INTRODUCTION
Business Guide No. 4 informed you about the importance of planning and having a business plan. Perhaps the main reason most persons need a business plan is to present it to the bank or credit union when applying for a business loan. In this situation, you will require a formal, well-prepared plan. This can be done at the Centre for Enterprise Development (CED) or any other agency that provides Business Development Services. The officers in these agencies have more experience in understanding what the financial institutions are looking for.
What you will need to provide to the person writing the Plan
Personal Information
- Your name
- Educational background and relevant qualifications and training, including any business or skills courses you have attended
- Experience in business, etc.
The Business
- Name
- History, if already functioning
- Number of years in operation
- Location
- Track record
- Mission Statement
- Vision Statement
- Goals and objectives
- Who is or will be responsible for record-keeping?
- Who are the key employees?
- Provide details of their position, education, background, and responsibilities.
Market and Probable Clients
- Who do you plan to sell your products (goods and services) to?
- Where do you plan to sell? (St. Vincent and the Grenadines, regionally, or internationally?)
- A Letter of Intent: This is a letter from clients who intend to purchase your products.
Financing
- How much do you need to borrow?
- Exactly what do you need the money for?
- Provide quotations for costs that you want to be covered by the loan.
- Estimates for construction, equipment, stock, and merchandise.
- Capital requirements such as vehicles, furniture, etc., if required.
Pro Forma Requirements
- Labour costs and requirements
- Raw material requirements
- Monthly electricity costs
- Travel expenses
- Insurance
- Telephone
- Office supplies
- All other monthly expenses you expect to incur.
Product Detail
- Detailed description of your product and its unique value proposition compared to competitors.
Marketing
- How do you plan to build awareness of your products?
- What promotional and advertising strategies will you use?
Cost of Goods Sold
- What are the costs to make your goods or service available?
- Shipping costs
- Raw materials
- Any other costs associated with making your product or service.
Sales
- How much sales do you estimate for the month?
- By how much do you expect sales to grow during the first three years of operation?
Presenting your Business Plan
- Understand your business. Know what your objectives are.
- Don't assume that your banker knows what you are talking about.
- Recognize the needs of your bankers. Know how you will start and finish your presentation, organize your ideas so that you will keep their attention.
- Anticipate questions that you will be asked.
- Emphasize how you will make money.
- Be accurate and detailed about your projections.
- Be specific on how you will spend their funds.
- Don't mislead the reader.
- Don't ramble on or take forever to make a point.
- Have a great executive summary.
- Make sure that the plan is readable and ideas flow clearly from one to the next.
- Back up your plan with meaningful facts and figures.
- Have a positive attitude!