Five Financial Steps for Getting Your Startup off the Ground

Startups need funding to expand their new businesses. With a vast amount of funding opportunities online and within your community, you're on the road to acquiring a strong presence in your industry. Take care of the basic groundwork before you begin seeking funding and test your idea by getting clients now. Remember, part of your funding can come from your current sales. This article will review five steps to generate the rest of your funds to move your business forward. Focus on sales now to add the funds to your business bank account later and establish your accounting practices early. Soon your efforts will draw in success when you decide to pursue investors and other funds from creditors.

Credit Report & Score
Your personal credit score is a critical factor in establishing your startup's financial future. With an inadequate or questionable payment history, banks will not approve your loan. Many startups fail this test of handling their personal affairs prior to approaching investors. You will see a difference in your credit score if you make payments on time, limit new personal accounts, and focus on maintaining a healthy relationship with your bank.

Get to Know Bankers
Credit and credibility go hand in hand. Know your bankers, expectations, and requirements for loans prior to submitting your application. With an increase of startups and entrepreneurship, banks deny approximately 80% of applicants. Work closely with your local State Bank of Cross Plains branch to know if you're on the right track for acquiring a loan.

Apply for a Business Bank Account & Credit Cards
Your business bank account is key to improving your chances for financing your startup. Why? Your company's transactions will prove that you're using your business credit effectively. Keep your personal accounts separate from business transactions. Your records indicate an ability to manage accounts correctly if you can keep business accounts in order.

Extend a Line of Credit
Suppliers provide extended lines of credit with certain buyers. Consult your suppliers to see if they report the accounts to the credit bureaus. Pay attention to contract details including APR, payment timelines, and maintain great relationships with every creditor. This can be a great way to expand your business and get your accounts in order.

Seek Alternative Funding
Peer-to-peer lending, crowdfunding, working capital loans, and family and friends are optional sources of funding that work well when seeking financial backing for your startup. No matter which direction you choose to take consider the consequences for including friends and family because the risks can be complex. 

Your business financing can and will improve over time. Remain patient, stay on top of accounting records, and build your professional network to increase sales.