Fund Your Dream Company! How to Get a Business Loan Without Fail

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StrategyDriven Starting Your Business Article |how to get a business loan|Fund Your Dream Company! How to Get a Business Loan Without FailNo matter what your reason is for starting your own business, you’ve got to figure out how to fund your business. Unless you’ve got a nice nest egg and are ready to part with it, you probably need to learn how to get a business loan.

Many small businesses take out business loans to get the capital they need to start up their business and even pay for day-to-day expenses. Don’t get overwhelmed with the thought of taking a loan out.

Continue reading this article to learn about getting a loan to help you get your business off the ground and flying.

The Simple Truth About How to Get a Business Loan

Getting small business loans or other types of loan for your business doesn’t have to be daunting. After you read these tips, you can go through the process without worrying.

You don’t want to apply for a loan before the lender will approve your request. The more requests you have on your credit, the more of a risk it makes you look like.

Determine Why Your Business Needs a Loan

Lenders aren’t going to take “because I want it” as a good reason for why they should lend you money.

Before you speak to a lender, you need to have a solid reason why you need this loan. The more specific you can get about the reason why you need the loan for your business, the more likely the loan officer will see your vision for your business.

How Much of a Loan Can You Afford?

You shouldn’t decide to take out a loan for as much as possible. Before applying for the loan, you should know how much of a loan you can afford.

If your business cash flow isn’t enough to cover the loan repayment, your business and you could come into some serious problems. You should check to see when loan repayments are expected.

Some companies require that you repay them every month and others even require that you repay them every two weeks. Make sure to check the terms so you know when your payments are going to be due as well.

Create a Solid Business Plan

When you were going through the reason that you needed the money for your business, you likely had to work on your business plan. The more solid your business plan is, the more comfortable a lender will be with loaning you the money.

Depending on what you need the loan for, the loan may have different terms. Write out what you foresee happening with your business. You shouldn’t leave out any important details or numbers that will back up your plans.

What Is the Current Financial Status of Your Business?

If your business is already in operation, it will be easier to get the loan. When your business is already in operation, you have some proof that you know how to do business.

Before applying for your loan make sure that your credit history is as spotless as possible. Lenders are likely to review your personal credit history and that of your business as well.

If you look at your credit report and see there are errors or old debts that haven’t been deleted, you need to request to have them taken care of right away. If you have derogatory items on your credit report it will either cause the lender to deny you or charge you a much higher interest rate.

Besides for your credit report and score, lenders are also going to look at your business cash flow. If you have a strong cash flow then lenders feel confident that you’ll have the means to pay the business loan back according to the agreed-upon terms.

If your credit history and cash flow aren’t enough to get the loan, you should look into what collateral you have to offer. If you have something that will secure the loan, the lender is more likely to trust you with their money. If you don’t pay the money back then they get whatever it is that you put up for collateral.

Look at Your Lender Options

Don’t let loyalty keep you broke. It is important that you look at multiple lenders and see what kind of rates they will offer you.

Even if you’ve done business with a certain bank for years, you might check with online banks and see if they have better rates. Since online bank’s overheads are lower, it is easier for them to offer lower interest rates to their customers.

Prepare All Necessary Paperwork

Putting all of your necessary paperwork together can take quite a while. Make sure you don’t miss any important forms or your loan may be delayed or denied.

If you’re getting a USDA or an SBA loan then you might need to fill out paperwork for the government as well as for the lender in question.

There may be some differences in the loan application process but generally, you’re going to need to include your business plan, financial statements and also your cash flow information.

You may need to provide further documentation if what you provide is deemed to be less than satisfactory.

Learn More About Business & Leadership

Now that you know how to get a business loan, you’re good to go and ready to launch and/or grow your business. Why stop learning now?

Bookmark your favorite parts of our blog so you can come back for more great reads later.

Are You Prepared to Be the Boss and Run Your Business?

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StrategyDriven Starting Your Business Article | Are You Prepared to Be the Boss and Run Your Business? | Entrepreneurship
 
Whether you currently have a stable job or you are still in the process of finding a job, the idea of running a business and being the boss looks very appealing. With the unemployment rate that the economy is experiencing, it means that many companies are still struggling to survive. The idea of starting a small business can be quite a scary idea because the success rate is low. If you feel that you are up for the challenge and you are ready to take risks, then you must make the necessary preparations. To increase your chances of being successful here are some tips on how to prepare you for business.

Define your goals

It is easy to say that you want to have a business, but you need to be very specific with your goals and wishes. Ask yourself what kind of business would you like to have? Are you planning to sell services or goods? How long are you giving your self before you start hitting your business goals? Your intentions of running a business should be genuine, or else there is a big possibility that it will fail in the long run because you lack passion and commitment.

What are the costs?

It does not matter whether you want to start small or big, but the bottom line is that you need money to make your investment sustainable. Do you need to figure out how much capital you need to start the business? Do you have enough savings to cover all the costs? If not, are you willing to apply for several loans to increase your revolving funds? You need to have a clear vision of whether you can continue supporting your business in a few months or you will end up closing down because things are not going according to your plan.

