Why Lender’s Want (Need) A Business Plan:
So, you are interested in starting a business. In your head, you have all these ideas dancing around. You can see your customer, looking outside your shop’s window you see the neighborhood, the shelves of your quaint little store are stocked with the perfect products. To you, it’s real.
The vision is complete; you are convinced that you are ready to become an entrepreneur. Needing funding, you decide to go to your lender. BEFORE you do, take what is dancing around in your head and put it on paper. This is your business plan. Your lender is likely not a mind reader and even if they are, do you really want a banker poking around inside your head? I think not, but your banker does need to understand the who, what, when, where and why or your business and more importantly, they need to be assured that you understand the who, what, when, where and why of your business.
I’m going to let you in on a little tip. You have a much better chance of receiving a “yes” from your lender when they have a clear picture of your business than you do if they have a bunch of questions. When you clearly and concisely spell out you plan to me, I am much more inclined to provide you with the funding that you seek than if I’m left scratching my head wondering what it is that you are planning on doing.
If preparing your business plan feels daunting or if you just want to run a few ideas past an impartial consultant, know that there is plenty of free (yes, it will cost you $0.00) help here in the Lehigh Valley. Just give us a call to schedule an appointment or we can refer you to a local partner if that better fits your needs.