Starting a small business requires more than just a great idea, as big a step as that is. If you’ve got customers in the bank who are thinking of starting a small business and are excited about their idea, you can guide them onto the right path so that they have a better chance of turning that idea into a successful business.
The fundamental basics to think about are:
1. Demand – they need more than just the enthusiasm of friends and family. Encourage them to talk to other people about their idea and find out if people would be willing to buy it.
2. Affordability – walk them through a break-even process. Not only will this tell them if their idea can eventually make a profit, but it’ll get them thinking about the costs involved. Can they sell it at a price that will be profitable, or will it simply cost too much to produce?
3. Location – are they planning to rent a bricks-and-mortar location, or will they be working from home? Give them some idea of what renting will cost in the location they’re planning.
4. Finance – once they’ve got a better idea of how much it’s going to cost, look at how they’re planning to come up with that money. Savings, equity on property, borrowing from friends or family, borrowing from the bank, or a combination? Help them work out what would be the best way to access the funds they need and guide them towards your business lending solutions.
Once you’ve helped them with the basics, walk them through writing a business plan. The below infographic will be useful for that task.
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