- We need to know who’s running each area of your business
When we look at your operations plan, we want to see evidence that the person, or people, leading your product or service area can do the job. It’s important to name the names of each employee or partner and what they will do in your business. If you are starting a sole proprietorship, you will more than likely be doing all of the work yourself. Therefore, you will need to be able to convince us that you can handle all of the different areas of running your business. If you are large enough to have advisors, mentors, a board of directors, or a key employee(s) with experience, we will want to know about each of them too. We will also want to know that the person in charge of marketing and sales has a strong history in that area. And that your finances are being overseen by someone who has credibility in managing cash flows and preparing financial statements.
- Give us your worst case scenarios
This will provide us with a strong analysis of risks to your business and how you plan to prepare for those risks. You will need to tell us how you plan to handle the risk if no one buys your product or service.
“Remember, it is our job to look at your business plan and make an informed decision about whether your business is a good risk for a loan.”
We will need to see how you will plan to pay back the loan if your costs are higher than you expected or your sales don’t meet expectations.
Remember, a well-developed and thoughtful business plan shows us that you’ve thought through different scenarios and changing circumstances providing us greater confidence in you and your ability to repay the loan.