How to Write a Business Plan for Loan or Grant Purposes
Grant or loan money sometimes is necessary for business success. Getting enough capital to invest in your business until it begins to yield profit is an important step in expanding or bolstering it. However, loans and grants can be difficult to acquire. You must write a formal proposal to obtain a grant, and often, you must present your business plan when applying for a loan. Writing a clear business plan is an essential step in presenting a grant proposal or loan application. Your business plan must be clear, concise and convincing.
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Instructions
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General Company Information
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Write down the three most important things about your business. Ask yourself what makes your business unique, and what would make it successful. Consider how these three components fit together. Begin to map out your business vision from those three factors. You should begin to see a connection or pattern within them that will help you articulate this vision.
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Write your business' vision statement. The vision statement should be a brief explanation of your main purpose and goal. Consider the direction and strengths of your business in the context of long-range expectations.
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Outline the products or services your business offers. Include a comprehensive description of what these products or services are and why they will be valued by customers as well as successful in your desired market.
Operational and Strategic Information
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Outline how this business will use resources, especially people. Include a personal resume that clearly states how your skills are valuable to this business if you are starting it on your own. You want to gain the trust and confidence of potential investors.
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Compose an operational plan. Use the information you already have, your vision and use of resources to explain in more detail exactly how your business will actualize your plan. Think of this as the pieces coming together to complete the big picture.
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Describe the internal management and organization of your business. Show exactly how your operational plan will be executed, with details about the resources and strategies the business will use to achieve its goals and fulfill its potential. It is important that you show investors not only what you believe your business will achieve, but what you will do to insure this.
Economic Information
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Write an economic assessment for your business. Focus your vision on the environment in which your business will be operating. Make sure you are familiar with both your desired industry's economic climate as well as the landscape of the general economy. Show possible investors that you are realistic and knowledgeable.
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Establish a financial plan and a cash-flow assessment. Anticipate the basic costs the business will have a year out, as well as its profits and gains. Be conservative.
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Clearly lay out your start-up expenses if you are a new business, or your current financial needs if you are seeking to expand. Make a clear connection between your current expenses and your cash-flow assessment. Show investors why their financial help will yield returns.
Put It All Together
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Write an executive summary for the business plan and a table of contents. The longer your plan is, the more this is necessary.
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Organize the information in a practical and efficient way so that investors can clearly see your vision, and how your business can and will achieve that vision.
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Include an appendix of any financial graphs or visual information that will help investors more clearly understand your plan. Make sure these pages are specifically labeled.
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References
Resources
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