If you are opening your first small business, you are likely eager to open your doors. You have the location, the product, and all the energy in the world, but there may be a few things you have forgotten. Here are a few expenses that many small businesses forget to plan for.
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Many small businesses have trouble getting the start-up capital that they need. Without a long list of assets or a proven track record, there is no way to show banks exactly how promising your soon-to-be bustling business really is. Luckily, there are places you can turn to for money when the national banks turn you down. Here are just five of the many places that other small businesses just like yours have found the start up finds that they need to get off to a great start.
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What causes a downturn? Sometimes there is a general recession, due to overreaching economic events or credit availability. Other times, a downturn may be limited to a particular industry or a certain area. Whatever causes the sales slump in question, every small business has to have tools for making it through the storm. The current climate, even though seems to be improving, still has a long way to go before things really start looking up.

Here are five ways you can keep afloat even in the worst of times.
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Risk is an essential part of running a business. It can make your dreams come true but it can also shatter it if you are not careful. A new study shows that successful entrepreneurs are more likely to take risks.

Some 60 per cent of those with assets of more than $1 million said a high appetite for risk had been a big influence in generating their wealth, compared with 36 per cent of those with less than $1 million of assets.

Given that risk is all around us, you should learn how to take calculate your chances of survival in this game. Here are some of the things you need to consider:

1. Look before you leap. Research about the risk you are about to take and consult with experts in the field to gather more information. The more you know the better your chances of survival.
2. Have a Backup Plan. Because there are different ways to solve a problem, you should have an alternative plan in case things will go out of hand.
3. Rank the risks. If you are taking several risks, you should prioritize which one to tackle first. A good measure is to consider the consequences of each scenario and the probability of it happening. However, this is a very tricky method because it’s difficult to avoid subjective opinions.

With many banks now catering to small businesses, finding the right bank can be very tedious for many entrepreneurs. On the brighter side, too many options mean we have higher chances of getting low-interest loans and build better business relationship.

In case your intention is to get a loan to improve your cash flow or finance your new ventures, here are some things you can do:

1. Check the websites of different banks in your area and compare their loan rates. The difference would probably be smaller because each bank is constantly monitoring the moves of competitors.
2. Talk with bank representatives to get more details and check if there are hidden costs. Make sure you do tip #1 to help you negotiate better.
3. Consult with your professional network to get their feedback and experience about the different banks in your area.

If you want to improve your business relationship with your bank, you should do the following:

1. You and your employees should be friendly with bank’s staff. Some network only with bank managers but this is a grave mistake. Establish relationship with enablers like tellers, customer service, loan officers, and guards for they can help in your daily transactions.
2. Give referrals. Refer other clients to the bank manager and don’t be shy to promote your efforts. Since they also have sales targets, they will greatly appreciate any prospects you point in their direction.
3. Don’t ask negative questions. Inquiring about bankruptcy or overdraft policies might create a wrong impression to bank officers about your capacity to pay.

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