Business Plan Writing: Steps to write a perfect Business Plan for Loan and Entrepreneurship Business
Business Plan Writing: Steps to write a perfect Business Plan for Loan and Entrepreneurship Business – Business Plan is mostly needed and set aside while opening a business or applying for something from any institution. Most at times, before you could be given a loan, there will be need for you to provide Business Plan. A business plan is been prepared to enable you know how to carry out your business and your set targets. SEE HOW TO PREPARE OR WRITE A PERFECT BUSINESS PLAN FOR LOAN AND ENTREPRENEURIAL BUSINESS
Contents
Steps to write a perfect Business Plan for Loan and Entrepreneurship Business
A business plan is a written document that describes in detail how a business — usually a startup — defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from each of a marketing, financial, and operational standpoint.
Business plans is very important as it is used to attract investment before a company has established a proven track record. They are also a good way for companies to keep themselves on target going forward.
To get loan from banks or any institution and even from Federal Government, you will be required to present a Business Plan. Business Plan tells or explains what you have in mind, the problem you wish to solve and how you want to solve the problem.
There is need for a perfect Business plan. This article will direct you on how to write a perfect one for your business as well as help you to apply for a loan
How to write a Business Plan for NYIF Loan
This article will direct you on how to write a perfect one.
Note: When you create a business plan to get a loan, remember that you are writing to inform and persuade lenders but also writing a document that can be used as a forecast and guide for yourself and your business.
How to write a Perfect Business Plan for a Loan and Entrepreneurial Business
Contents of a Perfect Business Plan
A strong business plan for a loan application will include the following elements:
- Cover Page and Table of Contents
- Executive Summary
- Company Description
- Market Plan and Analysis
- Organization and Management
- Service or Product
- Marketing and Sales
- Financing Analysis
- Funding Request
- Appendix
1. Cover Page and Table of Contents
The cover page of Business Plan contains the name of your business and your contact information as well as a logo.
The table of content contains the full subtitles of the business plan and their page numbers.
- Executive Summary
The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages.
In Executive Summary, briefly summarize the entire business plan on a page. Describe the company, your product, and why you started the company. Include your chief competitors and why your product will succeed against them. If relevant, discuss the economic climate vis-à-vis your customers and products.
- Company Description
The company description should include a mission statement, the company principals, any strategic partners, and your corporate structure.
- Market Analysis
The market analysis is where you identify the existing gaps that your business will fill. A business plan’s market analysis should include:
- An industry overview and outlook
- Any differentiation in sector and niche
- Information on your target market
- Organization and Management
In Organization and Management is where you itemize your company’s management structure. Many business plans provide an organizational chart, a structure description, and salary forecasts.
The description should include each management position, the person in the position, their responsibilities, and their qualifications. If you have a Board of Directors, list them on a separate page, along with any experience relevant to your business’s success.
This is more or less like an organizational chart or organogram.
- Service or Product
In Service or Product Section is where you describe your company’s product or service in detail. What do you sell, and who do you sell to? What need are you fulfilling for the customer base? Business plans often itemize their entire product line with the planned or current pricing structure.
The service or product section should also include your product/service’s estimated lifecycle, and any research and development completed, in progress or planned.
It should also include a description of any trademarks, patents, or other intellectual property rights, if applicable.
- Marketing and Sales
The marketing and sales section includes three vital pieces of information:
- How will customers find out about your products?
- What will your sales channels and methods be?
- What is your growth strategy?
- Financial Analysis
The financial analysis section contains your financial forecast; sales forecast, cash flow statement, income statement i.e. profit and loss and your balance sheet.
Also, if you are already in business, you should also include historical results for the past three to five years (or for as long as the business has been operating, if it’s less).
8.2 Break-even Analysis
A break-even analysis is the calculation and study of the margin of safety of a company, based on revenue and associated costs.
8.3 Projected Profit and Loss
Also known as a P&L forecast, this section will cover the projection of how much money your company will bring in and how much profit you’ll make from those sales.
8.4 Cash Flow Forecast
A cash flow forecast documents your estimate of how much money will come in and out of your business within a specific amount of time (usually 12 months). The forecast includes your projected income and expenses.
8.5 Projected Balance Sheet
A projected balance sheet is also known as a “pro forma” balance sheet. It lists out account balances on a company’s assets, equity, liabilities, and other spending and income that the P&L doesn’t cover – like cash from a loan or outstanding customer invoices.
8.6 Business Ratios
Ratios in a business plan are used to assess and analyze the performance of a business. In this case, projected ratios are another good look for banks to understand your business’s potential and also serve as a goalpost for your planning.
Common Business Ratios (and Their Formulas)
Net Profit Margin
Formula: Net Profit After Taxes / Net Sales
Gross Profit Margin Ratio
Formula: Gross Profit = (Revenue – Cost of Goods Sold) / Revenue
Profit Margin Ratio
Formula: Profit Margin = (Revenue – Expenses) / Revenue
Quick Ratio (also known as “The Acid Test”)
Formula: Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
OR
Formula: Quick Ratio = (Current Assets – Inventory) / Current Liabilities
ROI (Return on Investment) Ratio
Formula: ROI Ratio = (Gain from Investment – Cost of Investment) / Cost of Investment
Current Ratio
Formula: Current Ratio = Current Assets / Current Liabilities
Common Size
Formula: Common Size Ratio = Line Item / Total
- Funding Request
In funding section, this is where you itemize why you need business financing, what amounts you’re requesting (both current and prospective for the next five years), and what you will use the amounts for.
Here’s one way you can structure your funding request:
- Your current funding needs.
- Any future funding requirements over the next five years.
- How you intend to use the funds you receive.
- Any strategic future financial plans.
- Appendix
If you need more space for product images or additional information, use the appendix for those details
Sample on How to write a perfect Business Plan for Loan and Entrepreneurship Business
- Cover sheet
- Statement of purpose
- Table of contents
The Business
- Description of business
- Marketing
- Competition
- Operating procedures
- Personnel
- Business insurance
- Financial data
Financial Data
- Loan applications
- Capital equipment and supply list
- Balance sheet
- Breakeven analysis
- Profit and Loss statements
Template /Sample of Business Plan for NYIF Loan
The template of Business Plan for National Youth Investment Fund (NYIF) Loan contains 6 essential topics which include:
- Executive Summary
- Opportunity
- Executive
- Company and management Summary
- Financial plan
- Appendix
Follow the template below to write a simple business plan:
1.) BUSINESS IDEA:
What is your big idea? Is it a product or a service? What makes your idea different? How will your products/services stand out from the competition? Why will people want to buy your product?
2.) BUSINESS NAME:
What does the name say about your business? Is it unique? Memorable? Easy to pronounce?
3.) TARGET MARKET AND DEMOGRAPIHNCS:
Who will your customers be? Other Kids? Teenagers? Men? Women? Where do they live? What is your target market passionate about?
4.) MARKETING:
How well you get the word out about your business? Online? Posters? Through the Newspaper? By Email? Where will you sell your products or services?
5.) PRICING:
How much will you charge? What are your competitors charging?
6.) PROFIT:
How much will you make on each sale after you subtract your expenses? Profit-income-Expenses? The sale price of the item, cost of the item, Profit? What will you do with the money you make? Reinvest in the business?
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Please I need a sample of a business plan on poultry farming for NYIF.
Hello! We trained on 8july, U guys u said that we’re going to hear from u in the following week. But up to now no any news!!
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