ChApter 10 | SELLING YOUR BUSINESS PLAN | 175
If you want to ask a relative or friend for
a loan, much of your approach depends on
the people involved and your relationship
to them. We can’t tell you much about
either of these areas, but here are some
general suggestions:
• Approach your friends in a respectful
and organized way. Don’t spring your
request on anyone in a social context.
• Don’t assume your relatives and
friends know all your plans and
accomplishments, even though
they know you well. Make your
presentation just as professional as for
your banker, even if it’s less formal.
• Tailor your presentation to your
audience. For example, if you stop by
your brother’s place early Saturday
morning wearing your banker-meeting
best, he will probably laugh you out
of the kitchen. But bear in mind that
your brother will be as interested as a
banker in seeing your well-thought-out
business plan.
• Above all, give the person you’re
talking to a graceful way not to lend
or invest. Remember, this is a business
proposition, not proof of someone’s
feelings for you. Once everyone is
assured an easy exit if they don’t have
the money or desire to invest, you may
find they will be relaxed enough to
give you a fair hearing.Business Acquaintances
One good way to approach business
acquaintances is by networking. For
example, you might call your attorney or
accountant or someone you know who
owns a small business and say, “I’ve got
a great business proposal in the retail
clothing business. I need about $40,000
and the investor will get a 25% annual
return on the money they invest, paid
monthly. Do you know anybody who
might be interested?”
She might reply, “Well, I’m not interested
myself, but why don’t you try Joe Spats?
He just retired from the menswear business
and has been a little restless lately.”
Obviously, the next step is to call Joe,
mention your mutual friend’s name, and
set up a meeting. If he’s not interested, ask
if he knows anyone who might be. If you
strike out with your accountant, attorney,
or business friend, try your uncle, the
owner of the local hardware store with
whom you trade jokes, or the investor who
put money into the bakery where you buy
coffee.Supporters
Supporters are people who care—often
deeply—about the subject area of your
business. Your best approach is to try to
enlist this enthusiasm and to honestly
involve these people in your dream. Often
it’s best to involve supporters at an early