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TPT
Administrator
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Posted: Mon Jan 9th, 2006 02:08 am |
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My business has hit a plateau and I'm in the process of redesigning my service offerings to focus on one very underserved niche market.
My new service will require a bit of capital investment as well as running monthly expenses for software licensing. I am also looking to launch a major marketing campaign for this new service. some of my vendors have co-op marketing funds, but they want to match my investment.
I can pretty much afford the upfront costs, but I don't want to reduce my working capital that much. What would be the best way to try to get an SBA loan to cover these new expenses? What would be the best way to approach my bank?
I already have a business plan and I am in the process of updating it. I have done my market research and found very little competition with my new service. In fact, the nearest competitor I could find offering a similar service is 90 miles away.
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Fred
Intensify.biz Founder
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TPT
Administrator
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Posted: Fri Jan 13th, 2006 04:35 am |
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| Just as an update, I have an appointment with the SBA loan manager for my bank. Since I already have an exisiting 2+ year relationship with them, I figured I'd start there.
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Fred
Intensify.biz Founder
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TPT
Administrator
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Posted: Fri Jan 20th, 2006 04:16 am |
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Well, the meeting went well. I showed up with my 27 page business plan and the bank representative was happy about that. She mentioned that many small businesses do not think out their plans nor do they document their plan well.
After I showed her my profit and loss statements for the past three years, which show a steady increase in gross sales, she said I was moving in the right direction and there should not be any problems with that regard. To explain my new product better, I attached several preliminary marketing slicks in an Appendix of my business plan. When she wanted an explanation of the service, I produced those and she was able to understand my product. Then I went on to describe the target market and my nearest competitors offering a similar service.
We discussed marketing strategies and when she asked what I was going to spend the money on, I pulled out my financing needs section of my plan. I broke out my expected expenses that were outside of my historical operations and needed funding. I covered the first 3 months and explained the ongoing need for cash flow. From looking ta her facial expressions, she was impressed. She even made a comment that she likes when a business owner has thought out their future expenses so well.
So, I should find out by sometime next week if I get the loan.
____________________
Fred
Intensify.biz Founder
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