Key Takeaways

• Financing is ultimately about getting the money needed to start, operate and grow your business.
• Unless you won the lottery or inherited a family fortune, starting a business will cost you money, certainly at the beginning. Lenders rarely invest in a new business, mainly because it carries too much risk.
• Start your business with a reasonable budget. It will take time for you to generate a positive cash flow. Factor this into your planning. You’re going to have to carry the business financially initially in the beginning, either through your own money, investments from friends, family or crowdsourcing, or some other source of funding.
• Invest in good bookkeeping software or use an online platform such as GoDaddy Bookkeeping to manage your business’ finances.
• Use the platform’s reporting tools to generate balance sheets, cash flow projections and profit and loss statements to guide you in your decision-making.
• Keep your personal and business records and funds separate.
• Plan and manage your personal and business portfolios to maximize your chance of getting a loan down the road to fuel growth and expansion. This includes keeping track of your credit score, managing equity so that it’s flexible, repaying small loans or credit lines on time and building a relationship with one or more lending institutions in your community.