Five ways to make sure your business plan attracts funding

A business plan is your most important tool when going after financing -- private and government -- says James Byrne, Director of the Small Business Consumer Centre.

Byrne offers these tips to make your business plan stand out from the crowd.

1. The process is as important as the plan itself. Do it yourself, and you'll come away from the experience with a more in-depth, more organized and more crystal-clear vision of your business. If the investor sees that you've invested the time, energy and unified effort to develop your own business plan, you're already past the first hurdle. When you're done, you might consider a review by a consultant, who can give you a critique based on the investor's point of view.

2. Hook them in the first two minutes. The person reading your plan is busy, confronted with dozens of plans each month. Make it look good, with a clean attractive design. Organize it so readers can find what they're looking for immediately. And spend a lot of time on your Executive Summary, so it hooks the reader into the story of your business and why you'll be a success.

3. Always answer "Why". Every time you make an assertion, explain the underlying reasons. For example, if you state that your local market will see a surge in the next few years, explain that it's because booming residential development is driving new young families to the area.

4. No matter how much you expect sales to grow, it doesn't mean a thing if you're not profitable. Use accepted accounting principles, and don't forget to explain in detail how you will control costs.

5. No matter how optimistic you may be about your company's future, don't kid yourself into believing that your estimates are "conservative". Never use the "c" word when describing your sales projections. Lenders will only shake their heads.

Would you like to receive money to launch and grow your own business too? There are monies available now for qualified existing & start-up small businesses. Visit The Small Business Funding Centre for more information.

James Byrne is an owner of www.grants-loans.org/; Visit the site (www.grants-loans.org/) for more information about Canadian Government Grant Loans For Small Businesses.

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