When it comes to starting up a new business you will soon realise that you will need money to turn your business idea in to a reality. Unless you have a very rich and generous benefactor the most likely way you can raise cash is through lenders such as the banks. The first step to persuading the backs to lend you money for your business is to devise a business plan.
The key aim of your business plan is to persuade the banks to lend you the capital to get your business off the ground. To increase your chances of that happening follow these tips:
Tip 1
when it comes to writing a business plan to raise cash the plan will need to be very well researched. A great idea is just that an idea. It will not impress the banks. Their needs to be a comprehensive and supporting evidence that proves your case. In a way you will be like a lawyer who will be trying to win a case for your client. You have to make sure that the evidence that you present will hold up in court. For example, if you are making claims such as the business will reach a turnover off $250,000 within its first 2 years of doing business then these needs to be backed up by thorough supporting evidence.
Your plan should also include research into the market that you will enter into. It should clearly provide evidence of why the market is a financially viable one. When compiling your plan it is better to put detailed analysis and research as a appendices in the back rather than have them in the main body of the report. In the report you can mention summaries of the findings and then refer the reader to appendices for further reading.
Tip 2
Before writing your business plan think about the audience you are communicating to. It is very easy to get over enthusiastic and try and cramp all the information you can into the plan. However, a busy bank manager who has to go through several business plans in a day may not appreciate it. Therefore, think about what you are putting into it the plan and ask yourself if it is really relevant or appropriate.
Tip 3
Do not use fancy language to try and impress. Keep it simple in that way it will be easier to read and easier to understand. For example, if the product you are proposing to sell is very complex and technical then do not think that the person reading it will have the same in depth knowledge that you have of the product. Therefore, break it down into plain and simple English to ensure any complex explanations are clearly understood.