By Dr. Pat Laino
Dr. Pat Laino, the author of this article, is the Executive Director of the Business Training Institute and has helped thousands of aspiring entrepreneurs open up and operate their own business.
Most “wannabe” business owners start with the assumption that the primary purpose for going into business is to get their operations off the ground, be their own boss, and make a profit.
The entire business process is a system of checks and balances. Business owners need to know what money is coming in, what’s going out, and the difference between these two, which should yield an acceptable and healthy profit.
If you are an entrepreneur ready to launch your business, the first thing to remember is to establish a financial record-keeping system for the business operations. If you don’t have the skills to create your financial system, then find someone who can. You have to know where you stand financially at all times through prompt record keeping and analysis of key data. Don’t leave this essential chore to anyone else but yourself.
You should also track your credit score because this is the first item that the loan officer considers.
Keeping business records are important for two reasons:
- It’s required by Law and
- These are useful documentation to you as the owner
Your financial books must be set up so that your personal money and that of your business are completely separated. I highly recommend that you hire a book-keeping firm that will use their knowledge of the current financial rules and regulations and their expertise to set up your booking system.
Your financing strategies should be driven by your business goals and objectives that are outlined in your business plan. In the final analysis, these factors will govern your “money-raising” power and skills that will lead to successfully launching and funding your business. Currently, there are more alternatives for financing a business than ever before. Many economists estimate that loans remain available today for well-structured start-up companies. However, I believe that this remains to be seen in today’s troubled COVID pandemic world.
Initially, one of the major questions to ask yourself is, “How much money do I need to get my business started?” If there is one single piece of advice I could give you in raising money, is that you must determine how much capital you really need, what you will do with every dollar, how long you will need this money for, and how you propose to pay it back.
No matter what approach you use to securing financing, you’re going to need a full business plan to take to the loan officer. If you have a business selling something that your customers can’t live without and there are enough of these customers, then this is the time to seek your business loan.
If you are really thinking about starting your own business, then you may want to purchase “Unlock the American Dream” from Amazon or Barnes & Noble for more of Dr. Pat’s secrets and business advice.
