Essentials of a business plan in raising bank funding for your business
Before you start on the plan
Business purpose, where you are now and what you're aiming to do
+ an interesting fact
Is the market big enough?
Size, growth & trends
Quantify, quote sources of data
Your routes to market
How do you reach your customers
Problem you're solving
Real & sizeable market demand
The specific problem
Real & paying demand?
Proving your target audience see the need for a solution
How many are prepared to pay to solve the problem?
How you're better than the competition
Who? Offering & marketshare
Competitor market & trends
Competing & defending
Barriers to entry
First to market, or second-mover advantage
Competitors may be 'workarounds' to solve the problem.
How do you commercialise your solution
Products & services
Brand names, easier to follow names through the plan
For different products and clients
Discounts & offers?
Proven and growing sales, low risk
Number of clients, growth in number?
Well-known brand names?
Length of client relationships; referrals, sales spread (not all sales from one client)
Sales financial headlines
Growth £ and %
Focus on the positives.
Eg A strong and growing client base. With a geographical or sector or 'other' spread, that reduces risk of a downturn in one area.
Where you are now
Where you want to be
What you have achieved so far
How you'll grow over the next 1-3 yrs
Ability to deliver now & recruit to grow
Your leadership team
Coverage on all business areas
Great at their jobs, expertise, experience
Committed and loyal to you
Gaps identified and being filled
A bridge you believe in, from where you now, to where you want to be.
Profit & Loss and Cashflow forecast
12 months actual, plus 12 months forecast
(or for the length of the funding term!)
Avoid distractions: Group P&L lines; 'reframe' names
What is this hiding?
Sales forecast and pipeline
Commentary, draw out the positives
Other positives ...
Are there 'negatives' that aren't negatives ...
What's the funding for?
Have options in mind
Be specific but not too specific,
eg £10k for delivery of strategic marketing plan; £15 for x; ...
Not personal spend or salary