You need experience

Before deciding to open up a business, you need to have some first-hand experience of handling people with different personalities. It would help if you also learn the ropes in the industry that you are about to be part of. It is a good idea to get several months or years of experience in companies in the same industry, so you will have the confidence to manage your business.

Find ways to save money

Most start-ups struggle with finances. That is why you need to be thrifty and wise when it comes to your expenditure so that you can survive the competition. Think about your monthly overheads like rental, utilities and staffing. These will be your top three expenses. Try to look for a place with lower rent or do it from your home. You can work on your workforce by hiring a sufficient number of people only.

Lastly, you need to look for a trusted Utility Bidder before moving to a new office space or setting up a physical store. It would help if you found an electricity and gas provider that is affordable and offers excellent service.

Advice For Launching Your First Business

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StrategyDriven Starting Your Business Article |Launching a Business|Advice For Launching Your First BusinessPlanning on launching your first business? This is an exciting time, and you will be keen to get started, but running a company is no easy task, and there are a lot of areas that need careful consideration. You hear of many businesses going belly up before they’ve even had a chance to succeed, so it is understandable if you have some anxiety about launching your company. Read on for a few tips which should help you to avoid common mistakes, hit the ground running, and build a platform for you to go on and find success with your first business venture.

Carry Out Thorough Market Research

Before you get the ball rolling, you need to make sure that it is a viable business option. It might be an idea that you are interested in, but it needs to be something that is in-demand which you can find out with market research. Look at the current state of the market, who your competitors are, who your target customer is, if there are any gaps in the market, and if there is the potential for success.

Create A Plan & Get Sufficient Funding

You can then use your market research to create a detailed business plan which will detail your understanding of the market, your USP, a business model, and financial projections. The business plan can act as a guideline for your company, but it can also be used to secure funding. You need to make sure that you acquire sufficient funding so that you can get the operation running up to a high standard. There are many options for acquiring funds, including venture capitalists, loans, angel investors, and crowdfunding.

Build A Brand

Your brand is how you differentiate yourself from the competition, and it should always be eye-catching, stylish, and relevant to your industry and target customer. It should also be a reflection of your brand personality and values. This will include a company name, logo, and slogan but also your approach to business. You will then need to register the business and secure a domain name for the website.

Online Presence

Leading on from this, you then need to create a strong online presence as this is vital in today’s day and age. This will include an attractive, functional, and valuable company website and being active across social media channels.

Legal Support

It can be daunting when you start a company for the first time as you will want to make sure that everything is legal and above board. It is a good idea to find a lawyer that specializes in business law, such as charlestonlaw.net. In addition to helping you to get up and running from a legal standpoint, they will also be able to help with any legal difficulties that you encounter at any time.

Starting your first company is an exhilarating experience, and you are sure to enjoy many aspects of the process, but it can also be stressful, and many new entrepreneurs make the same mistakes. The above tips should help you to avoid common pitfalls and provide you with a solid foundation to go on and find success.

3 Ways to Secure the Property You Want

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StrategyDriven Starting Your Business Article |Buying Property|3 Ways to Secure the Property You WantRunning a business can be incredibly rewarding, and your success can bring a number of positives to your life, not just extra income. Success often comes with challenges, and as your business grows and succeeds you will soon find yourself running out of space in wherever your business began.

If you started in your garden shed or garage, or are working from a small industrial unit, with your business’s success will come a demand for expansion. Operating from premises that are more appropriate to your company’s needs will also increase productivity and efficiency, giving you a firm base to further grow your business.

Getting the property that you want and that your successful company deserves can seem difficult at first, but there are a few avenues every executive should explore when they are looking for a property to satisfy the increasing demands of their successful business. Here are three ways to secure the property you want.

Speak to Your Current Landlord or Developer

If you are already operating from a commercial property, it is always worth talking with your existing landlord or commercial letting agency to see if they have any other, more suitable properties in their portfolio.

They may also be interested in expanding your existing site, working with you to develop their property with you as a long-term tenant.

Arrange Financing to Help the Business Expand

Property is a fantastic asset for a business to have, and investing in property is often seen as a safe place to invest large sums and receive a long-term return. This makes a new property a great place to invest the financial rewards from your success.

If business is booming, arranging finance for a commercial property will be simple and quick to do, especially with sites like https://alternativebridging.co.uk/ that help broker the right financial package to help your business buy an existing property or even build its own tailor-made facility.

Work with Local Authorities and Development Partnerships

A number of councils across the country, and business development corporations, are building commercial business parks, some with large units available if you need manufacturing space.

Business parks like these often come with a number of amenities that only add to your business’s efficiency and productivity. They are often situated close to major road networks and motorways for convenience, often so close that you can see the units offered as you drive by on the motorway.

You may be surprised at the government initiatives that are available in your area to help businesses grow and create more jobs. They will often have schemes available for local businesses to expand, especially if property and an increase in employees is a part of the expansion. Local governments can help small businesses guarantee finance or receive tax breaks for increasing their number of employees.

