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Why Do I Need a Business Plan?

Sections of a business plan, the bottom line.

• Small Business

How to Write a Business Plan for a Loan

How to secure business financing

Matt Webber is an experienced personal finance writer, researcher, and editor. He has published widely on personal finance, marketing, and the impact of technology on contemporary arts and culture.

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A business plan is a document that explains what a company’s objectives are and how it will achieve them. It contains a road map for the company from a marketing, financial, and operational standpoint. Some business plans are more detailed than others, but they are used by all types of businesses, from large, established companies to small startups.

If you are applying for a business loan , your lender may want to see your business plan. Your plan can prove that you understand your market and your business model and that you are realistic about your goals. Even if you don’t need a business plan to apply for a loan, writing one can improve your chances of securing finance.

Key Takeaways

• Many lenders will require you to write a business plan to support your loan application.
• Though every business plan is different, there are a number of sections that appear in every business plan.
• A good business plan will define your company’s strategic priorities for the coming years and explain how you will try to achieve growth.
• Lenders will assess your plan against the “five Cs”: character, capacity, capital, conditions, and collateral.

There are many reasons why all businesses should have a business plan . A business plan can improve the way that your company operates, but a well-written plan is also invaluable for attracting investment.

On an operational level, a well-written business plan has several advantages. A good plan will explain how a company is going to develop over time and will lay out the risks and contingencies that it may encounter along the way.

A business plan can act as a valuable strategic guide, reminding executives of their long-term goals amid the chaos of day-to-day business. It also allows businesses to measure their own success—without a plan, it can be difficult to determine whether a business is moving in the right direction.

A business plan is also valuable when it comes to dealing with external organizations. Indeed, banks and venture capital firms often require a viable business plan before considering whether they’ll provide capital to new businesses.

Even if a business is well-established, lenders may want to see a solid business plan before providing financing. Lenders want to reduce their risk, so they want to see that a business has a serious and realistic plan in place to generate income and repay the loan.

Every business is different, and so is every business plan. Nevertheless, most business plans contain a number of generic sections. Common sections are: executive summary, company overview, products and services, market analysis, marketing and sales plan, operational plan, and management team. If you are applying for a loan, you should also include a funding request and financial statements.

Let’s look at each section in more detail.

Executive Summary

The executive summary is a summary of the information in the rest of your business plan, but it’s also where you can create interest in your business.

You should include basic information about your business, including what you do, where you are based, your products, and how long you’ve been in business. You can also mention what inspired you to start your business, your key successes so far, and your growth plans.

Company Overview

In this section, focus on the core strengths of your business, the problem you want to solve, and how you plan to address it.

Here, you should also mention any key advantages that your business has over your competitors, whether this is operating in a new market or a unique approach to an existing one. You should also include key statistics in this section, such as your annual turnover and number of employees.

Products and Services

In this section, provide some details of what you sell. A lender doesn’t need to know all the technical details of your products but will want to see that they are desirable.

You can also include information on how you make your products, or how you provide your services. This information will be useful to a lender if you are looking for financing to grow your business.

Market Analysis

A market analysis is a core section of your business plan. Here, you need to demonstrate that you understand the market you are operating in, and how you are different from your competitors. If you can find statistics on your market, and particularly on how it is projected to grow over the next few years, put them in this section.

Marketing and Sales Plan

Your marketing and sales plan gives details on what kind of new customers you are looking to attract, and how you are going to connect with them. This section should contain your sales goals and link these to marketing or advertising that you are planning.

If you are looking to expand into a new market, or to reach customers that you haven’t before, you should explain the risks and opportunities of doing so.

Operational Plan

This section explains the basic requirements of running your business on a day-to-day basis. Your exact requirements will vary depending on the type of business you run, but be as specific as possible.

If you need to rent office space, for example, you should include the cost in your operational plan. You should also include the cost of staff, equipment, and any raw materials required to run your business.

Management Team

The management team section is one of the most important sections in your business plan if you are applying for a loan. Your lender will want reassurance that you have a skilled, experienced, competent, and reliable senior management team in place.

Even if you have a small team, you should explain what makes each person qualified for their position. If you have a large team, you should include an organizational chart to explain how your team is structured.

Funding Request

If you are applying for a loan, you should add a funding request. This is where you explain how much money you are looking to borrow, and explain in detail how you are going to use it.

The most important part of the funding-request section is to explain how the loan you are asking for would improve the profitability of your business, and therefore allow you to repay your loan.

Financial Statements

Most lenders will also ask you to provide evidence of your business finances as part of your application. Graphs and charts are often a useful addition to this section, because they allow your lender to understand your finances at a glance.

The overall goal of providing financial statements is to show that your business is profitable and stable. Include three to five years of income statements, cash flow statements, and balance sheets. It can also be useful to provide further analysis, as well as projections of how your business will grow in the coming years.

What Do Lenders Look for in a Business Plan?

Lenders want to see that your business is stable, that you understand the market you are operating in, and that you have realistic plans for growth.

Your lender will base their decision on what are known as the “five Cs.” These are:

• Character : You can stress your good character in your executive summary, company overview, and your management team section.
• Capacity : This is, essentially, your ability to repay the loan. Your lender will look at your growth plans, your funding request, and your financial statements in order to assess this.
• Capital : This is the amount of money you already have in your business. The larger and more established your business is, the more likely you are to be approved for finance, so highlight your capital throughout your business plan.
• Conditions : Conditions refer to market conditions. In your market analysis, you should be able to prove that your business is well-positioned in relation to your target market and competitors.
• Collateral : Depending on your loan, you may be asked to provide collateral , so you should provide information on the assets you own in your operational plan.

How Long Does It Take to Write a Business Plan?

The length of time it takes to write a business plan depends on your business, but you should take your time to ensure it is thorough and correct. A business plan has advantages beyond applying for a loan, providing a strategic focus for your business.

What Should You Avoid When Writing a Business Plan?

The most common mistake that business owners make when writing a business plan is to be unrealistic about their growth potential. Your lender is likely to spot overly optimistic growth projections, so try to keep it reasonable.

Should I Hire Someone to Write a Business Plan for My Business?

You can hire someone to write a business plan for your business, but it can often be better to write it yourself. You are likely to understand your business better than an external consultant.

Writing a business plan can benefit your business, whether you are applying for a loan or not. A good business plan can help you develop strategic priorities and stick to them. It describes how you are going to grow your business, which can be valuable to lenders, who will want to see that you are able to repay a loan that you are applying for.

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Fund Your Business .”

Navy Federal Credit Union. “ The 5 Cs of Credit .”

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10 Steps to Launch Your Own Co-operative Bank and Serve Your Community

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1. Develop A Business Plan

Starting a co operative bank business requires careful planning and execution. Before you open your doors for business, it's essential to develop a business plan that outlines your goals, strategies, and potential challenges. Here are some chapters that your business plan should cover:

• Executive Summary: This section should provide an overview of your co operative bank business, including your mission, values, and vision. It should also include a brief summary of your financial projections.
• Market Analysis: In this section, you should research your target market and competition. This will help you identify opportunities and potential challenges you might face when starting and running your co operative bank business.
• Marketing Strategies: Here you should outline how you will market your co operative bank business to attract customers. Consider using strategies such as advertising, social media, and networking events.
• Operations Plan: This section should detail how your co operative bank business will operate. Topics to consider include staffing, technology, customer service, and compliance with regulations.
• Financial Projections: This is where you will outline your co operative bank business's financial projections. You should include revenue and expense projections, as well as projections for growth and profitability.
• Risks and Challenges: It's essential to identify potential risks and challenges that your co operative bank business may face. This will help you develop strategies to overcome these challenges and minimize risk.
• Management and Ownership: This section should detail who will own and manage your co operative bank business. It should also include information about your team's experience and qualifications.

Tips & Tricks:

• Be specific about your target market and competition. This will help you develop effective marketing strategies.
• Ensure that your financial projections are realistic and based on data and research.
• Develop contingency plans to mitigate potential risks and challenges.

2. Outline Financial Model

Before launching a co operative bank, it is crucial to have a financial model in place. This will help you determine the viability of your business, project future revenue and expenses, and make informed decisions about how to allocate resources.

Revenue Streams

• List all possible sources of revenue for the co operative bank, including interest on loans, fees for financial services, and commissions on investment products.
• Estimate the percentage of revenue that will come from each source.
• Consider how revenue will be affected by market conditions, interest rates, and competition.
• List all fixed and variable expenses, including rent, salaries, legal fees, and technology costs.
• Estimate the monthly, quarterly, and annual costs of each expense.
• Identify any major capital expenses that will be required during the start-up phase or in the future.

Projections

• Use the revenue streams and expenses to project a monthly and annual income statement , balance sheet , and cash flow statement .
• Include assumptions such as customer base growth rate, increase in loan defaults, and market trends.
• Consider different scenarios, such as best-case, worst-case, and moderate-case situations.

Tips & Tricks

• Be realistic with your revenue and expense estimates. It's better to have conservative projections and outperform them than to have aggressive projections and fall short.
• Consult with financial experts, such as accountants and financial analysts, to ensure your financial model is accurate and complete.
• Update your financial model regularly, especially when market conditions or your business strategy change.

Creating a solid financial model is a critical step in launching a co operative bank. It will help you identify potential pitfalls, plan for growth, and attract investors if needed. Take the time to do it right and use it as a roadmap for your business.

3. Secure Funding

Starting a co operative bank business is a noble idea, but it requires a significant amount of investment to turn that idea into a functioning entity. So, the first step towards realizing your dream is to secure funding to support your startup expenses and ongoing operations. Here’s how:

• Assess your financial needs: Before you approach any potential investors or lenders, make sure you have a clear understanding of your financial requirements. Make a list of your startup expenses, such as legal fees, registrations, office space rent, equipment, and salaries for staff, and estimate your ongoing operating costs, such as loan payments, salaries, and utilities. This will help you identify the amount of funding required for the launch and see how much money you need to operate.
• Build a reliable business plan: A business plan is an essential tool to demonstrate your vision, competitiveness, and potential profitability. A well-crafted business plan should include your mission statement, executive summary, industry analysis, marketing plan, financial projections, and funding request. A robust business plan that highlights your strengths and opportunities while addressing potential challenges and risks can help you stand out from other competing businesses, and it can be a strong selling point in securing funding.
• Explore funding options: Co-operative banks can explore a variety of financing options, including debt and equity financing. Debt financing involves a loan, usually from a bank, where you agree to pay back with interest over a set period. Equity financing involves selling shares of your business to investors who become your partners and share in your profits and losses. You can also consider financing from government schemes or other grants. It is best to research and investigate multiple financing options that best fit your business's needs and choose the option that provides the longest repayment term with the lowest interest rates.
• Prepare your pitch: Once you have assessed your financial needs and identified potential funding sources, it’s time to prepare your pitch. A pitch should be a persuasive presentation that highlights your business, its goals, objectives, competitive advantage, and the potential for success. Your pitch should also include your business plan and financial projections and address potential challenges and risks to investors.
• Approach potential investors or lenders: After preparing your pitch, you can approach potential investors or lenders. Make sure you have researched your target market and investors, and reach out to them with a personalized message tailored to their interests. You can also consider funding from family and friends or crowdfunding sites to generate investment funds. But, you need to be thoroughly familiar with regulations, legalities and taxation surrounding the raising of funds through such sources.

