Immediate funds may seem tempting, but quick solutions can lead to long-term challenges. The Key? Prepare like you're getting in shape.
In the big world of finance, the pros always say it's smart to apply for funding before you're desperate. It's like one of those nuggets of wisdom everyone in business has heard at some point.
But let's be real, how many small business owners actually follow through with this advice when they're looking to fund their ventures? Sure, the idea of getting your funding ducks in a row before the storm hits sounds like a no-brainer. But, life in the entrepreneurial lane can get pretty hectic.
Juggling a million things at once, small business owners might find themselves putting off the task of securing funds until it's almost too late. It's the classic case of knowing you should plan ahead but getting caught up in the daily grind. And suddenly, you're scrambling for solutions when you really wish you had those funds lined up already.
Closing the gap between knowing the smart move and actually making it happen is the real challenge for business folks diving into the finance game.
Physician, Please Don’t Heal Thyself
Would any doctor, lawyer, or psychiatrist consider hiring themselves or attempting self-healing? Certainly not, and what is the reason behind this choice?
In various fields, including medicine, law, and mental health, the consensus emerges that seeking the expertise of professionals is crucial. The challenges of self-diagnosis or self-representation in legal matters, as reflected in the adage "A man who is his own lawyer has a fool for a client," underline the potential pitfalls of navigating complex domains without specialized knowledge.
Doctors, lawyers, and psychiatrists recognize the limitations of their objectivity and emotional involvement when addressing personal issues within their expertise.
Hence, the prevailing wisdom advocates for consulting professionals, collaborating with colleagues, or seeking expert advice before taking action. This approach ensures a more informed, objective, and effective decision-making process, ultimately leading to better outcomes in both personal and professional spheres.
JACK*SS of All Trades OR Masterful Entrepreneur
While doctors, lawyers, and other professionals have the knowledge to inquire and subsequently take action, small business owners sometimes lack this discernment. The phenomenon referred to as "Hubris Syndrome" underscores this disparity.
Indeed, it is not uncommon to observe that successful individuals, while excelling in their specific fields of expertise or professions, may occasionally presume expertise in areas beyond their knowledge.
This "Hubris Syndrome" phenomenon arises when offered advice or opinions on subjects outside their accustomed domains. The success and confidence they've gained in one area might inadvertently lead to overestimating their proficiency in unrelated matters.
It's a reminder that even accomplished individuals should approach diverse topics with humility, recognizing the boundaries of their expertise and acknowledging the need for continuous learning.
While their achievements deserve respect, an awareness of the limits of their knowledge ensures a more grounded and informed approach when delving into unfamiliar territories.
Always Missing Something
Bridging the “MISSING” before needing the Loan
Reflect on your company's early days – the drive to succeed, the meticulous attention to every detail. Yet, even the most promising ventures can miss vital elements when seeking funding.
Did you know that over 70% of new clients lack crucial documents or criteria for loan approval? Whether it's a FICO credit score, sufficient time in business, consistent revenue, or essential documents (tax returns, P&L, balance sheet, etc.), these gaps hinder success.
***And, notably, over 90% of these businesses also lack a business credit profile and score.
There has never been an easier time in US history to get business loans and credit
With the rise of online alternative lenders and the increasing competition among traditional banks, small business owners have more options than ever before. Whether you’re looking for a short-term loan to cover expenses or a long-term loan to finance growth, there are plenty of lenders willing to work with you.
Additionally, the Small Business Administration (SBA) offers government-backed loans to help small businesses get the financing they need.
That Said; Overall, You’ll Still Need All or Some of the Following:
Make a list, then do the work to check off each item
- A decent FICO credit score typically 680 or greater. (720 is the sweet-spot)
- Monthly business revenue from $25k to $40k or greater. ($15k for MCA loans – NOT OUR RECOMMENDATION)
- Time in business at least 1 year, with most funding programs requiring 2 years.
- Business and personal tax returns (typically 2 years)
- All business information congruent i.e. business address, phone, professional email must be the same across the board including articles of incorporation, bank account, website. Plus, a business phone number that is listed with 411
- An actual business credit report with Dun & Bradstreet, Experian Commercial, and Equifax Commercial.
- Profit & Loss Statement (P&L) & Balance Sheet
- My recommendation, consult a funding expert…
*** BONUS: There are a few funding options including ‘Business Credit Cards' which any brand-new business can get even if only one-day old provided they have at least a 700 FICO Credit Score!
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Think of getting business funding like committing to a New Year's resolution to get in shape. You know the drill - consistency, time, and actually showing up at the gym every day.
But here's the kicker: even if you're hitting the business gym regularly, without the right know-how, you won't reach your funding goals. It's like mixing dedication with the right knowledge – that's the winning combo for securing lasting financial options for your business.
So, just like with getting in shape, the first steps should be to set a goal, commit to the goal, consult an expert, create a plan based on the goal, and then execute the plan. Oh, and PS; MAKE TIME!Fitness Success | Funding Success |
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Conclusion:
"In the world of business funding, treat preparation like gearing up for a fitness journey. Set goals, consult experts, make time, and execute with consistency. The right mix ensures lasting success – in fitness and financing. Start your journey today!"
Book your free business funding session: Get Started Today!
