Get access to financing – Dos and Don’ts
Breaking out on your own and starting your own business is something that many of us dream of doing. Of course, when you get past the name of the company and what your business cards will look like, the actual execution of your business plan can be a bit more challenging to new business operators.
For many, financing your business is a particularly substantial hurdle to getting your operations off the ground. And if you’re relying on a bank to finance your venture, you may encounter some disappointing surprises as many lending institutions are hesitant to front credit for SMEs and start-ups.
If you do plan on starting your own business and are thinking about financing options, here are some dos and don’ts to keep in mind so you can start off on the right foot:
1. DO start saving – even if you do plan on looking for financial backing and support, most lending institutions will expect to see a substantial personal investment from the entrepreneur. Investing your own capital into your business idea demonstrates that you have confidence in your operation’s success.
2. DON’T apply for a loan unprepared – when it comes to making a loan application, you’ll need to come armed to the teeth with information. Be sure you spell out your anticipated payment plan clearly – a lending institution wants to be confident in your ability to make your repayments.
3. DO develop an extensive business plan – and continually revise it and have it critiqued. Your business plan will be your “pitch” to potential investors and finance companies and it will give you clear direction on your immediate business objectives and keep you on track to meet your goals.
4. DON’T overlook other potential finance channels – vendor finance is often available to help new businesses get started with the tangibles they need including landlords offering finance options for rent, while suppliers of computers, medical equipment for your clinic or even office furniture and kitchen appliances can offer finance programs for their clients.
5. DO ask for help – you don’t have to go it alone. Resources and advice are available to small business operators on all aspects of set up and operations. Start with the Small Business Support Line which provides small business owners with a single point of contact to access information and referral services to improve their business sustainability and help better manage their business.
From legal advice to more information on how to finance medical equipment, information from finance experts, such as those at www.flexicommercial.com.au will help you get your dream business off the ground.
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