The business plan is essential to find financing and the success of a small business
A recent NY Times article reported that lack of capitalization or lack of cash is one of the main reasons most small businesses fail within the first five (5) years, so financing should be one of the reasons. the main considerations that the entrepreneur must address when entering. the business world
The report makes a depressing statement, but you shouldn’t let that stop you from starting your business if that’s what you really want to do.
One of the companies we work with has recently been able to raise a total of over three hundred thousand dollars by hurrying and not getting discouraged. Yes; even in this economy they were able to get financing!
What are their secrets?
A good business plan and good business practices are two of the things that have been essential in getting your financing. Using a good plan and sound business practices can catapult your business into the big leagues!
Please understand that my statement is not pure exaggeration and do not think that they were able to walk into a bank and get an approval for the financing they were trying to obtain. The truth is that they made many visits to many banks and received countless rejections.
The fact is that banks are not gambling institutions and will not gamble on a shaky business. You just need to convince them that you are not unstable and that your business has a good future.
Bank financing for companies has not completely disappeared! You can find and obtain financing if you are willing to persevere, have good business practices, and are willing to deal with the necessary paperwork.
The first and most important step is to develop a good business plan. Don’t worry; There are many resources available to help you develop a solid business plan!
You should start by researching the information available from the Small Business Administration. They are a great resource for all businesses and you should use the information they offer.
They even have an online outline that you can follow to develop your plan. I think it takes about fifteen or twenty minutes to complete. You should take as much time as you need to establish your plan. The dividends are well worth the time it takes!
I recommend that you take the business planning process very seriously. The business plan is one of the most important assets you can have for your business. It gives you a blueprint you can use to focus your efforts to achieve your goals and make your business successful.
The thing to remember when setting up your business plan is to make it flexible. Times will change and opportunities will become available, so make an appointment with yourself or your partners to periodically review and update your plan.
I hope this has given you something to think about and help you if you are trying to get financial help with your business. There are sources available that can help you.
Plan your work and work your plan!