Small business lending is highly competitive. New businesses and new business ideas are popping up every day. Lenders have the difficult job of determining which options are the least risky. Part of the would be borrower’s job is to help convince them that their business is one that is worth the risk.
Plan the Plan
That’s right, plan the plan. The major determination of whether your business with be seen by those in the small business lending world as low risk and worth the risk that is there is the business plan. The key to a stellar business plan is to plan for it. A great business plan is well written, well laid out, and very thorough. It includes a detailed budget of how all funds, your own and borrowed, will be used. There will be discussion of the location and why it is best, as well as detailed market and competition research. There are many business plan templates available, but most entrepreneurs are not qualified to both write the plan, crunch the numbers, and conduct all of the necessary research. Start early planning what you will complete on your own and what you will hire others to do.
Before you start the plan and the formal research, do your own informal research. Is there direct or indirect competition? Who is your competition? What can you do to make your own business more competitive? What are their prices? Where is a better location? How much of your own money can you invest in your business? Looking into these things on the front end yourself will help you understand your written plan better, which will help in your presentation to the lender.
First Impressions Count
Beyond the impression your business plan makes, you should make your own impression as well. You want to be a business owner, so dress the part. Look like you can be successful by putting your best food forward. Also, be certain you know your plan thoroughly so you can discuss it intelligently.
When you decide to wade into the world of small business lending, Biz2Credit is here to help. Our network offers various options, and one is certain to be right for you. Visit Biz2Credit.com today to find our more.