Tip and Tricks:

• Consider local co-operative banks as potential investors or lenders.
• Ensure that you understand all the terms and conditions of any lending agreement before signing
• If you do not get approved for funding at first, keep pushing. There are options for second chances.

With these steps outlined above, you should have the necessary knowledge to help you secure funding for starting a co operative bank business. Keep in mind that the competition for funding is high, so make sure your business plan and pitch stand out. Once you receive the funding required, efficient management is essential to a successful start-up.

4. Identify Suitable Location

Once you have researched, planned & executed the legal formalities, and set up the necessary infrastructure, it's time to find the perfect location for your co-operative bank. Here are some crucial steps to take to identify the most suitable location:

• Consider the demographics: Analyze the demographics of the area you are considering before making any decisions. Make sure the population is dense enough to sustain your business, and there is a need for co-operative banking in the area.
• Accessibility: Evaluate the accessibility of the location for your customers. A location that is easy to reach via public transportation, highways, or main roads is always an added advantage.
• Competition: Research the competition in the area. Consider opening your co-operative bank in an area where competitive banks have not ventured, or there is a gap in services being provided.
• Infrastructure & Security: Ensure that the location has the necessary infrastructure for banking, such as power, water supply, and proper security measures to protect the bank and its employees.

Tips & Trics:

• Consider renting a location rather than buying it as it reduces the initial investment.
• If you are considering setting up multiple branches, a centrally located office would be ideal.
• Consider the availability of parking and security cameras in the area for added customer convenience & safety.

By keeping these tips in mind and carefully selecting the location of your co-operative bank, you can ensure maximum revenue generation and business growth. Conduct a thorough analysis and make a well-informed decision that will benefit your bank in the long run.

5. Register The Business

Now that you have your business plan, funding, location, and team in place, it’s time to register your co-operative bank business.

Steps to Register Your Co-Operative Bank Business

• Choose a name for your business: First and foremost, you need to choose a name for your co-operative bank business. It should be unique and not already registered with the relevant authorities.
• Get your company registered: Register your co-operative bank business with the Registrar of Co-operative Societies. You will need to submit the necessary documents and pay the required fees.
• Get your business license: Once your business is registered, you need to obtain a license to operate your co-operative bank business. This license will be issued by the State Department of Co-operative Development.
• Register with the Central Bank of Kenya: Your co-operative bank business needs to be registered with the Central Bank for licensing and regulation.
• Obtain a Tax Identification Number (TIN): You will need to obtain a TIN from the Kenya Revenue Authority to handle taxes.
• Get your business permits: Depending on the area where your co-operative bank business is located, you may need to obtain other permits and licenses as per the local regulations.
• Open a bank account: Once you have all the necessary documents, it’s time to open a bank account for your co-operative bank business. This account will be used to deposit funds and manage finances.
• Register online: Many authorities offer online registration services. Take advantage of this to make the process quick and easy.
• Hire an attorney: You can hire an attorney to help you through the registration process and ensure that everything is done correctly.

Tips & Trics

• Research your competition: Before registering your business, do some research to find out what other co-operative banks in the area are offering. Use this information to differentiate your business and make it more attractive to potential customers.
• File your papers on time: Make sure you submit all the necessary documents on time to prevent any delays in the registration process.
• Be patient: The registration process can take some time, so be patient and stay positive.

Registering your co-operative bank business can seem like a daunting task, but with these steps and tips, you’ll be well on your way to launching a successful business.

6. Obtain Necessary Licenses

Before starting any co-operative bank business in any country, one must have to follow legal formalities and obtain the required licenses. The banking industry is one of the most regulated industries globally; Hence, being a financial institution, co-operative banks have to comply with strict legal policies and also obtain licenses to operate in a country.

• Obtain Approval from RBI: In India, the Reserve Bank of India is the governing body that grants licenses to co-operative banks. One has to submit all necessary documents and fulfill eligibility criteria to obtain approval for the license.
• Registration with ROC: In India, every co-operative society needs to register under the Registrar of Co-operative Societies (ROC) of the respective state. The application process may vary for different states.
• Operating Licenses: Once the bank receives approval from RBI and registration from ROC, they must obtain licenses to operate, including a license under the Banking Regulation Act and the Society Act.
• Insurance: The co-operative bank needs to have insurance coverage to protect its assets and depositors' deposits. In India, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides deposit insurance for co-operative banks.

Tips & Tricks for Obtaining Licenses:

• Consult with a Lawyer: It's crucial to consult with a legal professional before initiating the process of obtaining licenses to avoid any legal complications.
• Keep Record of Documents: Keeping records of all the necessary documents is crucial while applying for licenses. This will not only help keep organized but also speed up the approval process.
• Be Persistent: The process of obtaining licenses can be time-consuming and prolonged. Hence, being persistent and following up with the respective governing bodies is essential.

Once all the licenses are obtained, and the bank has all the necessary approvals, they can begin operations and focus on providing quality services to their customers.

7. Establish A Board Of Directors

The success of a co-operative bank heavily depends on the board of directors' leadership and management skills. Therefore, it is essential to establish a board of directors that is experienced and knowledgeable in co-operative banking and its regulations. Here are some of the important aspects to consider:

• Election Process: The election process for the board of directors must be democratic, transparent, and follow the guidelines of the co-operative society's governing act.
• Composition: The board of directors must comprise members with diverse skills and expertise in the relevant fields (finance, law, risk management, etc.)
• Responsibilities: The board of directors must be responsible for overseeing the bank's overall operations, making strategic decisions, and ensuring the co-operative bank's sustainability and growth.

Key tip: Ensure that every director is trained and understands their roles and responsibilities.

• Conduct regular training and development sessions to update the directors' knowledge.
• Provide ongoing support, guidance, and feedback to ensure that the directors are performing at their best.

Trick: Select candidates that share your bank's values and vision.

• Choose candidates that share your co-operative bank's vision, mission, and values.
• Carefully evaluate potential directors' personalities to ensure they align with your bank's cultural and social values.

Pro tip: Establish a board charter that outlines the board's roles, responsibilities, and governance processes.

• The charter should clearly define the board's goals, decision-making processes, and ethical standards.
• Ensure that the charter aligns with your co-operative bank's by-laws and codes of conduct.

Overall, establishing a board of directors in your co-operative bank is crucial for the bank's success and growth. Choose the directors carefully, ensure they are trained and understand their roles, and establish clear governance processes to ensure effective leadership and management.

8. Finalize Staff Requirements

One of the critical components of starting any businesses is hiring the right staff, and launching a co-operative bank is no exception. To ensure the success of your cooperative bank, it is essential to recruit capable and qualified professionals who share your vision and values. Therefore, you need to finalize your staff requirements as part of your checklist before opening the bank. Here's a guide to help you with this process:

• 1. Determine the Required Staff Strength: Before advertising for job openings, you need to assess your bank's workload and identify the requisite staff strength. Factors such as the bank's size, location, operations, and the services offered can influence this evaluation. A typical co-op bank would require a manager, tellers, bookkeepers, loan officers, and customer service representatives, among others.
• 2. Define Job Descriptions and Roles: The next step is to establish the various roles and responsibilities for each staff member based on their job titles. It's crucial to have clearly defined job descriptions to mitigate role ambiguity, boost productivity, and ensure accountability competently.
• 3. Determine the Eligibility Criteria: You must set a clear and concise eligibility criterion for job applicants to ensure that they match the qualifications needed. Criteria such as academic qualifications, years of experience, communicative abilities, and other crucial attributes should be considered when creating this criterion. It's important to prioritize hiring individuals with integrity, excellent work ethic, and experience in the banking sector.
• 4. Advertise the Job Openings: Once the eligibility requirement is established, you can advertise the job vacancies through different channels such as online job searches, local newspapers, and professional networks. Ensure that you provide a detailed job description and the required qualifications to attract the most suitable candidates to apply.
• 5. Conduct Interviews: In this stage, you will need to review and shortlist resumes that match the eligibility criteria, followed by the actual interviews. You can select a set of qualified individuals to proceed to the next stage of the recruitment process based on the results of the interviews.
• 6. Conduct Reference Checks: After shortlisting the candidates, it's imperative to conduct background checks and reference checks to verify their experiences and ensure that there are no red flags or issues with their past work history.
• 7. Offer Letters: After successfully completing reference checks, it's time to send out offer letters to successful candidates, highlighting the job responsibilities, salary, benefits, and the start date. Ensure that the new employees sign the offer letter as an acknowledgment of acceptance of the terms and conditions set forth in the letter.
• 8. Onboarding and Training: The final step is to ensure that the new employees undergo a thorough induction process to familiarize themselves with the bank's policies, procedures, systems, and culture. Providing comprehensive training will help them acquire necessary skills and knowledge, thus maximizing their productivity and efficiency as employees.
• Ensure that you take necessary precautions to prevent nepotism or favoritism while hiring.
• Consider including a probationary period before making a formal offer of employment.
• Set realistic targets for your new employees, and provide them with regular feedback on their performance.

9. Set Up Necessary Technology

Before launching your cooperative bank, you need to make sure you have the necessary technology in place. This will ensure that your operations run smoothly and your customers are satisfied with your services.

Here are some of the technology requirements you need to consider:

• Core Banking Software: This is a fundamental requirement for every bank, and it will enable you to manage your banking operations, such as account opening, deposits, withdrawals, loans, and more. You should choose a software that is user-friendly, secure, and scalable.
• Internet Banking: In today's digital age, most customers prefer to do their banking online. Therefore, you need to offer internet banking services that enable your customers to access their accounts, make transactions, pay bills, and more.
• Mobile Banking: Mobile banking apps are gaining popularity, especially among younger generations. You need to provide a mobile banking app that is convenient, easy to use, and secure.
• ATMs: ATMs are a must-have for any bank, and they provide convenience to your customers. You should consider installing ATMs at strategic locations, such as near shopping malls, universities, and residential areas.
• Payment System: Your cooperative bank should have a payment system that supports various payment options, such as debit and credit cards, electronic fund transfers, and mobile payments.
• Consider outsourcing your technology needs to a reliable vendor who has experience in providing technology solutions to banks.
• Invest in robust security measures to protect your customers' data and prevent fraudulent activities.
• Regularly upgrade your technology to keep up with the latest trends and improve customer satisfaction.

Setting up the technology infrastructure for your cooperative bank is an essential step that requires careful planning and execution. Ensure that you have the necessary resources, budget, and expertise to implement your technology solutions successfully.

