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Challenges of Running A Business
by Michelle » Fri Aug 31, 2007 8:07 am
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Michelle - Black Belt
- Posts: 1529
- Joined: Wed Oct 11, 2006 7:27 am
Getting your invention to market and keeping it on the market is basically like running any other business.
For help and tips on running businesses, you can check out our General Business and Start Up section
http://inventorspot.com/business_advice
of our Helpful Information section at http://inventorspot.com/invention_information
If we are missing anything that we should add, please let us know.
Michelle
For help and tips on running businesses, you can check out our General Business and Start Up section
http://inventorspot.com/business_advice
of our Helpful Information section at http://inventorspot.com/invention_information
If we are missing anything that we should add, please let us know.
Michelle
by Work2XL » Fri Aug 31, 2007 3:26 pm
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Work2XL - Blue Belt
- Posts: 478
- Joined: Tue Apr 24, 2007 7:56 pm
- Location: Denver
Michelle,
The second link didn't come up. One thing I'd love to see is a list of banks that are start up friendly or at least small business friendly. I was told by a Score memeber that to get backed by the SBA you first take your plan to a bank and they submit it to the SBA to get it guaranteed. I'm not sure but I think it's backward. If anyone has insites on specific techniques, and criteria that lenders respond to that would be helpful to many.
Randy
The second link didn't come up. One thing I'd love to see is a list of banks that are start up friendly or at least small business friendly. I was told by a Score memeber that to get backed by the SBA you first take your plan to a bank and they submit it to the SBA to get it guaranteed. I'm not sure but I think it's backward. If anyone has insites on specific techniques, and criteria that lenders respond to that would be helpful to many.
Randy
by 5rocks » Thu Sep 06, 2007 6:43 am
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5rocks - Green Belt
- Posts: 213
- Joined: Wed Dec 27, 2006 12:36 pm
- Location: milwaukee
Work2XL,
I received a guaranteed SBA loan through my local bank. I did not talk to the SBA directly. It was handled through the bank. After my bank had my business plan for several weeks they told us that as long as the SBA backed us, the bank would guarantee the loan. They do this especially when there is no collateral involved. If the SBA likes your business plan, chances are, the bank will secure the loan. 80% of my loan was guaranteed from the sba and the other 20% was through my bank. The SBA's main concern aside from making the monthly payments and hoping that your business takes off, is to have you keep good books and have invoice copies for every transaction draw off of the loan. The SBA wants to help new business because it is good for the local economy. Start at your own bank and ask them how to get the ball rolling for a secured SBA loan.
Good luck,
Pat
I received a guaranteed SBA loan through my local bank. I did not talk to the SBA directly. It was handled through the bank. After my bank had my business plan for several weeks they told us that as long as the SBA backed us, the bank would guarantee the loan. They do this especially when there is no collateral involved. If the SBA likes your business plan, chances are, the bank will secure the loan. 80% of my loan was guaranteed from the sba and the other 20% was through my bank. The SBA's main concern aside from making the monthly payments and hoping that your business takes off, is to have you keep good books and have invoice copies for every transaction draw off of the loan. The SBA wants to help new business because it is good for the local economy. Start at your own bank and ask them how to get the ball rolling for a secured SBA loan.
Good luck,
Pat
by 5rocks » Thu Sep 06, 2007 6:53 am
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5rocks - Green Belt
- Posts: 213
- Joined: Wed Dec 27, 2006 12:36 pm
- Location: milwaukee
One more thing Work2xl,
Make sure that your 1, 2 and 3 year profit forecast as well as break even or exit strategy all work out on the calculator. The SBA did come back to us because our unit price along with costs and profits didn't quite add up on paper at first. I had to go back through the financial part of my plan and work out the numbers. Keep your business plan to the point and let them know you are excited about your business/invention/service, etc.... Some people may not agree with me, but I don't think there is anything wrong with putting your heart into your plan with some emotion. And I don't mean making your business plan 40 pages long. That is not necessary in most cases. Don't bore them. Get them as excited about it as you are. They like to see that you are real and the you are REAL serious. This is only from what I have learned. I am sure that others have there own ideas. Each case is different.
1. Short, sweet, kick A$$ business plan.
2. Submit it to your bank and ask about SBA guaranteed loan or a hybrid sba/bank loan.
3. Be ready for any questions they may have which will be more than likely only about money. After all they are lenders. Ha ha.
Make sure that your 1, 2 and 3 year profit forecast as well as break even or exit strategy all work out on the calculator. The SBA did come back to us because our unit price along with costs and profits didn't quite add up on paper at first. I had to go back through the financial part of my plan and work out the numbers. Keep your business plan to the point and let them know you are excited about your business/invention/service, etc.... Some people may not agree with me, but I don't think there is anything wrong with putting your heart into your plan with some emotion. And I don't mean making your business plan 40 pages long. That is not necessary in most cases. Don't bore them. Get them as excited about it as you are. They like to see that you are real and the you are REAL serious. This is only from what I have learned. I am sure that others have there own ideas. Each case is different.
1. Short, sweet, kick A$$ business plan.
2. Submit it to your bank and ask about SBA guaranteed loan or a hybrid sba/bank loan.
3. Be ready for any questions they may have which will be more than likely only about money. After all they are lenders. Ha ha.
by Work2XL » Thu Sep 06, 2007 4:17 pm
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Work2XL - Blue Belt
- Posts: 478
- Joined: Tue Apr 24, 2007 7:56 pm
- Location: Denver
Thanks for the input 5 Rocks. I hope you don't mind me asking, Was it a micro loan? Can you give me an idea of the terms? I understand that it changes with credit, collateral ect. The Length and what range the rate was are my biggest questions. I know it could be bad form for me to ask but the only loan I've ever had in 38 years is car loan. I have not done any research on business loans.
If you prefer not to answer that is fine and I completely understand.
Randy
If you prefer not to answer that is fine and I completely understand.
Randy
Fixed link in main post
by admin » Wed Nov 07, 2007 11:40 am
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admin - Yellow Belt
- Posts: 69
- Joined: Fri Oct 06, 2006 4:54 pm
I fixed the link in michelle's post
7 posts
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