Let’s cut to the chase. If you’re worried about funding for your small business during the ongoing downturn, we have our top ten tips for you. Every small business is different, and every form of funding has their own rules; but these ten tips are the ones that we have found to be most successful in keeping businesses on top.
We’ve pulled this article together from feedback from clients, and from some of our past articles like the Small Business Funding Unveiled series and the Small Business Lending Ecosystem series. You can find more details on each tip at these and all links throughout our post. If you have questions about any of our top ten tips, feel free to ask us; we’re happy to help your small business find funding.
If you don’t have a business plan and concept in place before you start looking for funding, you’re already behind the eight ball. Your pitch is also something that you also need to make sure is properly realized. These need to be done before anything else.
Cross every “t”. Dot every “i”. You don’t want to miss out on funding because you missed a small detail. So many of our clients have had trouble with finding funding because of minor issues in business plans. This is where a second party like ProStrategix can help you find money.
Lenders are looking to make sure that you are putting yourself on the line, not just that you’re looking for money because why not. If you’re not putting yourself on the line, you might as well not be trying
While the SBA has been having some trouble recently, in general you should be thinking about federal loans when it comes to finding ways to fund your small business.
If you’re asking too high or too low for your own small business funding, you should be looking into what your price needs to be. Too high and you’ll be turning off investors; too low and you won’t be able to help your company. Find the proper middle area and you can save yourself a lot of stress.
Don’t just investigate traditional lenders. Instead, you can find success with alternative lenders that are a bit more off the beaten path. The traditional route isn’t for everyone, especially when it comes to our next tip.
Your personal and business credit scores can fully affect how much money you can get from a loan. If your credit history has issues, then you might be in a tough spot right now. Especially as COVID continues, you need to be as attractive as possible to potential lenders. And the first thing they check is your credit score.
Relating to the credit history, you need to be safe with how many loan applications you send. It’s important to look for the right option that fits your small business, but most of our “top ten funding tips” require a strong credit score. Keep that in mind, as too many applications can screw up your credit.
Are you looking to expand your business locally, or take it global? This is something that could affect the different kinds loans you might be eligible for. More than that, it changes the money you might need in the long run.
This is more just common sense. But our tenth “top ten small business funding tip” is the most basic. Your common sense is the most important asset you have. And going even further than that, make sure that have smart people to help you out. You don’t need to go it all alone.
Brian Cairns, CEO of Prostrategix Consulting. Over 25 years of business experience as a corporate executive, entrepreneur, and small business owner. For more information, please visit my LinkedIn profile