Taking the next step and expanding your business with a new property is easier than you think, and can increase your productivity and your profits. Why not build on your business’s success with a new building?

5 Challenges of Starting a New Business From a First Time Business Owner

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StrategyDriven Starting Your Business Article | Entrepreneurship | 5 Challenges of Starting a New Business From a First Time Business OwnerYou might have heard the stereotype that millennials don’t know how to work hard, how to pound the pavement, how to put in the blood, sweat and tears it takes to build a business from the ground up but, I am here to smash that stereotype into smithereens.

I’m 23 years old and started my business when I was just 21. Usit (www.usit.care) was an idea that I had that babysitting could be done better. It could be done wiser. It could be done with more benefit to the worker bee and the worker bee hirer. Still in college with a full load of classes, I certainly made my share of embarrassing mistakes, but I lived to tell about them and I think the mistakes made me stronger and even more determined. I am going to use the word “Challenge” instead of “Mistake” as a necessary euphemism because mistakes conjure up negative emotions while “challenges” are something to overcome and persevere through- which I did and I still do as I work to expand my business into a small empire!

Here are 5 challenges I faced and some essential ways to mitigate those challenges so you don’t become discouraged while on your path to building your own business.

1. Find the Right Team

You’ve heard it said you are the company you keep – and it’s true. Aim high here. Finding the right Co-Founder or partner(s) in your startup journey is a difficult one, especially in the beginning, but even if it delays your launch, don’t settle here. Don’t go straight to your friend, family member, or roommate. Go to someone who has a complementary skill set (it doesn’t help if you are both good at the exact same things,) someone who is as passionate as you about the business, and someone who loses as much sleep about the business as you do. Find someone reliable, someone with a similar work ethic, someone with the same ‘failure is not an option’ mantra. For example, if you need to develop a website or an application it’s better to hire software development team that will do it professionally.

2. Finding Advisors and Mentors

Again, you are the company you keep. Seek out smart, successful people with proven track record. I wouldn’t be where I am now without a supportive startup community, mentors and advisors, and other founders. Get advisors who understand the startup world because they’ve lived it already. You don’t have take everything they say as a blueprint for what you must do – each business is different, but let their ideas be springboard for your own.

No one knows your business better than you do. I go to my advisors when I’m conflicted with business decisions, fundraising questions, pitch help, or general advice. They are important nutrition to the over health health of your business so find the right ones who have different skill sets and experience. You’ve heard it said “Diversify” in your financial investments. The same is true when assembling your team. “Diversify.” Find people with different superpowers. Find a person who excels at sales, find a whiz marketer, find a tough-as-nails lawyer to advise you on all things legal. You get the idea.

3. Keeping Your Team Motivated During Tough Times

To hit the peaks, you’ll be in your fair share of valleys. What goes up, must come down. You can’t defy the laws of gravity so know there will be tough times. Staff can smell fear a mile away. Never give off that sense of concern even if you feel it on the inside. It’s up to the Founder to rally the troops and keep the team motivated and positive. If you’re freaked out, the team will be freaked out and success never flourishes in fear.

4. Working With Limited Resources

It pretty much goes without saying that when starting a new business, you are working with limited resources. “Money does not grow on trees.” But there are big decisions to make about when to fundraise, how to fundraise, the how and when of green lighting big expenditures that require an investment. Talking to mentors and advisors to decide when the right time is to tackle those big questions is essential in maintaining a healthy bottom line.

5. Rejection

Take a “No” or a closed door in your face as a personal challenge. No great companies were built without rejection. No actor gets every part he/she auditions for. No singer got a record deal without hearing some naysasyer along the way. You’ll face a lot of “No thanks, Not Nows, Not Evers,” but rest in the knowledge that it’s just part of the process. That said, don’t discount every bit of criticism you receive. Constructive criticism may well be your best asset. Follow your gut, and dust yourself off every time you’re thrown onto the ground from the bucking horse that is the startup world.

Good luck! I am rooting for you!

About the Author

StrategyDriven Expert Contributor | Ifrah KhanIfrah Khan is the Founder and CEO of Usit, the last minute babysitting app that connects busy parents to vetted college student babysitters in their community. Ifrah was named one of Atlanta Inno’s 25 under 25 entrepreneurs in 2018 and has a passion for how technology can help create new communities and opportunities in dual sided marketplaces. She just completed Atlanta Tech Village’s Pre-Accelerator and is focusing on disrupting the babysitting industry by turning what used to be a huge pain in the butt for both parents and sitters into an easy and exciting process. Ifrah supports and brings together other young entrepreneurs with her position as a Kairos Society Executive with a mission of focusing the next generation on problems worth solving. She graduated from Emory University’s undergraduate business school in 2017 and previously worked in Finance at Accenture. Although she’s not a mom, she is passionate about helping mothers and children in need which is why she serves on the board of Helping Mamas, a fast growing local Atlanta non-profit aimed to help moms and children in need.   https://www.usit.care/