{"id":7003,"date":"2022-06-16T09:16:13","date_gmt":"2022-06-16T14:16:13","guid":{"rendered":"https:\/\/accordfinancial.com\/staging\/?p=7003"},"modified":"2022-07-19T13:10:43","modified_gmt":"2022-07-19T18:10:43","slug":"guide-on-business-plan-for-small-business-loan-application","status":"publish","type":"post","link":"https:\/\/accordfinancial.com\/staging\/guide-on-business-plan-for-small-business-loan-application\/","title":{"rendered":"A Basic Guide on How to Write a Business Plan for a Small Business Loan Application"},"content":{"rendered":"\n

How To Craft Business Plans That Increase Your Chance of Success<\/h2>\n\n\n\n

Many lenders have stringent business plan requirements, but it\u2019s not always clear what information you need to provide and which elements effectively advance your case for funding. <\/p>\n\n\n\n

If your potential financing partners require a business plan as part of the small business loan<\/a> application process, this basic guide will help you create a traditional business plan that will boost your chance of success. <\/p>\n\n\n\n

Essential Elements of a Traditional Business Plan<\/h2>\n\n\n\n

<\/p>\n\n\n\n

\"How<\/figure>\n\n\n\n

Despite what your business plan template research has revealed, the truth is that there is no single blueprint for a successful business plan across industries. Each small business is unique, so there\u2019s no need to try to make it fit in a generic mold. <\/p>\n\n\n\n

What\u2019s important is that you communicate effectively to your target audience and show that your funding request, if approved, will contribute to the business\u2019s growth in the months and years ahead. <\/p>\n\n\n\n

Ultimately, you need to persuade lenders that there is a value proposition to be had by providing your company with funding. If you can be specific about how much money you need to reach clearly defined business and financial goals, it will greatly increase your chances of success. <\/p>\n\n\n\n

Although the details and specific structure will vary from business to business and across industries, business plans should include the following elements:<\/p>\n\n\n\n

Executive Summary<\/h3>\n\n\n\n

This includes your mission statement, essential information about your products (or services) and leadership group. When written specifically for a small business loan application, business plans should include some financial information, including projections and growth plans. <\/p>\n\n\n\n

Company Description<\/h3>\n\n\n\n

The business description section is where you go into detail about your company, its offerings and customers. In particular, this section should highlight why your company will have an impact on its particular market. Identifying the business problems you can solve for your customers and why your solution provides competitive advantages is key. <\/p>\n\n\n\n

Organizational Structure<\/h3>\n\n\n\n

You must demonstrate that your company\u2019s management structure has the resources in place to oversee all aspects of small business administration. Accordingly, this section should include an organizational chart, description of the various positions and identify areas for improvement. <\/em><\/p>\n\n\n\n

Competitive Analysis<\/h3>\n\n\n\n

In order to succeed in any market, you need to have a clear idea of what you\u2019re up against, which is what this section is for. You will need to demonstrate a good understanding of your industry and its competitive landscape, including their respective approaches (if applicable) to the business problem you intend on solving. <\/p>\n\n\n\n

If you can show what makes your competitors successful – and how your company can do it better through your market analysis – then your chances of loan approval will skyrocket.  <\/p>\n\n\n\n

Marketing Strategy & Sales Plan<\/h3>\n\n\n\n

Your marketing and sales section needs to address several important questions, including (but not limited to): <\/p>\n\n\n\n

  1. What is your target market? What sales strategies do you have to reach these customers? Why should they choose your company over a competitor?<\/li>
  2. How will new customers discover your products? How do you plan on cultivating new customer relationships?<\/li>
  3. What will your advertising and outreach efforts include?<\/li>
  4. How does your company plan to use its financing to achieve business goals?<\/li><\/ol>\n\n\n\n

    If you have a long-term strategy to reach into other markets or expand your offerings with a new product line or service line, explain it here. <\/p>\n\n\n\n

    Financial Analysis & Projections <\/h3>\n\n\n\n

    The ultimate goal of a business plan for a small business loan application is to convince potential lenders that your existing business is on solid footing and has all the necessary elements for long-term financial success, which includes meeting your obligations for loan payments. <\/p>\n\n\n\n

    The financial projections and analysis section should include the following documentation, covering the last three to five years:<\/p>\n\n\n\n