By Diane Johnson
The credit market is easing up slightly but that doesn’t mean your small business loan is going to be easy to get. The most important tool in obtaining a small business loan is a polished business plan. Lenders are turning plenty of people away so you’ll want to make sure you know what they’re looking for.
Make a Good Business Plan
Potential lenders are going to be most concerned with whether or not you’ll be able to pay them back. Including a business model within your plan will be the first step to answering this objection. Make sure that your business plan clearly communicates how you are going to make and manage money. You will also want to include financial projections that chart expected cash flow for at least three to five years. If your small business is product based, then you’ll need to include your current/projected channels of distribution in the plan. If it is service based, then you’ll need to document major clients and strategic partnerships (those currently engaged in or in the works) to illustrate your plan for getting your product into consumer’s hands.
This brief overview should give you a basic idea of some of the essential elements of a business plan. » Read more: Career Transition: How to Get a Small Business Loan
