Large numbers of entrepreneurs are ready to expand but many need money to grow their business. One alternative to increase capital is borrowing. However, in many instances, before you request a business loan you must have a business plan. This article highlights five tips to help you prepare a plan that is attractive to funders.
Tip #1: Know Your Company Well. Before presenting your easy business funding plan take some time to reconnect with your company’s history, mission, goals and objectives. You should be able to define in clear and specific terms what your company does and who the customers are. Know your company and its industry inside and out and prepare to present your proposal with conviction.
Tip #2: Do Your Research. Even if you have the best offering in the market to date, the key to your success is knowing as much about your competitors and customers as possible. Be sure to do your research to get an idea of the wants and needs of the market. How are other companies reaching your target market and what benefits and features are the top companies providing?
Tip #3: Anticipate questions. Put yourself in the seat of the funders. If the tables were turned and someone came knocking on your door asking you to investment in a similar company, what types of questions would you have? Start with the basics and field questions from other business veterans who have sought funding before. You can also get advice from accountants, bankers, and business consultants.
Tip #4: Describe your plans for growth. Be able to tell the potential funders about your product and how you have successfully grown sales to date. If you are in the start-up phase be ready to discuss your customer base and how you will obtain orders for your products or services. The best support to back your claim is in the form of pre-orders and deposits received from your customers.