99% of the net gain in employment in the next ten years will come from small business. That's a fact. Outsourcing and down sizing has caused a focus in the US economy on YOU, the small business owner. The history of the success/failure rate in the US over the past 50 years is changing and it's important that our business/finance culture becomes responsive.

Here are the historical facts that we must work hard to change: (source-Small Business Administration)
- 97% of all small businesses are never funded
- 80% fail within the first five years
- 65% of those failing are profitable

Each of the above numbers is connected to each other. The small business community must respond to each of these statistics. If 97% are not funded, two things must happen:

1) Lending institutions need to reflect on the process used to review business loan applications. (happily, this is happening) Banks can't take unreasonable risks, but many are putting more focus on the businesses ability to repay, and slightly less focus on the personal credit of the business owner. A bank still must feel secured before making a business loan, but they are fast recognizing the importance of the small business.

2) The small business owner must become more aware of how a bank makes their decision to lend or not. Getting a yes from your banker involves many factors. Each bank has their specific criteria for lending. Aside from that, it is up to you to manage the process.

Get to know your banker and build a relationship. The human element cannot be ignored. It is to your advantage that your banker knows you on a personal level, your work ethic, your level of integrity, as well as specifics regarding your personal financial situation. They also need a solid understanding of your business, its cash flow and future needs for growth. Once you have a working relationship established, when the time comes that you do need financing for new equipment or to implement growth plans, they are in a much better position of understanding to "go to bat" for you during the loan process.

With the relationship established, it is now up to you to be prepared. You must have "the goods" to back up your loan request. What I mean by "the goods", is having a credible business plan that you believe is achievable and that you have a complete understanding of the numbers that you are presenting. Is your plan fact or fiction? I speak with hundreds of business owners who just don't understand the need to properly package their business loan application. Most large businesses not only know how to package loan applications, they have the staff to put it together. A small business owner does not have those same resources. The only method for solving this problem will be PART TIME RESOURCES on a professional level.

There are many providers for these services, on a part time basis, and at a reasonable price. However, we must create a method for the small business owner to find these opportunities. All of us in the business culture need to work together to make that more easily obtainable. We must work toward educating the institutions and the business borrowers.