What does your bank want to see in a business plan?
If you're hoping to approach your bank for a loan to help you with your business venture, having a solid business plan is a must. Business banking managers will want to know as much about your company as possible to help them decide whether your idea is one they can trust to be profitable, so you need to demonstrate that your business is viable.
One of the most important considerations when writing your business plan is who you are writing for. So, if you are hoping to get a loan from your bank, here's a look at some key components lenders will be looking for.
A well-written executive summary that outlines your business goals, key personnel, and proposed location(s)
A well-written executive summary provides an essential introduction to any business plan. It outlines the fundamentals of a business, including its goals and objectives, key personnel, and the proposed location(s). The content of this document should be thoughtful and concise, taking into account the main points a potential investor or partner would need to understand to make an informed decision about whether or not to invest. It should also be written in a professional yet friendly tone to give the reader a feel for what it would be like working with your company. Being thorough without losing sight of brevity is challenging but ultimately rewarding – those who take time to craft a polished executive summary can gain the trust of their readers from the outset and put themselves in a prime position for success.
Include a detailed description of your product or service, including how it is unique from others on the market
Creating a detailed description of your product or service is an integral part of any business plan. While describing your offering, focus on what sets it apart from others in your field. What features and benefits will draw customers to your business over the competition? You should also consider how you'll deliver this product and/or service, considering aspects such as customer service, timeliness etc. Your unique and well-thought-out offering can give you the edge over rivals - with the right detailing in place, you could be looking at success both now and in the long term.
A marketing plan that explains how you will reach your target audience and generate sales
Developing an effective marketing plan is essential for any business that wants to reach its target audience and generate sales. The first step should be to define your audience so you have a clear understanding of who they are, what they want and how you can deliver it. Once you know your target market, you can create content that speaks to their needs and interests. You should also identify which channels will be the most effective in reaching them - such as social media, email campaigns, search engine optimisation, and influencer partnerships. Lastly, measure results so you can track the success of your plan and make adjustments as needed. Doing these steps carefully and thoroughly should ensure your marketing plan reaches its full potential.
A financial plan that outlines your projected revenue and expenses over the next three to five years
Creating a financial plan is essential for any business, large or small. Developing a clear and precise strategy that outlines expected revenue and expenses over the next three to five years is essential for success. Setting realistic goals and identifying reliable sources of income will help you make sound decisions and create a competitive edge in the marketplace. With a financial plan in place, your business can remain on track allowing you to build profitability and sustainability in the long run. So take the time to formulate your financial plans and clearly display how and when you plan to repay your loan to the bank.
An appendix with supporting documentation
An appendix with supporting documentation is a great way to provide additional information. This could include resumes of key personnel, letters of reference, or any other relevant paperwork. These documents will help demonstrate the project results and provide further credibility. It is an excellent tool for leaders to discuss the successes achieved in their organisation and show evidence of the hard work that has been done.
A business plan is essential for any entrepreneur or small business owner. It allows you to set clear goals, track progress, and make course corrections as you grow. When done correctly, a business plan can be the difference between success and failure. HiThrive offers professional business planning services to entrepreneurs at all stages of their journey. Whether you're just starting out, or growing an existing business, we can help you create a robust business plan that will set you up for success. Contact us today to learn more about how we can help you achieve your business goals.
