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Want a Business Loan – Get a Business Plan

Getting a business loan could be as easy as setting a business plan.

Kathryn Lang

February 14, 2007

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When starting a small business, it is not uncommon to look to a business loan for the venture capital needed to get it off the ground. With it sometimes difficult to find lenders eager to make the loan, it is important to know what you will need and for how long.

It may seem that the business loan might be one of the first places to start when deciding to begin a new venture. It is more important that the business be outlined. This is most readily accomplished through a business plan.

There are six major parts to a good business plan:

1. The executive summary that outlines what kind of business, who will be working at the business and their qualifications, and the mission that the business has set for the future.

2. The current situation covers what you already have (such as a location or any supplies), the target market and competitors that are in the field, and any key barriers (like funding or experience) that may exist.

3. The marketing objectives show how you intend to put the business on the map.

4. The marketing strategy shows what products you will provide, the price, and the process for getting them to consumers.

5. The action plan is the events that will take place to put the objectives and strategies in mind. (For instance, you can plan to call on 5 prospective clients each day for the first month and then five a week after that.).

6. The budget is essential – even if you have no money to work with as of yet. You have to know on where you will need to spend money, as well as the estimated amounts – phone, website, continuing education classes, office supplies (paper, ink, envelopes, stamps, etc).

It also helps to have supporting documents from co-workers, former employers, or prominent businessmen in the community showing that this business is suited to your knowledge and ability.

Getting a business loan is no small matter, but having a business plan will make the process easier. A well developed business plan will also make the venture more appealing to lenders, making the process of getting a business loan a much simpler matter.

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