In the newsletter Business Funding Secrets, this past year, we have talked a lot about Business Plans. It is a major step in receiving funding and it’s something so many people do incorrectly. One of the common mistakes we see are business plans, with only 20 pages in length. These just are not effective in obtaining the funding, which most businesses are searching for. When a business owner is looking for funding they need to provide the lender a plan that shows they have put tremendous effort into recognizing the downside along with enthusiasm. Lenders want to have a sense the risk is minimized because the client has spent the time looking and documenting all aspects of the business, and this can’t be done in 20 pages.
Don’t be afraid to offer 200 pages, or more. Provide well thought out and organized detail. Laser print the information, use tabs to organize the plan, and use a nice 3 ring binder or other method to bound the material into a nice package. Do not include faxed copies, or poor quality copies.
Over the past several years, people have become more accustomed to sending documents by E-mail. This is great in many circumstances. However, unless a lender specifically says this method of receiving a business plan is ok, don’t E-mail a business plan. Don’t expect a company, which you are attempting to receive funding from, to become your free print shop. The best method of delivery is a professional looking plan being sent by an overnight service.
We are asked all the time for sample business plans. There are plenty of books in the library, or for purchase at bookstores. However, due to the number of requests we get – at a later date we will be providing a sample business plan on www.BusinessFundingsSecrets.com.
Click here for a standard Check List you can use when organizing the development of a business plan.
