Raising Business Finance

In our final part of the business plan mini course I am going to take you through raising finance.

What do you need to prepare ?

There are two elements for gaining finance.

a robust business plan
relationship with your lender

By now you will have your plan -- but the second is a important.

Banks do not have to lend to anyone so it's going to be you who has to convince them of your idea.

Having a business plan already prepared and having your aims and desires already prepared, will win you credibility from day 1.

Contacting your bank

Preparing for your bank is vital.

It is best done in a couple of stages.

1: Contact your bank first.

Find out who you need to talk to that will be able to make the decision for you to lend you money.

Talk with them over the phone about your business idea and book an appointment to see them.

2: What to do at your first appointment

This is when you need to sell your idea.

Talk through with your bank representative about your business idea, expansion or finance requirements.

State what finance you want and why you need it.

Then play your trump card.

And say, "and here is my business plan"

3: Find out what they want

You need to go away from this first meeting completely understanding:

what now needs to happen (ie: do you need to complete some forms for the bank)
the likelihood of them lending you money.

for (2) this will give you an idea if you need to change your aspirations at all.

They may say they will lend on the idea but a lower amount.

You MUST leave this meeting with a full understanding of the likelihood to lend and what you need to do next.

The next steps

The next steps will vary by lender, but:

Always provide what they want when they want it -- don't delay anything
Keep the dialogue going - be proactive and let the bank know what is happening your end
If they refuse finance find out why

You may be able to change something in your aspirations that will secure finance.

Above all - communicate !

Planning helps you understand your business. It can be frustrating when there are no customers about and you don't know why.

Planning helps you look at your own business and the businesses of others to get the best of everything.

All the best

Peter Hale
www.teneric.co.uk

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