How to Obtain a Loan for a Distance Learning Company
- 1). Develop a business plan for operating a distance learning company. A winning business plan completes two objectives. It gives a step-by-step process for starting and operating the business, and it provides a method for raising outside funding from investors. The business plan contains a strategic overview of the business, the services offered, biographies of the management team, marketing strategies and financial forecasts. The business plan should also include sales forecasts, cash-flow forecasts and a projected profit and loss statement for three years. Seek out potential customers for distance learning services for their input on problems or unmet needs in the marketplace that may strengthen your prospects for success.
- 2). Look for creative funding sources beyond banks, friends and relatives. Venture-capital firms will back promising business ventures, especially where technology plays a role. "Crowd funding," a new phenomenon made possible by the Internet, enables entrepreneurs to locate lenders and even donors via websites.
The Small Business Administration offers many helpful resources for starting a new business of any kind, including small business loans. And because this business involves education, the Department of Education may offer financial help as well. - 3). Prepare a presentation for the interview phase of the lending process. Make this an exciting presentation, using the latest technologies available. If your distance learning company will use technology in a new or unusual way, highlight that. This is essentially a sales pitch to convince people with money that a distance learning business is a good idea, likely to be successful and worthy of the investment of their hard-earned money.
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