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Review: 'Bankable Business Plans' by Edward Rogoff

Business plans serve two primary purposes: (A) clarifying your value proposition and revenue model; (B) convincing others that your business is sound enough to justify an investment or a loan.

Bankable Business Plans is a step-by-step guide that will teach you everything you need to know to create a clear, comprehensive, and compelling business plan.

Dr. Edward Rogoff has helped hundreds of prospective entrepreneurs create business plans as a professor at the City University of New York, and his advice in this book is straightforward and clear. Each chapter will guide you through a specific section of your business plan:

• Value definition
• Needs assessment
• Differentiation and competitive assessment
• Market analysis
• Marketing planning
• Sales and promotion strategy
• Organization design
• Financing needs
• Financial projections
• Risk analysis

Bankable Business Plans also features a rare bonus: it explains how to use data from the Risk Management Association (RMA) to increase the accuracy of your financial projections, and thereby increasing the likelihood of obtaining funding for your entrepreneurial venture. Using Dr. Rogoff's approach, you'll be able to think through every aspect of your business and use RMA data to ensure your assumptions are accurate. Several complete business plans are included as examples to help you get started.

If you're planning to start a business, you can't afford to skip Bankable Business Plans .

(Note: special thanks to Dr. Rogoff, who came across the Personal MBA through a colleague and generously sent me a copy of this book. It's a gem I wouldn't have otherwise found among the thousands of sub-par business planning books currently in the market.)

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About Josh Kaufman

Josh Kaufman is an acclaimed business, learning, and skill acquisition expert. He is the author of two international bestsellers: The Personal MBA and The First 20 Hours . Josh's research and writing have helped millions of people worldwide learn the fundamentals of modern business.

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How to Write a Winning Bankable Business Plan in 2024

What is a business plan, who needs a business plan, why do i need a business plan, how to make a business plan template, how can i write a business plan, 1. executive summary, 2. company overview, 3. market analysis, 4. marketing plan, 5. operational/production plan, 6. organizational and management plan, 7. financial plan, 8. business risks and swot analyses, 9. appendix, 10. business model canvas, business plan writing, revising your business plan, hire a professional for writing a business plan.

Some fail because they don’t have a business plan. Others should have done better with it. In 2024 and beyond, you need to have a solid plan for your business; I mean, a bankable business plan.

We have seen a lot of fallen heroes in the past. They fell with their businesses due to a lack of plans and quality strategies. When it comes to business, I never welcome overconfidence. I will show you how to write a business plan that matches the future.

If you don’t aim it, you can’t hit it Onifade Azeez

A business plan is a written document that summarizes the details of a business including the nature of the product, target market, marketing strategies, and financial projections. Whether it’s to provide direction, seek a loan, or attract investors, a business plan is vital for the success of your organization. A business plan is an indispensable business tool for every startup.

It shows a company’s goals and the way it plans to realize them. It also contains several other aspects of a company’s future agenda and may function as a tool for decisive decision-making or as a business proposal to pitch for funding purposes. Every business must have a written Business plan. Let’s check Wikipedia ‘s definition.

A  business plan  is a formal document containing the goals of a business, the methods for attaining those goals, and the time frame for the achievement of the goals. It also describes the nature of the business, background information on the organization, the organization’s financial projections, and the strategies it intends to implement to achieve the stated targets.

Those who are 

• Starting a new business from scratch
• Who have an existing business with the aim of expanding 
• Sole proprietors
• Partnerships
• Limited Liability Company (LLC) members

A Business Plan is a planning tool. It will often build a framework for your new or existing enterprise and align goals for your business.

It also can be employed by your startup as how to present your ideas, sales projections, and plans for achieving your objectives to potential investors for funding purposes.

Ultimately, whether you propose to launch a corporation, transition from being a freelancer to a little business owner, or wish to recreate, improve, and organize your current business, it may be a helpful document for steering your business forward and informing others of your plans.

A Business Plan helps you generate new ideas for decision-making. It also gives you an action plan after a reality check. In short, a bankable business plan is a must for any successful aiming business .

Begin with a clear idea of the target niche for your template. Since the Business plan template will be used across the chosen niche, you need to do well-detailed and generalized research. You will follow the steps to write a business plan that will be discussed below, after which you will write one. The written template can later be modified to your client’s taste or to suit the purpose of another business venture entirely. Moreover, identifying your audience allows you to establish the language you’ll need to convey your ideas, as well as the level of detail you’ll need to provide to enable readers to complete due diligence.

It’s alright, this is how to write a business plan; Writing a Business plan is easy and also tasking at the same time. All you have to do is follow these simple steps. A business plan format and its organization determine what section will be included. Let’s have a glance:

• Executive summary
• Company Overview
• Products and services description
• Market analysis
• Marketing Plan
• Operational/Production plan
• Organizational and management plan
• Financial plan
• Business risks/SWOT Analyses
• Business Model Canvas

Moreover, the last 2 are optional. We want to take them one after the other. Points stated under each section should be used as subsections.

But wait! You can make money with this skill even if you don’t have a business by writing for people or teaching people how to write.

What is the business plan outline?

Summarize the company profile, problem, solution, product/service, competitive edge, market potential, financials, management, vision, and conclusion. It is a general overview of your business. Anyone who reads it should be able to make a decisive decision about your business I will advise you to write this section last since it is the summary of all.

Here, You will write concisely about the Business description, Target market, Vision and Mission Statement, Goals, and objectives, including your Current milestones if it is an existing business. Goals can include both short-term goals and long-term goals.

This section should include the Industry analysis, Potential challenges and how to handle them, Opportunities, Competitive Analysis, and Effect on the local and national/international economy.

