Turning an Idea Into a Small Business by Rob Aulebach (NAPSA)—If a great idea was all you needed to be successful, Small businesses—and the where would be operated out of people’s basements. engines fueling job growth. Fortune 500 companies every- However, an idea alone—no mat- ter how breathtakingly inspired it may be—doesn’t ensure you'll end up successful. Which helps explain why in 2004, almost one small business failed for every one that opened (576,200 and 580,900 respectively), according to the U.S. Small Business Administration Small Business Power entrepreneurs behind them— have served as economic m 2,750,000 small businesses opened between 2000 and 2004 m 99.7 percent ofall employers are a small business m Small businesses have created 60 fo 80 percent ofall new jobs over the past decade (SBA). So what’s an entrepreneur to do? Aside from making sure there’s actually a market for your new product or service, start by m 50 percentof private sector employees work for small businesses that’s specific to your business. Research other businesses in your industry and decide what has and hasn’t worked for them. In addition to any private research you do, you can check with publicly available small-business organizations such as the SBA and SCORE. The next step is to think about funding. Your business credit— which is based primarily on historical experience, loan purpose and ability to repay—can determine your access to loans, so be bank should provide Small Business Administration and conven- getting financial information sure to make improving it a top priority if it’s not where you want it to be. Whenit’s time to apply for a loan, be prepared. Treat meeting with a lender the way you would a job interview. Bring your business plan, a completed loan application, and keep your entire presentation to about 30 minutes. Finally, choose your lenders carefully. Look for an institution that can handle all your moneymanagement needs—both personal and business related. Your Sources: U.S. Bureau ofthe Census, Bureauof Labor Statistics, U.S. Department of Commerce @ tional business loans, loans and credit comparison tools that familiarize you with your borrowing options, and business credit cards and checks. Many financial institutions have in-house small business experts that can help you decide which products and services work best for you. Bank of America alone has over 600 such experts in select banking centers across the country. You may also want to check out banks that offer investing and retirement forums specific to small businesses, as well as mer- chant service resource centers and interactive online tutorials that cover small-business management. Who knows, your small business could soon turn into the next Fortune 500 company—only then you'll have to moveit out of your basement. Rob Aulebach is Bank of America Small Business Banking Executive.
