Tombstone Business Plan
If you apply for a loan you are expected to show that you will also lose something if the business is not successful. It is foolish to think that anybody will lend you a large sum of money just on your word that you will pay them back. Lenders need assets as security; this ensures that it is important to you that the business succeeds.
This means if you give your house as security and you do not pay back the loan, your house will be sold so that the lender can get his money back. If you pay back the money in full, your house will stay yours and it cannot be taken from you.
If you really do need to borrow, borrow as little as possible. Remember, at start-up of a business, sales are slower than when the business starts to get known in the trade.
However if you do need to borrow, the bank manager or other finance providing company will need a written Business Plan. You will find a business plan in the tombstone manual that will be provided to you if you attend Tombstone Training.