Before you start writing a business plan. You ought to have done a strategic market survey and feasibility study It will help you have a smooth Marketing strategy. In this section, you want to write about Promotional strategies Distribution strategies or sales methods.

The existing Office location description or proposed office locations should be written and discussed. Other subsections include a list of consumables Equipment, Capital Expenses of Production/Services, Process technique or methodology, pricing strategy, Proposed/Existing price list, and Record/stock control process.

The human effort behind your organization should be made known. That is why you have to write about the Ownership of the business, the Promoter profile and management team, details of employees, and details of the salary schedule.

The Promoter, which might also be the founder or a sole proprietorship Identity, should be revealed. Details like full name, Address, academic or professional qualifications with a valid means of Identification.

Majorly, assumptions and financial projections. In other words, you have to be realistic when writing this section. The Present worth and Asset Valuation will be discussed as well. Expansion capital estimation for existing business and give loan details if your business will survive on loan.

Financial projections are necessary for any business, whether it’s a start-up or an established company. They are the key to success for any company because they provide an overall view of where the business is now, where it is going, what its needs are, and how to make sure the company will be profitable in the future.

Financial projections may seem difficult to create at first glance, but there are plenty of free templates available online that can be modified depending on your personal preference.

Business risks and mitigation; Highlight, the risks and possible ways of reducing or eliminating them

SWOT (Strength, weakness, opportunities, and threat) ; Write about them one after the other, but make sure your strength is always more than your weakness. Note: You must have at least a weakness and a threat.

You want to attach additional documents or sheets to your business plan. Especially documents that have to do with financial analyses.

It is a tool that helps you put your business on one page. It can be called the one-page business plan, See the example below.

• Keep it short
• Make it simple to read
• Divide your content into sections
• Use high-quality design and printing

When confronted with challenging problems, conducting additional research and changing your approach may give solutions. As time goes on, the need to revise your business plan could arise. It’s a good idea to examine your business plan regularly even before that time comes, especially if you’re planning to expand or to adjust to meet a long-term goal. So you have to Refocus, Realign, and Repurpose your plan.

You most likely established your unique business and personal goals when you developed your original business plan. Take some time now to evaluate and see if you’ve met your objectives. A need to refocus might arise.

Check your instincts to see whether all of your hard work is still aligned with your initial aims and mission statement. Are they still in use? Have you forgotten about the broader picture?

Consider packaging your existing products or services differently if your time is being spent on little tasks instead of actual development and establishing a lucrative customer base.

You may like to read: How Social Media Marketing Agency Can Boost Your Business

Key marketing, production, and financial challenges differ amongst businesses. Their plans must depict these differences, highlighting relevant areas.  Understand that investors see a plan as a reflection of the goals and personalities of the company and its management. They will be turned off by a plug-and-play, fill-in-the-blanks business plan to even worsen the situation, a computer-generated plan. That is why business plan template software should be discouraged.

Instead of looking inside to see what suits you best, write your plan with an eye outside to your major audiences. You will save time and energy this way, as well as increase your chances of attracting investors and clients to your side. Investors are uncomfortable with poorly drafted documents. You want your business plan to be as appealing and easy to read as feasible.

Creating a business plan might be done with a business plan template, by self-writing, or by hiring a professional. Get the best Business Plan Writing and Business Proposal . Contact Onifade Azeez via [email protected]

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Business Plan: What It Is, What's Included, and How to Write One

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

What Is a Business Plan?

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Understanding Business Plans

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

How to Write a Business Plan

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

Common Elements of a Business Plan

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

The Bottom Line

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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Here’s How To Write A Bankable Business Plan

• 11 mins read

I have had experience coaching and training numerous companies, government-linked corporations (GLCs), government agencies, and entrepreneurs. Among the most crucial challenges is creating and developing a bankable business plan or business proposal.

While many have taught the criteria for preparing a business plan, few have delved into the specifics of crafting a bankable one. I will not only cover the criteria for a bankable business plan but also go deep into the reasons why many companies face rejections of their proposals. Understanding these reasons is crucial in order to effectively counter them and increase the chances of success.

I analyzed the common pitfalls and shortcomings that often lead to proposal rejections, such as lack of market research, weak financial projections, inadequate competitive analysis, or insufficient clarity in the value proposition. By addressing these issues head-on, we equip you with the tools and strategies to strengthen your proposal and overcome potential obstacles.

My aim is to empower you with the knowledge and insights necessary to develop a compelling and persuasive business plan that not only meets the criteria but also impresses stakeholders and potential investors. Through our in-depth discussions and guidance, you will gain the confidence and understanding needed to navigate the challenges of creating a bankable business plan.

When seeking a loan from a bank to fund your business venture, a well-crafted and bankable business plan is crucial. A strong business plan not only demonstrates your vision and potential but also instills confidence in lenders that your venture is worth investing in.

In this article, we will guide you through the critical steps to writing a bankable business plan that will increase your chances of securing a loan for your entrepreneurial journey.

