5 Tips To Getting Funding For Your Business

5 Tips To Get Funding For Your Business

Tired of hearing "no" from lenders?

You're not alone.

Many small business owners struggle to secure funding, but it doesn't have to be a constant battle. The truth is, there are common mistakes that can kill your application before you even get started. Let's dive into these five mistakes and see how you can leverage them in your favor.

1. You can't hit a target that doesn't exist

• The Mistake: Applying for funding without a clear target.

• The Fix: Define your funding needs with laser focus. How much do you need? What will you use it for (new equipment, inventory, marketing)? When do you need the funds? This clarity helps you evaluate funding options and shows lenders you're serious and prepared. The most important question... how much is my return? What is my risk? Will the loan pay for itself?

2. Your Business is a Ghost

• The Mistake: Neglecting your Secretary of State registration.

• The Fix: Make sure your business registration is current and accurate. It's a simple step that adds legitimacy to your business and can make all the difference in securing funding. Bonus points? Make sure you have your business listed on all of the major directories.

3. Your Bank Accounts Are a Mess

• The Mistake: Mixing personal and business finances.

• The Fix: Funnel all business revenue and expenses through your business bank account. Lenders look at your account history for signs of financial health – number of NSFs, average daily balance, and deposit frequency. Separating your finances shows professionalism and makes your business more attractive to lenders. We don't want to see Chick-Fil-A unless it is a legitimate business expense.

4. You're Playing Tax Tag & Not Keeping Track

• The Mistake: Not filing your business taxes or getting an extension.

• The Fix: Stay on top of your tax obligations. Unfiled taxes can raise red flags for lenders. If you need more time, file for an extension. Demonstrating fiscal responsibility is a must for securing funding. Most of the time taxes aren't filed because Bookkeeping and Taxes are not kept to date. Good Bookkeeping is vital to a good business. If you walk into a bank without a current Profit & Loss Statement and Balance Sheet, you're going to get turned away immediately.

5. You're Trying to Be a Superhero

• The Mistake: Going it alone when it comes to funding.

• The Fix: Build a team of advisors and experts. Together Everyone Achieves More (TEAM). As a Funding Coach I guide you through the funding process, help you avoid pitfalls, and even connect you with potential lenders. You also need to look for a Banker, CPA, Bookkeeper, and Attorney to ensure your financial house is in order.

Winning the Funding Game

Funding for your business doesn't have to be a nightmare. By avoiding common mistakes and taking a strategic approach, you can significantly increase your chances of getting the capital you need to grow your business.

Need Help?

I coach business owners to win the funding game.

Your success is my success.

If you're ready to stop doing it all by yourself and take your business to the next level, connect here: https://www.flowcode.com/page/zacsmith