Advice for launching a company in the upcoming year

Every year, millions of new businesses are established across the country, with women of color spearheading this growth. According to the Wells Fargo Impact of Women-Owned Businesses Report, Black women, who account for 14.8% of all women-owned businesses, are among the fastest-growing groups of entrepreneurs in the US, while Hispanic/Latina women make up 14.3%.

Steve Hall, vice president of Local Initiatives Support Corporation (LISC), a nonprofit organization that links underserved individuals and communities with difficult-to-access resources, offers the following advice to make sure a new company succeeds in the upcoming year and beyond:

1. Raise awareness of financial matters

To assist you in making wise business decisions, it is crucial to have a firm working understanding of credit, bookkeeping, projections, financial statements, reporting, and financing. You can start by using Hands on Banking and other free educational resources.

2. Show ardor

It takes constant work to run a successful small business, so make sure it’s something you love and are passionate about.

3. Execute the concept

Consult a business banker regarding your credit application, funding sources, and business plan. Having a solid working relationship with a business banker can put you in a successful position. They can assist you in locating funding, avoiding predatory debt collectors, identifying possible obstacles, and directing you toward the best financial products for each stage of your company.

Similarly, a certified public accountant can offer guidance on the documentation required to launch your company, how to set up your organization, and how to handle your taxes and monthly financials. Additionally, they can assist in putting you in touch with the appropriate suppliers.

4. Look for funding

The fuel needed to launch and expand a business is capital. Having more options for credit could mean the difference between survival and closing. Working with minority depository institutions and community development financial institutions can help establish an ecosystem of support that offers extra channels for obtaining capital in addition to traditional lending. These organizations focus on assisting marginalized business owners, such as those from minority and low-to-moderate income regions.

For instance, Wells Fargo has given about $420 million to charitable organizations that support small businesses through its Open for Business Fund. Since the fund’s establishment, Wells Fargo has given grants to community development financial institutions directly and given nonprofit organizations over $50 million to help them support entrepreneurs with technical support. The third and final phase of the program focuses on providing funding to nonprofits to help small businesses increase the equity in their company. The funds are allocated to strategies like purchasing real estate and equipment to support physical business improvements.

5. Ask for reliable guidance

Check out the online resource center, local networking events, and webinars offered by LISC. SBA.gov and your local chamber of commerce can be useful no matter what industry you’re in. Rely on business development organizations for assistance in obtaining capital. These organizations act as advocates for underserved communities, helping entrepreneurs obtain loans and other resources.

“It takes passion and grit to start and grow a business. It also takes planning, important financial decisions and a series of legal steps,” Hall said. “Fortunately, a range of resources exist to guide an entrepreneur through the logistics of turning their dream into a reality.”