05: After The Loan
Once you have set up the loan arrangement, you have received the capital and work is underway with your business, you will want to communicate with your lenders periodically with updates on how your business is going. Whether you have good news or bad news to report, be honest with your lender about the progress of your business. You will have to decide, based on your relationship with the investor, what the best means of contact is to communicate your update. Some lenders may prefer a phone call, others may prefer an in-person visit, and yet others may prefer something more formal, like a report. Don’t forget to include your investors when you send out invitations to grand openings, they will want to see your business in action! You will also want to make sure that you focus these new funds on achieving the milestones that you laid out in your business plan. Hopefully these are in line with those investors care about and will look for when determining whether or not to give you your next round of seed capital.