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Additional info for Bankable Business Plans: Second Edition (Bankable Business Plans)
Admire them. Absorb them into your consciousness. Believe in them. These are the primary motivators that readers of your business plan will respect and value. Define Your Company 21 What Will Your Business Accomplish For Your Customers? Your customers are your only source of revenue. Why will they spend their money on your product or service, and why will they return to spend money again? Unless there are strong answers to these questions, your business plan will not make it to ﬁrst base. Suppose you’re planning to open a pet supply store in your town.
However, to establish them in your own mind, you need to do three things: 1. State your personal goals. They may be some of the ambitions listed here, or they may be issues such as having the opportunity to travel, work with children, or get away from incompetent bosses you’ve worked for in the past. Make these personal goals into a list. 2. Ask yourself whether your business will accomplish those goals. Aspiring business owners who ask themselves this question honestly, often realize that their business idea will not produce the fast path to the riches they envisioned.
To increase the likelihood that lenders will not lose their principal, they usually ask for security, which is a claim on an asset they can seize and sell in the event of a payment default. We are all familiar with the concept of a bank foreclosing on a house if the homeowner falls behind on mortgage payments. The same 24 Action Step 1 concept applies to business loans; only the security may be tied to an actual business asset such as inventory, receivables, equipment, buildings, or land. The federal government provides guarantees to small business loans made by banks through the Small Business Administration (SBA).