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:

• Overview
• Business Description
• Management
• Marketing
• Finance
• Critical Risk

Companies that will be manufacturing goods would need a manufacturing section.

Overview

– 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

Business Description

– 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

Management Profile

– 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

Marketing

– 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.

Finance

– 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

Critical Risk

– Potential obstacles or problems
– Estimated cost of risk
– Alternatives to dealing with potential competitor retaliation

Pointers

• 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

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