👋 Clubhouse: Let’s Start a Business
This is the third of a series of Clubhouse rooms (monthly) that will take a deep dive into starting a business. Our moderators will introduce their why and share tips and guidance on how to start a business. If you miss the room, we will have Replays on so you can listen at your convenience.
Topic: Finance Your Business
A big question that comes along with a great business idea is: where do I get the money to get this off the ground? These questions can be very daunting.
Some questions to ask yourself:
- How much do I need to begin my business?
- Start-up cost is dependent on the business model (insurance, equipment, office space, software)
- Am I selling products or services?
- How much do I have in my personal savings that I can invest in my own business?
- Start-up cost is dependent on the business model (insurance, equipment, office space, software)
- Where can I go find the funding for my business?
- Look at your personal finances
- Funding sources: Personal savings, Crowd Funding, Grants, Bank and Credit Unions, Angel Investors, Home Equity Loans
- What to keep in mind when you go to banks for funding sources?
- Banks review the 5 C’s:
- Character (credit history)
- Capacity (debt to income ratio)
- Collateral (offers of assurance)
- Capital (your level of seriousness)
- Conditions (interest rate & principal)
- Banks review the 5 C’s:
- Are there benefits of a loan?
- Tax benefits
- Low interest rates
- Favorable repayment terms
- How do I increase my business credit score?
- Also, what billing system fits my financial needs?
- And when should I hire an accountant to make sense of my financials?
Takeaways:
- “Get scrappy!” – You can get started by starting small and dreaming big.
- ie. Restaurant: Maybe start in someone else’s kitchen so you can begin building up a hype/niche on your product.
- Trust in your intuition
- Look at your personal finances FIRST
- Ask your connections already established: friends, family, colleagues, community members, other business owners in the same industry.
- Corporate Grant Opportunities: Look to corporations and their giving season, they want to give your small business money! You don’t have to payback grant money.
Resources:
- Business Reporting Agencies:
- Experian
- Equifax
- Dun & Bradstreet
- Grant Opportunities:
Our Co-Moderators:
Heather DeVine w/Transcend Ideas – Marketing and branding agency serving nonprofits and small businesses. (Jackson, WY)
Trudie Ives w/Tru Logistics – As freight brokers, we facilitate the transport of vehicles and freight across the United States. (Palm Beach, FL)
Zee Zee Williams w/KW Inc. Insurance Marketing Group – Specializing in final expense, we train, mentor, and grow our agents to be successful in their business. We are dedicated to giving our clients the integrity and service they deserve. (Columbia, SC)
Laura Sexton w/Accelerate Your Legacy – Specializes in debt elimination. Laura is all about the money mindset, adjusting money habits and offers up tools you need to succeed with money.