How To Make A Business Plan To Get A Loan

Most lenders require a business plan for commercial loans. An entrepreneur opening a new business venture or an existing small business owner wishing to expand his operation might seek financial assistance through a commercial loan. Generally, commercial lenders require certain qualifiers from an applicant borrower, including a pro forma statement, a business plan, profit and loss statements, balance sheets, a personal and/or business resume, collateral and personal guarantee by the borrower. To obtain a loan for a small business, there are preparatory steps to accomplish. Gather all financial information. Before writing a business plan, you must have all pertinent information organized. Collect all financial statements, including profit and loss statements, balance sheets and at least three months of business bank statements. Also prepare a list of assets such as inventory on hand, fixtures and equipment. Write a pro forma statement. Hire an accountant to write a pro forma statement, which is a projection of future expenses and earnings and are typically attached to a business plan when applying for a commercial loan. Create a business resume.

A business resume is a document that shows a business' operation range, such as the services or products it provides to consumers and the experience and past business ventures and employment of the owner. If the business does not yet exist, write a personal resume or hire a resume writer. Draft a business plan. A business plan is generally about 15 pages and begins with an executive summary--a set of bullet points that show earnings projections and a summary of start-up costs. Apply for a commercial loan. Visit the Small Business Administration's website and find an approved commercial lender in your area. Contact the lender and ask what documents are necessary to apply for a business loan. Owen Richason grew up working in his family's small contracting business. He later became an outplacement consultant, then a retail business consultant. Richason is a former personal finance and business writer for "Tampa Bay Business and Financier." He now writes for various publications, websites and blogs.

When I first created my business plan years ago, I read countless articles with advice about making it strategic but less about how it should also be tactical. The key difference between the two is that strategy frames the actions, while the tactics are the actions themselves. After sending my business plan to my investor, he gave me some practical advice on how to make it tactical. While it may sound complicated, creating a tactical business plan is pretty straightforward once you understand what’s involved. Thinking on a more tactical level has helped my business grow exponentially over the past year due to our investor's help. Here are some of the points that have helped us grow tactically. Although many people tend to be tactical versus strategic, it can be important to develop both thinking patterns when creating your business plan. By growing both tactical and strategic mindsets, you may be able to look at your business from the perspective of short and long term, narrowly and broadly focused, and opportunistic while risk-aware.

Combined, strategy and tactic can lead to a comprehensive, detail-oriented business plan. It may be best to complete a strategic planning process prior to making your business plan tactical. This can include determining where you're starting, the intended outcomes and the metrics to assess results. The process includes creating strategic goals and objectives aligned with the intended objectives and a set of tactics to accomplish them. By growing both tactical and strategic mindsets, you may be able to look at your business from the perspective of short and long term, narrowly and broadly focused, and opportunistic while risk-aware. From there, you can approach the process from a different angle by focusing on tactical planning. This is where you would dissect the strategic goals created for your business plan and look at them as what actions you will take as part of your daily business operations. The tactical aspects of your business plan may provide the details of what to do, when it needs to be done and how these actions will accomplish the strategic objectives of the business plan. How can the strategic goals be achieved within the existing resources,