| As in everything, there are do's and don'ts | | | | business language. A good impression is a |
| regarding the successful outcome of a loan | | | | very important negotiating tool. It is what |
| request. Keep them in mind, write them down | | | | got Aristotle Onassis to the very top of the |
| if necessary and use them to make the best | | | | rank. |
| possible deal. It is all part of the | | | | |
| preparation most people just will not take | | | | Remember it is not a "register of the money |
| any notice of. We have seen lots of things | | | | that comes in and the money that goes out", |
| happen, good and bad, that's why we're here, | | | | it is a "financial statement". It is not a |
| for you to capitalize on our records. | | | | track record of your "in's" and "out's", it |
| | | | is your "balance sheet". It is not "this is |
| Do Not Be Put Off By Your Fears | | | | how we stand at present", it is "our current |
| | | | status". |
| Banks need to give loans in order to stay in | | | | |
| business. They want you to take one. They | | | | Do Not Be Afraid To Ask For Determined |
| need you, so that gives you a better | | | | Conditions |
| position. Perhaps you could get a loan from a | | | | |
| lender who is familiar with your trade or | | | | For example, you may wish to ask for a |
| specializes in what you want to do. A car | | | | determined payback period, explaining why you |
| loan broker if you want to buy a car, for | | | | want it that way. If you are well presented, |
| example. | | | | well backed up by a business plan and |
| | | | sufficiently confident with the reason for |
| Most Startups | | | | requesting a specific term, you will surely |
| | | | get it. |
| Most loans for a startup will require a very | | | | |
| safe security, since they know the risks of a | | | | It is A Negotiation, Remember? |
| new business. The best antidote for this is a | | | | |
| well-designed business plan. | | | | The agent will almost naturally accept, |
| | | | probably if you would provide more |
| Tell your future lender how you are going to | | | | collateral, or something he wants as |
| carry out your business, what your assets | | | | compensation. So be prepared for this and |
| are, what target market you are aiming at and | | | | maybe you might say something like, "instead |
| more than one contingency plan. And do not | | | | of that, will you be willing to accept this?" |
| forget the possibilities of on-line | | | | |
| marketing, advertising and sales. | | | | An Important Answer |
| | | | |
| Low Risk | | | | As a rule, an agent asks simple questions |
| | | | but, believe it or not, most customers do not |
| The more doors you open to success, the lower | | | | know the answers to them or, in the best of |
| the risk of failure and your banker has to | | | | cases, they are doubtful. This might mean you |
| know about it. Prepare a cover letter, get a | | | | are inventing on the spur of the moment, or |
| template from Internet if you are not | | | | that it is all a fake. |
| familiar with the usual text, make a | | | | |
| realistic cash flow and projection of the | | | | A Stupid Question |
| development of your business for the first | | | | |
| three to five years. | | | | Yep, an apparently stupid question but which |
| | | | produces an even more stupid answer is, "What |
| Fortune Making Preparation | | | | will you do if there is too much demand and |
| | | | you can not supply enough? Be prepared for an |
| Apply Onassis's technique to prepare a | | | | intelligent answer. That's what the question |
| business meeting: Anticipate every possible | | | | is asked for. To measure how sensible you |
| question you might be asked and work out a | | | | are, when you are suddenly out of depth with |
| well explained answer. Remember to speak in | | | | a simple question the market asks you. |