What's up Young & Free Maine?
If you made the decision to pursue entrepreneurship, get ready to make it happen!
Where to start?
You’ve completed step 1: Making the decision.
What next? If you don’t already have the necessary funds for your business, you will need a way to finance your business. This involves a few steps, including determining your business expenses, and getting a loan.
Where to start:
Call or visit a credit union near you. "If they don’t have the resources, they will point you in the right direction to get the process started," said Ryan Poulin, of New Dimensions Federal Credit Union. "Not all credit unions offer small business loans, but any credit union will be happy to point you in the right direction, or to another credit union that does offer small business loans."
Credit unions are a good place to start because they are apt to help small businesses with what they need to get started.
Discussing a small business loan with your credit union can lead you to a lending company, like Business Lending Solutions, LLC. Business Lending Solutions is a company that provides lending services through their credit union partners, with a mission to support Maine business - both small and large. They offer commercial loans for equipment, real estate, and business acquisition. Find a list of their credit union partners.
GETTING A LOAN: Steps To Help You Get Approved
- Do your homework.
- Draft a detailed business plan, with business projections.
- Make a personal investment into your business.
- Be patient.
Let’s talk about step one: Doing your homework
Know your market, and the demand for your product or service. Know your target demographic, the competition, and the location of your business. Determine the cost and your business projections for the next 1, 3, and 5 years. Also consider what type of entity you will be: Personal (or Doing Business As), Limited Liability Corporation, Corporation, etc. Before getting started in business, do your research!
Let’s discuss bullet number two: Drafting a detailed business plan
To ensure that you are approved for your small business loan, you will need a strong business plan with reasonable business projections. Use your research from step one to draft this plan!
No clue how to write a business plan? No problem! Check out the key to writing a business plan.
Bullet number three: Make a personal investment
When you invest your own, personal funds into your business, you show lenders that you are SERIOUS about making your business happen. Even if you are just planning to invest your personal funds, let your lender know! This improves your chances of getting approved for a small business loan from your credit union.
Bullet number four: Be patient
“Patience is always good,” says Ryan. Getting a loan is a process, and could take anywhere from a few days to a few weeks, depending on the type of loan.
Follow along for next week's iEntrepreneur blog, for more financial resources to make your business goals become a reality!