What entrepreneurs must Have before looking for grants or loans will be explained in this article. This will guide you to get loans or grants.
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Except you intend to go very locally, you will get to a point in your business where you will see the need to expand both in structure and the products or services you deliver, and sometimes when entrepreneurs get to this point, they usually look out for loan or grants.
The truth is simply that before a loan is given to you either by an individual, NGO, Angel Investors, or Capitalists, you will need to meet some of their requirements without which you will not be given the loan you ask for.
This article has been carefully written to bring to light some of these things. All of them are so important not just to get a loan or grant but for the overall growth and success of your business.
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What Entrepreneurs Must Have Before Looking for Grants or Loan
1. Know Your Onions
If a company is issuing loans or grants for the growth of a business idea, one of the things they will look out for is someone who knows what he or she is doing.
No one wants to throw away money and this includes those who will be giving out the loan that you ask for. Understand the pros and cons of the idea or business that you are currently involved in. It will help you get one step ahead of your customers and competitors.
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2. Start something already
No matter how small, investors love what is visible and not just an idea. Don’t just submit a proposal or application for a loan or grant when you have started nothing.
What you have at hand will usually boost the morale of your investors consciously or unconsciously. You may not have the structures in place, just start something somehow and help will come from there.
3. Track your income and Expenses
One of the most important things that investors will look out for before funding your business is your financial statements.
Make sure that your financial statements are up to date with nothing missing. It is from the financial statements that investors decide who is serious with his or their business or not.
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4. Register Your Business with relevant agencies
With many uncertainties around the business world, registering your business gives investors or any person that wants to partner with you the assurance that you are ready for business and you are not a scam. Most loan or grant-giving organizations will not attend to you if you do not get registered.
5. Have a Business account for your Business
Even if it is just an idea, open an account for it. If you are to accept business grants, no one will pay into your account, they will love to deposit and even write a cheque in favor of an account with a business name.
6. Write a good business plan
Although it could be time-consuming and very strenuous to write a good business plan, the advantages of a good business plan cannot be overestimated with time.
You need it to access loans and grants and apart from that, a good business plan will help you see where you came from in the business, locate where you are and creatively get to where you want to get to.
Other things to consider when seeking loans or grants are:
- Develop a good website for your business.
- Look for organizations that give loans and grants.
- Create a good presentation for your business, one that will not bore the investors
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Be sure that you are not selling smoke in your presentation. If you cannot write a good business plan or presentation, pay or hire someone to help you do it. You just need to put all hands on deck to get the desired loan or grant.