Are You Able to Run a Business?

TEN QUESTIONS BEFORE GOING INTO BUSINESS

 Do you have a unique product or service?

 Do you have the right kind of business experience?

 Can you prepare a credible 3-year business plan?

 Can you take responsibility?

 Can you organize yourself and others?

 Are you ready to put in long working hours?

 Can you stick to it during rough times?

 Do you have family support?

 Do you have enough resources and credit?

 Is your health up to it?

CAN YOU QUALIFY FOR A LOAN?

 What kind of business do you plan to start?

 Do you have the right kind of business experience?

 Is it a new or going business? How long in business?

 How large a loan will you need? How will you spend it?

 Do you have savings/collateral equal to 1/3 of the loan?

 Is your credit record good? Bankruptcies? Debts?

 Have you made a Business Plan complete with financial projections? If not, can you do it?

 Do you have a realistic idea of expected income vs. your personal and business expenses?

 Can you repay a loan from realistic projected earnings?

POSSIBLE FUNDING SOURCES

• DEBT FUNDS

 Cash Value Life Insurance

 Your Home Equity

 Loans From Family or Friends

 Banks, Credit Unions, S & L's, Finance Companies, The Money Store

 Your Credit Card (Very Expensive unless you shop around)

 Customer Prepayments

 Credit From Suppliers

 Equipment Leases

 SBA Loans-Guaranteed or Direct

 Veterans Administration-GI Loans

 Dept. of Commerce -Export

 Dept. of Energy

 Federal Housing Administration.

• EQUITY FUNDS

 Your Savings, Bonds, Stocks

 Family/Friends Ownership Participation

 Small Business Investment Co.

 Risk/Venture Capital

 May Also be Debt Funds

 Limited Partnerships

 Sale of Stock to Public or Friends