If you are approaching a bank for funding they will be heavily focused on the financials and the ability of your business to service the loan they will provide. An equity investor will still be concerned with the financial plan but will place much greater emphasis on the management team leading the business and the actual product or service. Why? Well, it’s because they will actually own a part of your business and consequently are more concerned with who is running it and how likely the business is to grow as this is directly proportional to the return they will make. Banks just care about the ability of the business to service the loan and repayment.
What’s The Most Important Section When You Write A Business Plan?
It really depends on the business, but after years of working for banks and dealing with private equity investors it is clear that the financial forecasts and the business action plan around operations are the two focal points. The reality is that lenders and investors generally have a detailed knowledge of the market and competition data. They read hundreds of plans in any given year and are continually looking at macro data. They really want to know the answer to two questions:
- How much will this business make?
- Do they have a feasible plan to execute it?
People who invest cash want to make sure that they will get it back and make a return. In order to address these key concerns your business must make money and deliver a detailed plan on how it will be accomplished. It’s a results game when it comes to funding and this should be the main focus when you present your business plan. All other sections you cover when you write a business plan seek to support your assertions in the financial plan.
Who Can Help Me Write A Business Plan?
There are hundreds of essay writing services out there that will actually write a business plan for you but it usually costs a lot of money and it won’t teach you how to write a business plan for yourself. You don’t really get to understand the business planning process, which is an invaluable skill for an entrepreneur to have. There are also many free resources that can help you with the outline that is preferred by lenders and government authorities that can help you get started. We have lots of free information in our blog, which may also help you get started.
To be honest though, being an entrepreneur is addictive – hence the cliché’, “serial entrepreneur.” One of the best skills you can have as an entrepreneur is to learn how to write a business plan yourself because it is a skill you will use again and again in your own entrepreneurial journey.