10. Introduce Products/Services To The Market

Introducing a new product or service to the market can be a daunting task, especially for a co-operative bank. You need to ensure that your product or service stands out and is attractive enough to capture the attention of potential customers. Here are some steps to help you introduce your product or service to the market:

• 1. Conduct Market Research: Before introducing your product or service, it is important to conduct thorough market research to identify your target audience and their needs. This will enable you to tailor your product or service to meet their needs and preferences.
• 2. Develop a Marketing Plan: Once you have identified your target audience, you need to develop a comprehensive marketing plan that outlines your strategy for promoting your product or service. Your marketing plan should include the channels you will use to promote your product or service, such as social media, email marketing, or direct mail.
• 3. Create a Product Launch Plan: You will need a product launch plan that outlines the steps you will take to introduce your product or service to the market. Your launch plan should include the date of the launch, the channels you will use to promote your product or service, and the target audience.
• 4. Develop a Pricing Strategy: You will need to develop a pricing strategy that is attractive enough to potential customers but still profitable for your co-operative bank. You should consider the cost of production, the competition, and the value of your product or service before setting a price.
• 5. Conduct a Soft Launch: Conducting a soft launch will enable you to test your product or service with a small group of customers before introducing it to the wider market. This will enable you to identify any issues and make necessary adjustments before the official launch.
• 6. Plan a Launch Event: A launch event can create excitement and generate interest in your product or service. It is an opportunity to showcase your product or service and engage your target audience. You can organize a launch event in collaboration with other organizations or partners.
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• 10. Provide Excellent Customer Service: Providing excellent customer service is crucial to the success of your product or service. You need to ensure that your customers are satisfied and their needs are met. This will create loyalty and generate positive word-of-mouth.

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How to Write a Successful Business Plan for a Loan

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Table of Contents

What does a loan business plan include?

What lenders look for in a business plan, business plan for loan examples, resources for writing a business plan.

A comprehensive and well-written business plan can be used to persuade lenders that your business is worth investing in and hopefully, improve your chances of getting approved for a small-business loan . Many lenders will ask that you include a business plan along with other documents as part of your loan application.

When writing a business plan for a loan, you’ll want to highlight your abilities, justify your need for capital and prove your ability to repay the debt. 

Here’s everything you need to know to get started.

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Once we uncover your personalized matches, our team will consult you on the process moving forward.

A successful business plan for a loan describes your financial goals and how you’ll achieve them. Although business plan components can vary from company to company, there are a few sections that are typically included in most plans.

These sections will help provide lenders with an overview of your business and explain why they should approve you for a loan.  

Executive summary

The executive summary is used to spark interest in your business. It may include high-level information about you, your products and services, your management team, employees, business location and financial details. Your mission statement can be added here as well.

To help build a lender’s confidence in your business, you can also include a concise overview of your growth plans in this section.

Company overview

The company overview is an area to describe the strengths of your business. If you didn’t explain what problems your business will solve in the executive summary, do it here. 

Highlight any experts on your team and what gives you a competitive advantage. You can also include specific details about your business such as when it was founded, your business entity type and history.

Products and services

Use this section to demonstrate the need for what you’re offering. Describe your products and services and explain how customers will benefit from having them. 

Detail any equipment or materials that you need to provide your goods and services — this may be particularly helpful if you’re looking for equipment or inventory financing . You’ll also want to disclose any patents or copyrights in this section.

Market analysis

Here you can demonstrate that you’ve done your homework and showcase your understanding of your industry, current outlook, trends, target market and competitors.

You can add details about your target market that include where you’ll find customers, ways you plan to market to them and how your products and services will be delivered to them.

» MORE: How to write a market analysis for a business plan

Marketing and sales plan

Your marketing and sales plan provides details on how you intend to attract your customers and build a client base. You can also explain the steps involved in the sale and delivery of your product or service.

At a high level, this section should identify your sales goals and how you plan to achieve them — showing a lender how you’re going to make money to repay potential debt.

Operational plan

The operational plan section covers the physical requirements of operating your business on a day-to-day basis. Depending on your type of business, this may include location, facility requirements, equipment, vehicles, inventory needs and supplies. Production goals, timelines, quality control and customer service details may also be included.

Management team

This section illustrates how your business will be organized. You can list the management team, owners, board of directors and consultants with details about their experience and the role they will play at your company. This is also a good place to include an organizational chart .

From this section, a lender should understand why you and your team are qualified to run a business and why they should feel confident lending you money — even if you’re a startup.

Funding request

In this section, you’ll explain the amount of money you’re requesting from the lender and why you need it. You’ll describe how the funds will be used and how you intend to repay the loan.

You may also discuss any funding requirements you anticipate over the next five years and your strategic financial plans for the future.

» Need help writing? Learn about the best business plan software .

Financial statements

When you’re writing a business plan for a loan, this is one of the most important sections. The goal is to use your financial statements to prove to a lender that your business is stable and will be able to repay any potential debt. 

In this section, you’ll want to include three to five years of income statements, cash flow statements and balance sheets. It can also be helpful to include an expense analysis, break-even analysis, capital expenditure budgets, projected income statements and projected cash flow statements. If you have collateral that you could put up to secure a loan, you should list it in this section as well.

If you’re a startup that doesn’t have much historical data to provide, you’ll want to include estimated costs, revenue and any other future projections you may have. Graphs and charts can be useful visual aids here.

In general, the more data you can use to show a lender your financial security, the better.

Finally, if necessary, supporting information and documents can be added in an appendix section. This may include credit histories, resumes, letters of reference, product pictures, licenses, permits, contracts and other legal documents.

Lenders will typically evaluate your loan application based on the five C’s — or characteristics — of credit : character, capacity, capital, conditions and collateral. Although your business plan won't contain everything a lender needs to complete its assessment, the document can highlight your strengths in each of these areas.

A lender will assess your character by reviewing your education, business experience and credit history. This assessment may also be extended to board members and your management team. Highlights of your strengths can be worked into the following sections of your business plan:

Executive summary.

Company overview.

Management team.

Capacity centers on your ability to repay the loan. Lenders will be looking at the revenue you plan to generate, your expenses, cash flow and your loan payment plan. This information can be included in the following sections:

Funding request.

Financial statements.

Capital is the amount of money you have invested in your business. Lenders can use it to judge your financial commitment to the business. You can use any of the following sections to highlight your financial commitment:

Operational plan.

Conditions refers to the purpose and market for your products and services. Lenders will be looking for information such as product demand, competition and industry trends. Information for this can be included in the following sections:

Market analysis.

Products and services.

Marketing and sales plan.

Collateral is an asset pledged to a lender to guarantee the repayment of a loan. This can be equipment, inventory, vehicles or something else of value. Use the following sections to include information on assets:

» MORE: How to get a business loan

Writing a business plan for a loan application can be intimidating, especially when you’re just getting started. It may be helpful to use a business plan template or refer to an existing sample as you’re going through the draft process.

Here are a few examples that you may find useful:

Business Plan Outline — Colorado Small Business Development Center

Business Plan Template — Iowa Small Business Development Center

Writing a Business Plan — Maine Small Business Development Center

Business Plan Workbook — Capital One

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U.S. Small Business Administration. The SBA offers a free self-paced course on writing a business plan. The course includes several videos, objectives for you to accomplish, as well as worksheets you can complete.

SCORE. SCORE, a nonprofit organization and resource partner of the SBA, offers free assistance that includes a step-by-step downloadable template to help startups create a business plan, and mentors who can review and refine your plan virtually or in person.

Small Business Development Centers. Similarly, your local SBDC can provide assistance with business planning and finding access to capital. These organizations also have virtual and in-person training courses, as well as opportunities to consult with business experts.

Business plan software. Although many business plan software platforms require a subscription, these tools can be useful if you want a templated approach that can break the process down for you step-by-step. Many of these services include a range of examples and templates, instruction videos and guides, and financial dashboards, among other features. You may also be able to use a free trial before committing to one of these software options.

A loan business plan outlines your business’s objectives, products or services, funding needs and finances. The goal of this document is to convince lenders that they should approve you for a business loan.

Not all lenders will require a business plan, but you’ll likely need one for bank and SBA loans. Even if it isn’t required, however, a lean business plan can be used to bolster your loan application.

Lenders ask for a business plan because they want to know that your business is and will continue to be financially stable. They want to know how you make money, spend money and plan to achieve your financial goals. All of this information allows them to assess whether you’ll be able to repay a loan and decide if they should approve your application.

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How To Write A Business Plan For A Loan

A solid business plan is often critical to securing funding for your small business. Learn how to create a business plan for a loan that includes the information lenders want to see.

WRITTEN & RESEARCHED BY

Lead Staff Writer

Last updated on Updated August 18, 2024

REVIEWED BY

Editor & Senior Staff Writer

• Elements of a good business plan include an executive summary, company description, products and services, market analysis, marketing and sales plan, organizational structure, and other important information.
• Your business plan should address the "5 Cs of Credit" by demonstrating your business's financial health, investment, repayment ability, market conditions, and available assets.
• To improve loan approval chances, avoid jargon, show clear cash flow projections, document personal investment, seek professional help if needed, and be willing to revise your plan

A business plan is a crucial business document you need to have on hand when applying for business loans. However, the mere thought of writing a business plan for a loan is intimidating to a lot of business owners.

A one-page business plan may be sufficient for certain types of small business loans (for example, online loans), but bank loans and SBA loans typically require a more in-depth business plan that delves further into your financials.

If you need to write a business plan for a loan, you’ve come to the right place. Keep reading to learn more about everything you need to include in your business plan to improve your chances for loan approval.

Table of Contents

What Is A Business Plan For A Loan?

10 key sections to include in your business plan, what do lenders look for in a business plan, business plan examples, resources for writing a business plan for a loan, final thoughts on writing a business plan for a loan.

A business plan is a written document that provides a complete overview of your business, including information about your business’s services, strategies, finances, and goals. All businesses should have a business plan, but a business plan is especially important when applying for a business loan.

Most business plans should include some version of the following sections. Depending on your industry and other factors, such as whether you own a startup or established business, some sections could be condensed or combined. The exact verbiage for section titles can vary, as well.

For a business plan that’s longer than one page, it’s a good idea to preface these sections with a cover page and table of contents.

Executive Summary

This section is a condensed version of your entire business plan. It will likely include:

• Details of when, how, and why you started your business
• Your company mission statements
• High-level financial information about your business
• An explanation of how funding will help your business

Depending on whether you’re a startup or an established business, you may use this section to focus on your growth strategy or your past successes.

Company Description

Use this section to delve deeper into your company’s offerings, core principles, legal structure, and leadership. Your company description should also include your unique value proposition . Describe your company’s unique strengths that will ensure your success.

Products & Services

This section should detail the products and/or services your company provides. Make clear the problem that your offerings solve. Include information such as:

• Information on your raw materials and production process (if applicable)
• Profit margins
• Whether you have or plan to file patents or copyrights

Market Analysis

Use this section to demonstrate your understanding of your overall industry and the specific markets you serve, including market trends, competitors, and the demographics of your target customers. Some companies hire a consultant or agency to perform the research for the market analysis section.

