We have talked about the importance of business plans and how beneficial they can be to your business.
They are a great tool for providing a road map for you to follow as your scale up your business and help you to identify its strengths and weaknesses. They can also be a valuable tool in helping you obtain the money you need by way of a loan when the business requires it.
A lot of people start up a business with a limited amount of money and soon realize that the funds are dwindling quickly as a result of the start up costs. The new business owner now finds themselves in a situation where they need to borrow some money, but who is going to take a chance on making a loan to a business that has not yet proven itself?
This is where your business plan comes in. No matter what financial lenders you are thinking of approaching, having a solid and well laid out business plan is going to make an impression. In fact, many financial institutions won’t even consider a loan without your presentation of a business plan.
Having one is one thing, but how you present it is another.
First you want to feel confident when going for your loan. Nobody likes to be in this situation, and there is always the fear of being turned down on a personal note, then the concern of what is going to happen to your business if you don’t get the funds is there as well. So you are starting your loan presentation with stress. Having a well designed and laid out business plan will give you confidence.
To ensure that your plan is a good one take the time to compile it properly and do some thorough research on the best format to use.
Make sure the layout of the information is applicable to your business and well written but in simple terms.
It needs to flow so the potential lender can easily follow it. Be prepared to answer questions as they pertain to each segment of the plan.
To boost your confidence and to ensure that your business plan is solid and reads well, try presenting it to your accountant first. This individual will be able to give you a lot of good hints and can identify the strengths and weaknesses of your plan from a financial point of view. You will be prepared to address these with your potential financial lender by knowing what they are, and the answers that will suffice any concerns prior to your financial meeting.
