Secure Financing for Your Small Business

Preparing to Ask for Money

Some of the most profitable small businesses got their start through the creation of a great small business plan coupled with asking for, and securing, the necessary financial support to get the business started. For many, preparing the business plan was the simplest part of the momentum in the small business venture. While, in many cases, the process of asking for, and securing, finances was the most difficult.

When starting your own small business, there are some simple steps that you can take to secure and obtain the financing in you need to get your business started. Preparing for the financial challenges of a business will go along way in promoting your business and turning a profit as soon as feasibly possible.

First, before reaching out to investors, family and friends for financial support, be sure your business plan is well prepared. With a well designed and neatly formatted business plan, often, the process for solicitation of funds will go a lot smoother. Within your business plan, there should be a brief statement outlining the nature of your business and why you chose to participate and expand your business in this industry. This will be a key tool for use when soliciting for investors.

Begin by making phone calls to those individuals who you feel would be willing to donate or make a contribution to your business. In this phone call, list just two or three statements as to why this business is a great investment. Be prepared to answer questions regarding the amount of money you will need and the percentage of return the investor can expect.

If your conversations appear to be quite lengthy, consider asking for the investor's time to visit during a lunch or dinner meeting. Often, very large contracts and bids are won after strategic planning and visiting over an evening meal. Use this time to present the business plan and ask for what you need.