Here’s what we will cover today:

• Understand what banks are looking for in a loan application

• Get a step-by-step strategy to secure funding for your business

• Discover the challenges Marion Donovan faced bringing her invention to market

Quote of the Day

“There are lots of bad reasons to start a company. But there’s only one good, legitimate reason, and I think you know what it is: it’s to change the world.”
~Phil Libin

Today’s Tip

I was working with a client recently who had been rejected by multiple venture capital firms. They had a solid idea, but something wasn’t clicking. That’s when I suggested something they hadn’t considered: approaching traditional bank loans with a clear, conservative financial plan.

They were hesitant at first. "But we don’t have the cash flow they’re asking for," they said. "Banks are never going to take us seriously." I understood their concern, but I knew there was a different approach. Instead of focusing solely on growth projections, we focused on proving stability. We built a financial plan that showed not just potential profit, but also a strong ability to repay any loans, even in a slower market.

It worked. The bank didn’t just look at the high-risk projections they’d been using for venture capital. They saw a business that was steady, responsible, and ready to manage its growth within a structured, sustainable model. My client got the loan they needed.

What I learned from this experience, and what most business owners don’t realize, is that banks want security, not just growth. They want to know that your business can withstand unexpected challenges. While VCs and angels may gamble on bold, high-risk moves, traditional lenders are much more focused on risk management and long-term stability.

It’s essential to remember that a well-structured loan application, focusing on consistency rather than ambition, can be just as valuable as any other funding source. It’s about proving you’re ready to grow responsibly.

Today’s Resource

Give Your Business the Ultimate Holiday Gift: Funding

Reflecting on 2024? Set a powerful resolution: Secure funding for your business.

Raising capital can be difficult, but not with the right approach. 

I'll guide you with a step-by-step strategy for getting the funding your business needs to grow.

Don't let limited funds hold you back. 

Trivia

Today’s Question: What car company advertised "Drivers wanted"?

Previous Question: Who was the inventor of the world’s first disposable diaper?

Previous Answer: Marion Donovan.

Like many famous inventors, Marion Donovan was originally mocked for her most significant invention; but she helped revolutionize the infant care industry by inventing the prototype of the disposable diaper. Donovan designed and perfected, on her sewing machine, a reusable, leak proof diaper cover that did not, like the rubber baby pants of the time, create diaper rash.

Surprisingly, Donovan did not have instant success with this idea. She toured the major US paper companies, and was widely laughed at for proposing such an unnecessary and impractical item. It took nearly ten years for someone to capitalize on Donovan's idea: namely, Victor Mills, creator of Pampers.

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