The truth is banks are still lending. And, there are many other sources of funding that can help you fund your business growth.
However, all of these sources will require you meet certain criteria before they will say yes. Have you done what you need to prove your case!?
The first thing most experts will tell you is you need a business plan. And you know what, their right! Just look at the facts.
A University of Oregon Department Economics study shows that businesses with a business plan are 50% more likely than those without a business plan in:
- Growing their business
- Securing a loan
- Acquiring investment capital
While having a business plan can double your business funding chances , the wrong business plan can hurt you even more than help you. So, do you have the right business plan and does it prove your case!?
Notice that I said “prove your case” at the end of the last paragraphs? I did this for a reason. Even more important than your business plan is evidence that demonstrates that you can execute a plan to a successful conclusion.
More frequently than I care to admit, I see businesses in bad shape looking for money. Some are nearly insolvent! So, why do they think someone would lend them money when they did this with their own money? They won’t!!
So, stop looking for business funding and start learning how to manage your business correctly. If you do that, guess what. The money will find you and YOU’LL GET IT!!! But, you need to get your house in order first!!!
Develop the Right Plan for Business Funding
If you are in this situation what is the right business plan? It has as its goal “to demonstrate our ability to successfully execute our business plan to achieve its goal and objectives.” This may not be the stated goal in the business plan, but it must be a goal that is clearly communicated to all your employees, vendors/suppliers, and trusted advisors so they can help you accomplish your business plan.
Next, you need to have conversations with each lender that you are talking to about funding whether it’s a loan, a credit line, or something else. What do they need to see you demonstrate to get the loan?
Ask Your Banker What They Need From You
Any lender that is really customer-centric will help you understand what their lending board is looking for. Use this to establish your business goal and build your business objectives from there. From here it becomes pretty easy to develop the necessary action plans to begin assigning responsibilities to people and working the plan.
Now, this isn’t the normal business planning process that you’ll find with most places that offer software, templates, or business plan services. That’s because most of these places are focused on standard corporate business plans. While you may need one later, you need the right business plan to help you demonstrate that you can manage your business and our business planning method is just that, short; to the point; a high-impact business plan that get you results.
So, this is how to get the money you need.
- Change your short-term goal
- Build a business action plan to accomplish the goal
- Focus on demonstrating your ability to execute
- Share your results with your lender
- Get the loan
But don’t take my word for it. Talk to your banker or your CPA. Ask them if this would be the right business planning process to get the money you need. They will emphatically tell you YES. The reason they don’t tell you this up front is because they’re not in this business. While they know it’s what is needed, they don’t know how to communicate it.
Tools to Help You Get Ready
There are a lot of way to get started on this process. You can do it yourself (DIY) with our DIY Business Growth Membership.
No matter how you do it, you need the right business plan to get business funding. A study by the University of Oregon shows that businesses with a business plan double their chances of getting funding.
So, put your plan together to increase your odds. Contact me if there is anything I can do to help!