Marketing & Sales Plan

Building off your market analysis, how will you market to your target customers and beat your competitors? How will you sell to them and distribute your product? What are your sales goals and projections? Provide these details in this section.

Organization & Management

Use this section to include your organizational and leadership structure, ideally including an organizational flowchart. Also include job descriptions, qualifications, and years of experience to demonstrate why your team is capable of delivering on your company goals and is worthy of investment.

Operational Strategy

This section is used to describe your day-to-day operational processes, including information about your location, facility, equipment, inventory, and daily production. If you have a service-based business, this section may focus more on your team’s daily activities and how they contribute to long-term goals.

Financial Outlook

This section should tell lenders how much you spend and how much you make in profits. Include up to five years of data if possible, including financial documents such as:

• Income statements
• Cash flow statements
• Balance sheets
• Capital expenditure budgets
• Sales forecasts
• Projected income statements
• Information on any collateral you have to secure the loan

Depending on how much financial documentation you have, you might refer to specific documents in this section and indicate that the full documents can be found in the Appendix section.

Though startups may not have all of this data, you can make projections based on monthly or quarterly data and industry averages.

Funding Request

Now that you’ve laid out your expenses and financial projections, it’s time to make your case for a loan. Be clear about how much money you need, how you will spend it, and how you will repay the loan. Be as detailed as possible.

In the Appendix, include any supporting documents, such as financial documents referred to in the Financial Outlook section. Some other types of documents you might include in this section are:

• Business licenses  or permits
• Credit reports
• Product photos
• Marketing materials
• Letter of intent to purchase business

If you know what lenders are looking for in a business plan for a loan, you will increase your chances of approval. Learn the five things lenders want to see in your business plan, followed by five tips to create a loan-worthy business plan.

The 5 Cs Of Credit

The Five Cs of Credit is a phrase that summarizes what lenders look for when deciding whether to extend a loan to a business. Lenders will, accordingly, look for the five Cs when reviewing the business plan in your loan application. The five Cs are:

• Character: Your knowledge, experience, and creditworthiness
• Capacity: Your ability to repay the loan
• Capital: How much you have already invested in your business
• Conditions: Your market viability, considering your industry as well as overall economic conditions
• Collateral: Assets you can use to secure the loan

5 Business Plan Tips For Loan Approval

Besides emphasizing your “5 Cs,” there are a few other things you can do to make the best impression with your business plan to increase your chances of securing funding.

• Avoid Industry Jargon: Use plain English rather than industry terminology that the lender might not be familiar with. Remember that the loan underwriter may not have deep knowledge of your specific industry.
• Show Cash Flow: Cash flow is one of the most important factors that determine loan eligibility. You can even get a loan with bad credit as long as your cash flow is sufficiently high. The more insight you can provide into your past, current, and future cash flow, the better.
• Show Your Investment: Before extending a loan, the lender will want to see that you have already invested some of your own resources, such as personal savings, into your business. Be sure to include documentation that demonstrates your investment.
• Enlist Help: You will likely need some professional assistance in creating your business plan, whether that means hiring a writer, an industry consultant, or both. At the very least, you should have a third party review your business plan before you submit it as part of a loan application.
• Revise Your Plan As Needed: If this is the first time you’ve taken a close look at your business strategy and financials, you will surely learn some things about your business while creating your plan. For example, you may realize you cannot afford a business loan as large as you planned to ask for. Rather than trying to justify the number you started with, it’s better to modify your funding request (and other aspects of your plan) to align with your financial reality.

It’s easy to find templates and examples of business plans online. Though you may not want to copy and paste from a template verbatim, these samples provide a starting point and show you different ways a business plan can be structured. Here are a few to start with:

• Business plan template for a startup (from SCORE)
• Business plan template for traditional businesses  (from the SBA)
• Business plan template for retail or eCommerce (from Shopify; requires email address)

These tools and resources can help you create a solid business plan for a loan. While some free business plan creation tools are available online, you will have to pay for some options.

SBA Business Plan Resources (Free)

The SBA has a great resource in its online learning center that includes business plan worksheets . In addition to business plan templates, the SBA also helps you connect to free local business counselors who may be able to help you with your business plan.

Business Plan Software ($)

If you need extra help creating a business plan and don’t mind spending a little bit of money, consider business plan creation software. For example, LivePlan ($20/month) is business plan software that connects with QuickBooks to import your financial data to your plan.

Business Plan Writer/Consultant ($$$)

If you’re willing to invest more heavily into your business plan, consider hiring a writer or consultant that specializes in creating business plans. This option costs anywhere from $2,000 to $20,000, with the lower end of that scale typically including only basic writing services and the higher end representing a specialized industry consultant agency.

While it’s helpful to know how to write a business plan for a loan, you can always hire someone to help you draft the plan if the task is too daunting. A business plan is a worthwhile investment no matter what type of business you have or whether you are currently trying to secure business funding. Even if you don’t need a loan right now, it’s important to maintain an updated business plan to serve as a guide for your own business decisions.

Was your loan denied because of your business plan (or another reason)? Learn what to do if your business loan was denied .

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The Ultimate Guide to Writing a Business Plan for a Loan: A Step-by-Step Walk-Through

The Ultimate Guide to Writing a Business Plan for a Loan: A Step-by-Step Walkthrough

As a business plan specialist and expert business planner, I'm here to guide you through the process of writing a comprehensive business plan for securing a loan. Whether you're a start-up or an established business looking to expand, a well-crafted business plan is essential for impressing potential lenders and securing the funding you need.

In this extensive, 5,000-word article, I'll cover everything you need to know about creating a top-notch business plan that will boost your chances of loan approval. We'll go through each section in detail, providing you with practical examples and tips to optimize your plan for success. So, let's get started!

Executive Summary

The executive summary is the first and most critical section of your business plan. It's a brief overview of your entire plan, highlighting the key points and giving readers an insight into your business.

Key elements to include in your executive summary:

Business concept: Briefly explain your business idea, the products or services you plan to offer, and the target market.

Company overview: Provide essential information about your company, including its legal structure, location, and mission statement.

Management team: Showcase the expertise and experience of your management team, emphasizing their ability to lead the business.

Market opportunity: Describe the market demand, trends, and target audience, highlighting the opportunity for your business to succeed.

Financial highlights: Summarize your financial projections, including sales, profits, and cash flow.

Loan purpose: Clearly state the purpose of the loan and the amount you're seeking.

Remember, the executive summary is often the first thing lenders read, so make it engaging and informative to grab their attention.

Company Description

The company description section is where you provide a more in-depth look at your business. It should give readers a clear understanding of your company's purpose, goals, and competitive advantages.

Key elements to include in your company description:

Business history: If your company has an existing history, briefly describe its origins and milestones achieved.

Mission statement: Articulate the purpose of your company and the value you aim to provide to customers.

Objectives: Outline the specific goals you want to achieve with your business, both short-term and long-term.

Products and services: Provide a detailed description of the products or services you plan to offer, emphasizing the benefits they provide to customers.

Target market: Identify your target audience, specifying their demographics, psychographics, and buying habits.

Competitive advantage: Explain what sets your business apart from the competition and how you plan to maintain this edge.

Market Analysis

The market analysis section demonstrates your understanding of the industry, market, and competition. It's crucial to show lenders that you've done your homework and have a comprehensive understanding of the market landscape.

Key elements to include in your market analysis:

Industry overview: Provide a high-level view of your industry, including its size, growth trends, and key players.

Market segmentation: Break down your target market into smaller segments, identifying their unique needs and preferences.

Target market characteristics: Describe the specific characteristics of your target market, such as demographics, psychographics, and geographic location.

Market demand: Present evidence of market demand, using data on customer needs, market trends, and buying behaviors.

Competitor analysis: Evaluate your main competitors, analyzing their strengths, weaknesses, and market share.

SWOT analysis: Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) to assess your business's position in the market.

Marketing and Sales Strategy

In this section, outline your marketing and sales strategy to show lenders how you plan to attract and retain customers, as well as generate revenue. A well-defined marketing and sales strategy is crucial to demonstrate that you have a clear plan for growth and profitability.

Key elements to include in your marketing and sales strategy:

Marketing objectives: Define your marketing goals, such as brand awareness, lead generation, or customer retention.

Target audience: Reiterate your target market, emphasizing their needs and preferences.

Unique selling proposition (USP): Highlight your USP, the main reason customers should choose your products or services over the competition.

Marketing channels: Identify the marketing channels you plan to use, such as social media, email, content marketing, or paid advertising. Explain the rationale behind your choice of channels and how they align with your target audience.

Sales process: Describe your sales process, from lead generation to closing deals. Include details on your sales team structure, training, and compensation plans.

Key performance indicators (KPIs): List the KPIs you'll use to measure the success of your marketing and sales efforts, such as conversion rates, average deal size, or customer lifetime value.

Operations Plan

The operations plan section details the day-to-day activities required to run your business. It shows lenders that you have a clear understanding of the operational aspects of your company and the resources needed to support your growth.

Key elements to include in your operations plan:

Facilities: Describe your business's physical location, including its size, layout, and any equipment or machinery required.

Production process: If applicable, detail your production process, including the steps involved, quality control measures, and production capacity.

Supply chain: Outline your supply chain, identifying key suppliers, procurement processes, and inventory management practices.

Staffing: Explain your staffing requirements, including the roles, responsibilities, and qualifications of each team member.

Management structure: Provide an organizational chart, showcasing your company's management structure and reporting lines.

Legal and regulatory requirements: Identify any relevant legal or regulatory requirements, such as licenses, permits, or certifications needed to operate your business.

Financial Plan

The financial plan is arguably the most crucial section of your business plan when applying for a loan. It demonstrates your ability to manage finances, make informed decisions, and, ultimately, repay the loan.

Key elements to include in your financial plan:

Revenue projections: Estimate your future sales, breaking them down by product or service category and showing growth rates over time.

Expense projections: Forecast your expenses, including fixed costs (e.g., rent, utilities) and variable costs (e.g., marketing, salaries).

Cash flow statement: Provide a detailed cash flow statement, showing how cash will flow in and out of your business over a specified period (typically 12 months).

Profit and loss statement: Create a profit and loss statement that projects your business's profitability over time.

Balance sheet: Prepare a balance sheet that showcases your business's assets, liabilities, and equity.

Break-even analysis: Calculate the point at which your business will break even, meaning your revenues equal your expenses.

Loan repayment schedule: Detail your proposed loan repayment schedule, including the loan amount, interest rate, repayment terms, and projected date of full repayment.

The appendices section is where you can include any additional documents or supporting materials that are relevant to your business plan. These documents may provide further evidence of your company's viability and help strengthen your case for securing a loan.

