Using Your Business Plan to Get Financing
Whether you want to start a small business on a small scale or start a large one, you need a concrete business plan to secure the required financing. Now, I know that putting together a business plan can be a daunting task, but it is necessity if you want to get a loan or other financial resources to expand your business.
A comprehensive business plan should focus on the following sections in order to secure financing:
Executive and Administrative Policies
This section should give a brief idea about the positive aspects of the business as well as targeted sales and corresponding profit margin.
Purpose and Goal of the Business
It should mention the core strengths and give a good reason for its being there. A business plan should also be able to establish the goals of business in the near future.
The workforce is a very important component of any small business. Your business plan should communicate the positive qualities and estimated personnel expenses. A summary of team members, strategies devised for the management team and staffing requirements should also be included.
Summary of the Business Environment
It is essential to include the business environment in the business plan, as it gives potential investors an idea about the position of the industry in the changing market conditions, the strengths and weaknesses of the business, opportunities available for growth and potential threats from competitors.
The Marketing Factor
Marketing is a crucial aspect of any small business. This is probably one of the most important parts of your marketing plan. It emphasizes on the marketing policies and business strategies used by your business with regard to the services offered and business tactics used to enhance customer satisfaction.
Other factors include components like a brief outline of operations and financial statements, including a detailed estimate of sales and profit and loss statement also need to be mentioned in your business plan. Include details of what approach you will adopt in order to alleviate inherent risks.
The aim of a sound and stable business plan should be to establish that you are good contender for a business loan and that your business is a low risk investment.