The state of our economy for the past few years has been hard on small business owners. Not only have small businesses and individuals taken a hit in regards to their income, but it’s been very hard to even get the funding necessary to support a small start up.
Can 2012 possibly be the year of change for small businesses owners?
A recent bill, the Small Business Jobs and Credit Act, has been signed and put into law. This bill will hopefully mean that banks will finally approve loans to help small business owners start off on the right foot.
With the loan limits now up to $5 million, it’s going to be up to the banks to help small businesses get the money they need to get started.
So, how can you best use your loan money? Having a firm plan in place will help banks see your vision and approve your loan. Here are a few of the most important items you’ll need on your list to show banks that you mean business.
1) Building Space: First things first, one of the biggest start-up costs is finding a place to conduct business. Finding a building for rent and paying the monthly fees will be one of your biggest expenses, and the number one most important item for getting started. Do your research and find potential rental spaces in an up and coming area, or a spot that is relevant for your specific business venture. Though you will need the money to close the deal, go into your loan meeting with a few solid leads, and as close to starting negotiations or even closing as possible.
2) Business Furnishings: After your actual renting expense, having the supplies you need to run your business will be your next largest cost. Have a clear budget set so you know how much you’ll need in loans to cover the cost of filling your building. Whether you’re running a restaurant, hair salon, clothing boutique or specialty store, you should have a list of furnishings, supplies and appliances you’ll need along with a clear cost analysis and planned budget. Always factor in extra money for getting the space up to speed, repairs and unforeseen expenses.
3) A Company Car: If your business relies heavily on transportation in the form of deliveries or a lot of travel time, you may not want to put the miles on your own vehicle. A company car would be a responsible use of loan money. Compile a list of possibilities for finding a reliable company car. You can save money buy buying a used vehicle. If you’re looking for the used cars Oklahoma has to offer, you might consider Tulsa Ford or even buy here pay here car lots in Oklahoma.
Going into your loan meeting with a clear goal, budget and list of start-up expenses will help banks realize that you are serious about starting your small business. While the bill has been signed into law, it is still up to you and the banks to make your dream real!
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