Examples of items to include in the appendices:

Resumes of key team members

Product samples or prototypes

Market research data or surveys

Letters of intent or contracts with suppliers, partners, or customers

Intellectual property documentation, such as patents, trademarks, or copyrights

Relevant licenses, permits, or certifications

Writing a comprehensive business plan for a loan can seem like a daunting task, but with the right approach and guidance, it's an achievable goal. By following the step-by-step instructions outlined in this article, you can create a well-structured, persuasive business plan that will greatly improve your chances of securing the funding you need. Remember to:

Pay close attention to your executive summary, as it sets the tone for the entire plan.

Be thorough and detailed in your market analysis, showing a deep understanding of your industry and target audience.

Develop a solid marketing and sales strategy to demonstrate your ability to attract and retain customers.

Address the operational aspects of your business, including staffing, facilities, and supply chain management.

Present a robust financial plan, complete with projections and a loan repayment schedule.

By doing so, you'll showcase your expertise, commitment, and preparedness to potential lenders, significantly increasing the likelihood of obtaining the loan your business needs to grow and succeed.

In addition to following the steps outlined in this guide, consider seeking professional assistance from a business plan consultant or specialist to review and refine your plan. Their expertise can help you identify any areas that may need improvement and ensure that your business plan is optimized for success.

Finally, remember to continuously update your business plan as your business evolves. Regular updates will ensure that your plan remains relevant and accurate, providing you with a valuable roadmap for your business's future growth and development.

With dedication, persistence, and a well-crafted business plan, you can secure the funding you need to bring your business vision to life. Good luck, and here's to your success!

• Writing Your Business Plan
• Funding Your Business

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The co-operative model business plan

This appendix provides a model business plan outline. Make the plan your own. Your cooperative is unique in many ways so you don’t want the business plan to look just like everyone else’s; you want it to be an expression of your co-operative’s unique structure, products, plans, principles, values, environment and people.

The business plan itself does not need to have all the sections listed in the Table of Contents below, but you should put some effort into every section listed in it to have the co-operative well prepared before it is open for business.

Following the title page, the business plan should, at a minimum, have an executive summary, co-operative overview, market analysis, and plans for marketing, operations, production and finances.

Executive summary 

Write the executive summary after you have finished the rest of the business plan. It’s an overview of the business plan, highlighting the main points and putting them into context. Consider organising the executive summary in the same order as the business plan.

The executive summary is placed at the start of the business plan to entice the reader to read the entire business plan, making it one of the most important sections.

It is not new information; it is a summary of information which is discussed in more depth throughout the business plan.

The executive summary should be able to stand on its own, and succinctly explain in one or two pages the distinctive characteristics of the co-operative and its products and why it will be successful.

It may include:

• the reason(s) the business plan has been written
• an overview of the co-operative and its market opportunities
• a description of the products or services
• a summary of its expected financial performance.

Complete it with conclusions and recommendations and a summary of how you’ve arrived at your conclusions.

Another way of looking at what the executive summary says is: What is the problem? What is the solution? What will be the outcomes?

Introduction 

This section provides background information about the co-operative and could very briefly describe the co-operative type, when it was formed, who formed it and why, its location, mission, vision, values and principles, objectives and strategy to achieve them, industry, products and services, target market, development stage and achievements to date, summary of members and management, and capital raised to date.

The mission statement should say what you do, how you do it, and why you do it.

The vision statement should be somewhat loftier – describing what you want the co-operative to be in the long-term; it should be a “planned wish”.

The objectives state what the co-operative wants to achieve, usually within a certain timeframe, and are guided by the mission and vision. Objectives are business, social and financial objectives. They should be measurable, and there should be both short-term and long-term goals.

Values are statements about why the co-operative is in business, and who it serves. Values consider the social and environmental factors which the co-operative will be mindful of in achieving its objectives.

The introduction may also explain why the business plan is being written, and for whom. If it is written to support an application for finance include the name of the bank or other financier, the amount of funding sought, the term of the loan, the use of the loan, how it will be repaid, and the security the co-operative will provide.

Make it brief; one to two pages should do.

The co-operative 

Co-operative structure

Outline the co-operative’s structure. Remember that many people do not understand the democratic and social principles of co-operatives, so briefly explain how it works, its rules, and how it will support your business and social objectives.

Describe the location, size and capacity of premises and any warehouse facilities. If the premises are leased state the cost of rent and length of the lease; if they have been purchased, state the value of the property. Explain how long the co-operative has been at the premises, if there is a strategic advantage in its location and, if any renovations or extensions are required, what they will cost.

Registrations and licences

List the registrations and licences that the co-operative has. If others are needed, explain what they are and when they will obtained.

Describe the insurance that the co-operative has and will be getting. It could include cover for premises, contents, workers’ compensation, liability, professional indemnity, business interruption, and motor vehicles.

Plant and equipment

Itemise the plant and equipment that the co-operative has and needs. If the business plan supports an application for funds, explain the importance of acquiring the equipment and provide details of quotes for their supply and installation. Consider listing the equipment in two tables: the first table showing the equipment already acquired and its cost and written down value; the second table listing equipment to be acquired, its value and when it is planned to be purchased or leased.

Products and services

In simple terms, describe the features of the products and services the co-operative currently provides, and those to be developed in the future. You may like to include photographs. Explain how they are different to others available in the marketplace, and why customers will buy products or services from your co-operative instead of from a competitor.

Describe the key components or raw materials used in making products, where they come from, and whether there are any restrictions on supply or agreements with suppliers. If there are likely to be price fluctuations, you might explain how they will be dealt with. You may wish to explain if there is a backup supplier available.

If it’s a new product under development, explain the progress made in research, product design and development, what tests are required and have been done, and any regulations applicable or licences or approvals that are needed. List any intellectual property protection sought to avoid duplication by competitors. Provide a timetable.

If there has been product testing in the marketplace, explain the results. Describe plans to upgrade the product or service or increase the range on offer. Describe quality assurance controls to be instigated.

If the co-operative provides a service, explain what it is, why it is needed, and how it is or will be delivered, monitored and improved.

If you have a product inventory, list the items in a table, or include an inventory list in the appendices.

You may wish to include here how you are going to minimise shrinkage of inventory due to theft, damage, loss or accounting errors.

Current performance

If the co-operative has already been trading, include a short summary of the co-operative’s turnover, gross profit and net profit for the current year and last year. More detailed information will be put into the financial section of the business plan. If the co-operative hasn’t begun trading yet, use the projected financial figures.

Members and directors

If the business plan is being written to assist you to ask for finance, use this section to show that the people who own and run the co-operative are competent and qualified. Give an overview of the number of members, active membership provisions, who the directors are, and the offices they hold.

Include a summary of their skills, qualifications, experience and industry knowledge. Consider including résumés in the appendices.

Key personnel

If you plan to engage employees or already have staff, list the positions, names (if already employed) and skills of employees, and whether their employment is full-time, part-time or casual. Résumés for managerial positions could be included in the appendices. If your cooperative is fairly large, draw an organisational chart which shows who reports to whom, and the positions they hold, and include it in the appendices.

Co-operative advisors

Include the business names and addresses of professional advisers who have helped to establish and grow the co-operative. These might be bankers, solicitors, financial advisors or planners, insurance agents, accountants, chambers of commerce, another co-operative or a co-operative peak body. This section shows that your co-operative is supported by a professional  team.

Risk management

List the risks, in order of likelihood that they could occur, that the co-operative faces. State the impact the risk could have, how likely it is to occur, and what action you will take to prevent or minimise the risk to the co-operative. Key risks may include property damage, theft, electrical outages, pollution, legal liability, injury, loss of data, shifts in the economy, loss of customers, loss of suppliers, security, theft of copyright or inability to raise capital.

Operational plan

A new co-operative should explain how the co-operative will be run: the daily routines, people and functions that will make the co-operative run smoothly and successfully. Keep in mind the democratic nature of your co-operative and its social purpose; make it the focus of your actions. Directors and managers should use the operational plan to lead and inspire members and staff.

Break your operational plan down into actionable steps so it will easier to implement. Identify what each task is, who will do it, when it will be done by, and how you’ll know it has been done. Attention to detail will make the co-operative’s operations run more efficiently.

The operational plan might include ways in which you intend to devise and implement operating, accounting and management systems required for the first year of activities. Plan for staff selection and recruitment, duties and salary policies, performance monitoring, training, health and safety policies, technologies, record-keeping, banking, taxation, accounts payable and receivable, meeting legal obligations, finding suitable premises and office equipment, use of professionals, service to customers, orders and delivery management, promoting innovation, further research and development, meeting schedules, developing a co-operative culture, appropriate management style, working with members and directors, conflict resolution, compliance with regulations and inspections, and alliances with other co-operatives.

Existing co-operatives will need to consider many of the same issues, but have the advantage of having procedures already in place. They should develop an operational plan to improve the day-to-day operations of the co-operative, reduce overheads, plan for growth, alleviate risk and increase efficiency.

Production plan 

The production plan will describe how the co-operative will manufacture, procure products or provide services, and provide the final product or service to customers.

It will describe:

• the complexity of the manufacturing
• the equipment and tools required
• the cost of raw materials and labour per unit
• the cost to produce a product or deliver a service
• the number of hours of production daily or weekly
• the number of units to be produced or the number of services to be delivered
• average selling price
• managing inventory levels
• forecast number of days stock is to be held
• cost control
• manufacturing staff requirements
• source and delivery partners and contract terms
• the time taken to produce the required stock levels
• environmental plans
• disposal of waste.

Quality assurance is crucial, whether the co-operative is providing a product or service. The co-operative relies on the loyalty of members and/or customers for repeat orders, so it needs to provide value for money and consistently high quality products or services. A strong quality assurance system will consider employee motivation and skills, standards and testing, feedback from customers, and minimising waste and product returns.

The market 

This is an important section of the business plan, as it demonstrates that you have done your homework and it is likely that your product or service will be accepted by customers. There’s not much point in having a great product if you don’t have a market.

Much research is involved: you’ll need to understand who your customers will be, what will make them spend their money on your products or services, who your competitors are, what environmental factors could affect you, and how you are going to sell and promote your product or service. There are many places to go for information – try the Australian Bureau of Statistics, government departments, councils, Regional Development Australia, trade and professional associations, chambers of commerce and consumer organisations.

Find which ANZSIC code is used for your business. ANZSIC is used by the government to produce and analyse industry statistics. ANZSIC codes for all industries are found at www.abs.gov.au .

An industry sector contains a range of other businesses which supply similar services or products. Provide an overview of the industry sector the co-operative is in, such as the size, growth, key clients and markets, the largest providers, and demand and supply trends that affect the industry now, or may in the future. Describe any other relevant factors that drive the industry, such as innovation, regulations, seasons, financial and technical issues, distribution and supply and whether the industry is new or mature.

Provide a summary of where the co-operative is positioned within that industry, and its vulnerability to competition and trends.

The environment

Describe important trends and issues that could affect your co-operative’s operations and identify how you plan to deal with them.

Issues may include changes of government, international relations and trade, employment, environment and competition regulations, taxation legislation, new policies and laws, consumer protection, and industrial relations.

Issues may include interest rates, government spending, consumer confidence, unemployment, exchange rates, inflation, national and state economic growth, global economic outlook, materials availability, import substitution and skills shortages.

