Your Simple Business Plan to Borrow for a Business- the ABC's

Use a Simple Business Plan when Planning to Borrow for a Business

1-Start with a clear description of YOUR background and if it is not business related that’s okay, just be totally honest. Here you want to present what all your talents and abilities are and let this shine through beyond the business experience element (if you do not have the previous business experience). If you do have the experience whether in your own business or working for someone else then highlight this. A simple business plan to borrow for a business will also need to include the following items.

Discuss the plan for a profitable business in a general in an overall summary statement, then below this provide some of the details. The clearer and greater detail you can provide here the better. Provide at least the following elements:

• Marketing Plan with as much detail as possible as this is a key ingredient to making any business work.
• Technical aspect of how the business works, why it is different and what makes it work so well.
• Cash flow projection showing your own needs as part of the monthly payout since you probably have living expenses. If you don’t (maybe still working a regular job) then make this clear and show how this affects the projections and show when you do anticipate drawing an income form operations.
• Projected Profit and Loss statement (pro-forma). These are not that valuable because for a small business so many things are left out that it makes it nearly useless, however, most prospective lenders will expect it.
• Payoff plan for the loan. This should show a worse case and best case scenario because we generally project too soon and the lender will want to use the longer projection but if you can make it happen much quicker then it is to your benefit but at least you will not be under the gun to do something unrealistic.

List the unique resources you have at your disposal. Here you want to show how planning to borrow for a business has been completely thought out. This may be a partner and his/her capabilities. It may be the money you have already invested. It could be whole basis of your business, such as you have written a book or invented something. If you are doing something very unique then this section of your simple business plan should be quite structured, and detailed. If, though, you are just trying to get some seed money to start an online business with a model already created then provide the information about that model and prove how you can make it work. For instance if it is a direct marketing company where you are responsible to generate leads and make sales you would show how your particular marketing technique will accomplish this and how you will be able to do so at a profit.

Personal references of your character, long-time relationships and business contacts / employers will go a long way to add value to what you “say” you are bringing to the table. This should be more than just friends you’ve known for a long time and should also include employers (provide them ahead of time with the approval to say whatever they want – good or bad, so they are not constrained by privacy issues. You will want to do this with a letter and may also want to inform the prospective lender that you have released them to discuss your abilities, work ethic, etc. Also pastors, priests or any religious association is good because people expect that these people will be honest and hopefully the ones you provide will be. If people point out a weakness about you this is okay and is much more credible than all raving reviews.

Finally, conclude your simple business plan to borrow for a business with a short (no more than one page and better yet is a half page, description telling why you can make this work. Describe your passions, your character, your commitment, and your previous successes. Try not to be redundant regarding the information already indicated above, but some of that will be presented here but in a more passionate and forceful way than just an item in a list. Planning to borrow for a business is not complicated but your presentation should be clear and definitive and make it a clear, readable, simple business plan. Plan Your Business

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