Many people dream of owning their own business. The fact is, many times it remains a dream – but it doesn’t have to be that way. “It is possible to follow your passions and have a successful business even in today’s economy,” says Adam Herr, a business banking officer at Fifth Third Bank. “But following the right steps can mean the difference between getting off the ground or not.”

Mixing creativity and drive
In this economic climate, more businesses are starting out of necessity. “Starting a business can offer job security and the guarantee that you’ll never be laid off,” Herr says. “The two most important things you need are an idea and the ambition to succeed.”

The third thing you need is a business plan. You should know anything and everything about your product or service before you expect someone to buy it or contribute to the business. Your business plan should include the following sections:

• Executive Summary - the most important part of your business plan. It gives an overview of the plan, a history of your company and why you think your business will be successful.
• Company Description - explains why you’re in business, what niche in the marketplace you are trying to fill and the specifics on how you will accomplish it.
• Organization and Management - includes who does what in your company and gives a description of each department and its function.
• Marketing and Sales Management - describes your market strategy, including growth, distribution and how you’re going to reach your customers. The sales strategy defines how you are going to sell your product or service.
• Market Analysis - shows your knowledge of the industry and outlines any research you’ve collected to support your business decisions.
• Service or Product Lines - discusses what you’re selling and the benefit to your customers. Any copyright, patent and trade secret information should also be included.
• Funding Request - explains the funding requirements for starting your business, how you will use those funds and your monetary needs for the future.
• Financials - includes your financial goals, and as time goes by, will contain income statements, balance sheets and capital expenditure budgets.
• Appendix - won’t be included with the main body of your business plan but should be available when necessary. It will include your credit history, letters of reference and legal documents.

Where to go for help
The U.S. Small Business Administration (SBA) is a great resource for new business owners. As an independent agency of the federal government, the SBA can help you write a business plan, gain funding and more.

Herr also recommends that every business owner have an attorney, certified public accountant (CPA) and banker. “Good legal and financial advice is worth its weight in gold,” he says. An attorney will help you figure out the best structure for your business. A CPA can help you determine where your sales will come from and build projections for the future. Your banker will give you a plan to finance your business. Bankers can also refer you to reputable attorneys and CPAs.

Getting behind your business
Once you have an idea, business plan and a team to help you get off the ground, financing is the last piece of the puzzle. Herr says before banks lend, they want to see the five C’s, which include:

1. Credit – a good credit score
2. Cash flow – your net worth
3. Collateral – including homes, cash and inventory to secure the loan
4. Character – to show you truly believe in your business
5. Condition of the economic environment – banks are hesitant to lend toward certain industries in a down economy.

“This process is a partnership between you and your bank,” Herr says. “Banks want to help you. But they also want to see that you are financially invested.” He suggests taking advantage of your personal home equity, savings and collateral to help secure a loan. Tapping into friends and family can also increase your chances of getting financed.

How your bank can help
Each business owner has different borrowing needs. SBA Loans offer business owners easier access to capital and faster approval. An SBA Express Loan is similar to a credit card and owners can borrow against the line of credit if need be. An SBA (7a) Loan is an option for businesses that are looking to buy a longer-term asset, such as a building or equipment. SBA 504 Loans are used for real estate acquisitions. “With SBA Loans, the bank is protecting themselves from some of the risk your business carries if it fails,” says Herr. “We offer all three at Fifth Third and can help you decide if one is right for you.”

In addition to loans, your financial organization can also provide you with the services you need to help your business grow. Business checking accounts, savings accounts and credit and debit cards offer business owners the flexibility they need with services tailored to them. “Despite the economy, now is a good time to follow your dream of starting a business,” Herr says. “We can help you get started.”

To learn more about starting a business, contact Fifth Third at (866) 475-4201 or visit 53.com.

All loans are subject to credit review and approval.