wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
Join the Mendo-Lake SBDC at 9AM on Wednesday August 10 for a meet and greet with local lenders and the opportunity to network with other small business owners.
Every business needs capital to get started and grow: it’s literally the lifeblood of a business. And without adequate financing–– through microloans, commercial or alternative lending, or investment capital––most entrepreneurs cannot start new businesses or grow their existing companies.
If you’re fortunate, perhaps you have access to capital through savings or family loans, but the majority of business owners will need to seek funding via a loan with a bank, credit union, or alternative lender. In order to prepare yourself and your business for that all-important financing meeting, you need to decide what is on your “must have” list and what’s on the “it can wait” list. In other words, what is the minimum you need to get your business off the ground?
Here are some common business expenses to consider before trying to secure funding:
- Payroll: Will you have employees and if so, how many and what will you pay them? Think about benefits as that’s part of the payroll packet. And don’t forget yourself––you need to get paid too!
- Licensing and permits: You will need to obtain certain permits and licenses to run your business. Make sure you take those into account.
- Taxes: There are a variety of taxes that you will need to pay, among them, payroll taxes and sales tax. Talk with your Mendo-Lake SBDC advisor about which taxes you will need to pay.
- Equipment: Itemize the equipment you need and decide is you will lease or purchase. Equipment not only covers machinery like computers and POS systems, but also uniforms or PPE for your employees.
- Rent and utilities: Consider how much your utilities will run in summer versus winter.
- Insurance: Is your business prepared if disaster strikes? Will you be offering health insurance to your employees?
- Marketing and website: You have to let people know about your business so you will need to factor in marketing costs and website development and ongoing maintenance. Other advertising costs might include newspaper or magazine placement, radio ads, and social media buys.
If you have any questions about getting your business started or growing your existing business, contact West Center today at 707-964-7571.