5 Small Business Financing Tips with Michael Savage
Once you have established a solid plan and workflow for your small business, the next step is getting the money that will help maintain the foundation that you have built.
Once you have established a solid plan and workflow for your small business, the next step is getting the money that will help maintain the foundation that you have built. Business executives, such as Michael Savage, suggest the following strategies when on the search for small business funding:
1. Patience is key
Be realistic in knowing that funding may not come right away. First, you have to get your small business on solid ground to test the limits of what the business is and is not capable of. Donít expect to turn a profit right away, as some businesses donít see such turns until a couple of years into progression. Take your time to build several realistic business concepts that will work to build profit, and try them out.
2. Consider alternatives
Before using credit cards and getting in too deep with large loan contracts, look into borrowing from friends or family, or your own bank account for covering start-up costs. Funding your own small business may slow down the process to getting your business the jumpstart you were looking for, but looking into alternatives to getting a loan will more than likely help you in the long run. Personally funding your small business will allow for more flexibility and less pressure than an external business loan will allow for.
3. Keep it all in writing
Whether it be through a personal connection or an investor, make sure that all loan agreements are accompanied by a signed contract with specifically laid out guidelines for the loan that both the lender and the borrower can understand and agree to. As a business professional, Michael Savage emphasizes how important it is to make sure that you and your company are legally protected and that any agreement is clearly understood between both parties.
4. Update your data
Consistently keep track of your loans and how they are working for your business. If you notice any changes that you may or may not like that are coming from a lender and the money you are getting from them, keeping these documents can help you compare and contrast other ideas for lenders and alternatives ways of financing your small business. This will also help you keep track of interest rates between different lenders and see if your profit is correlating with your investments.
5. Prove to lenders that your company has potential for long-term growth
When a lender is confident that your small business is on the right path for lasting growth and success, the promise of profit will increase your chance of getting funding.† Prove that you have advantage over competitors by solidifying an organized short-term and long-term business plan. Be realistic with your plans for your small business to show lenders that you are aware of any challenges that may lie ahead, but also that you are prepared for them.
About Michael Savage
Michael Savage works with 1800Accountant.com, which provides services for entrepreneurs and small business owners. Products and services include, but are not limited to: accounting, tax and financial planning, bookkeeping, payroll, and business planning. To learn more, please visit:http://michaelsavage.org
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