Issues may include demographics, education, standards of living, multiculturalism, housing availability, fashion, health awareness and income distribution.

Environmental

Issues may include environmental awareness, waste, pollution, energy, climate change and water.

Technological

Issues may include efficiencies, obsolescence, NBN, costs, savings, research, innovation and social networks.

Market research

It’s crucial to understand the marketplace and your customers, whether they are likely to buy the co-operative’s products or services, and possible ways to motivate them. There are two types of research you can do that will help with this: primary research, done by observing competitors, meeting with potential customers, or by survey; and secondary research, which is gathered from existing data.

What you will research will depend on what your products and services are, who your customers are, where your market is, and the level of competition in the marketplace.

Your market research might include:

• customer profiles and characteristics – age groups, gender, occupation, income, location, buying habits
• customer preferences, needs and expectations
• target markets
• the customer fit, and demand for products and services
• your fit, barriers to entry and influence on the market
• product specifications, acceptance and new opportunities
• product pricing and sales forecasts
• market size (units and value)
• market growth and trends
• market segmentation and definition
• competitor analysis
• advertising and promotional opportunities
• seasonal variations
• methods of distribution.

Describe the research you have done, and what it has revealed.

Competitors

Do not underestimate your competition. You need to understand and describe who your competitors are and the effects they will have on the co-operative’s business. Provide details of their market share, resources, products and target market, strategies, strengths and weaknesses.

Explain where the co-operative fits within the industry, what level of market share you expect, any barriers to entry and how you will address them.

Also describe how the competitors are likely to react at your co-operative’s entry into the market and the co-operative’s response strategy.

Competitive advantage

Describe what is different about your products or services compared to those of competitors. Explain why customers are likely to buy enough of your products or services to make the co-operative sustainable.

• Do you have a different target market?
• Is there an unmet need in the target market you can fulfil?
• Do you offer something different or new?
• Does your product or service have superior quality or features?
• Will the co-operative advantage work for you?
• If your product or service is unique, describe difficulties competitors will have in copying it, giving a lead time from product launch to when a competitor can duplicate your product.

List the co-operative’s internal strengths and weaknesses.

Then list the external factors that could affect the co-operative’s activities – the opportunities (e.g. market trends) and threats (e.g. competitors, economic uncertainty).

Describe how you can capitalise on the strengths and opportunities, and reduce the effect of weaknesses and threats.

Target markets

Describe the target markets for your product or service. Who are your customers? If you already know who they are, list the major clients if they agree to this information being made available to external parties. If you don’t have major clients, or there are potentially many of them, you should define the markets you will be selling to.

How have you identified your target markets? What are the characteristics of the target markets? Are your customers a certain age or gender, do they live in a particular location, have a certain type of job, ethnicity or income level? Are they members of the co-operative? What are their needs and preferences? How big is your target market? How often will they buy from you? Why and how will they buy your product or service? Are they end-users?

Consider if there are different segments to your target market. For example, would both students and professionals buy your products? Each segment may have different needs, and may be willing to pay different prices. If you understand the needs of each segment, you can adapt your marketing mix to provide what each segment wants.

Product pricing and terms

In determining the prices of your products or services, consider the costs to produce, or to deliver services, your customers’ sensitivity to the price and to price changes, and what the price reveals about the product’s value or quality. Will you offer quantity discounts, or discounts for repeat sales? Will co-operative members receive a discount or rebate?

Describe the expected payment terms for customers, e.g. direct customers pay cash while distributors and members pay within 30 days from invoice date.

Product sales, margins and distribution

If your co-operative is new, estimate the number of products or services to be sold in the first year, and consider using a table to show your estimates. If the co-operative is already established, use both past and projected performance levels. You may wish to break the table down into weeks or months. The table can form the basis of sales volume records and pricing over time, and identify changes to help you to plan future sales targets and purchases of raw materials.

Describe how your products will be distributed – whether through direct sales, online marketing, direct mail, agents, wholesalers, representatives, retailers or consignments. Describe commissions or other fees involved.

Estimate the cost of other expenses such as shipping, warranties, contracts and liabilities.

Strategic alliances

List strategic partnerships the co-operative has, or plans to form, with other co-operatives or businesses.

These may be to work together in major ventures, or on market access, supplies or other resources. Provide information about the arrangements.

List key suppliers, and describe their history and reliability, location, what and how much they can supply, credit policy and delivery details, and the cost and availability of materials.

Marketing plan 

Explain your marketing objectives – what you aim to achieve and what you will do to achieve them. Ensure they can be measured and evaluated. An example might be “to obtain 20% of market share by the end of the first year”, or “to ensure 50% of our target market recognise our brand, and 10% buy our products”. Then determine what marketing activities will help you achieve your aim.

Determine your marketing strategies and activities for each month of the first year to create awareness and sales. This is your marketing mix, and relates to product, place, price, promotion, people and process.

Product strategy : consider the products’ qualities, consistency, features, adaptability, packaging and design, how the customers will perceive the products’ features, and how you will market them.

Place strategy : consider distribution channels, location of retail outlets, the geographic area your products will be available in.

Price strategy : consider the selling price to various customers and markets, including discounts for quantity and early payment.

Promotion strategy : consider what advertising, selling, sales promotion, trade shows, website, media and public relations activities you will undertake to differentiate your product and make consumers aware of your product or service.

People strategy : consider who will sell the product and delivery it. People may include staff, strategic partners and agents.

Process strategy : this is the strategy where you plan, target, cost, develop, implement, document and review the systems to attain the other aspects of the marketing plan. You’ll plan to have the right product, in the right place, at the right price, in the right quantity, at the right time for the right customers.

The finances 

Often the last part in the business plan, the finance section is important as it demonstrates the likely financial viability of the co-operative, and is vital information for anyone considering investing in the co-operative.

It shows what financial resources are needed to set up and operate the co-operative, forecasts of the co-operative’s performance based on expected sales levels, and it details the timing and the amount of investment needed from external sources.

Commencement capital – new co-operatives

List the amount of capital that has been raised and will be raised from members, and funding confirmed from other sources.

List the costs to start the co-operative (below) in a table, and show the month when the costs are expected to be paid.

• Set up the co-operative: these costs might include accounting and legal fees, registration of the co-operative and domain name, website, insurances and licences.
• Set up the premises: these costs might include a bond and advance rent, fit-out, electricity connection, telecommunications connections and stationery.
• Purchase plant and equipment: these costs might include machinery, tools, office furniture, vehicles, telecommunications, computers and software.
• Start of operations: these costs might include advertising, raw materials and supplies, wages, interest – and working capital to tide the co-operative over until it trades sustainably.

Subtract the set-up costs from the confirmed capital raised; the balance is the amount of borrowings you will require.

Financial objectives

List the co-operative’s financial objectives and how long you expect to take to achieve them. These may be profit targets, investment levels, returns to members and debt repayment.

Assumptions

Explain the key assumptions made in developing your financial forecasts:

• sales and purchases forecasts
• the time it will take to collect from debtors
• the time it will take to pay creditors
• interest rates
• time between manufacture and sale
• timing of member contributions
• timing of external capital injections
• increasing membership.

If the co-operative has already been trading, describe its financial history, including equity, debt and profit levels.

Include at least four key financial ratios:

• Debt equity ratio = total liabilities/members’ equity
• Return on investment = % of interest over total loans received, and % dividend over members’ capital injected
• Break-even point = the sales volume level where revenues and expenses are equal and provide no profit or loss. This will change each year with changes in costs, income, and interest levels.
• Working capital = current assets – current liabilities

Monthly cash flow forecasts

The cash flow forecast demonstrates how and when cash comes into and goes out of the co-operative. Hopefully it also shows that income from sales will pay for bank loan repayments and other expenses. It will show you when you need an injection of cash to cover monthly bills, and when you need to conserve cash to pay for upcoming bills.

For the first year of trading, present monthly cash flow forecasts. After the first year, show yearly forecasts for at least two years.

Monthly income and expenditure forecasts

Also called profit and loss forecasts, and forecasts of financial performance, income and expenditure forecasts show the co-operative’s projected income less expenditure, resulting in a profit (or loss) over a specific period of time. For the first year of trading, provide monthly or quarterly forecasts, and annually for the following two years.

Just a few quick tips for the financially challenged – income is usually from sales, and expenditure is usually the costs to run the co-operative and interest payments. Loans (liabilities), purchased equipment and inventory (assets), capital injections from members (equity) are all items for the balance sheet.

When you receive an invoice it is an expense, even if you haven’t paid it yet; so it is shown in the month the expense was incurred. Show all items as GST exclusive (i.e. without GST).

Balance sheet forecasts

The balance sheet, also known as the statement of financial position, shows the co-operative’s net worth at a particular point in time – usually the last day of the financial year. Assets are usually objects and cash the business owns, liabilities are usually debts owed, and equity is the capital contribution and accrued profits. Assets minus liabilities equals equity.

Provide balance sheet forecasts for three years.

Financial plan

Describe your plans for the co-operative’s financial viability. What is the total investment required for start-up? What are your short and medium-term investment plans? Where will funds come from? Have they been confirmed? How much comes from each source, and what conditions do funds come under (e.g. interest rates, repayment terms)? What security is offered?

When is the co-operative expected to make a profit? What level of sales is required to make a profit? When will members see a return? How much are profits expected to grow each year? How will costs be kept down? If non-distributing, will you retain surpluses, and where do you plan to donate excess surpluses?

Do you have an exit strategy?

A note on financial management

This note on financial management is not meant for inclusion in the business plan, but nevertheless is very important. (A summary of the financial management systems used could be included in the financial plan.)

Members (and investors) need to know how the co-operative is performing and need to receive regular accurate reports. Systems must correctly identify, measure and communicate financial information.

You need to understand and abide by accounting principles.

Complete, accurate, and up-to-date financial records must be kept. These may be handwritten, or on computer spreadsheets, but we recommend that unless the co-operative is very small, you should use financial software. Such software doesn’t replace an accountant, but usually knows what to debit and credit, and has a useful help function.

Develop strong systems for handling cash. Provide numbered and dated receipts for money received. Provide numbered and dated invoices (tax invoices if the co-operative is GST registered) for purchases and to others who owe you money.

Every month, reconcile your expenses paid and income received with the bank statement. Produce a balance sheet and profit and loss statement to help you keep an eye on finances and to allow you to plan and control the co-operative. Watch your creditor and debtor levels; ensure you collect money owing and pay expenses when due.

The strategic plan

A strategic plan is usually a long-term plan for the next three to five years. It explains the goals and objectives to be reached, and the path to achieve them. It’s a bit like a GPS for a very long journey, if you zoom out and ignore the minor roads.

Focus on a small number of key priorities. Too many priorities will mean you lose focus on the major objectives.

Make the priorities easy to translate into action plans, and have clear timelines to achieve outcomes.