• Executive Summary: The executive summary sets the stage for your business plan and provides a concise overview of your company, its objectives, and the amount of funding you are seeking. Keep it compelling and to the point, highlighting the most critical aspects of your business.
• Company Description: This section provides a comprehensive overview of your business. Describe your company’s mission, vision, legal structure, ownership details, and key milestones achieved. Explain the industry in which you operate, its potential for growth, and the target market you intend to serve.
• Market Analysis: Conduct a thorough market analysis to demonstrate your understanding of the industry and its trends. Identify your target audience, analyze competitors, and highlight your unique selling proposition. Show the bank that you have conducted market research and understand your customers’ needs and preferences.
• Products and Services: Describe your business’s products or services. Explain how they address market demand and provide value to customers. Highlight any competitive advantages or intellectual property you possess that differentiates your offerings from others in the market.
• Marketing and Sales Strategy: Outline your marketing and sales approach to attract customers and generate revenue. Explain your pricing strategy, distribution channels, and promotional activities. Include a sales forecast and projections to demonstrate the potential profitability of your business.
• Management and Organization : Detail the structure of your management team and their qualifications. Emphasize their relevant experience and expertise, as this will give the bank confidence in your ability to lead the business successfully. Include an organizational chart and highlight any key advisors or board members.
• Financial Projections: This section is crucial, as it demonstrates the financial viability of your business. Include projected income statements, cash flow statements, and balance sheets for at least three years. Use realistic assumptions and provide detailed explanations for your financial projections.
• Funding Request: Clearly state the amount of funding you are seeking and explain how it will be used to support your business goals. Provide a breakdown of the loan requirements, including working capital, equipment purchases, or expansion plans. Show the bank that you have a solid repayment plan in place.
• Risk Assessment and Mitigation: Acknowledge the risks and challenges your business may face and outline your strategies for mitigating them. Address potential industry or market risks and demonstrate your ability to adapt and overcome obstacles.
• Appendix: Include any supporting documents, such as resumes, legal contracts, permits, licenses, or market research data, in the appendix. These documents will provide additional credibility and support to your business plan.

People often write business plans that may not be considered bankable due to various reasons. Banks may reject a business plan or business proposal for a loan due to various reasons. Understanding these common issues can help you avoid them and increase your chances of approval.

Normal issues that can lead to a bank rejecting a business plan or proposal

• Inadequate Financial Projections: Banks assess the financial viability of a business and its ability to generate sufficient cash flow to repay the loan. If your financial projections are unrealistic, lack supporting data, or show inconsistencies, the bank may consider your business plan unreliable and reject your loan application.
• Insufficient Collateral or Guarantees: Banks often require collateral or personal guarantees to secure a loan. If the value of the collateral is insufficient or if the personal guarantees provided are not strong enough, the bank may reject the loan application due to perceived higher risk.
• Poor Credit History: Banks review the credit history of the borrower, both personal and business. A low credit score, a history of late payments, or defaults on previous loans can lead to loan rejection. Maintain a good credit history by making payments on time and managing your debts responsibly.
• Lack of Business Experience or Expertise: Banks consider the experience and expertise of the management team crucial to the success of a business. If the management team lacks relevant industry experience or fails to demonstrate the necessary skills to manage the proposed venture, the bank may reject the loan application.
• Weak Business Model or Market Analysis: If the business plan fails to convince the bank of the viability of the business model or lacks a thorough market analysis, it may be seen as high risk. Banks want assurance that your business has a solid market demand, a competitive advantage, and a well-defined target audience.
• Insufficient Cash Flow or Profitability: Banks assess the cash flow and profitability of a business to ensure it can generate enough income to repay the loan. If your business plan demonstrates weak cash flow projections or a lack of profitability, the bank may consider it financially unstable and reject the loan application.
• Inadequate Documentation: Failing to provide the required supporting documents or submitting incomplete or inaccurate information can result in loan rejection. Banks rely on these documents to assess the credibility and feasibility of your business proposal, so ensure they are well-prepared and up-to-date.
• Regulatory or Legal Issues: Banks require businesses to comply with all applicable laws and regulations. If your business plan raises concerns about legal compliance or if there are any pending legal issues, the bank may reject the loan application to mitigate potential risks.
• Over-reliance on a Single Customer or Supplier: If your business heavily depends on one customer or supplier, it can be seen as a risk. Banks prefer diverse and stable customer bases and supply chains to ensure the sustainability of their business.
• Lack of Repayment Plan: If your business plan fails to outline a clear and feasible repayment plan for the loan, including repayment sources and timelines, the bank may reject the loan application. Banks need assurance that you have considered how the loan will be repaid.

It’s important to address these issues when preparing your business plan and loan proposal. Conduct thorough research, seek professional advice if needed, and ensure your business plan addresses these potential concerns to maximize your chances of loan approval.

To increase the chances of your business plan being considered bankable by banks, it is important to fulfill certain prerequisites and provide supporting documents that demonstrate the viability of your business.

Here is a list of prerequisites and supporting documents commonly required by banks when submitting a business plan for a loan

The prerequisites.

• Clarity of Purpose: Clearly state the purpose of the loan and how it will be used to support your business’s growth, such as working capital, equipment purchase, expansion, or inventory management.
• Realistic Financial Projections: Develop realistic and well-supported financial projections that include projected income statements, cash flow statements, and balance sheets for at least three years. Use accurate assumptions based on thorough market research and industry analysis.
• Repayment Plan: Present a solid repayment plan, including the proposed loan term, interest rates, and the expected cash flow generated by the business to cover loan repayments.
• Strong Management Team: Highlight the qualifications and experience of your management team to instill confidence in the bank regarding their ability to successfully lead and manage the business.
• Collateral or Guarantees: Be prepared to provide collateral or personal guarantees, such as property, inventory, or other assets, to secure the loan. Banks often require some form of security to mitigate their lending risk.
• Credit History: Maintain a good personal and business credit history. Banks typically review credit scores and credit reports to assess the borrower’s creditworthiness.
• Legal and Regulatory Compliance: Ensure that your business complies with all applicable legal and regulatory requirements. This includes licenses, permits, registrations, and any necessary certifications.

