Ten things a lender looks for

| 1 Each One, Grow One: Ten things a lender looks for in a business plan

Each One, Grow OneTen things a lender looks for in a business plan

| 2 Each One, Grow One: Ten things a lender looks for in a business plan

Your business plan

It’s your roadmap and a tool to attract investors. Most plans include:

1 Executive Summary

2 Company Profile

3 Product / Services

4 Marketing

5 Operations

6 Financials

7 Appendix

| 3 Each One, Grow One: Ten things a lender looks for in a business plan

What lenders focus on when reading your plan

1 Financing request

2 Business description

3 Management expertise

4 Financial plan

5 Cash flow projections

6 Contingency plan

7 Security

8 The marketplace

9 Market demand

10 Third-party review

| 4 Each One, Grow One: Ten things a lender looks for in a business plan

Your financing request

Be clear about the amount you need

Describe how you will spend it

Ask yourself: would you risk your own money on this business?

| 5 Each One, Grow One: Ten things a lender looks for in a business plan

Create your business description

Define your product or service

Describe your market

Outline your business objectives

| 6 Each One, Grow One: Ten things a lender looks for in a business plan

Highlight your management expertise

Outline your business management experience in these key areas:

Products or services

Marketing and sales

Finance

| 7 Each One, Grow One: Ten things a lender looks for in a business plan

Map your financial plan

Define your start-up costs

Decide how much equity to contribute

Project your revenues and expenses

Ask yourself: can you repay the loan?

| 8 Each One, Grow One: Ten things a lender looks for in a business plan

Project your cash flow

You’re more likely to get approved for a loan if you can demonstrate:

Sufficient cash flow

Proven or supported cash flow projections

The ability to make monthly loan payments

| 9 Each One, Grow One: Ten things a lender looks for in a business plan

Prepare your contingency plan

Things don’t always go as planned. It helps to identify potential risks:

Create a plan to mitigate each risk

Economic

Legal

Technological

Social

Political

Environmental

| 10 Each One, Grow One: Ten things a lender looks for in a business plan

Options to secure your loan

Loans can be secured by your assets, such as:

Real estate

Equipment

Vehicles

Inventory

Cash

| 11 Each One, Grow One: Ten things a lender looks for in a business plan

Define your target market

Consider your potential:

Customers

Competition

Suppliers

Industry trends

| 12 Each One, Grow One: Ten things a lender looks for in a business plan

Evaluate the market demand

Why will people choose you over your competition?

What is the demand for your product or service?

How do you plan to reach customers?

| 13 Each One, Grow One: Ten things a lender looks for in a business plan

Have a coach review your plan

A review from a small business coach can help you:

Discover gaps in your plan

Make improvements or clarify statements

Meet your lenders’ requirements

| 14 Each One, Grow One: Ten things a lender looks for in a business plan

Interested?

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