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ST-08 Can you Run a Business SCORE Chapter 570
	ARE YOU ABLE TO RUN A BUSINESS?
TEN QUESTIONS BEFORE GOING INTO BUSINESS [1] Do you have a unique product or service? [2] Do you have the right kind of business experience? [3] Can you prepare a credible 3-year business plan? [4] Can you take responsibility? [5] Can you organize yourself and others? [6] Are you ready to put in long working hours? [7] Can you stick to it during rough times? [8] Do you have family support? [9] Do you have enough resources and credit? [10] Is your health up to it? CAN YOU QUALIFY FOR A LOAN? * What kind of business do you plan to start? * Do you have the right kind of business experience? * Is it a new or going business? How long in business? * How large a loan will you need? How will you spend it? * Do you have savings/collateral equal to 1/3 of the loan? * Is your credit record good? Bankruptcies? Debts? * Have you made a Business Plan complete with financial projections? If not, can you do it? * Do you have a realistic idea of expected income vs. your personal and business expenses? * Can you repay a loan from realistic projected earnings? POSSIBLE FUNDING SOURCES DEBT FUNDS * Cash Value Life Insurance * Your Home Equity * Loans From Family or Friends * Banks, Credit Unions, S & L's, Finance Companies, The Money Store * Your Credit Card (Very Expensive unless you shop around) * Customer Prepayments * Credit From Suppliers * Equipment Leases * SBA Loans-Guaranteed or Direct * Veterans Administration-GI Loans * Dept of Commerce -Export * Dept of Energy * Fed Housing Admin * State of California-Industrial Development - Anti-Pollution Loans EQUITY FUNDS * Your Savings, Bonds, Stocks * Family/Friends Ownership Participation * Small Business Investment Co. * Risk/Venture Capital * May Also be Debt Funds * Limited Partnerships * Sale of Stock to Public or Friends