Whenever funding for small and medium sized businesses is being sought it should start with a great business plan. If a business has a solid business plan then it’s chances of obtaining the funds it is seeking are greatly improved. Both the banks and other investors want to see evidence that there is a need for your service or product, furthermore, that people are willing to purchase what you’re selling at a cost that means you make profit. There are many other factors that can further your chance for getting funding. Here is a list of the other factors that you need to consider when preparing your plan for funding:
– It is perfect if your plan can show that there is profit to be made in a short space of time.
– You will always have a better chance of getting funding if you can give people a high rate of return in a short period of time, the faster the better! You need to show that you identified the market you wish to work in.
– Investors love businesses that are aiming at large markets which have the potential for high growth. You need to show why in a competitive market you have the edge and will be profitable.
– Another way you can show why investing in your business is good is to explain your company. Show how you can ensure the quality of your product or service. Give an insight in to your staff; the managers and other employees, show why they have the necessary tools to help the company succeed.
– If you have personally invested in the business then it’s a good idea to tell potential investors. Showing that your money is invested means that you are dedicated to seeing the project succeed.
– You need to have a clear plan drawn up for getting the business off the ground, show how you’re going to get it up and running. Always have two sets of financial projections, one pessimistic and optimistic.
– Don’t underestimate the amount of investment you will need to start your business. It is sometimes the case that people ask for too little and find themselves with too little funding – don’t fall in to this trap.