How to Write a Business Plan for a Business Loan?
Are you thinking of getting a loan? The first thing you need to do to get a business loan is to draft a well-documented and comprehensive business plan.
It is because the business plan will give a clear idea about the company to bank officer. This is why you need to prepare the plan diligently. In this article, we have highlighted how to write a business plan for a loan. Make sure these things are covered in your business plan.
Description of Your Company
One of the most important things to mention in the business plan is a description of the company. In this section, you must discuss the history of the company, its current operations, and the business strategies. To put it simply, you should tell where you started the company, why you started it, and in which direction you want to take it.
The executive summary gives an overview of the company. Briefly, you should discuss the company, its competitive advantage, and industry. You should mention the goals and strategies you will use to accomplish the business goals.
An imperative thing to keep in mind that this section must be compelling for the banks to continue reading. It must also convince them to consider providing you a loan. Don’t forget to mention the amount of money you need for your company.
Though it is the first part of the business plan, it is recommended to write it in the end. This is because it provides an overview of the business plan. So, you should write this section last.
Management of the Company
The next thing you should mention in your business plan is the organizational structure of the company, you will have to list the managers along with their biography. You should in detail explain their role in the business. Moreover, the positive contribution of the managers to grow the business must also be mentioned.
In this section, you must provide a clear idea about the expenses and sales projections. Keep in mind the projections must be of at least 3 to 5 years. It is crucial for you to be honest and truthful when making the projections.
Another important aspect of the business plan is the services or products you offer. It is better to state a full description of the products and services.
This part of the business plan will let the financer know how you will market your products to your target audience. You should mention both the strategies, online and offline.
This is one of the most important pages in the business plan. It must come after the executive summary. In this page, you must give the title Business Plan and provide contact information. The information must be mentioned on the bottom left corner of the page. The information should include:
- Name of the business
- Phone number
- Email address
There you go, this is how you should create a business plan for obtaining a business loan.