The supporting documents for loan submission

• Business Plan: A comprehensive business plan that includes all the essential sections mentioned in the previous response. This document should be well-structured, clearly written, and professionally presented.
• Financial Statements: Provide the latest financial statements of your business, including income statements, balance sheets, and cash flow statements. These statements should be prepared by a qualified accountant.
• Personal and Business Tax Returns: Submit personal and business tax returns for the previous few years to demonstrate the financial health and stability of your business.
• Bank Statements: Provide recent bank statements for your business accounts to showcase cash flow patterns and financial stability.
• Legal Documents: Include copies of legal documents such as business licenses, permits, registrations, contracts, leases, or partnership agreements to establish the legitimacy and legality of your business.
• Resumes: Attach resumes or curricula vitae (CVs) of key members of your management team, highlighting their relevant experience, skills, and qualifications.
• Market Research and Analysis: Include market research data, competitor analysis, and industry reports to support your understanding of the market, its potential, and your competitive advantage.
• Contracts or Purchase Orders: If applicable, provide any signed contracts or purchase orders from customers or clients that demonstrate existing demand for your products or services.
• Insurance Policies: Include copies of insurance policies relevant to your business, such as general liability insurance, property insurance, or professional liability insurance.
• References: Provide references from clients, suppliers, or industry experts who can vouch for your business’s credibility and potential.

These specific requirements and supporting documents may vary depending on the bank and the nature of your business. It’s always recommended to consult with the bank or a financial advisor to ensure you meet their specific prerequisites and provide all the necessary supporting documents when submitting your business plan for a loan.

If an entrepreneur does not have sufficient collateral or the necessary documentation to support their loan application, there are still several actions they can take to increase their chances of obtaining a loan.

Strategies for entrepreneurs in such a situation

• Build a Strong Business Case: Focus on developing a compelling business plan that clearly outlines the viability and potential profitability of your venture. Highlight your unique selling points, market demand, competitive advantage, and growth projections. Demonstrating a well-thought-out and promising business model can help compensate for the lack of collateral.
• Seek Alternative Financing Options: Explore alternative financing options beyond traditional bank loans. Consider options such as crowdfunding, angel investors, venture capital, or peer-to-peer lending platforms. These alternative sources of funding may have different requirements and may be more flexible regarding collateral.
• Find a Co-Signer or Partner: If you lack collateral, you could consider bringing on a co-signer or business partner who has the necessary assets or creditworthiness to act as a guarantor for the loan. This individual would share responsibility for loan repayment and provide additional security for the bank.
• Build Relationships with Local Banks: Develop relationships with local community banks or credit unions that may have more flexibility in their lending criteria compared to larger institutions. Local banks often have a deeper understanding of the local market and may be more willing to work with entrepreneurs without extensive collateral.
• Opt for Government-backed Loan Programs: Investigate government-backed loan programs or Small Business Administration (SBA) loans or grants that offer support and assistance to entrepreneurs. These programs often have more lenient collateral requirements and provide guarantees to lenders, reducing their risk.
• Improve Personal and Business Credit: Work on improving your personal and business credit scores by paying bills and debts on time, reducing outstanding debts, and establishing a positive credit history. A strong credit profile can help compensate for the lack of collateral and increase your chances of loan approval.
• Provide Additional Documentation : Even if you don’t have traditional collateral, providing additional documentation that showcases the stability and potential of your business can be beneficial. This could include contracts or purchase orders from clients, letters of intent, supplier agreements, or evidence of strong customer demand.
• Demonstrate Personal Investment: Show your commitment and belief in your business by investing your funds into the venture. Banks appreciate entrepreneurs who have a stake in their own success and are willing to invest their resources.
• Seek Expert Assistance: Consider seeking guidance from a small business advisor, consultant, or mentor who can help you navigate the loan application process. They can provide valuable insights, review your business plan, and assist in identifying alternative funding options.

Please bear in mind that each situation is unique, and the availability of options may vary depending on your location, industry, and specific circumstances. It’s essential to carefully evaluate your options, research available resources, and consider seeking professional advice to determine the best course of action for your specific situation.

Writing a bankable business plan requires thorough research, strategic thinking, and a clear understanding of your business model. By following these key steps, you will be well-equipped to create a compelling business plan that increases your chances of securing the loan you need to turn your entrepreneurial vision into a reality.

A strong business plan helps you secure funding and serves as a roadmap for your business’s success.

So, writing a bankable business plan is an essential step for entrepreneurs who are looking to start or expand their ventures. A well-crafted business plan serves as a roadmap that outlines your goals, strategies, and financial projections, making it easier to secure funding and attract potential investors.

Throughout this process, it’s important to thoroughly research your market, identify your target audience, and clearly articulate your unique value proposition. By demonstrating a thorough understanding of your industry, competition, and customer needs, you increase the likelihood of developing a compelling business plan that resonates with stakeholders.

Furthermore, a bankable business plan should address potential risks and challenges while providing realistic and achievable financial projections. This demonstrates your ability to analyze and mitigate risks, which gives confidence to investors and lenders.

Remember, a bankable business plan is not a static document but an evolving blueprint that should be regularly reviewed and updated as your business progresses. Flexibility and adaptability are key in the ever-changing business landscape. By investing time and effort into crafting a comprehensive and persuasive business plan, entrepreneurs can position themselves for success, navigate obstacles, and maximize their chances of turning their ideas into thriving businesses.

Hence, start today and embark on the journey of writing a bankable business plan that will set the foundation for your entrepreneurial aspirations. With careful planning, diligent research, and a clear vision, you can increase your chances of building a successful and sustainable business.

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In 2012, banks and angel investors gave 5.9 million small businesses, start-ups and early-stage companies over $228 billion in funding to grow their companies. The money is flowing. Is it flowing your way?

Cheree Warrick helps businesses create bankable business plans. She explains that there are five parts to a bankable business plan:

1. 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.

2. 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.

3. 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.

