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Create A Business Plan that Will Win Your Lender's Approval

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Published: 15Nov2009
Word count: 503
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Okay, so you want to start your own small business. But what's next? Venturing into business is more than just investing your money, putting your ideas to work, and hoping for success. Many people have aspired to become entrepreneurs in the past. Some of them have been successful while others have failed.

No doubt, all them have started with a brilliant business idea and an enthusiastic spirit but what could've made the difference between failure and success? How would you make the first move to actually put up your business? What is the first step in setting up your business?

Creating Your Business Plan - A Crucial Step

Whether you're starting a small business or a home based business, creating an effective business plan is important. Some entrepreneurs tend overlook this step thinking that is unnecessary. When applying for a business loan, lenders would require you to submit this important document. But even if you don't need to apply for a business loan right now, creating a business plan and putting it into writing is still recommended.

Why is a business plan so important? In creating a business plan, you set a definite goal for your business. All the other steps involved with the preparation and management of your business would revolve around your business plan. Without a business plan, you will not have a focus and without focus, you could be committing mistakes or making the wrong decisions for your business.

What should be included in your business plan? Your business plan should focus more on realistic short term goals rather than long term projections. First of all, you need to create your vision and mission statement. These two statements should summarize your business's purpose and goals. Next, clearly define your business profile. What kind of business do you intend to put up? Would it be a Partnership or a Solo Entrepreneurship? What kind of products or services would you sell?

Your business plan should also include information about you and your employees (when applicable). Take note of specific skills, training, knowledge, and work attitude. Such an outline enables you to see both the strengths and weakness of your people. It will also help you see whether you need to take up additional training or whether you need to hire workers for your business.

Other information that should be contained in your business plan is the economic assessment as well as the financial assessment of your business. Who is your target market? What is your marketing plan? What is your estimated capital requirement for a whole year? Do you have the funds available? How do you plan to find additional funding if necessary?

When creating your business plan, remember to keep the details as specific as possible. A business plan need not be very lengthy as long as it is complete and concise. Before plunging into business, take the time to create and document your business plan. It should be your first step in setting up for business.

Irish Taylor is a business loan consultant with Startup Business Loans and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to small business loans, SBA loans and startup business loans.

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