|
|
BB&T can help your small business succeed and move forward. We understand that when you are starting a business or growing an existing one, financial support is crucial. BB&T can provide the resources, financial and otherwise, to help you achieve your business goals and objectives.
|
|
When starting a business, ask yourself the following questions. Once you have the answers, your BB&T small business relationship manager can assist you with the details of starting a business and help you get your company up and running.
What experience do you have in this line of business?
Your experience in a line of business gives you the knowledge to do well in the marketplace. Your experience also serves as a form of equity to ensure that your business will thrive. If you do not have much experience in the market you want to enter, try to gain some before starting your business either by working for someone else or volunteering. The more experience you have in your line of business, the easier it will be to get the very best rates and services to get you started.
Do you have any equity to invest?
While experience increases business efficiency, one of the most common reasons young businesses run into trouble is underestimating the financial resources needed to get started. To start your business, you can expect to contribute 30% of your total needs with non-borrowed money of your own.
Do you have enough collateral for the loan?
You may need collateral equal to the loan amount or a guarantor of high net worth to receive a loan for your small business. Personal assets such as real estate can be used for collateral, but assets outside of personal property help secure your loan. In addition, the assets of your business, such as your new equipment, can contribute to your loan value.
Have you drafted a business plan?
A good business plan will help you maximize profit, control costs, and achieve your objectives. A solid business plan also gives you the flexibility that you need in a changing marketplace. Your business plan should include the following key areas:
- A summary of your management and business experience as related to the business you are starting.
- Financial projections for your business for the first two years.
- An evaluation of your competition including a summary of your competitive advantage.
- A marketing plan that shows how you plan to acquire clients to support your revenue projections.
See our Small Business Online Workshops for more guidance on developing a business plan.
For additional information on starting a business go to www.sba.org.
Once you have successfully established your business, you need to grow to accommodate new customers and products. BB&T can help you with the challenges of expanding and diversifying your business from managing cash flow to efficiently handling inventory increases. We can help you manage your relationships with suppliers and other vendors to make these relationships more profitable. Ask yourself the following questions to prepare to expand your small business.
Do you have enough capital to grow your business?
Without enough capital to expand, your flourishing business can quickly succumb to your expansion efforts. Before expanding and diversifying, make sure you have enough capital, especially for short-term obligations such as accounts payable and inventory.
How will you finance new equipment and real estate for your growing business?
Lack of available cash for real estate or additional equipment can quickly stop business growth. To reduce your initial cash down payment, prepare the following items to show how this investment in your business will yield positive returns:
- A budget showing the additional revenue and expenses that would be generated by your purchase of real estate or additional equipment.
- A detailed listing of collateral available in lieu of a cash down payment. Typically, collateral valuation percentages would be up to 75% of market value for equipment and up to 80% for real estate, less any existing mortgages.
At BB&T, we are comfortable working with young growth businesses and understand how important it is to learn what you need for your specific business. We offer a full line of deposit and cash management services, and we have developed a unique approach to financing new and growing small businesses with our BB&T lending philosophy. BB&T has the business solutions you need to help you start a small business and grow an existing one.
To learn why BB&T is consistently ranked among the nation's top three small-business friendly financial holding companies,* read more about BB&T In The News.
 In The News
Can venture capital help your small business grow?
|
