by any branchlocation to learn more.

A ROADMAP TO FINANCINGfrom page one

Many Americans complain that great

customer service has gone the way

of the dinosaur.

P.O. Box 3489Scottsdale, AZ 85271truwest.org