When applying for a loan, a successful business plan should outline your financial goals and strategies to implement to achieve them. While the components of a business plan may differ depending on the company, several sections are typically included in most scenarios.

These sections should give lenders a comprehensive understanding of your business and demonstrate why you are a good candidate for loan approval.

• Executive summary
• Company Overview
• Business Model (Products, Services, Pricing, Selling Channel, Location)
• Market Analysis
• Strategy (Marketing, Sales, Operations, Assets, Hiring Needs)
• Management & Team
• Funding Needs
• Financial Plan (with proforma statements; income, balance sheet, cash flow)
• Appendices (for images, personal bios, product information, etc.)

The list and headings can change based on your business model. An agriculture or manufacturing business may include more information on process, health, and safety than a professional services firm offering software solutions.

The general guidelines are to keep the document concise and to be mindful of including generic information irrelevant to your business.

Points to consider for your loan business plan

Here are a few questions we get a lot from our business plan clients:

• What does the bank want to see?
• How do I start with the business plan template?
• Is there a quick way to estimate the financials?
• How do I show my startup’s projected financials?
• How much salary should I assign?

If you need to create a loan business plan for bank funding or another financing, get your document precise.

So, here is what we endorse: streamline the business plan development by setting 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 ensure accuracy.

To make this easy and if you want to start writing your business plan, download your business plan template from these reliable business plan sources: StartupLoans UK Score.org, US-SBA, or Gov.UK.

All these models come with helpful guides and examples to help you create a great business plan for your company.

Step 1 – Describe Your Business Idea

This is 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 understand how you will market and see the opportunity you charted in the earlier segment. This part helps you validate to the banks that you have a robust plan to succeed.

• Brand Positioning: include aspects of your brand, values, and whether you are in the day or luxury sector
• Marketing Plan: How will you engage your target audience?
• Pricing Strategy: will you offer a sliding price structure or 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’s success metrics, i.e., sales, customer longevity

Step 3 – Detail Your Financial Plan

It is 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 closely at this section to determine how viable your business is to succeed in the long term.

However, the financial section does not have to be overwhelming, particularly if you break down the work into manageable elements. Here are six items that your plan must have:

• Sales Forecast: Your sales plans for now and in the future should demonstrate how you will generate a healthy income
• Direct Costs: For companies selling products, how much does it cost to make or purchase your goods? What are the costs you absorb for service companies to deliver your offerings?
• Personnel and Hiring Plans: Does your bank loan support your hiring plans?
• Operating Expenses (i.e., rent, marketing spend, professional fees): Perhaps you require financing to secure a new location or expand your technology automation.
• Financing Needs and Payback Plans: What are the anticipated loan amounts, payment terms, and interest rates you seek?
• Projected Financial Statements, i.e., Profit and Loss, Cash Flow Forecast, Balance Sheet

Include Your Executive Summary

Once you finish your business plan sections, go back to the beginning and articulate your executive overview. The executive summary helps your reader to quickly grasp your business, product and services, market, location, and unique selling proposition.