Most businesses will need business financing at some point. The amount of financing needed will change based on the company’s / entity’s stage of doing business. Start-ups have to address start-up costs while ongoing businesses will need to finance growth and working capital. Businesses should tailor their funding search and approach based on needs.
Managing and in turn growing your business will require funding. A high-growth coffee processing company looking for second-round of funding and a local coffee shop store looking to finance a second location, or a farmer seeking to expand his farm will all have very different considerations. It is wise to have a business plan or a strategic plan. This is very helpful particularly when until applying for funding, whether from a bank or investor. This plan can also be used as a guideline vs a stand-alone proposal to present to a potential lender. In preparing your documents be clear about to whom the request will be requested. You must also think about the questions they might have and what they would want to see. You MUST do your homework regarding the costs involved with your plans. For the financial section of your plan – be consistent with your numbers, and ensure you are very thorough and accurate in the creation of your budget.
