Not every investor or lender will require you to hand over a formal business plan, but that doesn’t mean you shouldn’t have one. Before you even start to think about financing, you need to ensure you have clearly defined business goals and a plan, and that you have taken stock of your current financial situation so you can accurately evaluate your business’ financial needs. Here’s how:
1. Deciding on your goals for the business: Are you eager to roll up your sleeves to build a business from the ground up, acquire and existing business, or open a franchise? In this video, Sam discusses how to review your current situation and articulate your goals.
2. Creating a business plan: Discover what information to include in your business plan to make it professional, approachable, and worthy of consideration.
3. Approaching financiers: Meeting with an investor can be an intimidating prospect. Learn how to be prepared and anticipate some of the common questions from potential investors.
4. Understanding valuation: Placing a valuation on a younger company can be very difficult and subjective, but it’s important small business owners know how to calculate how much their business is worth.
Have you already figured out your business’ financial situation, or are you ready to learn more? Jump into the next part of our series, Acquiring funding.