How to Write a Business Plan for Getting a Small Business Loan - Tommy Shek
At the beginning of any business venture, it is important to have a clear and well-developed business plan. This will help you to effectively communicate your business goals to potential investors or lenders. A good business plan will also give you a roadmap to follow as your business grows.
If you are looking to get a small business loan, there are some specific elements that should be included in your business plan.
Here is an overview of what should be included in a business plan for getting a small business loan - Tommy Shek:
1. Executive Summary
2. Company Description
3. Market Analysis
4. Product/Service Line
5. Marketing and Sales Strategies
6. Operations Plan
7. Management Team and Organization Structure
8. Financial Plan and Projections
9. Appendix -->
The executive summary is a brief overview of your business plan, and should include the following:
1. The business name, location, and type of business.
2. A description of your products or services.
3. Your target market and marketing strategy.
4. Your sales goals and projections.
5. An overview of your financial situation, including your financial needs and how you will repay the loan.
6. The experience and qualifications of your management team.
7. A brief summary of your business plan as a whole.
A Company Description:
The company description section of your business plan should include the following:
1. The legal structure of your business (e.g., sole proprietorship, partnership, corporation).
2. The history of your business, if applicable.
3. The mission statement of your business.
4. A description of your products or services.
5. Your company's competitive advantages.
6. The management team and organizational structure of your business.
7. Your business location(s) and facilities, if applicable.
8. Your company's philosophy and goals.
9. A description of your target market(s).
10. Your sales and marketing strategy.
Marketing and Sales Strategies:
In this section of your business plan, you should describe your overall marketing strategy and how you plan to generate sales. This should include a discussion of the following:
1. Your target market(s).
2. The pricing of your products or services.
3. Your sales and distribution channels.
4. Potential growth opportunities for your business.
5. The key metrics that you will use to measure the success of your marketing efforts.
6. Any partnerships or distribution agreements that is relevant to your business model.
7. Your marketing budget and funding sources.
Tommy Shek says, the operations plan section of your business plan should describe how you intend to manage and grow your business over time, including the following elements:
1. An outline of your operational processes, systems, and procedures.
2. A description of any existing infrastructure (e.g., facilities, equipment, software).
3. A discussion of how you intend to scale your business in the future.
4. A description of your customer service strategy.
5. Your plans for managing inventory and fulfillment.
6. Your plans for dealing with risk and uncertainty.
Management Team and Organization Structure:
This section of your business plan should describe the management team of your business and the organization structure of your company. The following elements should be included:
1. The bios of the key members of your management team, including their experience, education, and qualifications.
2. The organizational structure of your company (e.g., hierarchy, decision-making processes).
3. The roles and responsibilities of each member of your management team.
Financial Plan and Projections:
The financial plan section of your business plan should include a detailed projection of your expected financial performance over the next several years. This should include revenue, expenses, cash flow, and balance sheet projections. In addition, you should discuss your sources of funding (e.g., loans, investments) and any other relevant financial information for your business.
The appendix is a collection of supporting documentation and information that is not included in the main body of your business plan. This may include market research reports or surveys, product specifications, photographs/images of your products or services, vendor contracts, etc. Be sure to include any additional information that is relevant to understanding and evaluating your business proposal.
The conclusion of your business plan should summarize the key points of your proposal and describe any remaining questions or issues that need to be addressed. It is also a good idea to include a call to action in your conclusion, such as requesting a meeting or offering a free consultation.