The Process and the Players
The quickest process is not always the best.
Pay day lenders can provide overnight approvals, but the cost of these funds can impact the ability to obtain lower rate institutional debt in the future. Institutional lenders do not want to make loans for debt restructuring. They want to make loans that will create jobs.
The entrepreneur must plan ahead and be ready to consult with the appropriate lender to address the funding requirements.
Consider your banker as part of your team and make certain he knows all about your business and your future plans.
He should do his best to retain your business including other banking services such as merchant banking, CDs and wealth management. Create an ongoing relationship with a banker. If your banker is not responsive, think about changing your banking services.
Relationships matter in all aspects of business, and long term relationships are not established with on-line resources.
Must read small business capital articles:
A company’s financial and operational plans represent the way the management team plans to use capital to execute its vision. Four basic principles can mean the difference between success and failure in raising capital: 1. All of the elements of the story should hang together. 2. Begin to raise capital well before it’s needed. 3. Within reason, take capital when it’s offered. 4. Look broadly and build relationships
Business owners anticipating a potential capital gains scenario are advised to work with their CPAs to understand the impacts of a capital gains sale and ensure smart investments to benefit the business.
Start Up Handbook series part two addresses topline small business legal considerations and definitions for choosing a bank, accessing capital need, choosing a bank and credit.
Follow this strategy. My advice to all entrepreneurs is, if you intend to seek a loan from a bank, show a profit. Get advice from your accountant.
It is up to the business owner to understand which options make most sense for their business. Understanding the different forms of financing and recognizing the appropriate options are some of the most important components of proper cash flow management.
It’s imperative that small business owners understand their market and the various segments (generations) and new residents from other countries
Part 1: Small Business Start Ups Making It Legal; Part 2: Small Business Start Up Capital Access Primer and Key Steps ; Part 3: Definitive Steps to Create the Optimal Small Business Growth Team Part 4: Once You Have the Dream Team, It’s About Employee Retention, Part 5: Delegating Responsibilities Policies and Procedures – Letting Go Part 6: Breaking Down the Set Up of Small Business Financial Records Part 7: Three Best Bet Picks for Small Business Accounting Software Part 8: To Lease or To Buy? Issues Relating To Both In Today’s Market part 1 Part 9 Decided on a Business Lease? 20 Lease Provisions Part 10 What Small Business Contracts Are Required and Who Reviews? Part 11 What are the most serious small business risk and coverage issues? Part 12: Keeping Sightlines on Specific Small Business Target Markets Part 13: Small Business Targeting and Related Branding Components Part 14: Keys to Developing an Essential Small Business Marketing Plan Part 15: Small Business Social Media Blocking and Tackling 101 Part 16: Small Business Owner’s Primer- Understanding the Balance Sheet Part 17: 5 Considerations to Properly Price Products and Services Part 18: How to Handle Inventory in Cash Flow Projections Part 19: Accessing Capital for the Growth of your Business