All the costs of getting your business up and running should be considered start-up expenses.These expenses may include: Once again, this is just a partial list.The financial section is composed of three financial statements: the income statement, the cash flow projection and the balance sheet and a brief explanation/analysis of these three statements.
It's basically an introduction to your company, summarizing the main points of your plan.
Keep it to just one or two pages and be as clear and concise as possible.
This might include paying for capital expenses like equipment or hiring personnel.
Also detail where all your financing is coming from.
Most entrepreneurs see writing a business plan as a gargantuan task – especially if they've never written one before. And if you need a business plan for a bank loan, getting this document right is absolutely essential.
How can you be sure you're not making a mistake?This might include catering to children and families, seniors or business professionals. These are companies that provide similar solutions that aim to solve your customers' pain points. Why should your target market choose you over the other products or services available? For example: A taco stand might compete directly with another taco stand, but indirectly with a nearby hot dog vendor. Here you'll get into the details of how you'll take advantage of the opportunity you outlined in the previous section.This part demonstrates to banks that you have a strong plan to achieve success.Metrics are how you will gauge the success of your business. This is the most crucial – and intimidating – part of any business plan for a bank loan.Your prospective lender will look especially close at this section to determine how likely your business is to succeed.How do their lives improve after you solve that “pain point” for them?We recommend actually going out and chatting with your target audience first. This is crucial information for determining whether or not your business will succeed long–term.That way, you can validate that you're solving a real problem for your potential customers. For example, if the problem is that parking downtown is expensive and hard to find, your solution might be a bike rental service with designated pickup and dropoff locations. Never assume that your target market is “everyone.” For example, it would be easy for a barber shop to target everyone who needs a haircut.But most likely, it will need to focus on a specific market segment to reach its full business potential. Your customers are likely turning to an indirect competitor that is solving their problem with a different type of solution.But the financial section doesn't have to be overwhelming, especially if you break the work into smaller pieces.Here are 3 items that your plan must have: Exactly how will you use any investments, loans or other financing to grow your business?