Step 6: The Financing
A. You have successfully completed your business plan. Now it is time to obtain your financing:
- Be an expert in your business project.
- Present your business plan and the advantages of your project to lenders, partners, and suppliers.
- Define your financing needs and your personal contribution.
- Plan a repayment schedule for any financing you receive.
- Be sure to come up with alternative solutions in case your negotiations are not successful.
B. What are your financial partners’ main requirements?
- Do you have the technical knowledge, the experience, and the management skills necessary for the success of the project?
- Do you have a good credit history?
- Have you set aside enough money (approximately 20% of the total cost of the project) to start the business?
- Do you have guarantees to offer the lender?
- Do you have the capacity to reinvest additional funds?
- Will your business be able to repay the requested funding?
- Can you demonstrate the accuracy of your financial planning based on reliable market research?
- Do your field of business and the current economic conditions justify an approval for financing?
- If the economic conditions are not favorable, highlight the innovative aspects of your product and/or business
* Keep an eye out! Some assistance programs are specific to certain fields of business. Do your research and stay informed on other types of financial assistance.
IF YOUR REQUEST FOR FINANCING IS REFUSED, DON’T GET DISCOURAGED!
Use the same process to approach other potential partners. Make sure to improve your presentation or your project according to the advice you receive.