How to best prepare in order to get business financing
You want your small business to grow, or maybe you just want to start a small business.If you don't have money hidden under your bed or a rich relative that is getting old, you may need some financing.
How you go about getting that financing will make a big difference in the outcome.There are a few things to keep in mind before you go in to the bank.
- Walk in with your business plan in hand.Your plan should show short term and long term goals, it should also contain very specific ways of generating income.The bank needs to know they are going to get paid back, you need to make them feel confident that you have thought this through.
- When talking about your business, show passion for what you are doing.Also, make them know you are committed to your business all the way.They can see how you feel about what is going to happen in the future and that will play a big part in their decision.
- Don't forget your enthusiasm.Enthusiasm is contagious, make them so excited that there is no way they can say no.
- Show them you are a leader.They need to see that you are going to be pushing yourself and your business forward.Step up when they challenge you and don't be afraid to hold your head up high.
- How much money are you risking for your business?Show them that you are confident in your company and that you are risking some of your own money.If they can see your risk, they are going to be more willing take a risk with you.
- Bring your credit score.If you are starting a new business this will be your personal credit score.If you are looking at expanding an existing business there should be an established credit you can use.The better your credit score, the better chance you have for financing.
- Many banks will ask you for proof that you have a customer base.This can be done with a spreadsheet, some purchase orders, or any type of a paper trail.They may even need to contact some customers, be sure you ask any customer before giving the bank their name and number.
- Approach this meeting as if you are going in for a new job.Talk yourself up, know what you are talking about, and talk about how you want to strengthen any weaknesses you see in your business.
- You will look a lot better to your prospective financer if you are coming to them in preparation for the future.Try not to come in at the last second because you didn't plan well enough and you have run out of money and options.Show a good front by being on top of your finances.
- Set yourself apart from everyone else.Show them that you have something to offer that they won't find with the average Joe.When they see that edge they will know that you are going to be doing well in the future.
- Your dress is very important.Even if your business is going to be a clown costume store, now would be the time for professional dress.Be cleaned up, find a white shirt and maybe a red tie.Women, dress professional, a business suit or a nice dress, you don't have to wear a tie.
- If you are really excited about moving your business forward, SMILE!Not a fake, trying-to-hide-your-nerves smile, but a genuine smile.Think that will be too hard, practice in the mirror.It will help, smile to yourself until you can feel that it is a genuine smile.
Going in prepared will make a really good first impression.Confidence in yourself and your business will also help your cause.Get your business going the right way.