When applying for financing, your business plan is your best friend. Though especially important for start-ups, businesses at every stage should have a road map indicating where they’re heading. It is your chance to prove, in writing, that you know your business inside and out.
3 key items a lender looks for in your business plan:
- Solid financial projections
- You should be mapping out at least three years of financial projections, including forecasted income statements, balance sheets, and cash flow statements. Without exception you should be basing your projections off historical data (if applicable) and market analysis.
- Market and Competitive Analysis
- No business exists in a vacuum. The future of your business depends on knowing your competition and the future of your industry. Your business plan should reflect your knowledge of both and plan accordingly for both the challenges and the opportunities.
- Tell your story
- It might seem obvious, but you should detail everything from the ownership structure to your general marketing plan. This is your biggest chance to convince your lender that you really do know what you’re doing.
Numbers are important because whoever you are asking financing from needs to see that your business has a profitable future. But numbers don’t always tell the whole story. Connect2Capital is here to make sure that you have the chance to tell it and to make sure that one “bad” number doesn’t define your future.
Don’t miss out on our webinar video, “How to Write a Business Plan: From a Lender’s Perspective” for even more tips and resources! Watch it today!
For tips from the Small Business Administration (SBA): Write Your Business Plan