4. Competitive advantage , where you explain what sets you apart.

5. 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. The #1 item that a bank is looking for is cash flow. You have to show that you can pay all your business expenses (payroll comes first, then rent for office space, etc.) plus your home bills (housing costs, food, etc.), plus be prepared to handle an emergency or two. On top of all that a lender wants to see that you can pay back that commercial loan, month after month, year after year.

When reviewing your financial statements and considering your request, investors must answer yes to all of these questions:

• Is this investment something that would go well in our portfolio?
• Are they asking for enough money? Too much money?
• Do we believe there’s truly a market opportunity?
• Do we believe the marketing plan will attract, convert, and retain paying customers?
• Do we believe this team can take advantage of the market opportunity and earn the cash flows and margins they state?
• Do we believe we’ll get our money back?

Seems fairly straightforward, Cheree. 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. 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. Bankers tell me they want to lend money, but entrepreneurs come to them so unprepared, they don’t believe the entrepreneur will take the capital the bank gives them and do the right things with it – or make their business grow.

Second, people want to use a fill-in-the-blank template and get bankable results. It doesn’t work that way. You must be able to speak about your business in such a way that it causes the bank to say, “Wow! What this person is doing is dynamic.” And you won’t get that from a fill-in-the-blank template. You get it from being able to speak or write about your business in a unique way that draws people in.

The final point I have is this: People only lend to you when you don’t need the money. If you’re desperate for money, there are alternate sources of funding. If you’re keeping up with your bookkeeping, you should know that a cash crunch is coming. Keep your head out of the sand. A great business owner pays attention to every part of the business, not just the new customer who’s coming through the door.

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.

Thank you to Cheree Warrick of 1 Billion in Financing for these practical tips. Cheree writes business plans that banks approve. The goal of 1 Billion in Financing is to help 1,000 entrepreneurs raise over $1 billion in capital for their growing enterprises. For more information, please visit http://1billioninfinancing.com/ .

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Bankable Business Plans

Bankable Business Plans is a step-by-step guide that will teach you everything you need to know to create a clear, comprehensive, and compelling business plan tailored to bank lending.

Dr. Edward Rogoff has helped hundreds of prospective entrepreneurs create business plans as a professor at the City University of New York, and his advice in this book is straightforward and clear. Each chapter will guide you through a specific section of your business plan:

• Value definition
• Needs assessment
• Differentiation and competitive assessment
• Market analysis
• Marketing planning
• Sales and promotion strategy
• Organization design
• Financing needs
• Financial projections
• Risk analysis

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A Step-by-Step Guide to Crafting a Bankable Business Plan

A well-crafted business plan is the foundation of any successful venture. It not only serves as a roadmap for your business but also plays a crucial role in securing funding from investors or financial institutions. In this guide, we will take you through the step-by-step process of creating a bankable business plan that will captivate stakeholders and increase your chances of securing the funding you need.

Step 1: Executive Summary Start your business plan with a compelling executive summary that provides a concise overview of your business. Clearly define your vision, mission, and the unique value proposition your business offers. Highlight your target market, competitive advantage, and growth potential. Keep it concise but impactful to grab the reader's attention.

Step 2: Company Description and Market Analysis In this section, provide a detailed description of your company, its history, legal structure, and ownership. Conduct thorough market research to understand your target audience, industry trends, and competitive landscape. Demonstrate your knowledge of the market by identifying your target market segments, customer needs, and how your product or service will fulfill those needs better than your competitors.

Step 3: Product or Service Offering Describe your product or service in detail, emphasizing its unique features and benefits. Outline how your offering solves customer pain points and addresses market demands. Include information about your product development stage, intellectual property, and any competitive advantages such as patents or proprietary technology.

Step 4: Marketing and Sales Strategy Present a comprehensive marketing and sales strategy that outlines how you will reach your target audience and convert them into loyal customers. Define your pricing strategy, distribution channels, and promotional activities. Include a detailed analysis of your competitors and explain how you will differentiate your business in the market.

Step 5: Operations and Management Provide an overview of your business operations, including facilities, equipment, and key processes. Present your organizational structure and introduce key members of your management team, highlighting their relevant experience and expertise. Investors are often interested in knowing who will be driving the business forward and their qualifications.

Step 6: Financial Projections and Funding Request Develop realistic financial projections, including revenue forecasts, expenses, and cash flow statements. Project your financials over a period of at least three years to demonstrate long-term sustainability. Clearly explain the assumptions behind your projections and provide a comprehensive analysis of your funding needs. Specify the amount you are seeking and how it will be utilized.

Step 7: Risk Analysis and Mitigation Strategies Acknowledge potential risks and challenges your business may face and outline strategies to mitigate them. This demonstrates that you have thoroughly considered various scenarios and have plans in place to navigate uncertainties. Identify regulatory, market, and operational risks, and explain how you will address them to ensure the success and growth of your business.

Conclusion: Crafting a bankable business plan requires careful research, strategic thinking, and a deep understanding of your market and financials. By following this step-by-step guide, you will be well-equipped to create a comprehensive and compelling business plan that impresses investors and lenders. Remember, a well-prepared plan not only increases your chances of securing funding but also serves as a valuable roadmap to guide your business towards success. Take the time to refine and update your business plan as your venture evolves, ensuring it remains a dynamic tool for your entrepreneurial journey.

Please feel free to reach out to us for further information or to discuss how we can assist you in accessing the funding you require for your business.

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What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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What Is a Business Plan and How to Write One

Start writing your business plan today and find out how Chase for Business can help you be successful. Presented by Chase for Business.

If you're planning on starting a business, one of your first steps should be writing a business plan.

The objectives of a business plan are guided by the goals of your business and should leave room for flexibility and future restructuring. Use these tips to help you get started.

What is a business plan?

