Top 3 Best Tips For Writing A Good Bank SBA Business Plan
SBA or Small Business Administration is an individual organization that is run by the government. Its main aim is to fund and support small businesses, by offering loans. It connects those with entrepreneurial ideas to individuals who are willing to fund them, thus benefitting both.
If you have a small business plan and require some financial support, approaching here might be a good option. However, before one requests a loan, one needs to present a business plan. Let’s take a look at some of the best pointers for drafting a business plan that will guarantee a loan.
A business plan is very important as it plays the role of convincing the lender that your idea would reap benefits. It also showcases that you have thought about this business venture and have a clear picture of what you want to do.
1. Make a professional business pitch:
Drafting a document that follows a specific template will show that you are professional in your work. It assures the investor that you would work towards making the plan successful with utmost seriousness. While drafting a business plan, it is recommended that one sticks to certain guidelines and pointers.
Visit ogscapital.com/business-plan/bank-sba-business-plan for a professional business plan writing service. Meanwhile, here’s a list of elements that are a must:
- Elements on the cover page: the cover page must include the official name of the project or start-up, the logo, if applicable, location, and contact information. These details must be accessible right at the beginning of the business plan.
- Index or Table of Contents: an index is not a compulsory element of a business proposition but adding one can elevate the quality of your proposal, giving it a polished look. A simple, formal cover page and an index right at the beginning would not only make the reader comfortable with the proposal but also make important elements easy to access.
- Executive summary: not all investors would like to read the entire project without knowing if it interests them. Many investors would receive multiple proposals and they usually filter through by reading the summary. A short summary including the aim of the business plan, the goal, competition, scope in the market, and why this venture would succeed needs to be mentioned. Try to make this as captivating as possible while maintaining the formal note. While writing the summary try to place yourself in the position of the investor.
- Description: the main body of the plan begins from here. This part of the business plan allows you to explain the purpose of this venture. Make sure you include a crisp mission statement, involved members, and the legal statement in this part.
- Competitive analysis: this part of the plan is important for both business owner and investor. A detailed analysis of the competition, names of competitors, demand in the market, requirements, and how you are planning to cope with the demand needs to be listed in this section. This would not only be useful in convincing the investor but also act as a guide map for the future of the business. Make sure that the source of information is reputable and if possible, list the source as well.
- Management and organization: after analyzing the demand, an analysis of how the demand would be met, what are the skills that you are equipped with to handle situations and if applicable, your previous experience may be mentioned. This section basically includes how you are planning to manage and propagate the business.
- Product advertisement, marketing, and sales: talk about your product or service, why it is important, and why it would be successful. Include all features, advantages, developments, and ongoing research, if any. Other elements worth mentioning are patents, trademark, and intellectual property rights. You can also make use of this opportunity to ensure that the targetted clients would be appropriate for the proposition.
- Financial analysis: the most important part of the business pitch which talks about your requirements and their cost, the overall expenditure, and cash flow falls under this section. This section needs to include all expenses, both expected and ongoing expenses, predictions of profits and loss, and important business ratios. This section is quite technical and if you are not one with a financial background, it is better to have it written by a professional.
- Final fund request: this part of the report holds what is expected from the investors, and how it will be utilized. Here, make sure to talk about future expenses as well. Make sure you present the importance of the loan for the progress of the business plan.
- Appendix: the last element in a business plan is the appendix which includes important documents like tax returns, resumes, certificates.
2. Provide Clarity of documents:
Keep the document as concise and clear as possible. While drafting a business plan, it is easy to forget to keep it short. One must not be overwhelmed by reading the business plan. At the same time, the reader should not be bored by the plan. Showing clarity in the business plan will make the investors feel confident about your capabilities. Keep in mind the future goal of the business venture while writing the plan.
3. Identify the targetted investors:
While writing the business plan, one needs to remember who are the probable investors. The business would appeal to certain individuals, so the plan has to be made directed at them. While pitching the ideas, gauge the interest of the targetted clients and ask them for honest feedback. You can always improve the pitch and make it more appealing for the investors.
Making a business plan for an SBA is an essential part of the entire pitch. One also needs to make sure that you qualify for the loan. This includes having a good credit score, assets, and credit history. But the investor’s final decision can be swayed in our favor by writing a well-drafted business plan. There are many technical elements in writing one but at the end of the day, it is a map leading to the success of your business.