Make sure you're properly capitalized

Stacks of Cash

So now you have a plan, and you have a rough idea of what it’s going to cost you to get your business off of the ground.  If you’re the typical small business owner, you’re probably thinking to yourself “Wow…I didn’t think it would cost this much to get started!  Where am I going to get the money to do this?”  The standard answer to that question, unless you’re a lottery winner or have a rich uncle, is to take out a small business loan from a bank, credit union, or other commercial lending institution.  And while taking out a loan can be risky and stressful, not doing so might be even more stressful - according to Inc. Magazine, undercapitalization is another one of the major reasons why small businesses fail .  A general rule of thumb here is to make sure that you have enough operating capital on hand to run your business comfortably for a year assuming you make $0 in your first year .  Many business schools suggest that two years of operating capital might be even better.

Taking out a large business loan can sometimes be a scary proposition, but it is often a necessary one if you want to get off on the right foot.  Fortunately, you’re in good company – almost all successful small businesses need to borrow money to get rolling.

For a city of 12,000 people, Sandy actually has a wide variety of commercial lenders that can help you with your business’ financial needs.  Here’s a partial list:

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