A business plan is a guide for your company to follow as it scales in size and complexity. Business plans include basic information about your company's operational, financial and marketing goals. Writing a business plan will include several key sections:

• Executive summary: A summary of your business model, your target market, your products and services and basic financial information.
• Company overview: An overview of your business’ mission, location, legal structure and history.
• Products and services: An explanation of the products and services your business offers. This section should cover the problems you solve for customers, intended audiences, and use cases and pricing.
• Market analysis: An analysis of your value proposition, how you plan to reach your target market and where you fit into the competitive landscape.
• Financial plan: An outline of the fiscal details of your business including a balance sheet, cash flow statement and sales forecast. This section should include a profit and loss statement, as well.
• Contact Directory: An introduction of all key team members and an explanation of their roles. If applicable, list the chief executive officer (CEO), chief financial officer (CFO), chief operations officer (COO) and other key management roles.

Why is a business plan important?

The specific steps in writing a business plan can help your company build a strategy for long-term success. When starting a business, you should consider some items including:

• Research your market
• Develop a strategy
• Record existing financial data
• Organize your goals into a cohesive vision

If you're seeking financing or applying for a business loan , a business plan is essential. Banks, private investors and venture capital firms all need to see a business plan to make funding decisions. These institutions want to know how your business plan will achieve its goals and make their investments worthwhile.

Your company doesn't have to follow the same plan in perpetuity — you can and should revise your model as necessary. Reference your business  plan in relation to other major goals and strategy throughout the year.

Types of business plans

Different business plans work for different business cases. Two of the most common business plan types include:

• Traditional business plan: This plan tends to be long and detailed. It includes all of the sections above as well as information on the specific funding and human resources goals you hope to achieve. Traditional investors tend to request traditional business plans.
• Lean business plan: This type of business plan is much shorter and includes only essential information. It should include partnerships, activities, resources, market, value proposition and distribution channels. A lean business plan may also include your cost structure and revenue streams. Lean business plans are ideal for internal use.

5 ways companies use business plans

The following are five ways that companies typically use a business plan to aid in their development and growth.

1. Assess feasibility

Business plans can be used to help examine the feasibility of a business or product idea. As you research your market, create a financial plan and crunch the numbers. By doing this, you’ll develop a better sense of what is needed in order to make a profit.

You should share your business plan with other people for feedback — such as mentors, potential partners or prospective employees. If you can demonstrate you have a plan to succeed, prospective clients or investors may be more confident in working with you.

2. Understand the market

Understanding your customers and marketplace dynamics is key to running a successful business. The market analysis section of your business plan positions your company within the industry and among your competitors. For example, your business plan might explain how you intend to solve a persistent problem in a way that your competitors cannot.

To help know your market better, you should conduct a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. By digging deep into your business goals, you can discover who your customers are and how you can best serve them. You can also assess where your business is likely to thrive and manage any perceived opportunities upfront.

3. Create milestones

It can be challenging to keep your eye on the big strategic picture while also managing a business. Writing a business plan forces you to set aside your daily tasks and consider your goals. In turn, setting milestones will help guide your business and give it a greater purpose.

The milestones you create should be unique to your business. For example, your milestones might include reaching $1 million in revenue, expanding to a new region, or selling your business to a larger company.

4. Seek funding

Some companies have all the capital they need to launch while others need outside financing. If you request funding from a bank  or a private investor, you will need a clear business plan that allows investors to assess how your company will make money and grow.

Consider these business plan tips for common financial projections:

• Cash-flow statement
• Profit and loss statement
• Break-even projection
• Sales forecast

Reposition the business

Few companies follow the same path the entire time they're in business. Issues like market changes, new technology, and economic growth can force a change in direction.

When you need to reposition your company, referring to your original business plan is essential. This will encourage you to analyze the market, consider different operational models and experiment with new strategies.

Even as you continue to evolve your business strategies and objectives, your business plan can guide your company through major changes and improve your chances for profitability.

Once your business plan is in motion, meet with your local business banker  to manage your available finances or see how a Chase business   checking account  might help.

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How to write a business plan

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Every business owner can benefit from writing a business plan, including those in the early stages of launching a business . A well-crafted business plan communicates the business’s strategy for growth to key leaders and investors. It’s also an important step to getting a business loan since many lenders require it.

Let’s walk through the steps and elements of writing your ideal business plan.

Key takeaways

• A business plan outlines how you plan to bring products or services to market
• Many lenders require a business plan be included with a loan application
• You can choose to write a lean or traditional business plan
• It covers everything from market research to your marketing and financial plan.

What is a business plan?

A business plan is a document that outlines a business’s strategy for bringing a product or service to market. It describes the company, product idea and goals or steps that the business will take to achieve growth. The document includes multiple sections that provide insight into each part of the strategy.

The business plan can be a simple document called a lean business plan or a more detailed traditional business plan. The lean business plan covers the basics of the company, product, target customers and how it will get revenue. It may only be one page with short descriptions for each part.

The traditional business plan includes more depth on the goals, measurements, research and marketing strategies to get the business where it’s going. Here are key differences in the information written for each type of business plan:

Although there’s no one-size-fits-all approach, follow these steps to create a strong business plan.

Write an executive summary

An executive summary is the introduction to a business plan, giving the key details about your business model and the product or service you’re offering. While there’s no strict formula for writing this section, you should include all the relevant details that you’d want a key partner or investor to know.

It should describe your product or service idea, target market and key objectives for growth within the next few years. It may also summarize your marketing and sources of revenue or funding.

You can adjust what to include based on the exact business you’re starting and its business model. Most business plans keep the executive summary to one to two pages.

Create a company description

The company description should overview important details about your company. It can state your company’s name, location and type of entity as well as describe its history. It should also clearly define the vision that you have for your company’s future in the form of a mission or vision statement.

