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E-Myth – “Why most small businesses don’t work & what to do about it”

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Virtual Accountant | It Is Possible To Get Top Financing

 

Business plans are important for more than just having a blueprint and how to grow a business as virtual accountant. If an entrepreneur is going to require financing for their business. They will need to change door that not only will they have a great business plan. But they will need to have a well-written executive summary in addition.

The reason why they need to have a well-written executive summary. Is because often, financial institutions as well as Banks and high-level investors. Are only looking at the executive summary, when they make their lending decisions.

Therefore, business owners needs to ensure that not only they are putting exactly how much money they want to borrow from the bank into the executive summary. But also what products they want to borrow the money in. And even including the interest rates and amortization they desire.

While an entrepreneur might not end up with the interest rates and amortizations that they would like. Just like Wayne Gretzky was famous for saying, you miss 100% of the shots you don’t take. And therefore, a business owner literally has absolutely nothing to lose by asking for exactly what they want.

The worst case scenario, is that they don’t get it. And they are no farther behind then if they didn’t ask at all. But the best case scenario. Is that entrepreneurs do get what they asked for. Which is why it is worth putting in the effort.

When entrepreneurs understand that there are four different Financial products that banks have the ability to loan money through says a virtual accountant. And knowing that they all have different terms, as well as amortizations. Business owners will understand why it’s important to specify how much money they want for each product. And specify the terms they would like to have.

However, virtual accountant says entrepreneurs need to be very careful when they are setting their terms. Because While most entrepreneurs think that the lowest rates possible are the best deal. This is not necessarily the case.

For example, at very low-interest rate with a very short amortization period. is not as beneficial as higher interest rates with a much longer amortization period. An entrepreneur with a short amortization period Might not be able to pay the loan back at all. Putting the future of their business in jeopardy.

However, a longer amortization. Means that a business owner will have a much longer time to pay the loan back. Putting less of a financial crunch on their business. When business owners consider that the earlier in their business it is, the more financial pressures they already have put on them. Can help them understand why they should be going for a long Amortization period. even if that means having a slightly higher interest.

When business owners understand the differences in all the products, and what they should be looking for in terms of amortizations and products. They will be able to be very laser specific in their business plan. And be more likely to get the financing they need.

Virtual Accountant | How to Get the Best Financing Possible

The best thing for business owners to do to ensure the success of their business says virtual accountant. Is have a business plan. Not only did Benjamin Franklin, who is the Founding Father of the United States of America say if you fail to plan, you are planning to fail.

But Palo Alto, the software company prove that to be true. When their study showed business owners with a business plan or 50% more likely to grow the revenue in their business. Then entrepreneurs who did not have a plan at all.

Another reason why entrepreneurs should have a business plan says virtual accountant. Is because in order to obtain financing. They are going to need to have a business plan. However, on Panora should also ensure that their business plan has an executive summary in it.

Because this is often the only part of a business plan that financial institutions read. Prior to making their decisions on whether to loan to a business or not.

Therefore, it needs to have all of the Vital Information in it. That will help the financing companies make their decision. And it needs to be easy to read, so that they don’t have to guess.

This is why business owners should specify how much financing they are hoping to get from the bank or lending agency. however, specifying amount isn’t good enough. For a number of different reasons.

There are about four different products that business owners can expect to get money from financial institutions. They might need to get a mortgage, for purchasing the building that will house their business.

Virtual accountant says they might also need to get a term loan to buy the equipment necessary to produce the products that they are planning on selling. They also probably need a credit card, in order to make important payments with their suppliers.

And there’s also lines of credit, which if entrepreneurs are lucky to get, can be the most beneficial for their business because they don’t require businesses paying back the principal right away.

Not only do business owners need to understand that there are several different products to choose from. And they will probably need a mix of a few of them. But also each product is going to have its own terms and amortizations. So that business owners are going to have to be very specific in their request.

The might need to ask for several different amounts in several different products. And virtual accountant recommends that entrepreneurs put in what terms and amortization they would like. Because even if they don’t obtain it. There’s literally no harm in asking for it.

By knowing how to word their executive summary can help entrepreneurs get the financing they need to grow their business. In fact, almost all businesses that start out are going to need some loans at some point. By being very specific in asking for what they want.

Can help entrepreneurs avoid getting the minimal amount of friends. And then trying to apply for another loan later. Because this might be very difficult to get, once they are already debt servicing another loan from somewhere else.