Startup Planning - Do You Need a Small Business Loan?

Before opening your doors for business, whether virtual or physical, you must be prepared for the many details involved in running a business.  There are many factors to consider, including the need for small business financing or a small business startup loan. Thinking through these details and putting them on paper helps you to be prepared.

A business plan lays out the future of your business.  It is a written document, which tells what you do and how you plan to do it. While your plan is a unique document designed for your type of business, there are certain objectives contained within any good business plan:  

1. Sets forth goals and how they will be achieved.
2. Defines obstacles and outlines strategies to overcome them.
3. States the legal and organizational structure of the business.
4. Quantifies financial needs and makes financial projections.
5. Defines the need for small business loans or small business startup loans. 

The length of your plan depends on the purpose you will use it for. If you need to acquire venture capital or financing in the form of a small business loan or small business startup loan for your business, you may need to provide extensive detail for prospective investors. If your plan is simply a roadmap for you to follow, it can be quite short. Whether it is one paragraph or 100 pages depends entirely on your objectives.

Business plans vary from industry to industry and from business to business. No two plans are alike. Your emphasis should be on providing an accurate and realistic presentation of your business. Your plan is about you and your business - this makes it a unique creation. Be just as realistic about your financial start up requirements.  Do you need a small business start up loan?

A good business plan tackles three major areas:  The Business, The Market, and Finances.   Look at the questions within each of the three areas below and answer them as they apply to your business.

1. The Business

What is the legal structure of your business? Will it be a sole proprietorship, a partnership, or a corporation? What is the name of your business? Who are the people in your business? Is your business uniquely positioned to succeed? What are existing conditions within your industry? How do you intend to grow? What is your product? What does it do? How will you handle and deliver orders? Will you back your cash flow with a small business loan?

2. The Market

Who are your customers? Why are they customers? What motivates your customers? What need are you filling for these customers? How will you motivate them to buy from you? How will you find and attract these customers? Who is your competition? What advantage do you have over your competition? How will you position yourself to win market share? Do you have technical data, surveys, or information sources to back up your claims? Do you need a small business startup loan to support your marketing strategies?

3. Finances

How much money are you bringing to your business? What are your start-up costs? Will you apply for a small business loan or a small business startup loan? How will the money from the startup loan be used? When will your small business become profitable? What are your financial projections for the next five years? Please contact us  for more information about start up business planning and small business financing.