Step 4: Do a Business Inventory and Prepare a Business Plan
Similar to how you took a personal inventory, you want to do the same thing for your business. If it is a start-up business, you may not have anything yet but our great idea. That’s fine, but you need to know what you’ve got up front.
Are there hard assets (cash, real estate, inventory, equipment, invoices, etc.) that you can use as collateral?
Are there existing company debts?
Can they be refinanced?
Are there pre-payment penalties?
Be clear about what the new funding will provide for you.
Are you going to hire more employees?
Are you going to get a new piece of equipment?
Are you just looking for operating capital?
Have concise and accurate historical financials covering two to three years, if your business has been in existence that long.
Do financial projections for two to three years if your financing will change your financial picture, increase profits, or increase debt. Projections are particularly important for business expansions and start-ups.
Prepare a business plan. Not only is it essential for getting financing but it is a crucial document that will help you completely understand your business aqnd its financial viability.
Are there hard assets (cash, real estate, inventory, equipment, invoices, etc.) that you can use as collateral?
Are there existing company debts?
Can they be refinanced?
Are there pre-payment penalties?
Be clear about what the new funding will provide for you.
Are you going to hire more employees?
Are you going to get a new piece of equipment?
Are you just looking for operating capital?
Have concise and accurate historical financials covering two to three years, if your business has been in existence that long.
Do financial projections for two to three years if your financing will change your financial picture, increase profits, or increase debt. Projections are particularly important for business expansions and start-ups.
Prepare a business plan. Not only is it essential for getting financing but it is a crucial document that will help you completely understand your business aqnd its financial viability.