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Kim’s Business Start-up Tips

September 13, 2017 Taking that first step and starting your business is intimidating, but it doesn’t have to be. Check out advice from our President and CEO Kim Sponem to get you ready for that leap. I have been saving to start a business. If I find I need some capital, what are some things I need to know? I am so glad you asked. As the CEO of the credit union that works with many small business owners and has provided more Small Business Administration (SBA) loans in the state of Wisconsin than any other credit union for six years in a row, * I am excited to address this. First, congratulations on your business and saving up to start it! Keep saving as you develop your idea and business plan. As part of the process, entrepreneurs often share their ideas with family or friends willing to provide funds either directly or through crowdsourcing; most start-ups are initially funded this way. These funds are important because lenders want to know that you have a financial stake in your business’s success. Not having enough capital is the number one reason businesses fail. It’s key to have a couple years of savings to cover cash flow, so you can make the right spending decisions along the way. Other key points to remember when approaching your financial institution:
  • Show that you can become profitable fairly quickly (usually within about six months)
  • Show your ability to pay off your loan as part of your long-term strategy. If the business takes longer than six months to show a profit, it may be too risky for some lenders or for the SBA. This doesn’t mean you shouldn’t start your business, but it might mean it’s not a fit for a certain financial institution
  • Have a good personal credit history
  • Demonstrate what your business does differently that will make it successful
Key elements of your business plan should include:
  • Executive summary – overview of entire plan, written last
  • Personal background – profile of skills, experience and how they relate to the business
  • Business concept – description, goals, industry information and how your business fits into the industry
  • Description of your organization – ownership, key employees and technology
  • Marketing plan – market analysis, competitive analysis, strategies, promotional/marketing materials, etc.
  • Financial plan – sources and uses of funds, and three years of financial projections with supporting assumptions
  • Attachments such as letters of intent and published articles in which your business has been discussed or you have been cited as an industry expert
  • Personal federal tax returns – though not always required, keep them handy. At Summit Credit Union, for a start-up business loan application, we’ll look at your last three years of personal federal tax returns and a personal financial statement. And there may be a few SBA forms as well
I strongly recommend working with groups like the UW Small Business Development Center, Wisconsin Women’s Business Initiative Corporation (WWBIC) or SCORE. These organizations provide technical assistance, and offer classes and consultants/mentors whose focus is to support business planning and a start-up business plan to have available for your visit with a lender. Summit can help you prepare for your business launch and give you the knowledge and tools you need before, during and after you make your business dream a reality. Best wishes in your business venture! *SBA Lender of the Year for Credit Unions as awarded by the Small Business Administration of Wisconsin in May 2017. You might also be interested in Side hustles are trendy, but can you make good money in the gig economy? Get tips to ensure that your side hustle business is actually worth the time & effort. As a small business owner, you’re making all kinds of things happen every single day – from wrangling supplies to communicating with clients. But even the savviest of business managers encounter a cash flow issue once in a while. Here are a couple of tricks to help you master your cash flow. It’s time to turn that awesome business idea into action! Don’t get intimidated about launching your company. Instead follow these steps to success. Financing a small business can be tricky, even if you’ve been at it for a while. Along with day-to-day cash flow management, there are short-term challenges and long-term goals that demand your attention. So as a busier-than-ever business boss, how can you stay on top of your everyday duties while also taking steps toward your future goals?   Here are three tips to help you stay on top of your financial game and get you where you want to go. 1. Shop for the right financial partner Taking that first step and starting your business is intimidating, but it doesn’t have to be. Check out advice from our President and CEO Kim Sponem to get you ready for that leap. It’s officially gardening season! Time to open the toolshed and throw on the gloves. If you’re a first-time gardener or just don’t want to break the bank to get organic vegetables on your plate, we have a few tips for you to garden on a budget and maximize your plants and your savings. Can you dig it? (Pun intended—sorry, we couldn’t resist.) Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA