A crafters business plan tries to show that you can generate steady profits making crafts and selling them, typically at retail and to the general public. The plan's content will vary depending on what sort of crafts you produce and the vision you have for selling them, but the general structure of the document will be the same for virtually all crafters. The core questions any banker will want answers to before agreeing to extend a line of credit or a loan relate to how you will ensure steady revenue. What's the market opportunity like, how can you control costs, what new marketing elements might you explore, and what is your projected performance over the next year (and across the next three). Have working answers to the following in the plan:
• What are the exact crafts you make and is the current market demand for them?
• Is there a specific niche or market need you feel you fulfill?
• What sort of advertising or networking do you do to ensure sales?
• What amount of funding are you seeking under this plan and when can you likely repay the loan?
The business plan should investigate the current market conditions and make a statement about potential future success based on the trajectory of your industry and the growth of the local market. You should be able to identify the commonalities and interests in your customer base and provide samples/illustrations of your work to help a banker understand your crafts business. Ultimately your plan will need a three-year pro forma model that shows the expenses you've budgeted for and balances those with the revenues you're expecting past on past performance or industry norms. Need help with this part? MasterPlans has developed thousands of bank-ready plans for both start-up and existing businesses and we can help your plan get where it needs to be. Call 877-453-2011 today to learn more!
