In just 60 seconds, we’ll show you how to determine if an RCL is right for you.
For financing flexibility, nothing beats a revolving credit line (RCL). Structured much like your personal credit card, RCLs allow approved borrowers to tap only as much money as needed to stay atop seasonal and business cycle fluctuations. Application and repayment requirements are generally far simpler than loans and other common financing options.
However, an RCL is by no means a panacea for a small business, nor is it entirely free of requirements and risks. In just 60 seconds, we’ll show you how to determine if an RCL is right for you.
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Think of a budget as a useful tool—a written financial plan that helps you set goals and measure progress.
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Start by coming up with a sales revenue target. Make it your best estimate.
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Based on past experience, estimate your cost of goods sold (e.g., 70 percent of sales) and subtract it from the sales revenue to come up with your estimated gross margin.
When most of us think about franchises, we are referring to the business-based franchise like the top 500 franchises published in Entrepreneur magazine each year. Entrepreneur’s 75 different categories range from automotive to services, but they all have one thing in common—a systematic method to deliver services or products.
Franchising is not for everyone, but for an individual who has limited business experience or someone who enjoys working within an established system, franchising can be the best possible path.
Betty Otte, SCORE Counselor
When most of us think about franchises, we are referring to the business-based franchise like the top 500 franchises published in Entrepreneur magazine each year. Entrepreneur’s 75 different categories range from automotive to services, but they all have one thing in common—a systematic method to deliver services or products.
5 Tips on Finding Angel Investors and Venture Capitalists
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Do some research. Identify the most likely candidates by asking your accountant, banker and lawyer.
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Keep an open mind—potential investors may be anywhere. According to Success magazine, one entrepreneur found an angel investor among the motorcyclists he rides with on weekends.
5 Tips for Writing a Business Plan For a Loan
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Begin with a statement of purpose. You should be able to explain your business in 25 words or less.
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Tell how your business will work and why it will be successful. List the owners.
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Fill in the business details. Describe its products or services, the customers, the market and the competition. List the managers and their credentials.
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Supply three years of projected financial statements. Include income, loss, and cash-flow projections.
Tanya and Chris Furlow had a passion to create a quality day-care center in their community. This husband-and-wife team planned to combine their talents, Tanya bringing her experience in childcare and Chris his experience in building renovation.
In 2005, they came to SCORE seeking advice on how to develop a business plan for their day-care facility. However, their plan required a substantial amount of money since they wanted to purchase a building on a spacious lot. Their primary counselor was Kisoon Park who introduced another SCORE counselor, John Costello, to help them with the financial section of the business plan.
www.newageprep.com
8938 S Cottage Grove Ave
Chicago
IL
60619
United States
My Successes
Their loan application was approved later that year, which Tanya and Chris attribute to the strength of the business plan that SCORE helped them develop. They believe that in-depth demographic research combined with detailed competitive analysis for each and every day-care center in their target market was a key to their success in obtaining the loan.
Building and facility renovation took almost two years to complete, and the New-Age Preparatory Academy opened its doors in late 2007.
Tanya and Chris’s strong business plan, close teamwork and meticulous execution paid off. New-Age has already opened a second location and total enrollment in their academy reached over eighty children by late 2010.
What's Great About My Mentor?
“SCORE counseling helped us in doing detailed market studies with emphasis on competitive analysis," say Tanya and Chris. "This enabled us to develop business strategies that separate us from the competition and, most importantly, helped us in securing the building loan. Working with SCORE counselors over a period of time helped us in the successful implementation of our business plan.”
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