Information that might distract from the business plan’s flow should be included as appendices. Provide a summary of the information within the business plan, and more detail in the appendices. It’s also a good place to include information that is not part of the business plan. Start a new page for each appendix.

Appendices might include the following:

• Disclosure statement.
• Co-operative rules.
• Past three years’ financial statements.
• Directors’ and key staff members’ résumés.
• Pictures of products, premises or location.
• Forecasts of purchases and payments to creditors.
• Forecasts of sales and debtor collections.
• Letters of support.
• Promotional materials.

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How to Get a Business Cooperative Started

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A business cooperative is an enticing alternative to the standard capitalism model, offering a democratic management style, lower risk of debt, and other social and economic benefits. Cooperatives also give small-business owners more control over their organization and come with certain tax advantages.

In this article, we’ll define a cooperative business, offer examples of worker cooperatives, and discuss how to get a business cooperative started.

• What is a business cooperative?

Business cooperative examples

• Steps to starting a business cooperative

The takeaway

Business cooperative faq.

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What is a cooperative business?

A business cooperative (co-op), is an organization or enterprise owned by its members. While a traditional business serves the interests of investors, founders, or board members, a co-op services the interest of its customers or workers. Most co-ops are established to fulfill an economic need, such as providing products, services, or bargaining power that is otherwise unavailable to a certain group of people.

Business cooperatives come in many forms, such as housing co-ops, food co-ops, credit unions, and agricultural co-ops. However, many large corporations are also cooperatives, including Ace Hardware, REI, and Land O’Lakes dairy.

Here are some other well-known cooperatives in the US.

• Navy Federal Credit Union: The largest credit union in the US, serving military servicemen and government employees
• Alliant Credit Union: A credit union based in Chicago, Illinois, originally founded by employees of United Airlines
• Dairy Farmers of America: A marketing cooperative owned and operated by dairy farmers across the US
• Associated Wholesale Grocers: The nation’s largest food co-op, which supplies independent grocery stores across the country
• People’s Food Co-op: A Portland, Oregon-based food co-op with a focus on sustainability
• Berkeley Student Cooperative: A housing co-op for students of UC Berkeley

How to start a business cooperative

Since co-op founders usually organize cooperatives based on a specific need or problem, the first step in starting one is to identify that need. Once this is done, the group should take the following actions to officially establish the co-op:

1. Establish a steering committee.

A steering committee is a group of people that represents the members of the organization. This committee should create a timeline for coordinating the logistics of the co-op. They should also establish the co-op’s values and mission, as well as gauge the overall level of interest in the co-op.

2. Conduct a feasibility study.

Once the steering committee is established, the group should conduct a study to consider all possible challenges and obstacles the co-op might face. This study should look closely at opportunities for financing, operating costs, and other factors that influence the market.

3. Create articles of incorporation.

Every cooperative must have articles of incorporation and bylaws that govern the organization. These bylaws should be made by a legal counsel and can be changed and enhanced over time.

4. Draft a business plan.

Like a traditional business, a co-op should have a detailed business plan that guides the company as it grows. The plan should include a market analysis, a marketing plan, product research, and a description of the co-ops goals and objectives.

5. Get financing.

Most co-ops need cash flow for day-to-day operations. This cash often comes from member investments, but some co-ops use a business loan to finance their organization in the early stages.

6. Begin operations

At this point, the co-op can hire a manager and employees, secure a facility, and open its doors. It’s important for members to remain committed to and aligned with the goals of the organization to ensure long-term success.

A worker cooperative offers a number of benefits to small-business owners, including a democratic management style, less debt risk, and member dividends. To set up a business cooperative, a setting committee must conduct a feasibility study, establish articles of incorporation, create a business plan, and secure financing.

Would you like to learn more about starting a business cooperative? Check out Business.org for How to Start a Small Business: Must-Have Checklist to Spark Success .

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• 11 Best Collaboration Software for Small Business 2023
• Best Crowdfunding for Startups 2023: How to Fund Your Small Business
• Best Startup Business Line of Credit 2023

Some cooperatives are not designed to make a profit and instead operate at cost. If a cooperative does make a profit, the members who purchase goods or services generate that money. Those profits are typically returned to the members as a refund or put back into the organization.

Safety stock is a term used to describe the excess inventory business owners choose to keep in hand in the event of an increase in demand or supplier delay.

Here are the steps to starting a worker cooperative:

• Establish a steering committee.
• Conduct a feasibility study.
• Create articles of incorporation.
• Draft a business plan.
• Get financing.
• Begin operations.

A cooperative (co-op) is a type of business organization that exists to benefit its members rather than outside investors. The co-op is owned and run by the members, and any profits are divided among those members. Most cooperatives are organized to reduce costs, fulfill an unmet need, improve the quality of a product or service, or improve bargaining power.

What are some cooperative business examples?

There are many types of cooperative business organizations, including mutual insurance groups, credit unions, electrical power co-ops, housing co-ops, and retail co-ops, such as Ace Hardware or REI.

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

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MSME Term Loan

Keep your business running with an MSME Term Loan

Expanding your business? An MSME Term Loan is what you need!

An MSME Term Loan is money you can borrow for your business for a period of time to help your business expand or to raise business supply capabilities. The amount can be repaid in up to 60 months based on your level of business and the type of security you provide to us as outlined below:

Amount of unsecured term loan

• Bronze: Kes 600,000.00
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This resource includes several templates for cooperative business plans from actual housing cooperatives in North America. Other references provided are a blueprint for the development process, of which the business plan is a part, and a cooperative business plan presentation given at the 2009 NASCO Institute.

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How To Get A Small Business Loan Using These 7 Easy Steps

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Starting a small business is an exciting journey, but it often requires a significant amount of capital to get off the ground and you’ll need to know how to get a small business loan. Whether you need funds for inventory, equipment, marketing, or working capital, securing a small business loan can provide the financial boost necessary to turn your business idea into reality.

However, obtaining a loan as a start-up can be challenging, especially if you’re navigating the process for the first time.

Let’s walk through the steps to get a small business start-up loan and set your business on the path to success.

1. understand the types of business loans available.

Before applying for a loan, it's crucial to understand the different types of start-up loans available. Here are some of the most common options:

Traditional Bank Loans: Banks offer loans to start-ups, but they typically require a strong credit history, a solid business plan, and collateral. These loans often come with lower interest rates but are harder to qualify for.

SBA Loans: The Small Business Administration (SBA) offers several loan programs for start-ups, including the SBA 7(a) loan and SBA Microloan Program. These loans are partially guaranteed by the government, which reduces the lender’s risk and can make them more accessible to start-ups.

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Online Lenders: Online lending platforms offer start-up loans with varying terms and interest rates. These lenders may be more flexible with their requirements, making it easier for start-ups with less established credit to qualify.

Business Credit Cards: While not a traditional loan, business credit cards can provide short-term funding for start-ups. They can be a good option for covering immediate expenses but should be used with caution due to high-interest rates.

Microloans: Microloans are small loans, typically under $50,000, offered by nonprofit organizations and community lenders. These loans are often easier to obtain for start-ups, especially those focused on underserved communities.

2. Prepare a Solid Business Plan

When you're applying for a small business loan, having a solid business plan is crucial. It’s your chance to show lenders that you’ve thought things through and have a clear direction for your business. They need to see that you not only have a vision but also a practical plan for how the loan will help you achieve your goals. A well-prepared business plan demonstrates your commitment and makes it easier for lenders to trust you with their money.

3. Evaluate Your Creditworthiness

Your personal and business credit scores play a significant role in your ability to secure a start-up loan. Before applying, review your credit report and address any issues that could negatively impact your score. Lenders will look at:

Personal Credit Score: As a start-up, your personal credit score will be heavily considered. A score above 700 is typically preferred by lenders.

Business Credit Score: If your business has been established for a while, lenders will also consider your business credit score. If you’re just starting out, focus on building your business credit by opening a business bank account and using business credit cards responsibly.

4. Gather Necessary Documentation

When you're applying for a small business loan, be prepared to provide a variety of documents that lenders will need to evaluate your application. These typically include your personal and business tax returns for the past two to three years, financial statements like profit and loss statements , balance sheets, and cash flow statements, and any relevant legal documents such as business licenses and registrations.

You'll also need to share personal financial details, including your assets, liabilities, and net worth. If you're offering collateral, you'll have to provide proof of ownership and its value. Having these documents ready can streamline the process and improve your chances of securing the loan.

5. Choose the Right Lender

When choosing a lender , it's essential to recognize that not all lenders offer the same experience, and selecting the right one can greatly impact your loan process. Begin by comparing loan terms, including interest rates, repayment conditions, and any associated fees, to find the most advantageous terms for your business.

Evaluate the lender's reputation by researching reviews and ratings, prioritizing those known for excellent customer service and transparency. Ensure that you meet the lender’s eligibility requirements, which may include specific criteria such as credit score, business revenue, and the length of time your business has been operating.

Consider the loan process itself and pay attention to the application steps, the time it takes to get approved, and the speed at which funds can be disbursed. These factors combined will help you choose a lender that best meets your business needs.

6. Apply for the Loan

Once you’ve prepared your business plan, evaluated your creditworthiness, gathered the necessary documentation, and chosen a lender, it’s time to apply for the loan. Be prepared to answer questions about your business, provide additional documentation if requested, and negotiate loan terms if necessary.

7. Use the Loan Wisely

After securing your start-up loan, it’s crucial to use the funds wisely. Stick to your business plan, track your spending, and ensure that the loan is used to grow your business in a sustainable way. Responsible management of your loan funds will not only help your business succeed but will also build your credibility with lenders, making it easier to secure additional financing in the future.

The bottom line is that securing a small business start-up loan can be a complex process, but with the right preparation and approach, it is entirely achievable. By following these steps you can obtain the funding you need to launch and grow your business. Remember, the key to success is not just getting the loan but using it effectively to build a thriving business.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and I also guide established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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Finding the right borrowing solution can help you better manage your finances and achieve your financial and life goals.

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In the event of your death or the diagnosis of a specified health crisis, your Scotia Plan Loan could become a financial obligation for your family. Learn more about how Credit Protection for Scotia Plan Loans can prevent this from happening.

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No more barriers to get your treatment: Apply for Hero FinCorp Medical Loan for emergency

A medical emergency is often unpredictable. Regardless of your financial planning, a medical crisis can severely impact your finances. Considering the increasing healthcare costs, even a minor medical procedure may cost substantially. A medical loan provides quick funds for such emergencies. By bridging the financial gap, it ensures you get the best medical treatment. Let’s explore Personal Loans for handling medical emergencies.

What is a Medical Loan? A medical loan is a Personal Loan you can borrow online to cover medical costs. It does not require any collateral for security. You receive an approved loan amount according to your eligibility. You must repay in Equated Monthly Instalments (EMIs) over a predetermined repayment tenure.

