Making the Pitch for Your Small Business Loan or Grant

A Home Business Article Contributed by G. Uma Bennett

Making the Pitch for Your Small Business Loan or Grant

Welcome to the arena of competition for a small business loan or grant. Get ready to make the most persuasive pitch of your career. Whether you know it or not, a lot rests on your ability to convince the person responsible for the decision of approval. You do not need to write a 100 page document-your business plan should be compact enough to state the facts straight to the point. Writing the document is one thing, making sure that it is practical and realistic in application is another.

In the case of a loan, you must be able to verbally illustrate your knowledge of the plan - the background of the business, its' purpose, marketing, profits, management, operations and repayment. Grant applications reviewers look to see the impact of your research and development efforts on a broader level. Many grants are approved based on the potential that the research represent to society at large.

The most important part of either plan, is to demonstrate that the idea has been thoroughly considered from all angles. Take care to ensure that your plan relays a clear understanding of your project and be prepared to answer many questions about your facts and figures.

Managing the Small Business Loan or Grant Interview

Unlike a job interview, seeking a small business loan or grant, requires you to answer more in-depth questions that lend to your motive. Your ability to answer questions about why you want to start to pursue this project, whether or not you have used any of your own money, what type of experience do you have and what happens if your projections fail? After preparing your plan, go through it carefully and make sure these questions are answered within the document.

It is also a good idea to practice your presentation with a friend or relative acting the part of the interviewer. This way you will be comfortable with the process of being asked sensitive questions about money management and your pet project. In addition to knowing your business, have an understanding of the position of your project within its respective industry.

Realistic Expectation of a Small Business Loan or Grant

Obtaining a small business loan or grant can be an exciting experience, in terms of the growth of a company, and in the fact that it opens the possibilities to start or expand production. But without realistic expectations of what the money can do for you, the prosperity and success of a business, the thrill be short-lived. First get a firm handle of what profitability and success means to you. This means you need to answer vital questions regarding company management and marketing strategy.

Keeping yourself on track so you can fulfill the obligations attached to the small business loan or grant is critical for success. No matter what position you are in when you start, the whole point is to know where the financing will take you.