Business Plan Frequently Asked Questions

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For a business to succeed and to know where your business is going and how it will get to the

goals that you set, a business plan is recommended. Having a business plan created for your

business allows you to set annual goals, determine resources that you will need, identify your

target area, and analyze your competitors.

If your business plan is not being used to solicit funding, you can create an informal plan that

serves primarily as a planning tool and a device that will keep you on track. An informal plan

can also be used to show to potential business associates and partners.

In all honesty, the majority of investors skim through business plans as they look for key terms

and explanations. Although there are several sections that will be listed in your business plan,

investors main focal points are the executive summary, company analysis, marketing

segmentation, operational plan, and the financial analysis. However, it is always best practice

to present a completed business plan to investors.

It is essential that your business plan reflects your personality and your goals. As the small

business owner, you need to decide what your business’ short and long-term goals are, and you

need to make the planning decisions. If you are not confident in your writing abilities, you

might want to hire a business plan writer to rewrite your plan after you’ve taken a stab at a first

draft.

There are a wide variety of software programs on the market designed to help you prepare a

successful business plan. These programs vary, but most include a dedicated word processor, a

detailed outline, and some interactive tools which can serve as a starting point for creating a

plan. Much like using a consultant, don’t expect the software to write the plan for you. It is still

up to you to make sure that the plan honestly reflects your business’ goals. Also, be on the

lookout for software that will generate a plan in a “cookie cutter” approach. You don’t want

your business plan to look just like someone else’s. It needs to stand out from the pack to get

noticed.

The amount required for a down payment for a business loan will vary depending on the type

of loan and how much you need, along with your credit history. Due to the current economic

downturn, we recommend that you have at least Five to Twenty percent of the loan amount for

your business prior to requesting a loan. So, for example, if you are requesting a $500,000 loan,

then you should have $50,000 to $75,000 in capital as a down payment.