Key Features Here’s a look at the features of a medical loan:

• Collateral-Free Nature: Since these are unsecured loans, you don’t need to pledge an asset as security. Unsecured nature makes them accessible to most individuals who need medical funds without offering collateral.
• Fixed Interest Rates: Personal Loans usually have fixed interest rates. That means the EMIs remain constant throughout the tenure. It lets you effectively plan your finances and ensure timely repayment.
• Quick Approval and Disbursal: Time is crucial during a medical emergency. Lending institutions like Hero FinCorp supporting 100% digital procedures facilitate swift approvals and disbursals. They make funds readily available within a short period.
• Versatility in Usage: A medical loan is a suitable source of funds to tackle a medical emergency. These include hospitalisation, medicines, doctor’s fees, surgery, diagnosis, therapy, medical equipment, and other related expenses.
• Minimal Documentation: The documentation process for a Personal Loan for medical emergency is relatively straightforward. It is beneficial during emergencies when time is limited.
• Repayment Flexibility: Lending institutions offer flexible tenure options for Personal Loans for medical emergencies. You can select a tenure aligning with your financial capacity. Longer tenures have smaller EMIs but higher interest outgo, while shorter tenures have higher EMIs but lower interest expenses.

Benefits of Using a Personal Loan to Handle Medical Emergencies Medical emergencies can quickly drain your finances, especially if they require surgeries or hospitalisation. A medical loan from Hero FinCorp can meet these unforeseen expenses without hassle. Let’s look at the benefits of obtaining one:

Immediate Funding: These loans require minimal documentation. Hero FinCorp provides quick funds without any office visits or paperwork. As a result, you can get the required treatment without delay.

Preserve Savings: Your savings may take a hit during medical emergencies. Getting a Personal Loan online helps to keep your savings intact. It is significant for ensuring long-term financial stability. You may continue earning returns on your savings and sort out the medical emergency with a loan.

Budget-Friendly EMIs: These loans have flexible loan amounts and repayment terms. With a tenure of up to 36 months, you can select a repayment schedule according to your financial capacity. It prevents unnecessary strain on your budget.

Comprehensive Coverage: These loans cover anything related to medical expenses, including doctor fees, hospital bills, surgeries, diagnosis, medicines, therapy, and post-treatment care.

Covers Insurance Gaps: Health insurance does not provide comprehensive coverage. It often falls short, or the claims process takes time. In such circumstances, a loan bridges the financial gap and ensures interruption-free treatment.

Points to Consider When Seeking a Personal Loan for Medical Emergency

Medical emergencies require urgent handling. While Personal Loans handle the finances, you must know the intricacies. These are some crucial aspects to consider when applying:

Loan Amount: Evaluate the expenses and borrow a sufficient amount to cover them. Avoid overborrowing, as it leads to unnecessary debt.

• Interest Rate: Look for a loan plan with affordable interest rates. Higher interest rates increase the loan cost and burden your finances unnecessarily.
• Additional Charges: Understand the extra charges to keep the loan cost under control. Enquire about the processing fee and other charges to avoid any surprises.
• Repayment Capacity: Assess your repayment capacity to ensure comfortable repayment within the selected tenure. Missing the EMIs negatively impacts your credit score. Use an EMI calculator to choose a tenure with budget-friendly EMIs.
• Terms and Conditions: Read the loan agreement’s terms and conditions carefully before signing it. Pay due attention to hidden clauses and prepayment charges.

Your financial health takes a toll during a medical emergency. Since quality treatment comes at a significant cost, have a backup plan to handle the financial aspect. While insurance is a cornerstone to keep you prepared, a medical loan provides extra coverage to cover immediate expenses. Hero FinCorp offers Personal Loans of up to Rs 5 lakh, providing financial support to help manage unforeseen circumstances. Instant approval, flexible repayment, and affordable interest rates make them the best funding options in times of need.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.

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Tomsk Oblast, Russia

The capital city of Tomsk oblast: Tomsk .

Tomsk Oblast - Overview

Tomsk Oblast is a federal subject of Russia located in the southeast of the West Siberian Plain, part of the Siberian Federal District. Tomsk is the capital city of the region.

The population of Tomsk Oblast is about 1,068,300 (2022), the area - 314,391 sq. km.

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Tomsk oblast map, Russia

Tomsk oblast latest news and posts from our blog:.

10 November, 2019 / Tomsk - the view from above .

History of Tomsk Oblast

The development of this region began in the late 16th - early 17th centuries. The oldest settlement in the Tomsk region is the village of Narym, founded in 1596.

The town of Tomsk was founded as a military fortress by the decree of Tsar Boris Godunov in 1604. It was one of the outposts of the development of Siberia.

From 1708 to 1782, Tomsk was part of the Siberian province. In 1804, the town became the center of a separate Tomsk province, which included the current territories of the Altai krai, Novosibirsk, Kemerovo, East Kazakhstan, Tomsk regions and part of Krasnoyarsk krai.

In the 19th century, the growth of gold mining, smelting of metals, fur trade concentrated large capital in Tomsk, triggering a revival of trade. Important transport routes - the Moscow and Irkutsk tracts - passed through Tomsk.

In 1888, the first university beyond the Urals was opened in Tomsk, in 1900 - the Technological Institute, in 1901 - the first commercial school in Siberia, in 1902 - the Teachers’ Institute. By 1914, Tomsk was one of the 20 largest cities in the Russian Empire.

In 1925, the Tomsk Governorate was abolished and became part of the Siberian region. In the 1930s, Tomsk lost its administrative significance. In August 1944, the city became again a regional center.

During the Second World War, dozens of factories, educational, scientific, and cultural institutions were evacuated to Tomsk oblast and became the basis for the further development of the region in the postwar years.

In the 1950s, the first in the USSR nuclear center of the world level was created in Tomsk Oblast - the Siberian Chemical Combine. In the 1960s-1970s, oil production began on the territory of the region, a giant petrochemical plant was built - the Tomsk Petrochemical Combine.

Nature of Tomsk Oblast

Small lake in Tomsk Oblast

Author: Andrey Gaiduk

Beautiful nature of the Tomsk region

Author: Sergey Timofeev

Tomsk Oblast scenery

Author: Egor Dyukarev

Tomsk Oblast - Features

The length of the Tomsk region from north to south is about 600 km, from west to east - 780 km. Most of the territory is difficult to access because of taiga forests occupying about 60% of the region and marshes (28.9%). The Vasyugan swamp is one of the largest marshes in the world.

The climatic conditions of the southern and northern districts of the Tomsk region are markedly different. Almost the entire territory of the region is located within the taiga zone. The climate is temperate continental. The average temperature in July is plus 24 degrees Celsius, in January - minus 16 degrees Celsius. The climate in the northern part of the region is more severe, winters are longer.

The largest cities and towns of Tomsk Oblast are Tomsk (570,800), Seversk (105,200), Strezhevoy (38,900), Asino (24,400), Kolpashevo (22,200). Lake Mirnoye located in Parabelsky district is the largest lake. The main river, the Ob, crosses the region diagonally from the southeast to the northwest, dividing it into two almost equal parts.

The main industries are oil and gas, chemical and petrochemical, engineering, nuclear, electric power, timber industry, and food industry. All the machine-building and metal-working plants are located mainly in Tomsk and partly in Kolpashevo and Seversk. Oil is extracted mainly in the north-west and west of the region.

The main branches of agriculture are meat and dairy cattle breeding. Agricultural fields occupy about 5% of the territory. Wheat, flax and vegetables are grown in small amounts. Cattle-, pig-, sheep-, and goat-breeding are presented as well as poultry farming. Fur trade (squirrels, sables, musk-rats) and fur farming (silver-black fox) are also developed.

Tomsk Oblast - Natural Resources

Tomsk Oblast is rich in such natural resources as oil, natural gas, ferrous and non-ferrous metals, brown coal (the first place in Russia), peat (the second place in Russia), and groundwater. In the region there is the Bakcharskoe iron ore deposit, which is one of the largest in the world (about 57% of all iron ore in Russia).

Forests are one of the most significant assets of the region: about 20% (more than 26.7 million hectares) of forest resources in Western Siberia are located in Tomsk oblast. The timber reserves amount to 2.8 billion cubic meters.

In the Tomsk region there are 18.1 thousand rivers, streams and other watercourses with a total length of about 95 thousand km, including 1,620 rivers with a length of more than 10 km.

The main waterway is the Ob River. The Ob length in the region is 1,065 km. The main tributaries of the Ob flowing into it on the territory of the Tomsk region are the Tom, Chulym, Chaya, Ket, Parabel, Vasyugan, Tym.

Attractions of Tomsk Oblast

The sights of Tomsk Oblast include the harsh beauty of Siberian nature, the variety of winding rivers and canals, as well as monuments of wooden architecture, and other places that keep ancient legends about this land.

Undoubtedly, it is worth to visit Lake Kirek, one of the most beautiful reservoirs of the Tomsk region. It is located only 50 km from Tomsk. According to legend, a local millionaire drowned his diamonds here during the revolution in 1917.

About 40 km from Tomsk, there is a lake complex of the village of Samus consisting of seven lakes. These lakes are known for their very dark water, which is explained by the streams flowing into them from peat bogs.

Near the village of Kolarovo, located 33 km south of Tomsk, there is Siniy (Blue) cliff. It is a three-kilometer precipice descending to the Tom River. The cliff got its name due to the gray-blue shale that covers it. Several centuries ago, after the founding of Tomsk, a watchtower was installed on the cliff, from which signals were sent to the fortress.

At the source of the Berezovaya River, 40 km southeast of Tomsk, there is such an attraction as the Talovsky bowls, a natural monument of national importance. These are huge natural figures in the form of vessels of oval form, covered from the inside by birnessite - a rare mineral.

There is a tourist attraction of a global scale in the Tomsk region - the Vasyugan marshes, the largest marsh complex in the world. It is also called the “Russian Amazon”, because the Vasyugan marshes are not inferior to the famous South American river by their scale.

To the collection of sights of Alexandrovsky district of the Tomsk region, the most distant from the regional center, we can add Lake Baikal, the namesake of the famous lake, Goluboye (Blue) Lake, Malyye mountains (highlands) in the valley of the Vakh River and the Paninsky reserve, where the ancient burials of the Khanty and Ostyaks are preserved.

On the right bank of the Ob River, more than 200 km from Tomsk, the village of Mogochino is located. St. Nicholas Convent can be found here.

In Tomsk itself, plenty of monuments of wooden architecture deserve attention. In total, there are more than 700 objects, including 109 monuments of federal and regional significance.

Also in the Tomsk region you can visit more than 100 museums (most of them are located in Tomsk). The most popular museums are the Museum of History of Tomsk, the Memorial Museum “The NKVD Investigative Prison”, the Museum of Wooden Architecture, the Tomsk Regional Art Museum.

Tomsk oblast of Russia photos

Pictures of the tomsk region.

Abandoned village in Tomsk Oblast

Author: Sergei Loyko

Orthodox chapel in the Tomsk region

Winter in Tomsk Oblast

Author: Koshkin V.

Field road in Tomsk Oblast

Author: Dolgin Andrey

Country life in Tomsk Oblast

Author: D.Lebedev

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