An integral component of an application for a small business loan is a business plan. Although the process of compiling information for a succinct and informative business plan may be tedious, if necessary you can hire professionals to assist you with writing and editing. Additionally, these plans follow a standard format, which simplifies their organization.
Here are the essential sections you should include in your company’s business plan.
Executive Summary and Company Description
After an appropriate cover page and table of contents, the first section of your business plan is the executive summary. This consists of a mission statement that briefly explains what your company does. It is possibly the most important part of your presentation and should be brief, precise, and positive. Follow this with a section describing your company, including its registered name, physical locations, origins, and important executives.
Market Analysis and Business Goals
The market analysis section of your business plan delineates your industry, your target audience, your competition, and how you intend to surpass them. This is followed by a section in which you share your company’s short-term and long-term goals and how financing can help you achieve those goals.
Management Structure, Products and Services, and Sales Plan
The section on management structure offers a breakdown of your company’s leadership from managers and supervisors to other key personnel. Include resumes of all owners, members of the board of directors, and important employees. Follow this with a section detailing your products and services, how much they cost, and why they are superior to those offered by competitors. In your sales plan, emphasize those aspects that give you the edge on competition.
Funding Request and Financial Projections
In your funding request, specify the financial needs of your company and outline a budget that you intend to follow. Use balance sheets, income statements, and cash flow statements to offer projections on profits that will enable you to cover your debt and achieve company growth. In this section, balance optimism with accuracy.
Finally, close with an appendix that includes necessary supporting documents such as permits, contracts, leases, resumes, credit histories, and letters of recommendation.
For more advice on writing a business plan, contact 5 Star Funding Group.