Are you looking to start a new business? Or do you wish to request a loan from your bank? Whatever the case is, starting and running a successful business requires that you have a business plan laid out. A business plan is as important as the business itself. Hence, it is an essential factor for the success of your business.
A business plan is an official laid out analysis of every aspect of the business. It is a formal document that comprises and outlines the business goals that you have as an entrepreneur. You cannot sell your business plan to anyone or a bank for a loan without fully realizing the purpose and benefits of a business plan.
You also need to understand the peculiarities involved in writing a standard formal document to represent your business. This article will explain a business plan’s purposes and sell the adequately written business plan you have to the bank.
Purposes of a Well-Written Business Plan
As mentioned earlier, a well-written business plan helps to represent your business correctly. Apart from this general benefit or purpose, there are other purposes for having a well- written and documented business plan. They include: –
- Properly registered business plans will serve as the blueprint for your business
- It helps you to pay attention to the tiniest detail about your business
- Helps to secure funding for your business when needed
- It helps make your company look professional
- It enables you to assess both your short and long-term goals after a while.
How to Sell Your Business Plan to Your Bank?
One of the purposes of having a well-written and realistic business plan is to help you secure funds from any financial body, or better still, the bank. When your business plan looks professional, practical, and genuine enough, these financial companies may loan you the money you want for your business. You can read reviews on platforms such asBritainreviews.co.uk to help understand how to make your business professional attract customers.
However, to effectively sell your business plan to anyone, especially to your bank in 2021, the business plan must be appropriately and professionally written. That way, you stand a chance to win their hearts. Hence, it would be best if you pulled off a properly written business plan before you can even consider selling the project to secure funds.
The idea is to come up with a business plan that will wow your bank. The following steps will help you achieve that goal:
1. Identify the opportunities
One of the crucial and first steps you need in your business plan to your bank is to create the opportunity available. This opportunity is in the form of specific problems in the society which your business wishes to tackle and solve.
You have to write about how your business products or services fit into the market field, as well as the intriguing factors that make your business special from your competitors.
2. Outline your solutions
The following step will be to write out yourproblem-solving strategies and techniques. That is, how your products or services will bring solutions through positioning strategy, marketing plans, amongst other factors.
3. Outline a detailed financial plan
This step is unarguably the most crucial part of the business plan. This outlining is the step where your bank will look closely at how you hope to pay back the loan after the stipulated time. Therefore, you need a detailed financial plan showing your revenue, salaries, expenses, direct cost, and expected profits. By outlining a detailed financial plan and business proposal, both yourself and the bank will get to understand the profits that your business will bring. You should also include an executive summary that wraps it.
Before you think of securing a loan with any financial company, you should ensure that you read various finance companies’ online reviews. Doing so will help you decide the best one to engage.