Four Facts Entrepreneurs Should Know About Launching a Business

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Every year, millions of Americans start small businesses. As of today, America is home to more than 30 million small businesses. Of course, having a vision isn’t enough to open a startup’s doors. That’s why so many dreamers turn to small business lending to back their dreams.
 
Are you someone who has considered building an empire from the ground up? Congratulations! Just keep the following realities in mind to make wise early and mid-stage decisions.

Business Plans Are Essential to Snag Investors

Whether you’re planning on seeking small business lending from private venture capitalists or a more traditional small business lending source, you’ll be expected to present a thorough business plan. A plan shows not just that you’ve done your homework, but that you’ve thought about how you’ll navigate your first couple of years. Without a comprehensive business plan, you’ll have trouble securing money from anyone other than friends and family members.

You Might Be Eligible for an SBA 504 Loan

The SBA 504 loan program works hand-in-hand with more traditional small business lending methods. If you’ve been in business for a couple of years and want to build a new manufacturing plant, acquire land, or make certain improvements, your for-profit company may be a candidate for an SBA 504 loan. Talk to Lewis & Clark Development Group’s SBA 504 funding experts.

Early Success Can’t Always Be Measured in Profits

Although you want to turn a profit as soon as you can, profitability shouldn’t be your only yardstick to let you know if you’re doing well. Other indicators that you might be on the right track include a growing interest from your target audience, repeat business from current customers, and the ability to pay all your bills every month. Even if you’re just breaking even, you can pat yourself on the back for holding your own.

You May Have to Refinance Along the Way

Refinancing isn’t an inherently bad word. Many entrepreneurs have to refinance their small business loans at some point. Before you take this step, talk with your small business lending representative, of course. Having a thorough discussion about your borrowing options will allow you to better evaluate whether refinancing makes sense.

When you know what to expect as a startup owner, you can more easily navigate the common challenges and pitfalls faced by entrepreneurs. Do your homework, especially when it comes to money acquisition and management topics. That way, you’ll be in a better position to lead and disrupt with confidence.

Lewis & Clark Development Group — Your Small Business Assistance Team

Contact LCD Group SBA 504 Loan Program Officer Tracy Whitney at (701) 667-7602 or at tracy@lcdgroup.org.

Learn more about our business lending programs here.