How to Finance a Portable Toilet Business

If you want to start a portable toilet business, you must first secure financing for your business. Securing financing can be difficult because investors and financiers are often wary of new businesses that have not yet proved they can be profitable. You can, however, finance a portable toilet business if you follow a few basic steps to demonstrate your creditworthiness.

Instructions

1. Write a business plan using a template such as the one provided by the U.S. Small Business Administration. A business plan is essential for showing investors that your business has a potential to be profitable. Your business plan should explain details about your portable toilet business, such as how many portable toilets you plan to use, what equipment you will need to transport and clean them, how you intend to advertise your business and to whom you will be marketing your business. You should also include financial details, such as how much your portable toilets and other equipment will cost, how much you have invested in the business to date and what your expected earnings are.

2. Apply for financing from lenders. Institutional lenders are often hesitant to lend money for new businesses. New startups are viewed as risky, and there is no guarantee that the loan will be repaid. Having a solid business plan can help you to persuade a lender to invest in your business. Additionally, if you can use property, such as your portable toilets, equipment or any real estate that you will be purchasing for the business as collateral, it will increase the likelihood that you will be approved for a loan. If you are not approved for a business loan, you can try applying for a personal line of credit that you can use to invest in your business.

3. Approach potential investors for your business. The people that entrepreneurs traditionally rely on for investments are referred to as "the three Fs": friends, family, and fools. These are all people who may be willing to make a risky investment in an unproven business. If you know anyone who has experience in the portable toilet business, you may want to consider asking this person to invest. Someone who knows the business is more likely to invest if you have a solid business plan because he will be able to recognize its viability. A person with relevant experience can also be a helpful partner in the business.

References

• Business Credit Services: The Capital Well
• U.S. Small Business Administration: Business Plan Template

Resources

• U.S. Small Business Administration: Your Small Business Resource