Business Fundamentals
This information is provided for general informational purposes only and should not be relied upon as legal interpretations by the Office, shall not supersede any part of the Florida Statutes or Florida Administrative Code, and does not constitute legal or financial advice. The Office does not endorse any third-party or guarantee the accuracy of any third-party information linked to or referenced herein.
Lenders and investors typically want to see certain foundational elements in a startup or expanding business before approving a loan or making a financial contribution. Here are some questions relating to foundational business elements to consider before seeking financing:
- Has the business plan been finalized?
- Has the management structure of the business been established?
- Have the business operations procedures been finalized?
- Is the business a registered business entity in the appropriate jurisdiction(s)?
- Has the business identified all of its possible state and federal regulators?
- Does the business have an infrastructure for regulatory compliance?
- Has the business applied for a Federal Tax Identification number with the Internal Revenue Service and filed any required documents with any state or local agency for tax purposes?
- Does the activity of the business require it to be registered or licensed? If yes, has the license or registration been obtained?
- Is the business insured?
- Does the business have a bank account?
- Does the business have a financial and record-keeping infrastructure?
- Has the business received outside or professional help from an incubator, accelerator, or consultant?
- Does the business have an initial product prototype?
- Has market research been conducted to gauge consumer demand and competition?