Why You Should Never Give Up When Seeking a New Business Loan

Did your bank turn you down for a loan and cause you to give up on the great idea you had for a new business? That’s pretty weak. It was either a poor idea or you have been listening to the news media and your neighbors about the state of the economy and the difficulties of getting a new business loan. Did you think it was going to be easy? Is it possible that with all of this talk of recession and economic decline that you thought your humble idea would attract support? Hopefully, you did, because there are plenty of other options for finding financing. You just have to know where to look.

Starting Your Own Business

How exciting. You have probably been thinking abut starting your own business for quite some time now. The job
market is rough and you have said, it's time.

There are hundreds of different opportunities out there today to be an entrepreneur. If you combine all the different businesses in the United States that help entrepreneurs incorporate their business, it adds up to over 180,000 new incorporation's each month. That means there are potentially 180,000 new ideas and opportunities every single month. All you have to do is pick one.

The very first thing you have to think about before you can even start thinking about growth or employees or a company name, is you. You need to ask yourself the purpose for going into business as an entrepreneur. What is the drive, the motivation? Do you have a passion that you have always wanted to fulfill? It is important that you find what is driving you inside, to be an entrepreneur. Why is finding this piece of you so important? You are going to need when you're so far in it and there is no way out but lots and lots of hard work. You're going to need it when you feel like you have hot rock bottom.

Once you have come up with why you are going into business and you have somewhat of an idea in mind, you need to put it on paper. One of the biggest mistakes an entrepreneur can make is start the business first, and then plan for the business. We call that putting the cart before the horse. A business plan is crucial when you start your own business. A business plan will not only give you a direction to go in once you have started your business, it will keep you focused on the original vision.

OK, so you have found what motivates you, you have created a bullet proof business plan so you know what road to go down, and now you need to establish a solid corporate foundation. A business is only as good as its foundation. There is going to be a time in your businesses life cycle where it is going to need things. Employees, computers, office space, business cards, telephones, email, money. In order to have all of this at the tip of your fingers and accessible whenever you need it, a solid corporate foundation is what you must have in place.

A solid corporate foundation starts with how you are going to incorporate your business. Make sure you do your research on how to incorporate your business. Once you have incorporated your business, you now need a business bank account. All funds that are received via your new business need to flow in and out of a corporate bank account. Once you have set up your bank account its now time to get started on building your business credit score. Just like before you were 18 years old you had no personal credit score and no bank would give you a loan; your business acts and performs the same way. With no business credit score, no bank or lending institution will give you a small business loan without using a personal guarantee.

There you have it. You have done all you need to do to start your business the correct way, and now its time to make some money.