What is what prevents you start your own business? Lack of money, relax.
There are several reasonable options that are available capitalization for those aspiring to become entrepreneurs. The key is to plan. Your financial strategy has to be meaningful not only for yourself but for your prospective lender.
In just 60 seconds, we’ll show how to build a solid financial foundation for your fledgling business.
0:60 Identify your needs
Calculate what you need to start and maintain your business – equipment, inventory, and office space and branches. Then, consider how much you can cover your capital (your savings, or contributions from family and friends). Be careful, do not want to estimate either very small or large your needs, nor want to endanger the economic stability of your family or relationships.
0:48 Study options
Commercial banks are the most common lenders for small business, offering a variety of conventional loans as loans secured by the Administration of the U.S. Small Business Administration (SBA, for its acronym in English) You can also consider firms capital, finance companies, associations, etc.. Be sure to learn everything we can about the evaluation criteria and terms of payment for each option.
0:36 Present your case
Most lenders require a business plan, a resume detailing your education and business experience, credit history and references specific to the loan documents. Develop your business plan with specific sections describing the nature and type of business, resources available and how they are used to achieve the goals, time calculations, financial objectives, competitive analysis and how your business in the market.
0:25 Fill in the blanks
Some lenders may also require liquidity projections that illustrate both your ability to start the business and to repay the loan. Remember that this plan should be realistic and must be supported by data that will validate your projections and estimates. Do not skimp on research.
0:13 Practice your presentation
All applications for initial capital will require some type of presentation. Although you feel safe in these situations, organize your thoughts and practices with people who offer you an objective opinion about your presentation. Anticipate questions that you may find will increase your confidence and prepare you for any situation that may arise.
0:03 Question … and more question.
Talk to potential lenders about their processes and expectations of the loan. Your branch of SCORE has many resources and experienced advisers to guide you through the steps in this initial funding.