There’s no underestimating the value of a good business plan because it forces you to consider your original business idea, it gives you an understanding of the competition, and it provides a formal roadmap for your business future. A good business plan will typically encompass between three and five years, and it will outline your business objectives, as well as how you plan to achieve them.
Having a good business plan on hand is essential when you’re applying for a loan because it shows a lender that you have taken into account all the various aspects of conducting business in your selected field. Here’s how you should prepare your business plan so that it can actually help you accomplish your goals.
Components of a Good Business Plan
These are the components which should comprise any good business plan, and they’re the important elements that any lender will be looking for:
- Executive Summary – A high-level overview of the entire plan
- Company Description – This provides static data about your company, including name, address, etc.
- Objective Statement – An objective statement provides an indication of what you hope to achieve in business and how you intend to go about achieving them
- Business and Management Structure – If you have a sole proprietorship, that will be defined in this section, and if any alternative type of structure is involved, that would also be defined here
- Products and Services – These are the commodities that you will be provided to the public for sale
- Marketing and Sales Plan – This document provides a description of how you intend to market your products and services, as well as the volume of sales that you hope to achieve through those marketing efforts
- Business Financial Analysis – The important financial documents regarding your business should be included here – income statement, balance sheet, cash flow, etc.
- Financial Projections – These are the expected revenues and liabilities, projected out over the duration of the plan, and which are based on current information
- Appendix – This is a listing of anything relevant to your business which is not included in the other sections of the business plan.
Is your business proceeding according to your business plan?
If you’re being prevented from achieving the goals set forth in your business plan because of a financial issue, we may be able to help. Contact us at Norris Commercial Capital and discuss your situation with our financial experts.