There was a time when it was easy enough to get a loan. Before the global financial crisis, Australian banks were happy to lend money to just about anyone. There weren’t many hurdles to jump over, and lenders paid less attention to the borrower’s ability to repay loans. The economy was doing well, and everyone was optimistic. But now in 2017, things have changed quite a bit.
Many places have experienced an enormous financial downfall, which is felt across the world. The result is a reluctance to hand out money the way banks once did. Credit policies have become far stricter, and it is much harder to find financing if you are a first-time borrower. In fact, some places won’t even consider you if you have not borrowed in the past.
What does this mean for someone who needs an investor for their new business endeavour?
You Need a Business Plan
If you are starting a new business, no matter how small, you need a plan. This can help show lenders that you are serious about success and have created a roadmap to get your business there. This is also an important process for you, as the owner, so you know where you’re going, and the steps you need to take to get there.
So how do you create a business plan? You can begin by asking yourself a series of questions related to why you are opening the business, how you plan to run it, where you want to take it, and what you will do in case of a setback. The plan should go into detail about how you will keep your staff happy, how to handle clients, and what research you have done to determine if your idea is viable.
Even if you already have a business, it’s never too late to make a plan. But instead, tailor your questions to the existing operation. For example, ask yourself why customers are frequenting your establishment (or why they’re not if you aren’t meeting your sales goals). How can you maintain your current level of success or expand it? How will you convince consumers to leave your competitors and come to you?
Come up with a complete set of questions to help you build a comprehensive plan that will keep your business on track and moving in the right direction.
Financial Planning & Projection
You opened your business to make money, so naturally, you must pay attention to your income and spending. Make sure you have a financial plan in place to keep your operation going, even if there is a setback. Delve deeper by thinking about things that could hurt or help your business. For example, if a holiday event will be hosted in your town, how can you use that to your advantage as a business? If there are slow seasons, then how can you prepare for them, so your business survives?
Planning for the present is good, but you should also look to the future to keep your financial path clear. Get started with professionals who know how to get the most out of a business budget. Jonathan Grant Accountants have the experience and expertise to not only ensure your business is compliant but more importantly, assist you in setting your business up for success.