Black Enterprise talked to some of the top financial planners, investment advisers, real estate professionals, tax accountants, and insurance agents to get their best advice for your money. Over the next few weeks, BE will share their tips.
Financial All-Star: Aaron W. Smith, RFC, AIF
Smith’s Advice: Raising capital for your business adequately is the key to its success. Starting a small business will require start-up funds to get the business up and running. Because some businesses tend to incur losses in the beginning months due to operating losses and personal expenses, an initial strategy would be to have at least three to six months of funds set aside to cover all expenses until the company is self-sustaining.
Unfortunately, there may not be money to cover these expenses. Two ways to capitalize your business are debt and equity. Debt by borrowing the funds. When looking to obtain a loan, look for the following: the right lender, the lowest interest rate, an institution that has an interest in a business of your type and size with an interest in servicing the various credit and non-credit needs of your company, and financial stability.
Source: Black Enterprise | Sheiresa Ngo