Just because the money supply seems bleak for you doesn’t mean there isn’t a ton of money out there ready, willing, and able to make your day. The question you need to be asking is, “Where is this money and how do I get my hands on some of it?” Here’s the answer.

MARKETING PLAN
The answer begins with a Marketing Plan. That’s right, not a business plan, a marketing plan. A marketing plan identifies your products, customers, and competitors; then specifies exactly how you are going to market your products to those customers. A marketing plan is designed to clearly outline how you are going to help your potential customers to make the decision to buy from you rather than your competitors. A marketing plan talks about advertising, public relations, availability of products and service, and customer care in general. You need a marketing plan.

Money lenders want you to have to have a clearly defined marketing plan that can easily be understood by most anyone; one that outlines, step by step, the things you intend to do to sell your products. It must clearly indicate exactly how you intend to implement your plan, the person who will watch over the implementation, and what you will do if something goes wrong. Anything less than that will get you lots of sympathy, but little money.

The features a good marketing plan should include are: 1) A historical financial description of your business growth. 2) Your track record of managing and controlling your growing business. 3) How you are going to find and attract customers. 4) Your forecasted sales and the cost of those sales. 5) When the new capital will show an actual investment return (including an analysis of the total costs of running your firm during that time). 6) A plan for paying back the invested money.

If you are having problems writing your marketing plan, contact the Small Business Administration for a list of organizations and individuals willing to help either free or for a nominal price. (At this time I cannot recommend one off-the-shelf software package over another, but should have such a comparison for you in several weeks. Watch for it on the www.tulenko.com web site!)

SOURCES OF MONEY
After you have a bullet-proof marketing plan your next step is finding the money. Here is information of the five major sources of capital for growing companies. Remember, venture capitalists and IPOs are primarily for start-ups; and a small business doesn’t have much of a chance of attracting either one.

BANKS
Just because one bank turns you down doesn't mean all banks will turn you down. Just the opposite! Banks are in business to make money, and what may be a marginal investment for one may be just what another is looking for. Take your completed marketing plan to several banks and talk with a commercial loan officer about your needs. Don’t go to the branch office no matter how nice that person has treated you in the past, visit the head honcho at the main office … he or she has the power to grant all but the largest of loans.

SBA
You will not get money from the Small Business Administration, but you will learn about several programs the SBA supports which guarantee payment of your bank loan. For example, you may be a great candidate for a “Seasonal Line of Credit” program. If you have been in business for at least 12 months and can demonstrate a seasonal activity, you are eligible for a SBA guaranteed bank loan of somewhere around $750,000. See your SBA contact for more information on these programs.

PRIVATE PLACEMENT (PPM)
This growing method of financing offers private investors a debt note that can be converted to equity when the business shows a profit. PPMs are exempt from the time and money consuming securities laws, which makes them a cost-effective way of raising special purpose or growth money. Understand … you lose part of your business with these when the PPMs are converted.

ANGELS
Yes Virginia, there really are angels! In every community there are people willing to take a chance on you and your business for a modest equity position. One great way of attracting these individuals is through the classified "Money Wanted" section of your local paper. You might headline your ad, "Angel Wanted." Again, you lose part of your business when you pledge equity.

FINANCE COMPANIES
Don’t pass-up this opportunity with the thought, “I’ll never do business with these people” Finance companies have changed dramatically in the past years, and can offer businesses very attractive rates. They have the ability to offer both short and long term debt financing with a great deal of flexibility of terms and conditions.

WRAP-UP
Use caution in dealing with people with money to lend. They are far more interested in the return on their investment than they are in the success of your business. Have a GREAT plan, and you may be on your way to success!

(NOTE TO EDITORS: PLEASE INCLUDE THE FOLLOWING.)
Paul Tulenko is a Small Business Success Consultant based in New Mexico. Additional tips and suggestions are available at www.tulenko.com or call (toll-free) 1-866-TULENKO.