Credit history. Your current credit score could affect how lenders and suppliers perceive you.
Develop a Cash Flow Analysis for your business. You will need cash to start, operate, and expand your business operations.
Calculate your Breakeven Analysis to help determine when you can expect your new
business to turn a profit and be able to cover its own expenses:
Break Even Point = Fixed Cost/(Unit Selling Price - Variable Costs)
Do you anticipate needing additional funding sources outside of your personal finances to get your new business up and running? Consider
- Equity Financing vs. Debt Financing
- Will you have the ability to repay your loans?
- Make sure you have a good personal credit score.
- Most lenders will want to see equity invested into the new business.
- Retained Earnings
- Cash from Owners/Investor
- Will you be able to provide some form of collateral?
- Do you or other lead personal have any Management Experience?
- Consider taking classes or training courses that specialize in Business Management.