ARE YOU ABLE TO RUN A BUSINESS?

TEN QUESTIONS BEFORE GOING INTO BUSINESS

• Do you have a unique product or service?
• Do you have the right kind of business experience?
• Can you prepare a credible 3-year business plan?
• Can you take responsibility?
• Can you organize yourself and others?
• Are you ready to put in long working hours?
• Can you stick to it during rough times?
• Do you have family support?
• Do you have enough resources and credit?
• Is your health up to it?

CAN YOU QUALIFY FOR A LOAN?

• What kind of business do you plan to start?
• Do you have the right kind of business experience?
• Is it a new or going business? How long in business?
• How large a loan will you need? How will you spend it?
• Do you have savings/collateral equal to 1/3 of the loan?
• Is your credit record good? Bankruptcies? Debts?
• Have you made a Business Plan complete with financial projections? If not, can you do it?
• Do you have a realistic idea of expected income vs. your personal and business expenses?
• Can you repay a loan from realistic projected earnings?

POSSIBLE FUNDING SOURCES

DEBT FUNDS

• Cash Value Life Insurance
• Your Home Equity
• Loans From Family or Friends
• Banks, Credit Unions, S & L's, Finance Companies, The Money Store
• Your Credit Card (Very Expensive unless you shop around)
• Customer Prepayments
• Credit From Suppliers
• Equipment Leases
• SBA Loans-Guaranteed or Direct
• Veterans Administration-GI Loans
• Dept of Commerce -Export
• Dept of Energy
• Fed Housing Admin
• State of California-Industrial Development - Anti-Pollution Loans

EQUITY FUNDS

• Your Savings, Bonds, Stocks
• Family/Friends Ownership Participation
• Small Business Investment Co.
• Risk/Venture Capital
• May Also be Debt Funds
• Limited Partnerships
• Sale of Stock to Public or Friends