Biggest Challenges When Funding a Small Business
Starting a small business is one of the most exciting and challenging ventures you can undertake. The promise of growth and success is part thrill and part marathon, but the good news is that others have run this road before and the payoff of a thriving business is worth the work.
At The GrowWise Group, our financial consultants specialize in helping get small businesses off the ground. In this post, we’ll share some of the top challenges faced by small business owners and talk about how we can help overcome them.
Funding Your Small Business
Even if you’ve got a great idea for a business, a good idea alone isn’t enough to translate into profits. An underfunded business has a much lower chance of success. To start things off the right way and give your business its best shot at success in the future, you want to make sure you have everything you need to get things going.
When putting together your business funding plan, you need to account for everything you’re going to use from manufacturing materials to inventory. You’ll even need to plan for your office supplies and utilities.
As you put together your business budget, don’t forget to account for the following:
● Transportation- If your business requires a lot of driving, you’ll want to make plans for company vehicles or factor in car maintenance costs and gasoline.
● Salaries- If you’re planning to hire staff, you need to be sure you can pay them. A strong business plan factors in the possibility of cash flow problems without risking your employees’ paychecks.
● Marketing- You have to spend money to make money, as they say, and nowhere is this truer than when it comes to advertising. Failure to properly advertise means you won’t reach potential customers. Your startup expenses should plan for both physical and digital marketing. Your audience demographic and type of business will inform the style and scope of advertising you need, and you should plan accordingly.
● Web Content and Site Maintenance- In the Digital Age, having an online presence is a necessity. You’ll need to plan ahead to purchase the URL as well as budgeting for a professional web content creation company.
● Equipment- Consider any equipment you’ll need to get your business off the ground. If you’re starting a bakery, you’ll need access to a commercial kitchen. If your business involves lawn mower repair, you’ll need a variety of reliable power tools.
● Inventory- If your business involves sales, make sure your inventory is set up so that customers don’t end up having to go somewhere else due to poor inventory management.
● Supplies- You’ll need to plan for everything from computer equipment to business cards. Consider everything you’ll need to run your day-to-day business down to the paper in your printer and work it into your budget.
● Software- It’s easy to overlook software when planning your business, but software expenses can add up fast. Determine which kinds of software you’ll need to conduct your daily business from word processing to spreadsheet management. Decide if you will use proprietary software or you plan to purchase access. You’ll also need to decide if you wish to pay on an annual basis or monthly.
● Startup Fees- Many businesses require licensure that involves fees on the local or state level. Be sure to investigate your state’s requirements ahead of time. Putting off any required licenses, permits, and certifications can end up costing you in fines down the road.
Business Funding Solutions
Too often, great business ideas are held up due to a lack of funding. That’s because most people don’t realize their personal funding is completely separate from their business funding. Problems with your personal funding may hold you back, but fortunately, you can build your business credit separately from your personal finances.
Here are some of the top challenges small business owners face when trying to secure business funds:
1. Trouble Establishing a Business Account
If you want access to business funds, you’ll need an established business account. This demonstrates to lenders that your business is established. This creates a business funding paradox. After all, how can you start a business without business funds?
2. Difficulty Securing Grants
You’ve probably heard people talk about all of the countless business grants available for starting new businesses. The trouble with small business grants is that they can be highly competitive and take a long time to secure. They also typically come with many strings attached.
3. Overly Complex Lending Process
Many business owners are new to the business world, and to someone who hasn’t been through the process of securing a business loan before, the process can be daunting. That’s why it’s important to have an experienced financial advisor to guide you through the process.
Your Business Capital Funding Problems Solved
When you need help getting your business off the ground, having someone who understands the process and can help you get the funds you need is priceless. That’s where our financial consultation experts at The GrowWise Group come in to help. We work with small business owners to minimize the challenges and maximize their chance of success.
To get the funds you need to succeed, start by filling out our funding application. You can also speak with us directly at 877-244-9809 or contact us on the web to learn more about getting help for starting a small business.