5 Things Our Bankers Look for in a Great Business Plan

Oct 06 2017

The key to improving your odds of securing approval for a new business loan is organization. When our commercial lenders look at your business plan, we want to know that you’ve thought things through. A well-thought-out plan can also be a useful guide for you to follow as you build your business.

There are 5 components of a great business plan:

1. Market analysis

Your market analysis should be backed by real data explaining the need for your product or service and what sets your business apart from your competitors.

2. Background

Your business plan should include a summary of your and your key employees’ backgrounds and experience.

3. Challenges

Discuss any potential obstacles and barriers to success along with how you plan to overcome them.

4. Projections

  • We need to see a projected day-one balance sheet and year-end balance sheets for the first three years.
  • Income statement projections should include monthly projections for the first year and annual projections for the next two years.
  • Explain the assumptions you made to formulate your projections.
  • Make sure your projections are not overly optimistic.

5. Sources and uses summary

Explain the equity you will contribute and how you will use the loan funds.

Make sure to keep your business plan clear, concise, and avoid redundancies. For help, look for small-business development centers in your area. Once your business plan is ready to go, contact us to ask about a loan tailored specifically to your business goals.

 

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