Getting financing for your business is never on the top-10 list of fun things for business owners to do. Most of the entrepreneurs I encounter operate on a default setting of “No.” In other words, they expect the bank to say “no” to their request for financing.

So what do you have to do to get a “Yes?” Interviews with a new business owner (who just got bank financing) and a business banker got some answers to the question in question.

Portia Belmont is owner of Once Upon A Huckleberry Bush – a Main Street children’s bookstore in Vancouver set to launch on August 12 (http://www.huckleberrychildrensbooks.com/). She spent three months writing a complete business plan and was approved for the full financing she sought from the first bank she approached. Here is what she had to say about her success:

1. As a new business, what part of your business plan was the most important to getting your financing? 

I felt that the numbers and how the numbers made sense were the most important. The banker went straight to the financials. They want to see conservative numbers. And I did a presentation to the banker reviewing how I came up with my financials and why the business was a good one for them to invest in. However, what really surprised me was how they were also impressed with the thoroughness of the plan. Apparently, they get a lot of scraps of paper handed to them.

2.  What tips do you have for other business owners out there on building a business plan and looking for financing? 

Research your idea. Research your numbers. Research your market. You have to do the work. Not only did I want to build a business plan to secure financing, I wanted to make sure my business idea was viable. By doing a thorough plan, I was able to determine that I could fulfill a dream that I’ve had forever and was also assured that I was going to create a profitable business 

3.  How did you figure out your sales forecast? 

Initially, this was a daunting task. But after doing the market research and determining where my business would be, I was able to obtain data from Small Business BC that showed the sales volume for similar businesses in my area. My forecast was based on a conservative average of these volumes.

Aly Karmali is Regional Manager and Advisor for the BC Small Business Markets at Royal Bank of Canada. Having owned several businesses over the years, he has been on both sides of the table and he shared the following three tips with our readers: 

1.The key to business success is how well you execute the many details that can turn a vision into a successful company. A banker looks to see that you’ve thought about these details. For example:

• Do you know your competition? A banker wants to see a solid market analysis.

• How will you manage cash flow once your business is up and running? A banker wants to see marketing and sales forecast strategies. Ensuring sufficient working capital for the first 12-18 months is critical, including a capital statement showing cash flow and reserves. 

2. You need to “educate your banker” on your business. While bankers are great at financial analysis, they may not always be experts on your specific business. Anything you can tell the banker, prior to the initial meeting, about what makes your business idea a successful business enterprise, will be very beneficial. What makes you unique? Why will you be successful?

3. Do you possess the three critical factors in every entrepreneur:

• Passion – Are you really hungry and do you have what it takes to make this venture a success?

• Mentors - Have you established mentors and developed alliances?

• Network – Have you surrounded yourself with the right people committed to helping you succeed, like a lawyer, accountant, business coach, mentors?

So there you go, straight from the horse’s mouth – a quick primer on what you need to do to hear Yes from the bank and get your business going and growing.

Fiona Walsh is one of only three business coaches in North America approved to provide the highly successful and popular Ghost CEO coaching program. An expert in sales and business development, she offers tips for growing your business at www.fmwalsh.com.