When Financing Your Small Business, Begging Won't Work

Editor's note: Since 1964, business-management counselors at the nonprofit organization Score have given free advice to small-business clients spanning every industry. They currently serve nearly 400,000 entrepreneurs nationwide each year -- check in every week for their prudent advice.

Banks can see right through a weak plan, says Charles Sobel, a Score NYC counselor with a background in the market research and consulting business. "Even a wealthy uncle is not going to provide you with [capital] without some understanding of what your idea is and how you will make money," he says.

Last week, Harry Dannenberg, chairman of Score NYC's seminar committee, told us why a business plan is important when choosing the right location for your business, but it's equally important when obtaining financing.

If you thought squeezing $20 out of your father was hard, try getting a loan without a well-thought-out business plan.

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