Your business plan is a crux of your business goals and how you are going to expand your business. It needs to be persuasive and well-planned. A good business plan will help you to run your business smoothly and efficiently. It will help you to gain the confidence and trust of the lenders that you can repay their debt.
Furthermore, in future, you can use your business plan to convince investors to invest in your business. You can make people work with you and make them believe that your business will reach new heights very soon.
THE RIGHT BUSINESS PLAN FOR SBA LOAN!
Most lenders need a traditional business plan as the lean startup plan is not so much detail-oriented. There are many things that you need to keep in mind while creating your business plan. Below are points that you need to take in consideration.
1. Executive Summary:
The first thing that the lenders will read on your business plan is the executive summary. The tone of the summary should be professional and persuasive. In the executive summary, you will give an introduction of yourself, an overview of your business, the investors, the cost of business and your business background.
2. Company’s Description:
In this section, you will provide detail about the problem that your business can solve. Tell why your business is different from others and how it can serve the market.
3. Market Analysis:
For writing this section, you must have a strong understanding of the business market and competitors. You can tell that you have reliable and better business strategies than your competitors. A thorough competitive analysis is required to write this section.
4. Organization and Management:
In this section, write about who will run your business and how it will be structured. To make this section more appealing, you can include the resumes of each of the team member and write how each individual’s expertise will help you to grow the business.
5. Product line:
Now, you have to tell about your services and what product do you sell? Here you can say about the benefits of your products and how they are used.
6. Marketing and Sales:
This section requires you to be a little innovative. Here you need to tell about your marketing and sales strategy and how you are going to target the audience.
7. Funding Request:
Here you have to tell all the details regarding the funding. You can start by convincing the lenders how SBA loan can help boost your business. For funding purpose, you need to clearly explain how much funds do you need and how they will be used.
8. Financial Projection:
To get your loan approved, you must include at least three years of financial information. You can do that by providing financial statements, a well-planned balance sheet and cash flow details etc.
This is the last section of the business plan. Here you can add any supporting documentation such as resumes and leases etc.
Therefore, a well-planned business plan can help you qualify for SBA loans. Moreover, it will guide you and keep you on track in managing your business.