Adam Hoeksema

Founder of ProjectionHub. We help small businesses create financial projections for SBA lenders and investors.

[Adam Hoeksema @AdamHoeksema]

@GrantHensel The first business I started was also a two-sided marketplace, right out of college. I had no idea that was probably the most difficult business to start, especially when you have no money or experience. Ha!

[Adam Hoeksema @AdamHoeksema]

@Lawyer4Deals I think they will probably need to set up a new entity to acquire the business, and that new entity would have to be 100% owned by US citizens.

I think the implications are they probably need to have a 10% equity down payment, and have 100% US citizen ownership.

Others agree?

[Adam Hoeksema @AdamHoeksema]

@RandBusiness Great to meet you in Indy!

[Adam Hoeksema @AdamHoeksema]

@DrBitcoinMD I will always remember this 😂

[Adam Hoeksema @AdamHoeksema]

@SMBJackieHirsch That is always interesting when the accountant asks “what do we need to show on the tax return for this loan?”

How about the truth??

[Adam Hoeksema @AdamHoeksema]

@Lawyer4Deals It’s brutal! You sign a long term lease and spend a bunch of cash up front before you can open your doors and know whether there is truly demand for your products or restaurant concept.

[Adam Hoeksema @AdamHoeksema]

@girdley

[Adam Hoeksema @AdamHoeksema]

Should you quit your day job to start your business and what will your SBA lender have to say about it? 👇

[Adam Hoeksema @AdamHoeksema]

@omontejano_jr Would you be willing to email me at [email protected]? I would love to set up a call to ask a few questions if you are willing to!

[Adam Hoeksema @AdamHoeksema]

Anyone have experience going through the process of assuming an SBA EIDL loan? Willing to share about your experience?

I am particularly interested in your experience in communicating with SBA and their underwriting process.

#SBA #EIDL

[Adam Hoeksema @AdamHoeksema]

@realEstateTrent I learned this last year when a lender wouldn’t count any of my owners draws because they weren’t the exact same amount on the exact same date every month. Crazy!

[Adam Hoeksema @AdamHoeksema]

@RobertMSterling It is honestly shocking how far you can get in your career without understanding a balance sheet or basic accounting. As a 24 year old I realized our board member who was the CFO of a $70 million a year university didn’t understand basic accounting.

[Adam Hoeksema @AdamHoeksema]

@Will_Schryver I like to look at the Franchise Disclosure Document from HVAC industry companies to get a good idea of what is reasonable for margins.

[Adam Hoeksema @AdamHoeksema]

@TheTranscript_ Such great advice to focus on the balance sheet if you want to know what is really going on.

[Adam Hoeksema @AdamHoeksema]

I work with small businesses every day helping them prepare for SBA loan applications and since the tariffs we have continued to see interested client leads, but we have seen an alarming increase of clients who say they want to move forward in working with us then decide not to pay our invoice. I think everyone just seems to be in a wait and see what happens. Hard to make a decision with so much uncertainty.

[Adam Hoeksema @AdamHoeksema]

For years clients have come to us for help with financial projections, but I always cringe when I see situations like this 👇

A client has spent hours and hours or even days building out their financial model using one of our templates and they send it to us for a free review and feedback.

When I review I see that they have things like:

- A loan that doesn't cash flow
- Assuming a big SBA loan, but no down payment
- An SBA loan for an industry that probably isn't a good fit for SBA
- Projections that are just completely unrealistic based on the industry

It is kind of impossible to ensure that a client knows all they might need to know about SBA before they start a set of projections.

BUT

We are going to try to help those clients who want to learn what to expect ahead of time.

We have a free webinar this Thursday to try to help clients in the early planning process. We hope to help set the proper expectations for whether SBA might be a good fit for them.

https://t.co/dPbuT2h9cF

[Adam Hoeksema @AdamHoeksema]

@simplybitcoin The accountants always find a way to win haha

[Adam Hoeksema @AdamHoeksema]

@lawyer4SMBs That feels so stressful!

[Adam Hoeksema @AdamHoeksema]

I have probably completed 30 or 40 of our Quality of Earnings "Sniff Test" services over the last year, and I finally found the "perfect" small business acquisition.

This was a window cleaning company with repeat customers.

$500,000 in revenue and $275,000 in profit on the tax return.

Just a couple of employees.

In business for 27 years.

😲 Most shocking - No add backs or funny math. The SDE was the taxable income directly from the tax return.

Asking price was reasonable and left the buyer with a 2.9 DSCR (now this was before the buyer would be paying themselves out of the business, but the buyer didn't really require income from the business based on their personal financial situation).

Unfortunately for you SBA lenders out there I think they already had financing lined up, but this was just the cleanest little small business acquisition I have seen yet.

Honestly I was starting to wonder if clean deals like this even exist ha!

#smallbusiness #acquisition

[Adam Hoeksema @AdamHoeksema]

Well there is at least one industry that isn't dramatically impacted by tariffs.

Emergency, on call plumbers.

I was talking to a friend who is a plumber and asked how business is going and he said the phone had been ringing off the hook.

We have been getting a ton of rain in the Midwest and pumps have been working overtime to try to keep basements dry. Some of them fail and basements flood.

No amount of tariff or after hours emergency fee is going to slow down his phone in situations like this.

In uncertain times like these, there are some real advantages to being in a business that is essential.

It was a reminder why everyone likes HVAC, Plumbing and Electrical acquisitions so much ha!

#smallbusiness #essential