Bankable Business Plans
Here are some tips and rules of thumb to improve your odds and help you understand when a bank loan or line of credit is possible, and how to get it: Even if you can’t meet all these criteria, it’s definitely worthwhile to utilize the free services of the Small Business Administration (SBA) and SCORE in the US to get their help in preparing for the loan option.They have contacts with the more “startup friendly” banks in your area, and might even be able to arrange a “loan guarantee” if you meet some of these criteria. Cheree Warrick helps businesses create bankable business plans.Market opportunity, where you tell them the problem you’re solving in the marketplace, how many people have that problem, and how many your company could service. Customer acquisition and retention, where you describe how you will: Attract prospects, convert those prospects into customers, service those customers, upsell new products/services to those customers, retain those customers, and get referrals to new customers. Team, where you illustrate that your company has great leadership and a cohesive team that can not only attract and serve customers but also take care of operational issues including accounting, legal and technology. Competitive advantage, where you explain what sets you apart. Financial projections including an Income Statement and Cash Flow Statement What may be the most intimidating parts of the business plan is also one of the most important.OR they bring it to the banker and expect the banker to review it and tell them what’s right or wrong.Bankers don’t have the time to do this extensive strategizing to take this information and apply it to their business.The #1 item that a bank is looking for is cash flow.
When you’re doing well and you know you could grow your business 10X with a more aggressive budget, that is the time for a bankable business plan.Bankable Business Plans is the only book on the market that demonstrates how to make each business plan uniquely suited to every endeavor.It is also the only book which explains how to employ the guidelines that banks, venture capital firms and the Small Business Administration use to grant loans and other financial support to businesses.” The default answer is that it probably won’t happen, because most banks just don’t make bank loans to startups.The failure rate is just too high, and startups typically don’t have the assets or revenue stream to back up the loan.Bankable Business Plans reveals the secret of creating a compelling and successful business plan for anyone who ever dreamed of starting or expanding an enterprise.This invaluable book guides readers through a comprehensive, step-by-step process to produce a professional-quality business plan that will attract the financial backing entrepreneurs need.So how do people fall short when they’re trying to apply these recommendations?They don’t have anyone to talk with or strategize with or review their plan.That’s why angel investors are so sought after by entrepreneurs.In my experience, some startup founders do overcome these odds, but you need to be realistic and do your homework.