If you are planning to start your own business, you need to make a plan to balance your finances. Getting financial advice is important before starting up your own business. I have come across many women who have worked it all out, but when it comes to financial discussion, they go blank.
So, I came up with an idea to help the women entrepreneur in understanding their finances and accounts. The fact is, women are less likely to get a loan from the bank as compared to the men. After all, it’s a male dominating world out there. For this reason, they are not able to grow their business. Although, the ratio shows that women are opening up new business at twice the rate as men, but are they really touching the skies?
Meet up with any small business loan officer and they will all tell you the same thing. It all depends on the financial plan you make. Yes, a solid financial plan is what you need to hit the top of the business market. For this reason, it is important to learn the basics of accounting, otherwise your business won’t flourish. Come up with a strong financial plan, because this will help you to convince the loan officer that you know what you exactly want out of this business.
My personal advice to all the ladies starting start their own business is to get a basic accounting course to begin with. This will help you in numerous areas of your business. With proper knowledge, you will be able to create better budgets. You can set your financial goals and above all, manage the cash flow.
Some Tips to Make a Great Financial Plan
- Look in your industry: this is what the loan officer will do and you should do the same. Once you tell them about your business plan, they will look into the ratio of people already working in this area.
- Do not forget to list down your assumptions: your financial plan should be strong enough to convince the loan officer. This is your only chance and you have to do it, and you certainly can. Add sales projections and expense estimate in your financial plan. The more detail you add, the better.
- Make two plans initially: to bring up a more realistic financial picture, it is better to make 2 plans. One with the best you can achieve, and the other with the worst that can happen.
- Keep on planning: the key to getting your loan approved is to keep on planning. The more you plan, the better your chances to get a loan. Plan each and everything from what you will do with the money for what the cash to come will produce in terms of income for you in the near future.
By following this advice, I can assure you that you can convince the loan officer. Just remember a solid financial plan is what you need to bloom. With your finances all organized, you can focus on providing value to the customer and changing their current status for the better!