About John A. Troland Expertise I am a professional accountant, small business consultant and business
plan writer with 43 years experience ( I am also listed on allexperts
website as a volunteer in the category of Writing Business Plans).I can answer questions on what needs to be done to start a small business; forms of legal organization;financing for the business; need for a business plan; questions related to the purchase of a
business; risks and rewards of owning a small business; marketing and promotion questions and questions concerning bookkeeping, accounting
and tax considerations when starting a small business
Experience
Past/Present Clients numerous clients over 43 years in retail, wholesale, service and the
manufacturing sectors
Question QUESTION: I am starting a small private business in Hattiesburg, MS with a partner. It will be physical therapy clinic. We both have good to very good credit. My question is what type of financing option would be the best for us, and, are there any companies/banks that we should stay away from?
ANSWER: Lance: I must answer you this way: It depends. Sounds vague BUT the best financing option for you indeed does DEPEND on a number of specific information factors. Let me name a bunch. First how much money are you looking to borrow - $100,000, $250,000???? How much of your OWN money ( BOTH you and your partner) putting in? Have you written a superior business plan to be shared with a potential lender(s)? Is your business plan well thought out and very VERY convincing? Let me offer a suggestion: if you would like to e-mail me your biz plan to johntroland@msn.com for me to review I would be able to provide you with some SPECIFIC answers as well.
As for "any companies/banks that we should stay away from?" my response would be to simply approach local banks in your area that both you and your partner already have business banking relationships with - they are your BEST bet!!!
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QUESTION: John: This project is still at least a year away. My partner has worked in a very successful clinic for 7 years and has developed a business model from the basic operations of that clinic. We are currently researching locations in this area as well as tax implications and licenses for building so that we can get a better grip in how much money we should need to get this project off the ground. We only plan to use as much of our own money as we will need to secure the loan. I am glad that you feel local banks would be our best bet. I feel much more comfortable dealing with them and have already set up a meeting next week to discuss some options with my lender. Are there any tax incentives to first time small business owners in the first year of business? Thank you.
Answer Lance: IRS business tax writeoffs of operating expenses, first year depreciation of business equipment AND look into the IRS Section 179 TOTAL WRITEOFF of new equipment purchased for the business. Also you might check with your local city/town hall and inquire as to any tax credits/incentives and tax incentives if your business is located in what is called an Enterprise Zone.
