What to Do Once Your Business Plan Is Complete3 min read
Once your business plan has been thoroughly developed, it is time to shop your company idea around to potential lenders and investors. Many business owners begin their quest for funding with banks, investors, and venture capitalists, while most utilize the immediate benefit of family and friends. No matter how entrepreneurs intend to finance their companies, the difficult aspect of starting a business begins after the business plan is complete. Make no mistake about it, securing sources of funding for business start-ups is not an easy task. However, with hard work and diligence it can be done. Though we are hampered by times of economic downturn, now is the perfect time to begin the journey towards business ownership. There are current signs of recovery for small business funding and although scarce, it is evidence that the best is yet to come. Presenting your business plan to potential lenders and investors now enables entrepreneurs to establish the relationships that can lead to future successful financing endeavors. Furthermore, if owners can secure any financing in times of economic despair it serves as a testimonial to firms and banks that their business idea is likely to garner profits.
Engaging family and friends to become a part of the journey towards business ownership normally serves as entrepreneurs’ best avenue for securing capital. It just makes sense that the ones who love and care for you would be interested in being involved in your quest for success. Obtaining all of your start-up capital through family and friends is less than likely for most, but the opportunity to gain funds for equipment, down payments, consultations, legal fees, etc. is vast. When starting a business every dollar counts and any funds accumulated prove beneficial to the overall success of the company. For many the possibility of gaining the financial help of loved ones seems meek in times of financial struggle for all, but in all business endeavors you never know a counterparts willingness to partner with you until you ask. Remember, in matters of business family and friends are the only people who have a legitimate concern for your success and not their own.
If family and friends don’t prove to be the only source of funding necessary, it is then that the solicitation of investors and lenders is warranted. There are primarily four types of funding sources new business owners should solicit for help. Unless the funds sought are minimal, banks should not be your first source for financing. Instead, many successful small business owners have acquired start-up funding through private investment firms called “angel investors,” who are beneficial in facilitating meetings between entrepreneurs and potential investors. Other resources to consider when searching for business loans opposed to investors are small business investment companies and the U.S. Business Administration. The SBA will assist current business owners in finding investment companies that specifically provide loans for small business start-ups. However, these organizations enact rigorous qualification processes and financing through them is difficult for new companies. This makes private investors coupled with family and friends the ideal solution for new business start-ups.
Do not be discouraged by the struggle to finance your start-up or existing business. This struggle will be the first of many in your journey as a business owner. Though it will be difficult, financing your business is by far the most advantageous victory you will ever experience in you role as an owner. Embrace each individual endeavor you will face on your road to success for they will all enable you with the character necessary to lead you company to profitable outcomes. View your search for funding as the most valuable challenge to conquer as the head of your company. But more importantly, view it as the most rewarding.
Accept the challenges so that you can feel the exhilaration of victory ~George S. Patton~