You may also outline the structure for managing the business, listing key roles and responsibilities and the people filling those roles. Depending on the details you included in the executive summary, you might include information about your product or service.

Describe your value proposition

The value proposition is your chance to pitch what makes your business stand out. It identifies the customer’s problem or gap in the market for the product or service you’re offering. It then goes into detail about how your business will solve the problem.

The value proposition can also explain major barriers that customers have before making a decision and what your business will do to break through those barriers. It shows leaders and investors that you have a thoughtful purpose behind the business you’re creating.

State your business goals

The path to achieving success starts with knowing what success looks like. Many business plans state its main objectives in the company description. Others describe those goals in a separate part of the business plan to dive deeper into the specific goals.

You can also include key measurements you’ll use to gauge whether your business is achieving its goals. You would then use these goals in other business planning documents, further breaking them down into defined short-term steps that ladder up to the larger goals.

Outline your product and service

Next, you want to dive into the main product or service that your business is offering. Explain what the product is, how it works and the benefits that it brings to customers. If you’re planning to make multiple products, you can include a description of each product line. Show how this product or service is set apart from similar products from competitors.

You can also use this section to show how the product or service is produced, including cost of supplies and the price at which you plan to sell. Let the investors and stakeholders know if you have a trademark or patent for the products you’re creating.

Give a summary of market research

Next comes market research, the part of the plan where you do your due diligence to gather information and understand your target customers and competitors. First, you want to understand your target customers’ needs and any barriers they might have to buying your product.

You want to look for information about their demographics and how they might respond to the product you’re offering. This information will help you when designing your product and marketing it in a way that resonates with customers.

Then, you can look at the economy around your product, such as average pricing and sales revenue. This also includes research about your competitors, the market share that they hold and the barriers to entering your market. This section may include data from data research companies, surveys, focus groups and interviews.

According to the U.S. Small Business Administration , the questions you’re trying to answer include:

• Market size, or how many people may want to buy your product
• What people are willing to pay for your product
• Similar products already available
• Who your competitors are
• How your industry is doing
• Typical revenue gained by small businesses in your industry

Summarize a marketing strategy

Once you’ve clearly defined your product and who you’re selling to, you can come up with a strategy for how you’ll reach and sell to customers. In this section, you’ll include the different marketing channels you’ll use to promote your products and services.

These may include direct mailers, social media, traditional or online advertising or media events. The exact channels you use will depend on where you can easily find your target customers.

You can also describe the key messaging that you plan to use during marketing, which will pinpoint the value that it offers to customers. The marketing plan should also include the cost of marketing to different channels and your marketing budget. You can then outline the marketing goals and measurements you’ll use to see if you’re meeting those goals.

Create a logistics and operations plan

The logistics and operations section of your business plan is a detailed description of how your business will bring products and services to market. It explains how the business will run on a day-to-day basis. It should highlight your company’s management structure, give an overview of processes and describe the workflow from end to end. It can also include data on how many products you can make or how long it will take to make products or offer services.

Create a financial plan

Now that you’ve laid out the research, goals and planning, you can use that information to forecast revenue and build a financial plan. Use any past revenue or sales history as a starting point. Then, refer to your company’s recent growth and goals to calculate future financial growth.

If you’re a startup , you can use market research to estimate revenue for a startup in your industry. You can either forecast revenue manually or find software that projects revenue for you.

In your financial plan, you also want to create and track your business budget . You’ll track your estimated and actual revenue, updating regularly to keep the revenue forecast accurate and realistic. Next, you’ll list all expenses and their amounts, including one-time, variable, fixed or seasonal expenses. Here are some examples of different business expenses:

• One-time or capital expenses: Equipment, real estate, furniture, commercial vehicles, business licenses
• Variable expenses: Inventory, utilities, fuel, office supplies, shipping services, card processing fees
• Fixed expenses: Employee salaries and benefits, software, web hosting, office or equipment leases, business loan repayments

Business plan resources

Writing your business plan will take more than putting pen to paper. Try these resources to help you gather data, set up your finances and more:

• Business plan templates. Creating a business plan for the first time? Learn by looking up examples of other business plans or templates like these from Smartsheet .
• Software for accounting and financial planning. Many small businesses use Quickbooks, Xero or Netsuite to track revenue and expenses. These may also forecast revenue based on sales history.
• Business loan resources. To cover your funding needs, think through the types of business loans that would best serve your business. Once you’ve landed on a loan, compare features and interest rates to help you make a decision.
• Survey tools. For in-depth market research, you can build a survey and send to your target customers through a data research company like GWI.

Small business mentoring

Experienced mentors can guide you to making effective business decisions and unlock new potential for growth. Where to find small business mentors:

• SBA. You can find resources and free or low-cost mentors through the SBA’s local assistance tool .
• Small Business Development Centers. SBDCs provide specialized training programs in your local area covering specialized topics like marketing, data research and business management.
• Community Development Financial Institutions. CDFIs   are financial organizations like banks and credit unions that are built to develop the community. Alongside banking and lending services, CDFIs offer training programs and resources.
• SCORE. SCORE is an organization that partners with the SBA to bring resources to small business owners. Mentorship is at the core of what the organization does, and it can match you with a local mentor through its online locator tool.
• Local Chamber of Commerce. These local organizations are known for supporting business networking. They may help you find a mentorship program, or you may build a relationship with another successful entrepreneur through networking events.
• Nonprofit organizations. Some nonprofit organizations are dedicated to supporting small business owners with funding, trainings and mentorship programs. These are typically local programs. For example, NYPACE is a nonprofit that offers free consulting to underserved entrepreneurs in New York.

Bottom line

Your business plan should outline key information about your company, products and the strategy for getting those products in the hands of your customers. Every business plan looks different, but there is essential information to include in every plan, such as who your target customer is and your expected revenue. The business plan serves to help you get business funding and outline exact goals and steps to growing your company.

