Write a business plan. Get a short-term business loan. Make the plan happen Pay off the loan. This makes sense, right? It should work, right? but it doesn’t always work out that way.

Unexpected roadblocks can delay all your best laid plans. The market does and will change unexpectedly. Health issues may occur that delay execution of fine-tuned timetables. Technology glitches could knock every best charted milestone off schedule.

These problems are probably things you can’t control. It doesn’t mean you are not business-ready. You likely even threw contingency plans into the business plan you presented.

Still if you want to warranty business success it’s time to consider a slightly altered path. This step could very well turn out to be your key to financial success.

Before you seek a short-term business loan, add another column to your pros-cons list. You did make a Pro/Con list, right? If so, good for you. Just take this next step. If not, make the list now with a third column.

Business development statistics shows that companies who bootstrap their way to profitability experience longer term success than those who take on early debt. John Roan, a small business owner in Pennsylvania, concurs. In my 20 years of entrepreneurship, I built businesses both ways. The ones I financed myself through grit and hard work are the ones that still produce profits today.

The smart move for an entrepreneur is to figure out when a short-term business load is the only best option. Funding the manufacture of products to fulfill a signed order is a great reason for a short-term business loan.

Say your company makes a unique self-warming widget. A national distributor test markets your product and finds it is wildly successful in their marketplace. They place an order for 10,000 units to sell in a special promotion. The order is secure and backed by a bank guarantee.

This qualifies as a great reason to secure of short-term business loan. You have a secure, signed commitment to payment for products you can deliver. In order to pay for the labor and materials it will take to make the 10,000 self-warming widgets, present a copy of the order to your lender. The loan documentation they develop should be linked to fulfillment of that specific order.

If, on the other hand, you have several simple inquiries about the availability of your self-warming widget, take another tact. Use your negotiation skills to secure a delivery schedule that meets your ability to produce the product at your own schedule. Do not attempt to take out a short term business loan without a guaranteed purchase from your potential buyers. Play the game with smarts and savvy. Use your talent to make money without putting your fiscal well-being at risk.

Great Buyers with long term potential will respect your early resolve to to promise only what you can deliver on your own terms. Give them a little extra, like a few extra units of self-warming widgets. Or a discount on future guaranteed orders. With this move you put the profitability ball in their court. It is in their best business interest to honor your personal business terms.

Take a step back. Write out your pros and cons and alternatives list. Evaluate how you can really use a short-term business loan. Ir you really and truly don’t need it, give it a pass this time. Save the option for when you can really make it workable for your business.

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