After placing the summary as the first page, create a cover page that contains the title “Business Plan” in the middle of the page and the company`s contact information in block format in the lower left corner of the page. Provide the company`s name, address, phone number, website, and email address. This is crucial information in determining whether or not your business will succeed in the long run. Never assume that your target market is “everyone.” Here are the sections you need to have in your business plan and how to write each section: There are many different formats you can use for a loan proposal. You can contact the lender to determine which format is preferred by the lender. In general, a loan proposal should include the following: This is the most important – and intimidating – part of any business plan for a bank loan. Your potential lender will take a close look at this section to determine your business` chances of success. Not everyone feels confident in writing a business plan itself, especially if it is necessary to get a bank loan. If you are a small business owner and you apply to the bank for a small business loan, one of the first documents the loan officer usually asks for is the business plan. Therefore, it is important to know how to simply write a business plan for a loan. A viable business plan shows the loan officer that you have organized your thoughts and followed the process of thinking about the business.
You can write a business plan easily and quickly if you collect your information and assemble it logically. But a business plan is more than that, it plays a functional role on your path to success. In addition to your financial statements, it helps you lead your business to success long after your loan has been approved. Every company must be able to bring its product or service to customers. Explain how you started your business and what developments the company has experienced since its inception. Typically, the business description is about one page and describes where your business started, why it exists, and gives an overview of the direction you want to take. Kristie Lorette began writing professionally in 1996. She holds a Bachelor of Science in Marketing and Multinational Enterprise from Florida State University and a Master of Business Administration from Nova Southeastern University. His work has been published online by Bill Savings, Money Smart Life and Mortgage Loan. A market analysis describes how the company competes, what are the advertising spend and marketing strategy, and what is the potential to make money in the market.
Write your market analysis to show lenders that you are serious about your business and that you know how to gain as much market share as possible. Most importantly, you need to explain in detail how you want to reach your target market and convert these people into customers. A few examples of what should be included: Whether you`re a start-up or have been in the block for a few years, at some point you`ll likely need a small business loan. Preparing an effective and well-documented business loan proposal is the first step to getting the money your business needs from a bank. Even though the summary is the first part of a business plan and one of the most important parts, you may want to write it last because it gives an overview of everything the business plan contains. Since you may not have the full picture until you`ve worked out the plan, it`s usually best to write this page last. The summary includes a description of your business goals and the strategies you want to use to achieve your goals, and should be convincing enough for a bank loan officer to want to read the rest of the plan and consider granting you the loan. If you`re new to business planning, take a deep breath and try not to think of the process of writing a business plan as a huge encyclopedic exercise. Instead, approach the exercise in manageable pieces. Metrics are how you measure the success of your business.
Do you want to generate a certain amount of income? Or keep costs at a certain level? Determining which metrics are most important and then tracking them is critical for growth. While a business plan is an important part of your loan application, a well-prepared plan that you visit frequently can also help keep your business running for years to come. Applying for an SBA loan can be a complex process; The good news is that your SBA-approved lender guides them through the process. If you already have a relationship with a bank, schedule an in-person meeting to learn more about the application process and what they`re looking for in your business plan, based on your business profile, financing goals, and the type of loan you want to get. Once you`ve painted a picture of the business you`re in and who the business serves, it`s time to show the financial situation to the loan officer. Provide financial forecasts of sales and expenses for at least three to five years. Be conservative and honest when making these projections. This will save you time so that you can get your loan faster. It also shows lenders that you are responsible and ultra-organized. The organizational and management area of your business plan should explain to lenders who is responsible and what their background is. For example, does the CEO have an MBA from Harvard? If so, you want to add it to this section. You also want to include information about the appearance of the operation and the size of the organization.