6 Steps to Business Financing

No matter what kind of financing your business needs, there are a few basic steps that can be done from the very start to assist a business owner or budding entrepreneur in getting the right kind of funding specific to their needs. Without a doubt, start-up business financing can be the most difficult form of financing to obtain - because there is no track record. In this case, a start-up business is classified as a business that is less than two years old. Many times, the methods available for start up financing differ from the financing options available to an on-going business concern (over two years of operating history). We include in Step 5 the methods for financing a business purchase, because although the business might not be a start-up per say, you are starting as a new business owner when you purchase an already existing business, so some of the methods presented will work for financing a business purchase. If you are starting a business from scratch, learn more about the proper steps to follow when setting up and starting a new business.

Step 1: Take a Personal Inventory and Prepare a Personal Financial Statement

Step 2:  Know Your Numbers: Credit is King

Step 3: Set up your Business to Build Its Own Credit

Step 4: Prepare a Business Plan

Step 5: Identify the Best Financing Options

Step 6: Make the Pitch to the Right Financing Source