# Capital Strategy — 90-Day Brady-Runnable Action Plan (2026-05-05 → 2026-08-05)

**Purpose:** Concrete weekly milestones converting the financing toolkit + acquisition playbook into Brady actions. Filed S83-H197.

**Principle:** Ease/flow first — start with smallest commitments, escalate as relationships and approvals warm. The 90-day plan is structured so something measurable happens every week, with stop-go criteria at Day 90.

**Stop-go criteria at Day 90 (2026-08-05):**

1. ✅ At least **1 capital source approved + funded** (any size — could be Capital One Spark, CDFI loan, or smaller)
2. ✅ At least **1 acquisition target evaluated to LOI stage** OR formal "not pursuing acquisitions in 2026" decision documented
3. ✅ Current ecosystem revenue trajectory has **30-day data** for honest comparison against acquisition path

If 0/3 met → pivot capital plan; reassess. If 2-3/3 met → proceed to Round 2 (acquisition close or larger SBA application).

---

## Week 1 (May 5-11) — Diagnose your starting position

**Brady actions (~3 hours total):**

### 🔍 Personal credit check (30 min)

- Visit `annualcreditreport.com` — pull all 3 bureau reports (Equifax, Experian, TransUnion). FREE 1×/year.
- Note FICO score range. If <680, focus on credit improvement before SBA applications. If 680+, you're SBA-eligible. If 720+, all paths open.
- Document score in your private records (NOT in this repo).

### 🏢 Business entity audit (1 hour)

- Verify Witch Haven Grove LLC is in good standing at AZ Corporation Commission (`ecorp.azcc.gov`). Should be "Active" status. If lapsed, file annual report.
- Confirm EIN active (call IRS Business Specialty Tax Line 800-829-4933 if uncertain).
- Verify dedicated business bank account exists. If WHG LLC commingles with personal, open a separate business checking THIS WEEK (Chase / BofA / local credit union all fine — pick what's easiest).
- Locate WHG LLC's last 2 years of business tax returns (1065 if multi-member, 1120-S if S-corp, Schedule C if sole-proprietor pass-through). If returns missing or business is <2 years old, note this — it changes which SBA programs are available.

### 💳 Apply for Capital One Spark Cash Plus (30 min)

- Go to `capital.one/business`
- Apply for Spark Cash Plus (2% cash back, $1,200 sign-up bonus on $30K spend in 6 months) OR Spark Cash Select ($0 fee, $750 bonus on $6K spend).
- Required: EIN, business address, estimated revenue (give honest answer; OK if low).
- Decision typically arrives within 7-10 days; instant decisions sometimes available.
- This is your immediate $5-25K working capital buffer.

### 📞 Schedule (don't take yet) — 2 calls (1 hour)

- Email Prestamos CDFI: 602-258-9911 OR `info@prestamoscdfi.org` — request a 15-min intro call in Week 2 to understand their current product mix.
- Identify your CPA (existing relationship). If none, ask Brady's network for AZ small-business CPA recommendation. Schedule a 30-min consultation in Week 3.

**End of Week 1 deliverable:** You know your credit score, WHG LLC standing, current capital position, and have 2 calls scheduled.

---

## Week 2 (May 12-18) — First conversations + research

**Brady actions (~4 hours total):**

### 📞 Prestamos CDFI intro call (15 min)

- Ask: "What products do you currently offer for an AZ-based LLC with [X years] of operating history? What documents do you need to apply? What's the typical timeline?"
- DO NOT apply yet — this is relationship-warming
- Note any application thresholds + product fits

### 🏛️ AZ Microbusiness Loan Program research (30 min)

- Visit `oeo.az.gov/microbiz` — read program details
- Note which CDFI partners participate (likely Prestamos + others)
- Apply only if Prestamos suggests this is the right path

### 🔎 BizBuySell account setup (1 hour)

- Create free buyer account at `bizbuysell.com`
- Filter: Arizona + asking price $100K-$1M + Cash flow / SDE shown
- Save 10 listings matching Tier A targets from the acquisition playbook (MSP, web hosting, surveying, herbal e-com, event venue, civic consulting, audio production)
- Save 5 stretch listings for inspiration / market education

### 📚 Reading homework (2 hours)

- Read Acquisition Playbook end-to-end (~30 min)
- Read 2-3 BizBuySell listings in detail to understand language ("SDE", "FF&E", "asking price", "real estate included/excluded", etc.)
- Optional: Listen to 1 episode of "Acquired" podcast or "My First Million" SMB acquisition episode

### Capital One Spark decision

- If approved → activate card; set up business banking integration; do NOT spend yet (preserve sign-up bonus capacity)
- If denied → check denial reason; common: insufficient credit history with the bureau, recent inquiries, or income mismatch. Address + reapply in 6 months.

**End of Week 2 deliverable:** Spark in hand or path forward known; CDFI relationship initiated; 10-15 acquisition listings observed.

