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Emboss Partners shares key factors for small business success in capital acquisition

Matthew B. Murphy III, co-founder and president of Emboss Partners, a consulting and capital acquisition firm, believes that having a well-defined business plan is crucial for small businesses in obtaining funding.

He stresses that a business plan is not just a document for outsiders to analyze, but it serves as a management tool that provides a roadmap for the business’s future.

A solid business plan can also bring credibility to the story that the business owner or management team is telling about the company’s direction.

Murphy also emphasizes the importance of a strong financial track record, both personally and for the business. Personal credit is often viewed as an indicator of how a small business will handle corporate credit. Any credit challenges need to be explained, and steps taken to mitigate these challenges. For instance, disclosing improvements made, even if the credit score does not reflect it, can be beneficial.

Murphy acknowledges that obtaining capital can be a challenge, particularly for start-ups or businesses without a significant track record of borrowing.

Financial institutions want assurance that the business can handle the financial resources deployed and repay the loan and interest over time. This requires presenting a compelling story, supported by a business plan and financials that demonstrate the business’s growth prospects and ability to generate a return on investment.

Murphy believes that a strong business plan, a solid financial track record, and a competent team are key factors in obtaining funding for small businesses.

By presenting a compelling story supported by a robust business plan and financials, businesses can demonstrate their growth prospects and ability to generate a return on investment, making them attractive lending opportunities.