Give Yourself the Money Hunting Edge!

Get your business ready before you seek financing.  Whether you're looking for loans, government grants, corporate or angel investors, strong planning improves your chances of getting financing.  Do these things to show your business in the best possible financial light and make a good impression on prospective sources.

1.      Organize and register your business

2.      Register with Dun & Bradstreet 

3.      Find your NAICS Code

4.      Put your paperwork in order

5.      Write a business plan 

6.      Show how you'll use the money

7.      Develop promotional materials

·         Brochures

·         Advertising Circulars

·         Website

8.      Apply, Apply, Apply!

Organize and register your business – Decide which business organization is best for you, sole proprietorship, corporation, partnership, LLC, etc.  Sole proprietorships and co-partnerships file their names and apply for DBAs with the county clerk in the county(s) in which they intend to do business.  Corporations, limited liability companies, and limited partnerships in Michigan file their names and organizing documents with the “Department of Labor and Economic Growth, Bureau of Commercial services, Corporation Division.

If you are looking for outside funding you might want to consider incorporation.  You don't have to be incorporated to find financing, but it can help. Even though other structures are also appropriate for many businesses, corporate status appeals to lenders and investors. They tend to feel more confident about incorporated businesses. Incorporation makes it easier for investors to acquire equity in your business in return for their money. 

Register with Dun & Bradstreet – If your business does not have a DUNS number, get one.  A DUNS number identifies your individual business, and makes it easy for potential investors to look up information about your company.  A DUNS number also conveys a level of professionalism and seriousness to lenders and investors.

Find your NAICS Code – The North American Industry Classification System (NAICS) is a six-digit industry classification code developed by the US, Canadian, and Mexican governments to be used as a North American Standard Coding System.  Businesses need these codes, which describe their revenue producing lines of business, to: 

·         Register new businesses with the US Government

·         Subcontract from CCR, Defense Contractors, or government agencies

This system is used to classify customers, generate sales leads, and conduct statistical analysis to gain insight on target markets. 

Put your paperwork in order – A standard loan application or grant request requires specific documents and numbers. You should take some time before going through the loan process to get this information in order. It's a good idea to schedule a meeting with your CPA, tax advisor or other financial advisor to do this. Among the documents you'll need are:

·         Accountant-prepared business financial statements (Profit & Loss, balance sheet) for the past three fiscal years or projected for 3 years.

·         Business and/or federal tax returns for the past 2-3 years

·         Lists of business and personal assets that could be used as collateral

·         Names and contact information for at least three credit references (companies you purchase from and do business with).    

Get your business plan in shape – You must write a business plan because lenders and investors require it.  Make sure it accurately tells the story of your company.  It should be easy for a potential investor to get to know your company by skimming the plan.  Your business plan must demonstrate that you understand how to market your product or service and that you will make money doing so.  Create a strong executive summary, be sure your financials show when and how you will obtain profitability.  Assess the market and your competition, and find statistics to back up the key assumptions you make in your plan. 

Show how you'll use the money – Prepare a financial plan that includes projected financial statements for the next 3 years.  Show how you'll use the money to open up new markets, introduce new products, or other business uses that will increase your profits.  Tailor your presentations to the funding source. If you're looking for a loan, emphasize your ability to repay the loan. On the other hand, show equity investors the potential your business has for a strong rate of return. 

Develop promotional materials – Maximize the potential of your business and make a powerful impression on your customers with high-quality, professional print and web designs.  Your print materials and company website represent you and give your business credibility.  Make sure all your marketing materials convey a consistent, compelling message.  The more dynamic and relevant your marketing materials are, the more likely your company will be remembered. 

Make your applications impeccable – Don't forget about the little things that will help you impress money sources and reinforce your image of professionalism. Make your proposals neat and easy to read.  Sloppy presentations will do nothing but work against you. Dress in appropriate, conservative business attire for meetings.  Do everything possible to demonstrate trustworthiness and show that you're responsible and capable. 

Apply, Apply, Apply – Be patient!  Finding financing is a time consuming, exhausting process.  Many business owners greatly underestimate the time it will take them to find the money they need.  Be sure you factor in time for all the tasks you must complete and . . . . call Academic and Business Designs.    

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Call . . .Academic and Business Designs.  From refining your business plan to weeding through lists of grants, lenders, and

investors . . . . .

We can help! 

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