Writing a business plan will better prepare you to apply for a small business loan. This because a business plan gives a lender a full picture of how the business operates and generates revenue. Lenders will want to have a clear understanding of how your business operates and generates revenue and the business plan will give them all of the details they need to make an informed decision. While a business plan is not needed to apply for all types of funding, it is especially important for startups. Startup businesses can use the business plan as a guide for growing the business.
How to Write Your Business Plan to Apply for a Small Business Loan
Writing your business plan can be fairly easy with all of the free resources available online. The Small Business Administration offers several online courses that will teach you how to write your business plan according to SBA standards. According to the SBA, your business plan should include the following components:
- Executive Summary – This section provides a brief introduction on what the company does and its business goals.
- Company Description – This describes what your company does, how it’s different from your competitors, and your target market.
- Market Analysis – This section includes information on your business industry, competitors and target market.
- Organization & Management – This section includes information on how the business is structured based on the positions within the company (i.e. who’s in charge and what staff members report to who).
- Service or Product Line – This section describes what you sell and how it benefits the customers.
- Marketing & Sales – This section outlines your sales and marketing strategy.
- Funding Request – This section outlines the amount of your funding request and how it will be used to build the business.
- Financial Projections – This section outlines your projected sales and revenue to back up your funding request.
- Appendix – This section includes supporting documentation like resumes, office leases, tax returns, etc.
Get Help Writing Your Business Plan
Don’t have time to write your business plan so you can apply for a small business loan? Contact LenCred today to find out if you can get capital with or without a business plan. LenCred specializes in helping small business owners obtain unsecured business lines of credit which may work well for you if you don’t have time to write a business plan. LenCred Advisors will help you determine what type of financing you most likely qualify for and help you get funding in the simplest way possible.