Business Funding Secrets

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Business Plan Check List
 

In the newsletter Business Funding Secrets, this past year, we have talked a lot about Business Plans. It is a major step in receiving funding and it’s something so many people do incorrectly. One of the common mistakes we see are business plans, with only 20 pages in length. These just are not effective in obtaining the funding, which most businesses are searching for. When a business owner is looking for funding they need to provide the lender a plan that shows they have put tremendous effort into recognizing the downside along with enthusiasm. Lenders want to have a sense the risk is minimized because the client has spent the time looking and documenting all aspects of the business, and this can’t be done in 20 pages.

Don't be afraid to offer 200 pages, or more. Provide well thought out and organized detail. Laser print the information, use tabs to organize the plan, and use a nice 3 ring binder or other method to bound the material into a nice package. Do not include faxed copies, or poor quality copies.

Over the past several years, people have become more accustomed to sending documents by E-mail. This is great in many circumstances. However, unless a lender specifically says this method of receiving a business plan is ok, don’t E-mail a business plan. Don’t expect a company, which you are attempting to receive funding from, to become your free print shop. The best method of delivery is a professional looking plan being sent by an overnight service.

We are asked all the time for sample business plans. There are plenty of books in the library, or for purchase at bookstores. However, due to the number of requests we get – at a later date we will be providing a sample business plan on www.BusinessFundingsSecrets.com.

Following is a standard Check List you can use when organizing the development of a business plan.

Business Plan Check List

This list is not “all inclusive” and it needs to be adjusted, so it is specific to the business seeking funding. Remember include details, details, details. A complete package must have all the relevant information needed to make a sound business decision by the lender/investor.

1. One page clear and concise Executive Summary.
2. Funding request. One page.
3. Statement of use of funds. Must be specific and detailed.
4. Business description.
5. Resumes of all principals.
6. Personal financial statements of all principals.
7. Mission Statement.
8. History of the business.
9. Marketing Plans.
10. Local Marketing Strategies.
11. National Marketing Strategies.
12. Industry Outlook.
13. Situation Analysis.
14. Customer profile.
15. Geographic market factors.
16. Competition.
17. Strengths and weaknesses.
18. Operational plans.
19. Personnel.
20. Training.
21. Purchasing.
22. Suppliers.
23. Business Functions.
24. Uniqueness.
25. Future Growth.
26. Ownership & management.
27. Licensing.
28. Trademarks.
29. Description and valuations of real estate and assets.
30. Letter of Intent from other investors.
31. Supporting third party articles.
32. Detailed five-year financial projections. First 3 years in month-to-month format.
33. Company, real estate, and industry comparisons.
34. Details of principals past successes and failures.
35. Letters of Reference from past customers, clients, etc.
36. Pictures of real estate, buildings, equipment, products, etc.

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For additional information concerning Business Plans, click here

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In the upcoming issues of Business Funding Secrets look for articles from funding sources seeking specific types of deals, more tips, and more techniques concerning receiving business loans and ventures capital.

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For more information on obtaining funds from the capital marketplace please review information from The Project Corporation, a professional consulting firm with expertise in business funding. If you are not receiving this newsletter already, you can sign up for the FREE information at www.businessfundingsecrets.com
 

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