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| 1 Each One, Grow One: Ten things a lender looks for in a business plan
Each One, Grow OneTen things a lender looks for in a business plan
| 2 Each One, Grow One: Ten things a lender looks for in a business plan
Your business plan
It’s your roadmap and a tool to attract investors. Most plans include:
1 Executive Summary
2 Company Profile
3 Product / Services
4 Marketing
5 Operations
6 Financials
7 Appendix
| 3 Each One, Grow One: Ten things a lender looks for in a business plan
What lenders focus on when reading your plan
1 Financing request
2 Business description
3 Management expertise
4 Financial plan
5 Cash flow projections
6 Contingency plan
7 Security
8 The marketplace
9 Market demand
10 Third-party review
| 4 Each One, Grow One: Ten things a lender looks for in a business plan
Your financing request
Be clear about the amount you need
Describe how you will spend it
Ask yourself: would you risk your own money on this business?
| 5 Each One, Grow One: Ten things a lender looks for in a business plan
Create your business description
Define your product or service
Describe your market
Outline your business objectives
| 6 Each One, Grow One: Ten things a lender looks for in a business plan
Highlight your management expertise
Outline your business management experience in these key areas:
Products or services
Marketing and sales
Finance
| 7 Each One, Grow One: Ten things a lender looks for in a business plan
Map your financial plan
Define your start-up costs
Decide how much equity to contribute
Project your revenues and expenses
Ask yourself: can you repay the loan?
| 8 Each One, Grow One: Ten things a lender looks for in a business plan
Project your cash flow
You’re more likely to get approved for a loan if you can demonstrate:
Sufficient cash flow
Proven or supported cash flow projections
The ability to make monthly loan payments
| 9 Each One, Grow One: Ten things a lender looks for in a business plan
Prepare your contingency plan
Things don’t always go as planned. It helps to identify potential risks:
Create a plan to mitigate each risk
Economic
Legal
Technological
Social
Political
Environmental
| 10 Each One, Grow One: Ten things a lender looks for in a business plan
Options to secure your loan
Loans can be secured by your assets, such as:
Real estate
Equipment
Vehicles
Inventory
Cash
| 11 Each One, Grow One: Ten things a lender looks for in a business plan
Define your target market
Consider your potential:
Customers
Competition
Suppliers
Industry trends
| 12 Each One, Grow One: Ten things a lender looks for in a business plan
Evaluate the market demand
Why will people choose you over your competition?
What is the demand for your product or service?
How do you plan to reach customers?
| 13 Each One, Grow One: Ten things a lender looks for in a business plan
Have a coach review your plan
A review from a small business coach can help you:
Discover gaps in your plan
Make improvements or clarify statements
Meet your lenders’ requirements
| 14 Each One, Grow One: Ten things a lender looks for in a business plan
Interested?
For more information: [email protected] www.vancity.com/BusinessTools
