According to recent research, large banks only approve around 26.9% of small business loans. That means only 1 in 4 businesses will get approved for a bank loan. The best way to increase your odds of being that one person is to create a viable business plan to clearly lay out your operational, financial, and future needs.
A business plan is a written document that lays out all the details of how you are going to operate your business. Usually, a business plan is done in the startup phase of a business and is used to secure funding. A good business plan includes key details, such as marketing, operational and financial aspects. Not only can a business plan give you a roadmap of future operational goals the business wants to achieve, but it can also help everyone get on the same page to ensure success, from CEOs to employees.
A business plan is a critical aspect of running a successful business, making it essential that all businesses create one. The financial funding a business plan can provide you with is critical for most startup businesses that lack the necessary capital. Investors will require that you have a business plan that demonstrates your business’s ability to succeed and generate a return on investment. Few investors would give you money without concrete evidence of business viability.
Furthermore, a business plan can also help you make sound decisions. Your overall business ideas, goals, and strategies will be laid out in this document, providing you with a comprehensive guide to achieving those items. Think of a business plan as your roadmap. It clearly shows you what you want to accomplish in the first year, the second, and so on, and the methods and procedures you can utilize to get there.
Generally, a business plan is created before you begin operations. This allows you to visualize your entire operation and identify any potential weaknesses. Maybe you didn’t plan your labor needs accurately or didn’t understand how much initial funding was needed. Simple mistakes can be overlooked when you start your business, but these mistakes can lead to a downfall, making a business plan a vital component of the startup phase.
An additional benefit of a business plan is that it can help you clearly communicate ideas to investors, lenders, and employees. Often, there is a learning curve between you and other people in the business. A business plan can give you a comprehensive guide on your ideas and strategies that allows everyone to be on the same page. This can help you reduce the risk of business failure and give your business the best possible chance at success.
Don’t all of these benefits sound great? A strong business plan is essential for every business, large and small. Business plans can be used for a variety of different purposes, from seeking out initial investors to applying for SBA loans. Creating a business plan from scratch can be overwhelming and can lead to missed crucial details if you attempt to draft it independently. The good news is that Divocate is an expert at crafting a viable business plan for your company. With a 100% satisfaction rate and over ten years of industry experience, they are your trusted experts when it comes to business plans.