Business plans for bank submittal need to meet a strict set of requirements. As the U.S. Small Business Administration website outlines, business plans need three year financial projections in order to receive a bank loan. They also need to cover all of the primary criteria relating to market opportunity, need, competition, and other elements. You will also need strong credit, a good standing with the bank, and some modicum of collateral to secure the loan or line of credit you're seeking. But inside the business plan, you will need a formal, 25-30 page proposal that offers a complete projection and assessment of the business and its market. There are guides on the SBA website about how to put this business plan together, but the most important factors to remember are these:
• - You need to clearly identify the market need – this is vital in bank/SBA plans
• - Show who your customers will be and give a market-supported read on how many there are
• - Identify your direct and indirect competitors and give as much detail as possible
• - How will you market your business? The more comprehensive your strategy, the more impressive it will be to the bank.
• - What are your personnel needs for the first three years after you receive funding?
• - When precisely do you forecast a break-even point?
The financial model should provide tables showing your projections for revenue, cash flow, profit and loss, and balance sheet in addition to a complete breakdown of use of funds at start-up and a sensitivity assessment in case you cannot meet your sales benchmarks. The financial model and the market analysis should speak to each as much as possible. MasterPlans can help write the business plan for if these bank requirements give you pause. We have a full team of experts trained in financial modeling, market research, and editing business documents. We are ready to help you! Call a consultant now at 877-453-2011.
