Kick Starting a Venture with the Help of Business Funding and Maintaining Financial Stability
- December 22, 2017
- Will Turner
More and more homeowners have become so busy with their careers and other things that they barely have time to keep their homes clean and clutter-free. This is what cleaning services have capitalized on. Residential and commercial cleaning services are a very lucrative venture to get into. The market for this type of business grows continuously, and small businesses have joined the bandwagon.
If you are looking for a good business idea, you can look into the cleaning business. But to start a business you first need capital. Don’t worry if you do not have the right amount to start a cleaning business. You can fund your cleaning business with Fundbox – a company that helps business owners get started with their ventures as well as help them stock up on their inventory and improve an office or warehouse, among others.
Establish Your Niche
Cleaning businesses may have already flourished in your area, so you need something that will set you apart from the competition. Being unique will also guarantee you a spot in the industry, and will make clients come back again and again.
Before you start your business, determine the type of provider that you will be. Will you be servicing homes only or will you also be catering to offices and other business establishments? Looking for funding for your business venture will require a lot of preparation so that you can convince the funding institution that you are qualified for a loan.
Here are some ways you can guarantee that your cleaning business proposal will be approved for funding.
Improve Your Credit Score
Credit score is probably the most important factor that financial institutions look into before they approve an applicant for a loan. But if you want to fund your cleaning business, what they will look at is the health and feasibility of your business, so you have to provide an impressive portfolio to be able to be granted a loan for your business. Financial institutions rely heavily on the credit score of the business or applicant to show if they have the capacity to repay the loan and interest within the determined time frame. Credit score is not built overnight; as soon as you start earning money and paying bills you will be building your credit rating. This being said, it is important to be responsible with paying off debts and bills as early as possible.
Prepare an Impressive Business Proposal or Performance
Devote ample time to making your business proposal or your existing business evaluation so that funding institutions can see whether they should entrust their money to you to build your empire. Honesty is very important; do not jack up figures just to impress the lender. It will eventually backfire.
Prepare Financial Statements
If you already have a cleaning business in place and you are looking for additional financing, make sure that your balance sheets, cash flow and accounting records are accurate, thoroughly checked and truthful. Lenders will nitpick through your financial statements.
Do Not Come Unarmed
As soon as you enter the lender’s office, make sure that you look businesslike – attire, attitude and demeanor. Take time to make yourself presentable as appearances make a lasting impression. Secondly, you have to be familiar with all aspects of your business so that every question will be answered truthfully and quickly. Taking a long time to answer a query may mean that you do not know the ins and outs of your business venture. All documentary requirements should always be organized and ready to be presented.
Once you have been approved for funding, the next step is ensuring that your cleaning business is always on top of its financial performance. You can take steps to guarantee that your business will stay afloat and be profitable for many years to come, and for future funding to be granted seamlessly.
Business and Personal Finances Should be Separate
This should be the first thing you keep in mind. Personal and business finances should never be pooled together. Do not take out money from your cleaning business account to pay off your home electricity bill and vice versa. Not only is it a bad business practice, but it will reflect poorly on your financial statements if you cannot trace where the money from your business went. To help keep them apart and stop you from slipping, you may want to look at hiring an outsourced financial expert to keep on top of your business finances. There is more help to be found on websites similar to earlygrowthfinancialservices.com, if required, to keep them separate.
Equip Yourself with Knowledge and Skills about Your Business
An effective business owner is someone who knows how to do the job himself should he be short staffed. Manning the phone lines and being able to answer customer queries should also be one of the business owner’s traits. This way you do not need to rely heavily on your staff for everything.
Pay off Loans and Debts on Time
A good credit rating will help your business grow. Do not neglect due dates; they will save you money from penalties and charges. Loans and debts as well as bills must always be settled on time. Your finance department should be able to stay on top of your business finances.
Seek the Help of a Professional
Let’s say you wanted to start a cleaning business because you grew up helping around the house and you actually are very good in keeping areas clean and organized. This is your strength; but what about the other aspects of the business, especially the financial aspects? A professional financial planner can help prevent your venture from getting in debt and going bankrupt. You can work with a planner about your financial goals for your business and he will make them happen.
Being your own boss has its own perks. It also entails being on top of your game if you want to ensure the success of your business and carving out your niche in the industry. It takes time, patience, perseverance and sacrifice to become a successful business owner. It may take months, even years to see fruitful development, but a positive attitude and outlook will see you through.
Image: freedigitalphotos.net / radnatt