get a loan

There are many different formats available for business plans. The choice is up to you. However, the plan must address the following elements thoroughly. 
1. Cover page

• Name of your business
• Name and address
• Phone number, e-mail address and website, if you have one.

2. Description of your business

• What product or service does your business offer?
• How long has your business been established?
• Where it is located?
• What is its legal structure? (sole proprietor, S-corporation, partnership)

3. Marketing plan

• What are the primary features of your product or service? (Features are characteristics such as size, color, horsepower, functionality, design, hours of business, fabric content, etc.)
• What are the primary benefits of your product or service? (Benefits are emotional or financial rewards such as saving money or gaining prestige).
• Who are your customers? How many customers will your business have? How did you arrive at that estimate?
• What did you find out when you evaluated your competition?  What are their strengths and weaknesses? How does your business compare?
• What do your competitor’s charge?
• Do you charge more or less? Why?
• How do you know what price to charge for your product or service?
• How does your location affect your business?
• What is your business’ potential for growth in sales, employees, expansion of products or services? How do you know this?
• What important factors (county growth, economy, rising energy prices, tourist season, legal issues, etc) will affect your business?
• What knowledge do you have of trends in your industry? For example, if you want to open a restaurant, you need to know what challenges the food service business as a whole is facing.
• How will your customers know about you? Explain your plans for promotion and advertising in as much detail as possible. Remember to allocate money for marketing in the cash flow projections.

4. Operations and Management Plan  

• Describe how the products or services will be produced or provided. How will you operate the business?
• How many employees will the business have and what will their duties be?
• What is your experience in this field and how will it help you to succeed?
• What is your experience in business?

5. Financial plan

• A Profit and Loss Statement (12 months) 
• A Balance Sheet
• Cash Flow Projections  (12 months) 
• Notes that explain how you arrived at these figures.
• Tax return for previous year

Templates for the three required financial statements of a Profit and Loss Statement, Cash Flow Projections and Balance Sheet may be found at http://www.score.org/template_gallery.html 
If you are using an SBDC Counselor, technical college resource staff, bank partner or Hispanic American Center for Economic Development you may use their templates.

6. Other data (as requested)

• Letters of recommendations
• Resume
• Letters of intent from future customers

top

1.  Typos and spelling errors.
Your plan doesn’t have to pass muster with an English teacher, but it should be presented professionally. Spell check and have a friend proof the final version of the plan carefully
2.  Unrealistic cash flow projections.
Credible financial forecasts are very important. Be conservative with your estimates. Use footnotes to show how you arrived at those figures. Don’t underestimate the difficulty in growing a business. Remember to include an owner’s draw in your projections. Ask for help. Talk to an ACE staff member and you can be referred to an educational partner. Refer to the resources listed in the links.
3.  Unidentified competition.
Every business has competition. If you say yours doesn’t, look again. Sometimes competition is not a literal business but a competing concept in the larger marketplace. For example, you may own the only dry cleaning business in town, but if the trend is higher for at-home dry cleaning methods then your business could suffer.
4.  Unidentified market niche.
If you say your product or service is for everybody, think again.

top