Both start-up financing for a new venture and expansion capital for an existing business share common elements in assisting the success of your entrepreneurial endeavor. The difference between these two types of capital funding is the specific needs of that business and presentation of information to the perspective capital source regarding an accurate monetary picture. You must be realistic and totally honest in evaluating the capital required and credit worthiness of your business. Presenting a comprehensive "Business Plan" to an investor or bank officer will save valuable time and effort in expediting the process and securing capital.
This "Plan" should include:
- your background and expertise;
- financial statements;
- consumer need for this type of new business and/or history of existing business for expansion;
- operational procedures;
- total expenses;
- profit structure and future projections;
- capital needed;
- payment analysis.
There are numerous individual or combinations of capital sources available to qualifying businesses. These sources can include secured or non-secured capital from investors or banks, working capital lines of credit, short or long term commercial loans, equipment leasing or letters of credit for international trade.
To help you explore "Capital Sources" for your business, SCORE, A Resource Partner of the U.S. Small Business Administration, offers free, confidential one-on-one business counseling with experienced executives plus a day long monthly Workshop for a nominal fee. For the location, phone number and counseling hours of the office nearest you, call our main Dallas SCORE Office at (214) 987-9491.