My husband came home from work one afternoon with what seemed to be a great way to earn a little extra money. Unfortunately, we didn't have the money on hand that it would cost us to get things started. I decided to start looking for a loan to cover the cost of starting the small business. There are so many options for borrowing money to start up a business and it took me quite a while to narrow down the long list. My blog contains the best options for you to consider when looking for financing to open a business of your own.
Whether you have recently started a business or are wishing to expand a startup, you may have run some numbers and determined that you will need financial assistance to reach your goals. To attain this assistance, you may be getting ready to apply for your first business loan.
When you apply for the loan, you will need to fill out an application as well as bring in receipts and other forms of documentation. However, along with bringing with you these standard sets of paperwork, there are a couple of other things that you should do before applying for a business loan for the first time.
1. Create a Realistic Projected Budget of Income and Expenditures That Includes References to Back up the Numbers
One thing you should do before meeting with the loan officer is to create a realistic budget that includes projected income and expenditures. This budget is different than your current income and expenses as it shows how you expect the business to grow with the help of the loan.
When you create this budget, keep the numbers realistic and based on the expected expansion of the customer base and profits. You should also include references to back up the budget, which can include graphs showing current and projected growth or market research you have completed in your business's area.
2. Practice a Pitch That Tells the Story of Your Business as Well as Your Future Plans for Growing It
Another thing you should do before applying for a loan is to practice a pitch that will tell the story of your business to the loan officer. This pitch should include a little bit of the background, such as why you started the business and what motivated you to do so.
After the history of the business, incorporate how the business is currently progressing. This will then lead to your future plans for growth that the loan will help you achieve.
When applying for your first business loan, you should take steps to show not only how your business is currently doing but also how you expect it to grow. You can do both by creating a detailed, realistic budget of income and expenditures that are backed up with references. Also, have a pitch ready that tells the story of your business's past, present, and future. If you need further information or are ready to apply, contact a financial institution that offers business loans—such as the Credit Union of Denver—to set up an appointment with a loan officer.
Share10 January 2023
