Today I went to the orientation meeting at The Utah Microenterprise Loan Fund office. (By the way, most states have micro-loans available, check with your SBA office) I unfortunately (or fortunately?) missed the first hour because I couldn’t find it and no one there answered the phone because they were in the meeting. I had mistyped the address into MapQuest and then had to try and get the proper address so, lesson #1 of the day was ALWAYS double check your directions. #2 if you’re having a meeting, see if you can at least put your phone on vibrate so if someone is coming they can get help…#3 put directions on your site, it makes life easier for people!
Anyhow, once I got there with my baby, I didn’t feel like I was missing anything because none of the other applicants had a business plan yet or a cash flow statement for their businesses and they were going over how to write a plan and do financials. This was very helpful for those who need to fulfill those necessary requirements before they apply for their loans. I fortunately am done with those steps, so all I need to do is get together my tax info and mail everything together and then I will present my plan to their fund lenders at the end of the month.
I had to feel for those in the room overwhelmed with the prospect of writing a business plan, I wrote my first one for Sweet & Charming (then it was called Princess Sweet) in January 2005 and I’ve just completed my 13th version! Business Plans are necessary, no matter what…so, if you are thinking about getting funding, you need a plan. I recommend The Palo Alto Business Plan software to help you write it. That is a great tool for beginners. I never in my whole life had a business plan class or business class, and although I completely REGRET it, the program is simple enough to help you at least get a draft together to show a mentor at the SBA office.
I do have to complain about one thing. Because I am in Utah County and not Salt Lake County, the fund will only loan me a maximum of $10,000; while if I moved to SLC, I could be given up to $25,000!! This boggles my mind! But, they said it was because of where the lenders are from and where they want to help increase entrepreneurship in the state. Utah County is reportedly one of the BEST places in the country for entrepreneurs, so I guess they are trying to encourage start ups in other places.
Today’s Magic Wand: If you need funding and don’t need a lot, consider a micro-loan! Check out your local microenterprise office.
I want you to know that, as of October 1st, 2007, the UMLF can make loans of up to $25,000 in all nine counties that we serve (including Utah county!). The reason we were not able to until now is because of the sources from which we get our funds. It actually has nothing to do with where the lenders are. A grant from Salt Lake City allowed us to start making bigger loans in the city limits three years ago. A partnership with Salt Lake County allowed to make bigger loans in other areas of Salt Lake County. It is because we aggressively sought other investors that allowed us to increase the limit in the other areas.
I am sorry you had difficulty finding our office. I will make sure that I add a link to our web site (thought I had already). With a small staff of only 4 part-time people, we’re not always able to cover all phone calls at the moment they come. (we also don’t use cell phones for regular business, so vibrate wouldn’t have helped).
Potential borrowers don’t need to come to the Orientation with a business plan already prepared. The purpose is to make sure they know how the program works – primarily that we only lend to businesses that are not able to access traditional sources of funding because of one or a combination of 1) being a start-up company with no operating history, 2)not having enough collateral for a traditional business loan and/or 3) having credit history issues. We also talk about what’s in a business plan and that, for most borrowers, they will have the opportunity to personally “sell” their business idea to our loan committee. In most banks, a loan officer represents the applicant. We have found that the personal interaction with the applicant makes a HUGE difference. We get a feel for what they plan to do through the business plan, but meeting them makes all the difference. So often, they know so much more than the business plan conveys. More often than not, the personal interaction is what tips the decision to a yes. Also, a better source for finding out where microloans are done in other states is the web site: http://www.microenterpriseworks.org. It is our national association and lists all the other organizations across the country.
I had a business plan written by someone. She did a pretty good job but the knowledge does pays off sometime or the other. I could do it myself but as you said was a lil overwhelmed by the idea.
Yes, I could help you write the business plan if you like. My fees are not that high. Contact me if you’re interested.
-Christine
Chrisitine E. Joness last blog post…Sign Michael Vick–Please!
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