The biggest hurdle that I have seen for those looking at starting a business in Wyoming is finding funding. This obstacle is different for every business as some businesses (such as service businesses) don’t require as much initial investment to get going. In contrast, asset rich businesses are more likely to need a larger initial investment. Having a complete and thought-out business plan with accurate numbers to accompany it will go a long way to show a potential investor that the business has a worthwhile earning potential.
Finding Start-Up Capital
As you would imagine, if a business is in need of a lot of machinery, equipment, or real estate to get started, the initial price tag will continue to go up. Sometimes getting help from those who supply the equipment is a great way to be able to get the asset, but that doesn’t always work. Banks, if you choose to go that way, will want to see what they call “skin in the game” or money down on the borrowers part. Investing one’s own money is the hardest step for many entrepreneurs. If you need to borrow a considerable sum of money to get started, you should expect to bring around 25% to the table, depending on the bank.
Coming to the table with a full and thought-out business plan is vital when it comes to getting that loan or showing a potential investor that you have done your research about the industry you are wanting to enter. The Wyoming Small Business Development Center (SBDC) Network can help you put your best foot forward when it comes to a business plan, and with help from our Market Research Center you have access to the data you need to show lending institutions and potential investors that you know what you are talking about.
Help is Available
Knowing how much capital you will need almost to the penny will help you know how much you need to borrow or ask investors for. when starting a business Get in contact with your local Wyoming SBDC Network advisor today to get that business plan started and/or reviewed so you can present it to the investor.
About the Author: Rob has experience in commercial banking, Accounting Systems, and he speaks Spanish. As someone who loves seeing small businesses succeed, Rob enjoys the journey a small business takes from start to finish. When he is not on the road or meeting with clients, Rob enjoys spending time with his family and enjoying the outdoors, hunting, or fishing.