---

## Week 3 (May 19-25) — Build the lender packet

**Brady actions (~5 hours total):**

### 📄 The "lender packet" (3 hours)

A single PDF you can send to any lender (CDFI, SBA, bank). Build once, use 10x:

- **Cover sheet** (1 page): name, EIN, formation date, address, owner name, brief business description, capital amount + use
- **Entity docs** (5 min to gather): Articles of Organization, Operating Agreement, EIN letter, AZ Corp Commission good-standing certificate
- **Financials** (1 hour to clean up):
  - 2 years business tax returns (or 2 years of P&L statements + bank statements if returns missing)
  - Trailing 12 months bank statements
  - Personal Financial Statement (SBA Form 413 — download from sba.gov)
  - Personal tax returns 2 years
- **Business plan one-pager** (1 hour to write):
  - What WHG LLC does (4-5 sentences referencing the 7 brands)
  - Current revenue + customer count
  - 12-month plan
  - Capital request: amount + use of funds + repayment plan
  - Why this loan compounds the 7-year ecosystem

### 📞 CPA consultation (30 min)

Topics:
- "Am I structured optimally for SBA loan eligibility?"
- "Should WHG LLC stay multi-member, switch to S-corp election, or other?"
- "If I acquire a business in 2026, asset purchase vs. stock purchase — what are the tax implications?"
- "What does my Personal Financial Statement need to show to qualify for SBA 7(a) Small?"

### 🔎 Schedule attorney consultation (Week 4)

- Find AZ business attorney (CPA can refer; or AZ Bar Lawyer Referral 866-482-9227)
- Schedule 30-min initial consultation for Week 4
- Topics for that call: acquisition deal structures, asset vs. stock, due diligence checklist for SMB buyer

**End of Week 3 deliverable:** Lender packet PDF complete and ready to email; CPA consult done; attorney scheduled.

---

## Week 4 (May 26 - June 1) — Attorney consult + first sourcing actions

**Brady actions (~4 hours total):**

### ⚖️ Business attorney consultation (30 min)

Bring: lender packet, top 3 BizBuySell listings, list of questions

Topics:
- LOI templates / what should buyer protect
- SBA loan documentation typical requirements
- Asset purchase agreement vs. stock purchase agreement
- Indemnification + reps & warranties for small biz acquisition
- Brady's existing WHG LLC: should acquisition target sit inside WHG LLC, in a new entity, or as a subsidiary?

### 📨 Direct outreach: 3 LinkedIn messages (1 hour)

Pick 3 retiring owner-operators from BizBuySell listings or LinkedIn search.

Sample message:
> "Hi [Name], I'm Brady Hugins — AZ-based founder of Witch Haven Grove LLC. I'm exploring acquisitions of established AZ small businesses, especially [their industry]. I noticed your business [reference something specific] and wanted to ask: have you ever considered a transition or sale? I'm not in a hurry, would just appreciate a 15-min conversation if you're open to it. — Brady"

Hit rate is low (~5-10%) but unbrokered deals are the best deals.

### 📞 Second CDFI conversation if Prestamos didn't fit (30 min)

If Week 2 call surfaced that Prestamos isn't the right partner for Brady's first product, contact:
- Native Community Capital (if any tribal-adjacent angle)
- LISC Phoenix
- Arizona Multibank (if rural AZ angle)
- See `azcdfi.org/azcdfi-lending/` for full directory

### 📊 Listing review + first short-list (1.5 hours)

From the 10-15 BizBuySell listings saved:
- Eliminate Tier C disqualifiers (full-time presence required, out-of-AZ, regulated industries, etc.)
- Score remaining 5-7 on the 4-lens framework (cash-on-cash, ops fit, defensibility, exit optionality)
- Identify top 3 to investigate further

**End of Week 4 deliverable:** Attorney advice in hand; 3 cold outreach sent; top 3 acquisition shortlist scored.

---

## Month 2 (June 2-29) — Lender pre-qualification + listing investigation

**Weekly cadence (~3-4 hours/week):**

### Week 5-6: SBA pre-qualification

- Use SBA Lender Match: `sba.gov/funding-programs/loans/lender-match` — submit basic info, get matched with 2-3 SBA preferred lenders
- Recommended national SBA specialists: **Live Oak Bank** (largest SBA acquisition lender), **Newtek**, **Huntington Bank**
- AZ regional: **National Bank of Arizona**, **Western Alliance**
- Goal: 30-min call with each. Ask them: "If I bring you a $300-500K AZ business acquisition opportunity, what's your typical close timeline + cash injection requirement?"

### Week 5-6: Apply for Prestamos Micro Enterprise Loan ($10-25K)

- Use case: Solshine Phase 2 production OR Scout Report equipment
- Submit lender packet (built Week 3)
- Wait 30-60 days for decision

### Week 6-8: Listing deep dives

For top 3 shortlist:
- Sign NDA with seller/broker
- Request full Confidential Information Memorandum (CIM) — typically 20-50 page packet
- Verify SDE calculation against tax returns
- Have CPA review financials (2-3 hour engagement)
- Site visit for top 1-2 candidates

### Week 8: Apply for 1 grant

- Hello Alice (`helloalice.com`) — rolling, $5K-$25K, low effort
- Total time: 2 hours
- Don't expect to win; bonus capital if you do

**End of Month 2 deliverables:** Prestamos Micro decision in hand or pending; SBA lender relationships warm; top 3 acquisition CIMs reviewed; CPA reviewed financials on top candidate; 1 grant submitted.

