(KXNET) — This month, we’ve shown you stories about opening up your own shop — including how to find mentoring groups, writing a business plan, and signing paperwork.
But when does the money start to roll in when discussing a business, and how much should you expect to pay?
When it comes to funding your business, you can pay out-of-pocket, take out a loan, crowdfund, or have investors. But according to Colton Bourquin, the assistant vice president and business banker at the Gate City Bank in Minot, if you do take out a loan, it’s important not to mix your business and personal debt.
“It’s a liability reason,” Bourquin explained. “That’s kind of the main goal as far as when you finance business debt compared to personal debt. And the purpose of the debt itself is for the business, the funds you use for your business, not for your own personal means.”
He says when you need to secure the funds, you’ll need to detail their purpose.
“If they’re able to get a secure business loan right away, it’s gonna be also dependent on the assets they have available to them,” Bourquin continued. “But depending upon their needs and their process for where they’re at in their start-up phase.”
And when it comes to what you need to bring, Bourquin also has a few suggestions.
“When you apply for a business loan, I try to walk you through the process itself,” Bourquin stated. “But what you’re going to need as far as documentation, we’re going to need financials, tax returns, most important, we’re going to want to see a business plan.”.
Bourquin says the business plan is extremely important because it lays out everything you need to do to make your business successful. If your road is very well planned out, then the funding will be easier to get. He also says the time it takes for you to be approved and receive your loan can vary.
“I kind of like to set the expectation at the very beginning of the process,” Bourquin continued. “You might need a day or two, or maybe depending upon what your need is, it might take a few weeks. I like to turn things around within 24 to 48 hours, depending upon the paperwork that’s needed and what you can provide.”
Next week in our starting a business series, we will speak to a real estate agency about finding the perfect property for your business.