Frequently asked questions

Do i need a business plan to apply for a business loan, how do i write a simple business plan, what basic items should be included in a business plan.

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How to get started creating your business plan, a successful business plan can help you focus your goals and take actionable steps toward achieving them. here’s what to consider as you develop your plan..

Regardless of whether or not you’re pitching to investors and lenders, starting a business requires a plan. A business plan gives you direction, helps you qualify your ideas and clarifies the path you intend to take toward your goal.

Four important reasons to write a business plan:

• Decision-making:  Business plans help you eliminate any gray area by writing specific information down in black and white. Making tough decisions is often one of the hardest and most useful parts of writing a business plan. 
• A reality check:  The first real challenge after deciding to launch a new venture may be writing the business plan. Through the process, you may realize your business idea is a bit flawed or not yet fully developed. This may feel like extra work, but the effort you put into improving your idea during this step can bolster your chance of future success. 
• New ideas: Discovering new ideas, different approaches and fresh perspectives are invaluable parts of the business planning process. Working closely with your concept can lead to unexpected insights, shifting your business in the right direction. 
• Developing an action plan: Your business plan is a tool that will help you outline action items, next steps and future activities. This living, breathing document shows where you are and where you want to be, with the framework you need to get there.

Business plan guide: How to get started

Use this exercise to gather some of the most important information. When you're ready to put an outline together, follow our standard business plan template (PDF) and use this business plan example to use as a guide as you fill in your outline. Once your outline is finalized, you can share it with business partners, investors or banks as a tool to promote your concept.

• Vision: Your vision statement sets the stage for everything you hope your business will accomplish going forward. Let yourself dream, pinpointing the ideas that will keep you inspired and motivated when you hit a bump in the road. 
• Mission: A mission statement clarifies the purpose of your business and guides your plan, ultimately answering the question, "Why do you exist?" 
• Objectives: Use your business objectives to define your goals and priorities. What are you going to accomplish with your business, and in what timeframe? These touchstones will drive your actions and help you stay focused. 
• Strategies: Your objectives describe what you’re going to do, while your strategies describe how you’re going to do it. Consider your goals here, and identify the different ways you’ll work to reach them. 
• Startup capital: Determine what your startup expenses will be. Having a clear idea will allow you to figure out where the money is coming from and help you spend what you have in the right areas. 
• Monthly expenses: What do you estimate your business’ ongoing monthly expenses will be? This may change significantly over time — consider what your expenditure could be immediately after launch, in three months, in six months and in one year. 
• Monthly income: In order to cover your expenses (and hopefully make a profit), you will need to estimate your income. What are your revenue streams? It's always wise to diversify your income. That way, you won’t be tied to one stream that might not be lucrative as quickly as you need it to be. 
• Goal-setting and creating an action plan: Once you have all the specifics outlined, it's time to set up the step-by-step action items explained in the companion guide, a standard business plan outline. This process will utilize the hard work you've already done, breaking each step down in a way that you can follow.   

A business plan isn’t necessarily a static document that you create once and then forget about. You can use it as a powerful tool by referencing it to adjust your priorities, stay on track and keep your goals in sight.

Business plan: An outline

Use this exercise to gather important information about your business.

Answer these questions to start your planning process. Your responses will provide important information about your business, which you can use as an overview to develop your plan further.

• What is your dream? 
• What do you feel inspired to do or create?
• What keeps you motivated, even in the face of uncertainty?  
• Why does this business exist? 
• What purpose(s) or need(s) does it fulfill for customers?   

Objectives 

• List the goals of your company, then number them in order of importance. 
• What will the business accomplish when it’s fully established and successful? 
• How much time will it take to reach this point?  
• For each goal or objective listed above, write one or more actions required to complete it.   

Startup capital 

• List any and all startup expenses that come to mind. 
• Next to each: 
• Estimate the cost of any expenses you can. 
• List the most likely source of the funding. 
• Circle the high-priority expenses. 
• Assess whether your available capital is going toward the high-priority items. If not, reconsider the way you will allocate funds.  

Monthly expenses

• If you can, estimate your business’ ongoing monthly expenses immediately after launch, in three months, in six months and in one year. 
• If you can’t, what information will you need in order to estimate your expenses?  

Monthly income 

• What are your revenue streams? Estimate your monthly income accordingly. 
• Which revenue sources deliver fast or slow returns? Are there other sources you could consider to diversify assets?  
• After completing your outline, reference your responses as you work through a traditional business plan guide. This next step will allow you to expand and add more detailed information to your plan. 
• When you’re ready to make your formal plan, reference this companion guide, a standard business plan outline  (PDF). We've also included a  business plan example  to help as you fill in your outline. 

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Developing bankable business plans

This guide was developed to improve the capacity of small producers, their organizations and small and medium-sized enterprises to access private investment and finance for sustainable forest-based businesses. It offers a framework to think through, organize and develop a convincing investment proposal. The guide introduces ten key elements, presented as modules, which should be included in any bankable business plan. Templates, tips and advice also provide users with a structured way to think through and substantiate information related to each of these elements. The goal is to increase the business’ attractiveness to funding sources and thus facilitate access to finance. The guide is especially aimed at those producer organizations and companies that seek to scale up operations and need the know-how to do it themselves.

• Resource type Guideline
• Organisation FAO
• Year of Publication 2021
• Region Global
• Language English
• Keywords agribusiness investment

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• Agribusiness Investment Promotion: Lessons from selected country case studies
• Private Equity and Emerging Markets Agribusiness: Building Value Through Sustainability
• Investment promotion : a guide to investor targeting in agribusiness
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