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based on a great idea, no matter how well documented it is. Like a personal loan, a bank loan must be secured somehow. The bank will want you to provide your business forecast, business plan, cash flow summary, list of assets, and more. After that, it is still going to want to see collateral, and it will ask you to prove your commitment to the project by supplying a significant portion of the required investment. For these reasons, I recommend that you ask for a personal loan instead of going through the hoops for a business loan.

      If you have incorporated your business and are planning to apply for a loan in the name of the business because you are “protected,” you may want to reconsider. The bank will ask you to personally guarantee the loan, and you’ll have to jump through many hoops to get the money you want. Again, you’re probably better off seeking a personal loan.

      On the other hand, if you have been in business for a while and have built up a reputation, business assets, and some healthy and steady receivables, then a business loan may be just the thing you need when you are ready to expand or buy the next piece of equipment.

      1.4 Help from the government

      If the bank won’t come to your assistance, you should check out government departments and agencies that support small business. These organizations will require paperwork too, but not as much as the banks. They tend to be more sympathetic to small business and are worth investigating. Even if you don’t get financing, they offer a lot of information that can help you in other ways.

      • In the United States, go to the Small Business Administration website at www.sba.gov. Its stated mandate is to help small businesses succeed.

      • In Canada, check out the Business Development Bank of Canada at www.bdc.ca. It was established by the federal government specifically to help companies that were having trouble securing financing for their operations.

      In either case, be prepared with your well-thought-out business plan.

      2. Your Business Plan

      To decide how much money you need now and in the future, you have to do some planning, and that entails writing a business plan. You probably don’t want to do this work because you’re raring to get moving. As well, you may believe you already have a plan in your head, but that is not enough. I can’t overemphasize the importance of having a written business plan. Too many would-be entrepreneurs overlook this step.

      Having a business plan is particularly important if you plan to get outside financing for any part of your business. Your business plan will answer questions such as:

      • How much money do you need and what do you intend to spend it on?

      • When do you expect to start making a profit in your company?

      • Will the company be able to afford loan payments?

      Even if you do not require outside financing, the business plan will provide much-needed direction and focus. It will force you to think objectively and critically about the future of your company. For example, you should answer questions such as:

      • What services will I choose to offer?

      • How big do I want to grow my company?

      • What are the keys to the success of my business?

      By stating clear goals in a business plan, you will be able to measure your success and make changes as necessary. Without the goals, you will have no way to measure how your business is progressing or determine when to make changes. Many businesses fail due to poor planning; don’t let yours be one of them.

      Writing out your plan will provide a stimulus for further creativity. You’ll likely discover areas of your business that you have not thought about yet. Developing your plan will compel you to think ahead, think deeper, imagine different scenarios, and visualize your dream. The end result will be a sharper focus, a clearer sense of direction, and increased determination.

      Find some sample business plans to review. Then put pen to paper and start on your own plan, making sure you include the sections described below.

      2.1 Executive summary

      The executive summary is the overview. It contains three important subsections:

      • Mission statement. The mission statement should define what kind of business you are in, set out goals relating to the quality of your service, and perhaps briefly summarize your competitive advantage.

      • Objectives. You should list three or four measurable items that you feel are the objectives of your company. These points will give you and your employees a focus as you grow.

      • Keys to success. These points spell out how you will ensure that you meet your objectives. If one of your objectives is to provide exceptional customer service, then one of the keys to success will indicate how you intend to do this.

      2.2 Company overview

      In this section you summarize the “five Ws” of your business: the who, what, where, why, and when. Start-up companies should also list what resources they will be starting with.

      • Company summary. What is your company’s name? When did it start and why? Where is your home base? Where will you do your work? What services will you provide and to whom? Will you specialize in anything or are you going to mow, blow, and go? These are the types of questions you need to answer in the Company Summary. It may be a paragraph or it may be a full page or more.

      • Company ownership. Here you describe the business structure you have decided on and explain the specifics of how your business will be organized. If you are a sole proprietor, this would likely be a single paragraph. If there are several owners and you have decided to incorporate, you would need more explanation to introduce all the people involved and their roles in the company.

      2.3 Start-up summary

      In the first part of this section you explain how much money you will need to spend to start your company, how much you already have, how much you still need, where the money is coming from, and what exactly you will be spending it on.

      In the second part of this section you follow up your written summary with a spreadsheet that neatly lists all the financial information to do with your start-up. It is important to note that all the items in this table are items that come into play before your first day of business. Do not include revenue figures or ongoing monthly expenses at this stage.

      Although the spreadsheet follows the written summary in the plan, it is probably easier to complete the spreadsheet first.

      2.4 Management summary

      Your readers met the owners of your business in the company summary. Now you need to provide a little more information about each person. If there are key people involved in the business who are not owners, include them in this section, too. If you will be sharing your business plan with potential investors, this is where you really want to sell yourself and your team. What is your background? Why do you want to start a business? Why landscaping? List qualifications, experience, passions, and anything else that will prove your dedication to your business. Complete this section even if you are not looking for external financing. It will give you a comprehensive record of your (or your team’s) assets. It may also reveal areas that need improvement. Make a note of these insufficiencies on a separate personal list, not on the business plan. You are trying to sell your competence as a business owner here. This is no place for modesty!

      2.5 Products and services

      In this section you want to tell readers what services you will offer and what products you will sell, if any. List all the services you plan on offering now or in the near future. Be specific, listing specialties or areas that you are most interested in growing. Include any innovative

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