So, you've decided to try your hand at owning a business.
You have a product you believe in and you know your ideal market.
However, even with a brilliant idea, 80% of all new businesses fail within the first year because they don't have the proper credit to keep them afloat.
You'll need to have impeccable credit and strong revenue.
Funding: Because you company's in its baby stages, you should approach informal investors for the money you need to get the ball rolling.
A rich uncle or Sugar Daddy isn't a bad idea; however, you'd be better off avoiding mixing business with pleasure.
Approach a local development corporation or state and local governments that offer low-interest micro loans.
Prepare a Business Plan: A typical business plan includes a title page with the business' name, owner, and contact info; your company's description; market analysis, meaning the research you've done to show your business' commercial potential in the market and revealing your competitors; your product; operations, how's the product made; your marketing strategy; and an executive summary including the business' function, who you are, and your reason for borrowing.
Make sure when choosing a lender, you've found out exactly what they're looking for in a business plan.
The Five C's: Whatever lender you choose is going to gauge your creditworthiness.
They'll consider your capacity to repay them, the capital that you've invested in the business, the collateral you'll put up, and the loan conditions you require.
Most importantly, the lender will judge the character of the business in which they'll invest.
Assistance: You'll most likely need some assistance to make sure that your business stays afloat.
There are multiple resources offering training programs for you and your employees: technical assistance programs, financial skills assistance programs, and a business plan development course, all to help you prepare for your venture into the business world.
Yes, your considerations are many.
But once you've gotten the ball rolling, there's no telling what you'll accomplish or how fast your business will climb up the financial ladder.