• Think about a realistic amount of money each person might be able to
lend you, and write down that amount next to their name.

When approaching someone you know for money, it is important that you
have made a written loan proposal. It should be backed up by facts and
figures. If you are just asking for the money is practically a guarantee that
you will be turned down. Would you not do that? Be realistic and
professional.

Your business plan is the proper tool to persuade your friends and family.

Banks and Savings Banks
What do banks require to lend you money to finance your business start-
up?
The best tool to obtain the necessary financing is a detailed business plan.

Based on your personal, establishing, and operating budgets you can make
a cash flow budget or make an accountant work it out for you. A cash flow
budget shows your expected borrowing requirement in exact figures.

Present your business plan and loan requirement to your banker and
discuss the future cooperation between the bank and your company.

You are being evaluated
To grant your company a loan the bank will evaluate:
• Your personal background and personality in relation to your
commercial concept
• Your mission, motives, strategy and contemplated business format
• Your selling scheme and marketing plan
• Budgets and borrowing requirement

Can you stand an evaluation?

Investors
If you have enough confidence in your concept to believe that it constitutes
an attractive investment object you should definitely try to approach
potential investors.

In order to make your business concept attractive to an investor you must
be able to offer a unique business concept and provide information material
on your project. In other words, you have got to create an attractive and
interesting basis for business activities in order for your potential investors
to eventually make a profit from your concept.
If your are ready you can contact

• Venture Capitalists - professional investors looking for a higher rate of
return by investing in high-growth business ventures

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