How to Write a Business Plan for Business Bank Loan
Updated: Dec 2, 2020
Are you contemplating on how to create a business plan that will secure you a bank loan?
You are not lonely. Most entrepreneurs perceive writing a business plan as a gigantic task – mainly if they have never written one before.
A few questions we get a lot from our business plan clients:
What does the bank want to see?
How do I start?
Is there a quick way to estimate the financials?
And if you need to create a business plan for a bank loan or other financing, getting your business plan document precise is crucial.
So, here is what we endorse: streamline the business plan development by setting yourself short goals and activities to help you structure the activity into less daunting tasks. That way, you can focus on one section at a time to make sure it is accurate.
To make this easy and if you want to get started writing your business plan, you can download your business plan template now from these reliable business plan sources: StartupLoans UK or Score.org or BPlans or Gov.UK.
All these models come with useful guides and examples to help you create a great business plan for your company.
Step 1 – Describe Your Business Idea
A fundamental part of your business plan. It should give your bank and the loan officers a clear understanding of:
The business opportunity and the problem you solve
Describe your product or service and how it fits into your target market – currently and in the future
How does your business differentiate from the competition?
Your target customer and their challenges
Your business growth plans
Step 2 – Describe Your Execution Strategy
Describe how you implement your strategy. Here you will get into the particulars of how you will market and see the opportunity you charted in the earlier segment. This part helps you to validate to the banks that you have a robust plan to accomplish success.
Brand Positioning: include aspects of your brand, values and whether you are in every day or luxury sector
Marketing Plan: How will you engage your target audience?
Pricing Strategy: will you offer a sliding price structure or price per product?
Sales Plan: what are your plans for selling, i.e., direct to customers, via wholesale
Operations Plan: will you have a physical location? Do you plan to hire staff?
Critical Upcoming Milestones: what are your short-term goals?
Key Success Metrics: articulate what is your company success metrics, i.e., sales, customer longevity
Step 3 – Detail Your Financial Plan
Often said to be the most crucial aspect of the business plan – and the scary bit for many. It is a vital part of any business plan for a bank loan or other financing needs. Your potential lender will look incredibly close at this section to determine how viable your business is to succeed in the long-term.