How to Write a Winning Business Plan for Commercial Loansreyesglo
A business plan is the first formal statement that highlights your corporate goals against the investment/loan that you seek. It therefore, has to incorporate all the necessary non intrusive information that can help in successfully getting a commercial loan.
In other words, a business plan highlights the business map along with potential risks for a period of 3 to 5 years, supported with relevant financial documentations. Let’s take a step by step look at writing a business plan that can successfully help you acquire commercial loans.
- Write the Specifics – The best way to get started is to write down all the details of the business and what you seek to achieve with the business loan. Once you have written down the specifics, break them down into resourcing, management, marketing, sales, operations, risk assessment, and feasibility. This helps in attaining a good draft, on which you can build a comprehensive business plan.
- Company Description – The description should not look like it’s a marketing pitch, but at the same time, should not be bland. Highlight the key selling points and competitive edge and back it up with the market research that you conducted.
- Executive Summary – This is basically the outline of the business plan and will cover your company profiles, goals, and strategies to achieve those goals. Ideally, you should spend more time on the executive summary as it holds the most importance.
- Market Analysis – This is where you will back up your key selling points and competitive edge with in-depth market research. Market research should ideally be conducted on the industry, market scope, competition, and potential risks. This section helps banks and other lenders verify whether your business has the right approach to succeed.
- O&M – Organization and Management section is important to let the lenders know about the operational workflow and the business structure. You may or may not mention key members, depending on whether you are a startup or small business looking for finances.
- Sales Strategy – This should include a general outline of the marketing and branding strategies that you want to match with operational strategies.
- Financial Report – This is basically a feasibility report that compares the potential progress of your business against potential risks and changes in economic conditions.
All said and done, neatly present the business plan in both hard and soft copies and you’re good to go. As a practice, never include extensive details about the company and its finances, but cover them in a generalized manner.