The Bank Won’t Back Your Business Because You Don’t Have a Business Plan

One of the key things I want to get everyone who reads this article to do is rethink (or think about in the first place) what a good business plan is and what is involved in putting one into writing. The bad news is – it will take time and effort – you’ll have to engage the strategic thinking part of your brain. The good news is – it’s not as hard as you think and there are numerous resources available to you to if you feel as though you’re not up to the task of putting it all together yourself. You never know, you might even find a friendly, helpful business banker that would be willing to point you in the right direction.

Essentially, there are three key elements to a good business plan. Remember, I am speaking from the perspective of the guy that is going to be putting your application together and submitting it to the bank’s credit people. There are literally hundreds of books, articles, websites, blogs, etc. out there that will tell you what “has to be” included in a business plan. At last check, a Google search of the term “business plan” returned about 195 million results. The fact of the matter is, whatever the format, whatever the content, you need to have a business plan – full stop. It can always be updated, amended to suit the audience (banker, investor, customer – whatever) and should be constantly reviewed to make sure it is a document that you can use in the day to day management of your business. That being said, let’s look at the three elements of a good business plan.

A Good Business Plan Has a “School of Thought”

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Business Plan Services – The 5 Key Stages of the Process

Business planning can never be truly outsourced. If a contractor or consultant is brought into the process they may be allowed to take the lead, but the work will still require extensive collaboration between the entrepreneur or business managers and the contracted firm. This collaboration process will take a different shape depending on the specific firm you are working with, but should include these important stages: 

Interview Stage

After a contract has been signed (and perhaps even before) interviewing will occur where the consultant attempts to gather as much business information directly from the entrepreneurs or managers as possible. If there are multiple managers or founders, they will look to reconcile their different accounts of what the business is attempting to do and make the team aware of significant divergences. 

» Read more: Business Plan Services – The 5 Key Stages of the Process

Write Your Own Business Plan

A business plan is absolutely essential for most businesses starting up or in the conceptual phase. The problem is the people having the ideas that are going to make the money don’t know how to create a business pan that is a high enough quality to achieve its purpose.

You can write your own business plan!

Sometimes in some cases it is better to pay someone to write your business plan for you like if you have extra money burning a hole in your pocket, you don’t have access to the right information, or the expertise to write effectively. It takes a little salesmanship as well as current and relevant market research, so sometimes it is worth it to pay someone to make your business plan.

» Read more: Write Your Own Business Plan