Business Plan- Get Financing

When the time comes that you and your business seek financing, a business plan will be one of your greatest assets. A business plan is extremely beneficial, even when you are not seeking outside financing, but becomes crucial when you start knocking on the doors of various lenders and investors. Think of yourself as the author of your own story, you must first plan out those crucial plot points in order to ascertain where the story is going. Don't let your business have a cliffhanger ending; instead have all the pieces come together in a synergistic and seamless manner.

The first thing to remember is to keep things simple when writing your business plan. Gather the facts and present them in an organized manner. You don't want possible investors/lenders losing themselves in your presentation of paperwork in order to answer their big questions. Put yourself in their shoes and ask yourself what you would want to know if someone came to you seeking funds. The more you are able to answer their questions and create a well thought out business plan, the more likely chance of securing funds and success in the future. In fact, according to a recent survey, 78 percent of business failures have problems rooted in the lack of a well-developed business plan.

A comprehensive business plan is one that will display you and your business in a positive light. It will provide evidence of solid leadership within the business as well as such attributes as discipline, foresight, and attention to detail. It also provides clarity to your investor/lender as to what the plans for your business are, the direction you intend to go, and its overall growth prospects.

This understanding can then create a common ground between both parties on which an open dialogue can occur regarding the financing needs of your business. The business plan is more than a business blueprint on paper; it speaks to a number of other aspects regarding the team behind the business.

In terms of structure, you want to keep the overall paperwork neat, organized, and succinct. It doesn't need to be an epic, but make sure you cover the basic points. When writing your plan, it's important to remember who your financing sources are likely to be. Bankers, investors, venture capitalists and investment advisors are sophisticated in business and financial matters. How can you ensure your plan makes the right impression? Three tips:

Make your executive summary interesting: It needs to grab and hold the attention of the possible investor/lender, as they more than likely have received countless others. If at first glance your proposal looks dull, poorly written or confusing, investors will toss it aside without a second thought. In other words, if your executive summary doesn't grab them right away, you won't get a second chance.

Avoid hype: Clearly define what your business does, whom you employ, your mission, your growth plans, and your client base. These are all important factors in creating a clear image to the investor/lender of whom they are dealing with. The language you employ when writing the plan should not sound like a late night infomercial that makes wild claims and exuberant exclamations. You want to be professional and demonstrate the promise associated with your venture.

Make sure your business plan is complete: It doesn't have to ramble endlessly, but it does need to cover all points of interest. When you're presenting a business plan, always keep in mind that you are starting from a position of weakness. And if potential investors/lenders find any flaws in your plan, they will gain an even greater bargaining advantage. A complete and well-written plan gives you greater negotiating power and boosts your chances of getting financing on your own terms.

This blueprint you are creating is also beneficial for you in that it can provide insight into the needs that might develop within your business over time. You will be able to further anticipate financing needs, placing you in a proactive role concerning your business' financing. When you are better able to see what is in the path ahead of you, measures can be taken that will then aid in keeping you ahead of a possible credit crunch.

Working closely with a consultant or an accountant can be a wonderful asset during the construction phase of your business plan. Consulting with professionals on these matters will only serve to strengthen your business and your own knowledge of your business. Ask them questions so that you are not completely dependent on their services without really understanding the details. Ask questions and consider the consultant/accountant your editor, someone who will look over your plans, make suggestions and guide you in the right direction.