One of the most important points for entrepreneurs and managers to remember is that there is no cookbook recipe to follow for obtaining business financing. By identifying certain traits about your small business and being honest with yourself, you can determine the types of financing you can realistically expect to obtain, but attempting to slot your business into a rigid financing “profile” can limit your own creative thinking as well as the impression you give to potential financiers.
When looking for financing, entrepreneurs and managers need to present the most attractive overall portrait of their particular business by emphasizing its strong points and explaining its weaker traits. One business may have an extremely valuable asset, e.g., a technology patent, but no track record; another business may have a sizeable initial equity investment but lack short-term cash. With small to medium sized businesses, the risk to investors and creditors is so high that each financial trait is exaggerated, and any shortcomings must be balanced by a compensating advantage. Entrepreneurs and managers need to be flexible in considering how the strengths and weaknesses of their business can be presented so that they can have access to as many different sources of financing as possible.
Interstate Business Solutions assists businesses with finding lenders or investors who will take the time and effort to consider the unique characteristics of the particular small to medium size business and may eventually view that business as a one-of-a-kind opportunity.
Tags: AskTheCFO, Business Debt Reduction, Business Debts, Financing, Linkedin, Part time CFO