Draft Your Business Accomplishment Resume
Investors and lenders want to be certain that you have the experience, education, and desire to make your business a success. Your resume shows your backers that you can achieve your objectives. This isn’t a traditional resume that lists past jobs and the years or months you held each. More correctly, you’ll develop a statement of everything you have accomplished that has a direct bearing on your business objectives.
Although you may not have owned or expanded a business before, you have accomplished some demanding tasks that are similar to the tasks you’ll undertake when you begin your business. But don’t fool yourself into thinking that good credentials alone will get a loan from the first person you approach. When it comes right down to it, few people will part with their money unless they also have a positive feeling about you as a person. Your task is to get them to trust and like you as a businessperson.
Draft Your Personal Financial Statement
You can skip the rest of this chapter unless you are seeking a loan or investors for your business. Your personal financial statement will list your personal assets, liabilities, income, and expenses. It tells your backers a lot about your ability to handle money.
Don’t be discouraged if your financial condition is weak. Your backers want to know about you, the good and the bad, and they understand that you need money. Preparing this statement in a form lenders are used to seeing involves several steps, which this chapter will take you through step by step. As you’ll see, the task is not much harder than filling out a credit application.
Determine Your Net Worth
To calculate your net worth, simply subtract your total liabilities from your total assets. (If you are using the Personal Financial Statement form included on the CD-ROM, the spreadsheet program will automatically calculate this amount.) In the last blank, add together your total liabilities and net worth. This figure should match your total assets. If it doesn’t, you’ve made a mathematical error.
Determine Your Annual Living Expenses
The goal of this part of the form is to make an accurate estimate of how much it costs you to live. Business expenses should be covered under a separate profit and loss statement for the business