For a startup, the lender cannot look at years of business results. So it looks at you. The most convincing proof that a new business will work is an owner who has already done this work successfully for someone else.

What counts as experience

• Years working in the same industry, especially in management.
• Running a similar business before, even a smaller one.
• Licenses and certifications: contractor, cosmetology, CDL, food manager.
• Side business history: catering from home before opening a restaurant, for example.
• Training from a franchisor.

How to document it

1. A resume for each owner focused on the industry: titles, years, responsibilities, results.
2. Numbers when possible: “managed a kitchen of 12 people with $1.2 million in annual sales.”
3. Copies of licenses and certificates.
4. Reference letters from former employers or customers.
5. Proof of side-business income: tax returns, invoices, bank deposits.

Put a one-page “Management” section in your business plan that summarizes all of this.

If you have little experience

• Hire or partner with someone who has it. A manager with 10 years in the field can make up for an owner who is new. Remember: any partner who becomes an owner must meet the SBA’s 2026 citizenship rule.
• Work in the industry first, even part-time for six months to a year.
• Choose a franchise with strong training. See SBA loans for franchises.
• Start smaller with a microloan and build a track record.
• Use mentors: SCORE and SBDC advisors can strengthen your plan for free.

Bottom line

Experience is often the deciding factor for startups. Show it clearly, in writing, with numbers. Then find lenders that fund startups in your state.

Frequently asked questions

Why does industry experience matter so much?

A startup has no business track record, so lenders look at the owner's track record doing the same work.

How do I document my experience?

A resume focused on the industry, numbers like sales or staff managed, copies of licenses and reference letters.

What if I have little experience?

Hire or partner with an experienced manager, work in the industry first, choose a franchise with training or start smaller.