Before you Approach a Lender

(first published May 2010)

When you are approaching a lender or potential partner for start-up funding or a loan to fuel business expansion, there are important issues of feasibility to consider. Of course, lenders always look at the current financial health of your business utilizing your business credit rating, net worth and various accounting ratios that give clues to the stability of your business (or personal financial stability, in the case of a start-up.)

If the window of opportunity is open right now, and there isn’t time to prepare a full business plan, below is a checklist of what to put into a mini-plan to ensure your readiness.

Your launch/expansion proposal must:

1. Clearly and concisely communicate the vision for the business as well as its keys to success
2. Describe a marketable idea – and explain the marketing strategy
3. Describe how the product offers customers a long-term benefit
4. Target a clearly defined market, with enough size & purchasing power to generate robust sales
5. Describe a competitive edge, which will lure customers away from your competitors to you
6. Show the company’s ability to control production, delivery & quality
7. Show that owners & employees have the required skills & experience to make this a success
8. Show that owners have made a personal investment (and therefore, commitment)
9. Lay out a clear, sensible, workable strategy with a timeline for getting the business/expansion off the ground
10. Contain realistic financial projections, covering not only the most-likely but also pessimistic and optimistic scenarios
11. Show good profit potential
12. Demonstrate an idea that is not overly complex

A full business plan is always best for eliminating as much risk as possible when entering into a new venture, but even this abbreviated feasibility checklist will put a foundation under your business concept that will be a key factor in the success of your launch/expansion.

Young Entrepreneurs Launch their Summer Ventures

The City of Brampton’s Small Business Enterprise Centre (SBEC) has announced the successful entrepreneurs for its tenth annual Summer Company program. Summer Company, a program funded by Ontario Ministry of Economic Development and Trade and delivered locally by the SBEC, helps enterprising young students, 15 to 29 years old, start up and run their own summer business.

Summer Company entrepreneurs receive business skills training as well as coaching and mentoring from local business leaders who will help make their Summer Company viable. Each entrepreneur receives up to $1,500 to put toward start-up costs and up to an additional $1,500 upon successful completion of the program.

Please support these creative and industrious young people!


Dwijen Bharad
Sunshine WindowCleaning
dwijenb@gmail.com
647-962-1234

Carly Cameron
KC Swim School
kcswimschool@gmail.com
905-880-1162

Jesse Cottrell
JC Photography
jcottrel@uoguelph.ca
416-668-4411

Stephanie Hillier
Abundant Life Fitness Solutions
s_hillier@live.ca
905-965-7043

Deniece James
Hart Door Art Camp & Classes
deniece.james@alumni.utoronto.ca
416-357-5071

Jacqueline Schoemaker
5 Elements Body Art
info@5elementsbodyart.com
647-293-5227

Alana Clark
Yoga Sprouts
alanaclark110@hotmail.com
647-206-1827

Kiron Clarke
Athletic Showcase
kironclarke_23@hotmail.com
647-388-1706

Hasanali Rajabali
Woody Woodworks Carpentry
woodywoodworks@yahoo.ca
416-728-0392

Chaitanya Shah
Kinergy Fitness
cshah@kinergyfitness.com
416-568-7148

Ishan Tikku
Pro Ball Goalie
proballgoalie@gmail.com
905-216-9291


For further details, contact Jennifer Vivian, the program co-ordinator, at 905-874-2632.

A Simple Proposal Template

In many industries, responding to tenders or submitting written proposals to land contracts is an everyday part of doing business. Service companies, consultants, even custom manufacturers need to be able to write compelling business proposals as an essential part of their sales process.

The first step in successful proposal writing is to have a base template at the ready. Often, opportunities are discovered at the eleventh hour. A shoddy proposal will harm your company’s professional reputation, or if you do manage to land the contract, could be disastrous because of scope and cost miscalculations. Having the bulk of the proposal ready to go so that you can focus on the quoting component will mean you quote more frequently and with more accuracy.

A business proposal typically contains these core components:

>> Background – a restatement of the customer’s issue

>> Scope – your specific, recommended solution to the issue

>> Deliverables – an exact list of tangible results your solution provides

>> Personnel – the qualifications of your team members assigned to the project

>> Timetable – start and end dates with success markers along the way

>> Fees – your fee, and what expenses/stages are covered; don’t forget taxes, shipping and other hidden costs

>> Other Expenses – clarity on who pays for sub-contractors, time & materials sub-projects, etc. that are not a part of the outlined fee

>> Terms – billing details such as due dates, installment agreements etc.

>> Appendices – any details that add value to your proposal, for example company history if you are well-established, a customer list that demonstrates similar project experience, or strong references.

The quote is key: too high and you don’t land the project; too low and you make no profit, or worse - do it at a loss. Successful proposal writing is based on knowing the operations of your business very, very well. Consider smaller projects for you first proposals and be prepared to learn through mistakes.

In the proposal, communicate your strengths and uniquenesses, and build trust through sound business practices, professional writing and excellent presentation. Keep a focus on the customer’s needs so that they know you are there to serve them, and you’ll land more contracts.