Now that you've made the decision to go into business for yourself, you've got a bit of work to do in order to get ready for the risky self-starting business world.
To begin, you need to establish some credit.
Determining Need: If you're just getting started in the business world, you'll want to steer clear of borrowing from a bank --you've not established any kind of profit margin and you haven't proven your business can sustain itself.
You'll want to seek money from informal investors: family, local development corporations, maybe even universities with development funds.
If you've gotten yourself on the road to success but need stronger investors, you'll be able to set your sights on a commercial bank as a backer.
Proper Steps: If your business has proven to be marketable and you desire a strong financial backer, your first step is to fill out an application for a bank with which you've already established a relationship.
However, if you don't have that option, seek assistance from a lawyer or accountant --they'll be able to open the lines of communication between you and the right bank associate.
You'll want to make sure you know how much of a stake you're putting into your business --whether sole proprietorship, partnership, or corporation.
When you've found a reputable lender, you'll have to follow their steps to filing an application and submitting a business plan.
Keeping Track: Now that you've been approved for your loan, you've got to make sure that you keep those payments on track.
The moment you seem to be losing your grip on your financial situation, you'll lose a great deal of credibility from your lender and from future business partners.
Just as you want to make yourself marketable, getting ahead in the business world requires that you keep a healthy line of credit and keep your report clean.
A word of advice: if keep your overhead costs minimal and your revenue flowing you'll manage to stay current on your monthly payments.