It is imperative that your start-up gets the funds it needs to launch itself for maximum growth. The application for funds depends on the type and amount of start-up funding you seek. This guide will examine what information you will need to include in your business plan when applying for start-up loan.
Plan and Write a Concrete Business Plan
Planning and writing a concrete business plan is a vital step preceding the application for a Start-up loan. Thorough research about market growth, demand for your product/service, competitor analysis and any other market specific details needs to be undertaken. This first step is necessary as it ensures that you have all the current market information available to use in the planning and writing of your business plan. Use all these details especially specific statistics that you have found that highlight and support your business plan as well. The point of a business plan is to emphasize the strength of your business idea and how it can become a profitable competitive business with sustainable financial support.
Demonstrate Sales and Profit Forecasts
It is vital to demonstrate sales and profit forecasts for your start-up business when applying for a loan. Any sales that you have already made can be used as a basis for sales forecast as well as any contracts that are currently being negotiated. In turn this can aid you in establishing realistic profit forecasts. These figures need to be realistic and viable if funding is to be secured. The advisor that you will interview is well trained and will be able to see through any overly enthusiastic estimates or unrealistic figures that you put forward.
All Forecasts Must Match Business Plan Figures
Ensure that all the forecast figures that you present match up with the figures that your business plan can realistically achieve. Remember to include a cash flow statement and show how your sales and profit forecasts will work with this. You need to demonstrate that your business plan can work on the proposed cash flow if sales were to increase as per your sales forecast.
Highlight Costs and Expenses Encountered
A thorough business plan includes all the costs and expenses that your start-up business will incur. You must clearly indicate what expenses and costs you will need to pay for to run your start-up per month. It is advised that you also indicate all the costs involved in creating/acquiring the product/service from inception to delivery.
Prepare Constructively for the Interview
Your well prepared written business plan is now ready to be presented for your loan application. However, you need to ensure that you have memorized all the facts and figures that you have carefully included in your business plan. You will need to practice until you know your business plan inside out. If you present a business plan in a professional way that can convince the audience that you are a serious business partner, this will strengthen your chances of securing a loan.