Before working with a consultant, ensure you have a firm plan of action prior to signing a contract. All parties should know upfront the scope of work to be evaluated. You must also ensure that confidentially is discussed before, during, and at the conclusion of the project.
In order for an external consultant to fully understand your business, they must have a complete picture – the good, the bad, the financial issues, etc. Do not hide negative aspects of your business, as the consultant will need full knowledge for their work to be successful. Give them the freedom to discover the underlying issues in your business, so that they can use their skills and knowledge to help your face its challenges.
Do not try to grow your business too fast and too soon. Analysis the current internal and external situation and compare it with your business growth strategy to determine if the time is right for an expansion. Expanding before you’re ready can not only mean a failed expansion, but even a failed business.
Managing your business debt and loan repayments can seem daunting, especially when you are repaying various sources of financing. Entrepreneurs should maintain an open and honest relationship with their lenders, even during financially challenging times. It is also good practice for business owners to be stay involved in managing their finances, and not rely solely on their accountants for updates on their financial situation.
Need to secure financing for your business? A detailed business plan is essential and should cover important topics such as market size, competition, management competency and financial projections. Having your personal finances in order and maintaining a good credit rating can help your application. You should also have full accounting of your start-up or expansion costs and know how much capital you require to proceed.
Contributing equity shows that you are personally vested in your business. Lack of personal equity is a red flag for lenders, who want to see that potential clients believe in their venture and are willing to invest their own personal finances to help the success of their business. If you’re lacking personal funds to invest into your business, consider MBO’s Impact loan program. As a government-backed loan, Impact is considered personal equity when other lenders evaluate your business for financing.