Writing a business plan is a sure way of increasing your chances of obtaining a loan. Before you begin writing your business plan, consider the following questions:
- What service or product does the business provide and what need does it fill?
- Who are the potential customers for your goods or service and why will they purchase from you?
- How will you reach your potential customers?
- Where will you get the financial resources to start your business?
Answering these questions will be the basis for writing your business plan. A good plan should have the following sections:
- Business Description
- Critical Risk
Companies that will be manufacturing goods would need a manufacturing section.
– A summary of what is in your plan
– Purpose of the loan – clearly explain what you require the loan for
– Amount needed – how much do you need to achieve your goals? Do not use estimates, choose an exact figure based on the projections of your income accounts statements
– Supply the business name, business address, investors names and the insurance number of each investor
– Business background or history
– What product will you be offering the market
– The nature of the business
– Profile of management, especially key personnel, their experience, background and skills; tell what they bring to the business
– Board of directors and other important personnel such as consultants (if any)
– Legal structure of the business – e.g., sole trader or limited liability company
– Identify your target market
– Identify your competition and say how you will compete
– What can you offer your customers that will make you unique or shine above the competition
– The size of the market
– Market trends
– Promotional plan
– Pricing information
Market research information you have gathered from your potential market should aid you with most of this.
– A projected financial statement – this will include your income statement and balance sheet
– The financial statements of all the investors, including yourself
– Collateral – What assets are you willing to put up in order to get the loan
– Potential obstacles or problems
– Estimated cost of risk
– Alternatives to dealing with potential competitor retaliation
- You should show that the business can at least meet its everyday expenses or current liabilities
- You should show that your team has the necessary experience, qualification and training to make the business successful
- You and other principals should be credit worthy
Very interesting subject, thankyou for putting up. “If you have both feet planted on level ground, then the university has failed you.” by Robert F. Goheen.
thank you admin .