Hawaii and the country are struggling to recover from what economists are calling a recession.
And yet, there are people considering starting their own businesses.
Is this a good time?
If you are thinking about starting your own business, you may be wondering – better now or after the new year?
"Well, people have often asked me before, when is the best time to start a business and what I tell them is any time is actually a good time as long as you have a product or service that will be in high demand and that you’ve done your research on the market trends that your particular industry will be involved in,” said Galileo Tan of Central Pacific Bank.
There is no perfect example of what product or service will best fit that need.
"For example, technology companies when they introduce a new product, whether it’s the latest tablet PC or a smart phone, people will find a way to purchase your service,” said Tan.
Tan is a business financial advisor.
What’s the best advice he has for those wanting to start their own business?
"I always tell them I look at it as if you were purchasing a home. So the first thing you want to do is to take a look at the amount of space you’ll be occupying. For most businesses, whether you’re selling a product or offering a service, you will be occupying space,” said Tan.
That space may be purchased or leased – again, depending on the company’s needs. There has to be a consideration of inventory, if the business involves a product…Tan and other financial advisors can help with at least two financial options, a term loan or line of credit.
"So what we’ll do is is that we’ll sit down with a customer and explain to them the process of how the application works. For example, we may need additional required documentation. For example, that could come in the form of entity documents as proof that their business has been registered in the state as well as possibly tax returns,” said Tan.
How do you increase the odds of getting financial help for your business?
"For a startup businesses, the number one way to increase your odds is for the guarantor or guarantors involved with the business is to have a high credit score,” said Tan.
If you have a question for our financial experts, email us at dollarsandsense@khon2.com.
See the original article at: KHON2 Local News
