This document summarizes your firm, including your goals and earning objectives. It shows how a loan will be used and repaid. Financial statements (projections for a start-up business) are also included. Business plans are also developed when an existing firm plans a major change in operations.
A business plan is a crucial part of a loan request. It also tells your sales personnel, suppliers, and others about your operations goals. A good business plan helps you allocate resources properly handle unforeseen complications, and make the right decisions.
A Business Plan Includes:
· An Executive Summary (description of owners)
· Your management & employees
· Your marketing plan
· A competitive analysis
· Your Business location
· Your operations
· Your Loan Request
· Financial Statements (Balance Sheet, Income Statement, Personal Financial and Cash Flow)
· Appendix which explains the details (for example, resumes, inventory evaluation, marketing plans)
