From Scratch is a blog about starting a business from the ground up, including interviews with local businesswomen.
As college students, my peers and I are full of vision for the future. We have hope for the things we want to accomplish even thought it may be difficult (to say the least) to get a job after college these days. But since the job market is so dreary, what better time to become your own boss, fulfill your own vision, and start your own business. Although, this means that you, me, and my college peers will most likely need a loan in order to make this happen.
The SBA is an excellent source for funding since it’s primary lending program guarantees 50% – 85% of a loan. Many people have the misconception that the borrower applies for a loan through the SBA, but that is not the case. The borrower applies directly through a lending institution who then applies to the SBA for a loan guaranty. The lender will be much more likely to lend if 50% – 85% of the loan is guaranteed to be paid back by the SBA IF the borrower defaults (meaning he/she cannot pay back the loan).
So let’s get down to the details!
Let’s face it, ideas don’t become a reality unless we can put the money where our mouth is.
I recently talked with a banker from Key Bank about how an entrepreneur can secure a small business loan. The following are loan requirements, and different types of loans needed in order to start your business.
Requirements
***The basics – you need a business plan and plenty of proof that you can pay the loan back.
BUSINESS PLAN
Starting a business can be daunting. There seems to be a lot of questions asked without any answers given. Where do I get the money? Will my idea succeed? What is the competition? When will I make a profit? Well, in a recent meeting with Angela Shen, founder of Savor Seattle Food Tours, I found that believing in yourself is one of the greatest assets to have in order to make a business successful.
“Having blind faith in yourself is the hardest to come by,” said Shen. With added pressure that she could disappoint others, it was easy for her to have doubts. But when those doubts set in, Shen reminded herself that she genuinely believed in herself and that she could do this.
From Scratch researches what is required to become a business owner and see your dreams come to pass.
Dream. Goal. Plan. Reality. Your idea made a reality. But how?
We know it’s not impossible because it happens all around us. We know we’re supposed to have aspirations, ambitions, and dreams, but that’s the easy part. My questions are what does it take to go from A to Z, how do you turn an idea into a reality, in order to have a successful idea does your dad have to be Donald Trump or your best friend Oprah Winfrey, and of course, how much money do I need, I mean really need, in order to open that business? I recently attended a GPH event where a list of talented entrepreneurs were interviewed. They discussed the hardships, the joys and the strategies of being business owners. It was very intriguing to say the least. I don’t believe I, or others, can accomplish anything great without the advice of those who have gone before us.
