Retain Accountant's O Prepare Your Business Plan

Whether you have an established business in need of additional capital or are just starting out, you need to know about the benefits and limitations inherent in your financing options. The costs and risks involved in the first few years of operating a business may be frightening. Careful planning will help to reduce the risks. Facing realities about your financing needs and diligently preparing your business plan will help you to overcome the costs involved. The investment community is not willing to grant loans or invest in your business unless you provide them with something worthwhile to invest in. The following considerations and suggestions will help you to gain the trust of investors and meet your financial needs. o Retain Accountant's

Your plan should provide potential investors with a comprehensive view of the structure and your conclusions about the it, a realistic operating plan that you intend to abide by, potential risks, the position the business can pretty safely expect to be in over the next six months and over the next year, and possible the comments about your hopes for further developments. In addition to providing investors with valuable information, your plan will cause you to focus your attention and force you to look at every opportunity and every risk that comes with it with a clear eye and a level head. Periodically updating your plan will help you to gauge your progress and enhance your ability to make realistic

Remember that many young businesses operate for at least three years without any profit. Unless you start it with old money, you will need to explore the possibility of loans or raising money by selling partial ownership of it in equity offerings. While loans may allow you to retain ownership and control of the business, often, institutional lenders will be hesitant to help finance a new business. Accordingly, you may have to sell equity to meet its financing needs. Depending upon the uses, this may be through the sale of shares of stock, membership interests, or partnership interests. In selling equity, you and must exercise care so as to prevent giving control of the business to investors and to ensure compliance with federal and state regulations affecting such