Small businesses have never found it more important to make correct financial plans. This is especially true when considering raising funds, and/or considering obtaining credit.
It used to be relatively easy for small business's to persuade the local business bank manager to part with funs, but since the sub prime crisis of last year, and financial tremors of this year, banks are being much more careful.
One of the most important factors when applying for loans or other types of business funding is having a good business plan. A small business plan is fine; in fact concise is ideal, so long as it covers all the bases. Make sure you have allowed, as much as possible, for any unforeseen financial circumstances.
It is best to get decent, independent small business advice wherever possible, as banks are now much stricter as regards risk analysis.
We would recommend visiting as many small business advice websites as possible. Join forums, check what your competitors are doing... basically plan as much as possible! Anything that will impress the banks and make them see that you are doing your best to foresee all possible issues, and yet your business plan STILL looks good!
Don't be too optimistic in your business plan either. Offer worst, mid and best case scenarios.... Don't inflate your figures too much, the bank will see through this!
Small Business Advice – is there any point then?
Yes! Don't be put off by our words of warning! So long as you have a sound business plan, and have tried, as much as humanly possible, banks do still want to fund small businesses... it's a big part of how they make their money ;-)
