Small Business Adviser

1. Information. This is basic but many business owners miss this. As much you can be in the habit of keeping data, records and statistics on just about anything relating to your business. You never know what sort of information will help an outsider understand the business.

2. Organized information. Related to 1 above, keep the information in an organized and consistent manner. The information must also be readily available. The information must be go some way in telling the story before you actually open your mouth. There are cases where the business case of a loan proposal is justified but the proposal is rejected merely because of a lack of clear and concise information. In cases where the application is not entirely rejected, unnecessary delays may be experienced as a result of poor information presentation. Further to this, if you are in a sector that has a lot of technical jargon, try to break it down.

3.Positive Mien. When you present your case you must be enthusiastic and sound confident. If you are not passionate about your business, it most likely that the person or people whom you talk to will be not be enthusiastic. You must be able to inject your banker(or any potential financier or partner) with your enthusiasm to the extent that they become your advocates.
4.Outline The Challenges. Do not shy away from talking about the challenges being faced by your business. Clearly spell out the challenges and also outline the strategies that you have developed in dealing with those challenges. Sometimes, your banker may even be in a position to offer alternative strategies based on previous experience. Your banker is unlikely to approve your loan when he discovers that there are risks pertaining to your business that you do not mention or that you are not aware of.
5. Challenge Process. You must be prepared for any queries that may your banker may raise. Before going with your proposal to the bank, give to a trusted colleague or another independent person so that they also provide their opinion or better still raise questions. This will allow you to polish up and better prepare yourself for any questions your banker may have.
6. Know your stuff. You will impress any banker if you display that you know you have ‘hands on” knowledge about your business and that you can answer any query off the cuff. Be in a position to clearly explain the figures, trends and the industry or market factors affecting your business. Even in a situation where you present information that would be prepared for you by a third party ( e.g. Financials prepared by accountants) you must have at least a firm grasp of the meaning of that information and its implications.
Be also very clear about the assumptions behind any projections of future sales, production or manning levels. Also be clear about why you need funding and have an idea about the sort of impetus that the loan will give the business.