#2 - Waiting until you need it

Most small businesses will never need financing, so starting a conversation about financing when you do need it is incredibly difficult. The best time to start talking about your financing needs is before you have them. It’s hard to know when you will need capital—you might not even know what your business idea is yet—but setting up relationships with lenders can take months or years, depending on where you are in your business development. 

Don’t worry if it takes longer than expected; just get started. Mike Nickerson from Palo Alto Software thinks that thinking of finance as an ongoing process can help alleviate some of these mistakes. Business owners should consider their finances at least once a year and more often if they see something unusual (like large account receivables or customer orders in excess of budget), he says. Nickerson recommends checking revenue against expenses every three months: An entrepreneur should always be asking themselves questions like ‘How much money am I making? How much money am I spending?

Comments

  1. Rockpoint ProbateDecember 15, 2025 at 9:54 AM

    Planning ahead is key. Most small businesses won’t need financing immediately, but building relationships with lenders early—well before capital is required—ensures smoother access when needed. Rockpoint Probate Funding helps businesses prepare for future funding opportunities efficiently.

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