---

## Month 3 (June 30 - August 5) — Decision time

### Week 9-10: First acquisition LOI (if a target qualifies)

If top candidate passes 4-lens evaluation + CPA review + Brady's gut:

- Have attorney draft Letter of Intent (LOI)
- Submit to seller — typical terms: 30-60 day exclusivity, due diligence period, contingencies (financing, satisfactory diligence)
- Begin formal SBA 7(a) Small application with pre-qualified lender

### Week 9-10: If no target qualifies → ecosystem reinvestment

- Pivot Prestamos Micro funds (if approved) toward Solshine Phase 2 jar production OR Scout Report equipment
- Document "not pursuing acquisitions in 2026" decision with reasoning
- Refocus capital plan on building MM Membership recurring revenue (which then unlocks revenue-based financing in 2027)

### Week 11-12: Stop-go review

Schedule a 90-min "capital strategy review" session (Brady solo, with CC support if useful):

**Questions to answer:**

1. What capital sources approved + funded? (Spark / Prestamos / SBA / grant)
2. What's the actual 12-month capital deployment plan now?
3. Did any acquisition target reach LOI? If yes — go/no-go decision before close. If no — was 2026 the right year for acquisitions, or build current ecosystem first?
4. What's the realistic path forward for next 90 days?

**Document the decision** in `~/docs/ecosystem/strategy/capital_review_2026-08-05.md` (Brady writes; CC can help structure).

---

## Brady-action cheat sheet (one-page)

Print this, stick on the desk:

| Week | Action | Time | Outcome |
|---|---|---|---|
| 1 | Pull credit, audit WHG LLC, apply Capital One Spark | 3 hr | Know your starting position |
| 2 | Prestamos call, BizBuySell account, save 10 listings | 4 hr | Relationships + market education |
| 3 | Build lender packet, CPA consult | 5 hr | Documentation ready |
| 4 | Attorney consult, 3 LinkedIn outreach, score top 3 | 4 hr | Network + shortlist |
| 5-6 | SBA Lender Match, apply Prestamos Micro | 6 hr | Capital pipeline live |
| 6-8 | NDA + CIM review on top 3, CPA financial review | 8 hr | Deep diligence on real targets |
| 8 | Apply 1 grant (Hello Alice) | 2 hr | Optional capital |
| 9-10 | LOI on top candidate OR pivot to ecosystem reinvestment | 5 hr | Path locked in |
| 11-12 | 90-day stop-go review | 2 hr | Honest assessment |

**Total Brady time across 90 days: ~40 hours (3-4 hours/week average)**

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## What CC will track for Brady (passive support)

- Dashboard "💰 Capital Strategy" section (built in H197) shows the 4 strategy docs as quick-links
- Memory entry surfaces the 90-day plan if Brady asks "where am I on capital?"
- Future sessions: CC can build Acquisition_Targets Airtable table if Brady wants to track shortlist (deferred)
- Future sessions: CC can build a simple Brady-facing "lender packet builder" if it'd help

---

## Common Brady questions answered

**Q: What if my credit score is below 680?**
A: Focus on Capital One Spark + Prestamos CDFI (CDFIs serve thinner credit). Skip SBA 7(a) until score improves. Personal credit improvement: pay down revolving balances below 30% utilization, dispute errors, age accounts. 60-90 day score lift often possible.

**Q: What if I don't have 2 years of tax returns yet for WHG LLC?**
A: CDFI Microloan is still available. SBA Microloan is still available (less stringent). Full SBA 7(a) typically requires 2 years history. Use the time to build operating history while pursuing smaller capital paths.

**Q: What if I can't decide between buying a business and building my ecosystem?**
A: They're not mutually exclusive. The right MSP acquisition (Tier A target) IS building the Mirror Mirror brand. The 90-day plan forces you to evaluate real targets, not theorize. By Day 90 you'll have data instead of opinions.

**Q: What if no acquisition target makes sense in 90 days?**
A: That's a valid outcome. Pivot capital toward operational financing for current brands. Revisit acquisition path in 6-12 months when MM Membership has revenue (which itself unlocks revenue-based financing).

**Q: What if I lose interest mid-plan?**
A: At minimum, complete Week 1 (credit + WHG audit + Capital One Spark). That alone is worth doing regardless of acquisition path — every business owner needs $5-25K in available business credit.

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_Filed S83-H197 (2026-05-05). Refresh at Day 90 (2026-08-05) with `capital_review_2026-08-05.md`. Cross-references: `financing_toolkit_2026-05-05.md`, `roi_funding_matrix_2026-05-05.md`, `acquisition_playbook_2026-05-05.md`._