Whether you are starting small by going it alone or are ready to hire employees, entrepreneurship can look very different. Here, we break down the essential steps to help you refine your business idea all the way to business conception.
Whether you are starting small by going it alone or are ready to hire employees, entrepreneurship can look very different. Here, we break down the essential steps to help you refine your business idea all the way to business conception.
Our checklist will prepare you with the knowledge and tools to become grant ready, empowering you to apply for funding opportunities that will benefit your small business.
Our roadmap will prepare you with the knowledge and tools to become loan ready, empowering you to navigate the funding landscape with confidence.
The loan agreement includes terms for repayment and other stipulations necessary to have a good understanding with your lender. There are generally three types of loan agreements: affirmative, negative, and financial. Affirmative agreements require you to perform certain activities, such as purchasing specific insurance or providing financial statements on a regular basis.
Capital, or working capital, is the difference between your current liquid assets and your current liabilities. Your current obligations include any debt or payment due within one year from the date you are calculating your principal.
Collateral requirements can be different depending on the type of loan you are applying for, and strong business plans and financial statements can help you avoid putting up collateral. It’s a good idea to prepare a collateral document that describes cost/value of personal or business property that will be used to secure a loan.
The following information is needed for purchasing an existing business: current balance sheet and P&L statement of business to be purchased; previous two years federal income tax returns for your business; and proposed bill of sale including terms of sale asking price with schedule of inventory, machinery and equipment, furniture and fixtures.
Most loan programs will require you to submit a sound business plan with your loan application.
Include a copy of your business lease, or note from your landlord, giving terms of the existing or proposed lease.
Include signed personal and business federal income tax returns of your business’ principals for the previous three years.