Improve Your Chances of Getting Business Funding with These Tips

Business funding is crucial to getting your venture off the ground. It also plays a huge role when it’s time to expand. Applying for financing is stressful. However, if you employ a few tips, the process should be less painful and go much smoother. Here are ways you can improve your chances of securing the funding you need.

Don’t Toss the Resume

You might think you don’t need a resume anymore now that you’re starting your own venture, but financiers actually like to look at your personal history, so it’s wise to keep your CV updated. If you have previous business management experience in your work history, even if it’s for another company, this will be a feather in your cap, as it shows potential lenders that you possess the experience needed to manage a successful business venture.

Keep Your Business Plan Updated, Too

You’re not done with your business plan yet, either. From the beginning of your business through to your retirement, you must always have a comprehensive business plan on hand to show those you approach for business funding. It doesn’t matter if you’ve already achieved success. The lender will want to know your plan for your growth if you’re applying for monies to expand, and you’ll need to show your financial health, too, which is part of any solid business plan.

Elevator Pitch

It doesn’t matter where you are; if you have an opportunity to pitch your business idea or expansion to somebody, you need to do it – right then and there. The term “elevator pitch” is inspired by this idea. You never know whom you might meet, and if you’re in an elevator with an angel investor, you have about 30 seconds to convince him or her to give you money. Always be prepared to pitch whenever you can, and make certain your pitch is concise yet comprehensive.

Think Outside the Box

Yes, you can walk into your bank and apply for a commercial loan and they may give it to you, but if you’re a smaller entity, chances are they may not. When thinking about your business financing, think outside of the box and consider alternatives to your traditional bank loan. Alternatives include the angel investor in the elevator, leveraging your personal assets, borrowing from family and friends or crowdfunding, where people donate money to your business idea.

Follow these tips when seeking out business funding for your company. They will give you a better shot of making the right impression with the right people.