Author: Rick Nelson, VP/Commercial Loan Officer

Are you looking to start a small business? Or to grow your small business?

Owning a business can be the most rewarding challenge, but it certainly is not an easy task to start or to maintain. Here are some key recommendations to consider.

Understand how your industry works.
Make sure you fully understand what drives the success of the business you’re starting or growing. Who will be your customers? What is the expected market? Who will you purchase supplies from? What type of staffing will be needed? If equipment is needed, what will you need and how much will it cost? What type of facility will you need to operate your business, and what will the cost and/or payments be, either to rent or to buy? How will you fund initial expenses to start up or operate the business?

Do not be afraid to reach out for advice.
Be willing to speak with and listen to as many people as possible to ask questions on how others started their business or how they grew their business. Don’t be afraid to ask others with experience what obstacles they encountered and how they overcame them. There is nothing more important than getting advice from those who have already been where you want to go.

Establish a quality team of outside advisors.
You will need to establish a team of outside professionals you can rely on for insurance needs, legal assistance, and financial advice for accounting and banking.

Prepare your plan to access funding for your business.
If you are lucky enough to be able to self-fund any financial needs for your business, Congratulations! Most businesses will need some sort of assistance. Start saving now so you have some funds saved that you can contribute to equity. Another key thing is to have a good personal credit score. If you plan to request funding for your business, all financial institutions will want to see that you can handle your personal obligations.

Presentation of a business plan.
There is no need to write a book to sell your idea, but you do need to take the time to reflect on how your business will have cash flow and have sufficient excess funds to pay all your bills and loan payments. Your plan should lay out in detail the supporting documentation that justifies your projected gross receipts, cost of goods, upfront expenses for beginning or expanding your business, and any ongoing expenses to operate your business.

To learn more about PremierBank’s business banking products and how we can help, click here.