The reason any conventional lender will require a business plan from you is that this plan provides the quickest way to learn all about your business, and your plan for succeeding within the market. That means your business plan needs to be realistic and clear enough that any outsider will be able to understand it. If you can demonstrate that you have the talent and the team in place to achieve your goals, you’ll be much more likely to be approved for a business loan.

Components of a Good Business Plan

The most important part of any business plan is the executive summary, because this provides all the highlights of the plan itself, and summarizes everything that follows in one condensed page. In some cases, this will be the only part of your business plan that a lender might actually focus on, so it needs to be a good representation of what’s contained in your plan.

Then you’ll need to have a company summary that delivers a good description of your ownership and history up to this point. You’ll need to have a section that describes your products or services, and how they are different from those of your rivals in the industry. Another component of your business plan is the market analysis, and this will describe your target audience, the competitive landscape, and how you hope to achieve market growth.

The strategy and implementation section will describe how your product is to be sold, and whatever milestones you have in place for sales growth. You’ll also need to provide a summary of your management team so that a lender can understand the kind of employees you have in your company. Lastly, you’ll need to include a good financial plan which shows your projections for cash flow, sales, and the level of profits you’re hoping to achieve.

Business Plan Holding You Back from Applying for a Loan?

Most conventional lenders will require you to have a solid business plan in place before applying for a loan. Contact us at Coastal Commercial Lending to find out about our more relaxed loan requirements.