I guess it would safe to say that most people dream of having their own business. The most appealing thing about it, is the idea of financial independence when you start earning your own money without having to depend on some employer. Ask almost anybody about their idea of a business that they would like to engage in, and they would have a clear set of plans that they would want to follow. If you ask what they are waiting for before they start on their business, then they would say that they just need more capital.
If you are really decided in starting your own business there are always ways that you can get funding for it. You can ask for help from friends and family who might have the ability to invest. You can always go to a bank and ask for a loan. There is also the S.B.A. or the Small Business Administration, tasked with helping out owners of small businesses. They can get support, guidance, and perhaps more importantly loans from the SBA.
If you think that the SBA would be the only ticket for you to get enough money to have your business take off right from the start, then you better start doing your homework. They are not in the habit of handing out funding to just about anyone who walks into their office with an idea for a small business. You need to have avery clear idea of what it is that you want with your business and how you can achieve that.
To help out some potential small business owners out there, here are some of the basic SBA loan requirements:
Your Business Profile- You need to show where the money would be going. You have to come up with a business plan detailing the kind of business that you have in mind. The document would have to include important information like sales, number of employees, how long it has been in business, if already existing.
Loan Request- Now you need to tell them how the money will be spent. It should be a clear plan, and should also state the amount and kind of loan that you would like to get.
Collateral- This should be a document describing the collateral that you are offering in order to secure the loan from them.
Financial Statements- This would include the financial statement of the business for the past three years. You also have to submit the financial statements of the people who have a stake of 20% or more in the business.
As you can see the requirements that are needed in order to secure a loan would not be difficult to come up with. If your business is none existent yet, and you are still on the planning stage then you have to be more comprehensive with your business plan. You have to show your potential lenders that you have a clear vision of where you want to take your business. If you can not do this then don’t expect to get that loan.