There still seems to be a good deal of mythe about the availability of money for a business idea. No matter how wonderful you think your idea might be, there is no pot of gold sitting there waiting for you to come and collect. Grants are not all that common, they come with strings attached and they usually require a fair bit of work to get. Loans also require a fair bit of work. Anyone who has money to lend will want to see that you have thought your idea through thoroughly. That usually means writing a Business Plan. They will also want to see that you are willing to assume some (if not most) of the risk yourself.
Whether it's a bank or a private lender, chances are they will be thinking about the same criteria while you're busy pitching your idea to them. It goes something like this:
1) How quickly can I expect to be repaid?
2) Is the managment team competent? Do they have advisors/mentors/coaches?
3) Have the owners invested in this business themselves? If so, how much?
4) What can I expect to recover if this idea fails?
Be prepared to answer the hard questions if you expect someone else to give their money and be prepared to let them stick their nose in your business.
S
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