178 | HOW TO WRITE A BUSINESS PLAN
even understand there is a possibility
she may lose the entire investment if
things go very badly.
• Ask for names of others who might
invest. If a potential investor turns
you down for any reason, ask if he
knows anyone else who might be
interested in investing. Don’t be
surprised if someone suggests putting
a deal together for you for a fee. This
means he acts as a finder or broker as
discussed in Chapter 4.Government Agencies
The hardest thing about getting money
from the government is finding out which
program can help you. The second-hardest
thing is finding out who in that agency
can make a decision for or against your
proposal. Compared to these two, filling
out the forms is easy.
Ask your bankers if they know any of
the programs. Most will have some exper-
ience with at least one of the agencies,
such as the Small Business Admin is tration
(www.sba.gov), and can steer you in the
right direction. If you run into a wall, try
your local elected representatives. They
have aides whose job it is to help people
like you. If you find a program that looks
good, be sure your elected representative
knows about your application. (See the
discussion of the SBA in Chapter 4.)
What to Do When Someone Says “Yes”
Your first job when someone indicates his
interest in lending you money or investing
in your plan is simple—don’t faint. It’s fine
to prepare for a negative result so you are
not too disappointed if you are rejected,
but remember also to be prepared for
a positive reception. If your proposal is
good, it will be funded sooner or later.
One good approach is to have a number
of answers ready, depending on what the
lender or investor offers. It’s a little like
being a major league baseball outfielder in
a close game, with several men on base.
Depending on where the ball is hit, you
need several alternative plans. You can see
some pretty funny plays when a fielder
fails to think ahead and throws to the
wrong base.
If you’re asking for a loan for a set
amount of money at a certain interest rate
and the lender says “Yes,” presumably you
will, too. But, what if the lender offers
you less than you want, asks for a higher
interest rate, wants collateral, or proposes
a different financial formula entirely?
Make sure you understand exactly what
the proposal is. Think through your risks,
especially if the lender wants collateral.
Compare the terms—for instance, a small
increase in interest rate could mean that
you will end up paying more money for a
longer period of time.