example of business plan for bank loan

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How To Write A Successful Business Plan For A Loan

Updated: Aug 18, 2022, 12:46pm

A business plan is a document that lays out a company’s strategy and, in some cases, how a business owner plans to use loan funds, investments and capital. It demonstrates that a business is already producing income and has a plan to continue doing so moving forward.

A successful business plan is well-written, realistic, concise and, most importantly, convinces financial institutions that approving your business for a loan is a smart choice.

Here’s what you need to know about each section of a business plan and how to write a plan that will earn a lender’s stamp of approval.

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What Does a Successful Business Plan Include?

A successful business plan outlines your entire business and effectively explains how it makes money and why it’s likely to succeed. This is especially important if you’re trying to get a small business loan .

The content of a business plan should vary from company to company, but there are a few common sections that will help lenders better understand your business and help you qualify for financing.

Executive Summary

An executive summary concisely summarizes your business plan—usually on one page. The goals of this section are to inform the reader about the business as a whole, summarize what is contained in the rest of the document and capture their interest. That said, the best use of this section may depend on the age of your business.

• Startups. Startup owners typically use the executive summary to discuss the business opportunity, their target market and their planned strategy for building the business. The section also may touch on relevant market competition. Startup companies in particular should use the executive summary to build a lender’s confidence in the business.
• Established businesses. Companies that have been in business for several years usually orient their executive summaries around past achievements and growth plans. In this case, the section may begin with the company’s mission statement and provide information about business operations and financials before outlining future goals.

Industry Analysis

The industry analysis section of a business plan defines the business’ industry and mentions current trends—with a focus on risks and opportunities. The section also informs the reader about how the industry works and where the business fits in the industry as a whole.

This section should start by defining the industry, as well as what products and services it provides, and what consumer demand it fulfills. Next, identify the most important influences in the industry. In the case of a bank, this may include applicable government regulations; for a clothing boutique, it may be consumer trends and budget.

The industry analysis should also define the company’s intended niche in the industry.

Market Analysis

The market analysis zooms into the specific market niche mentioned in the previous section. Market analysis aims to detail the segment of the broader market the business is intended to fit within. For example, a fashion brand or boutique may target high-income consumers.

Use this section to explain how the segment differs from the wider industry. In the fashion boutique example, a market analysis may reveal that high-income consumers in the fashion industry pay substantially more for brands that are considered exclusive.

Also, describe the size of your business’ niche and how it fits into the wider industry. This should include mention of how many existing businesses operate in this niche and how they target consumers.

Competitor Analysis

A competitor analysis explains what competitors in your niche do and informs the reader of the current market environment. Start with an overall assessment of your competitors. Then, discuss the most relevant competitors for your niche. When conducting a competitor analysis, ask yourself the following questions:

• Where do your ideal customers currently shop?
• How do these competitors differentiate themselves?
• How are competitor products and services priced?
• Why do customers choose those products or service providers?

Using the example above, many clothing boutiques compete by providing higher quality products or a unique, luxury shopping experience. If your store has a single location, your competitor might be another clothing store with a similar price-point or signature style.

Target Market Segmentation

In the target market segmentation, you’ll identify your business’ target market and describe how you will meet its needs. This section aims to instill confidence in the lender by providing a clear and objective strategy for building revenue.

Begin the section by informing how your products or services meet your shoppers’ needs. Next, explain how consumers can access your products or services—including a brief outline of your marketing strategy and how it is tailored to your target clients. Contrast this to your competitors’ strategy as defined in the previous section. After reading this portion of the business plan, the lender should know exactly how your business intends to compete.

Services or Products Offered

Use this section of the plan to explain what your business offers its ideal customers and to contrast your product and service offering to that of your competitors. Start by defining your product and service offering, including pricing. Also, inform the reader what equipment or materials you need to provide your products and services. For instance, a fashion apparel brand needs access to textile manufacturers.

Marketing Plan and Sales Strategy

Now that the lender understands what you offer, explain how you plan to market it in greater detail. This section outlines how you’ll attract and convince consumers to buy from you. The goal is to provide a flexible and realistic marketing and sales plan that convinces the reader you know how to attract consumers.

The sales strategy section of your business plan also should include the company’s revenue goals and explain how your marketing and sales department will achieve them. Provide in-depth details on the marketing and sales challenges you’ll face and how to overcome them. While this information is always relevant, it’s particularly important to lenders reviewing your loan application as they will want to know how you plan to make money.

Operations Plan

The operations plan details your company’s day-to-day operations. This detail-oriented section should comprehensively explain how your business will operate, beginning with a list of your company’s daily activities.

As a high-end clothing boutique, your daily operations may include:

• A manager reconciling sales receipts and inventory numbers
• Stylists researching future trends and sourcing new inventory
• A marketing team building an online and social media presence

Note: This section is more about your business’s daily processes rather than its organizational structure—which is the next section.

Management Team

Use the management section of your business plan to tell the lender who does what in the company and how they’re compensated. Help the lender better understand the people behind the company by including biographical and background information on the company’s owners and key executives.

The best way to present this information is often with an organizational flowchart. You can also include other information about the company in this section, like your mission statement and values.

Financial Plan

Your financial plan tells a prospective lender two things: how much you plan to spend each year and how much you’ll earn in revenue. This section is the most important for most businesses, as it can make or break a lender’s confidence and willingness to extend credit.

Always include the following documents in the financial section of your business plan:

• Cash flow statements
• Income statements
• Capital expenditure budgets
• Balance sheets

Most lenders ask established businesses for at least three years of financial data, and some may ask for five. Preferably, include as much financial data as possible. If you’re a startup, include estimated costs and projected revenue, and supplement your data with industry averages or financial data from competitors.

Exit Strategy

Your business plan should always include an exit strategy in case things go wrong or you simply decide to close up shop. This may include everything from taking on new partners to selling your business or even declaring bankruptcy. Having an exit strategy is another way to show lenders that you have thought about the risks involved with your business and are prepared for them.

The appendix of a business plan normally contains financial information and other documents the reader may need to gain a comprehensive understanding of the business. Established businesses typically include financial statements and projections, at a minimum. In contrast, a startup could include the research they conducted to make the business plan.

Also consider including relevant resumes, marketing materials, letters of recommendation or references. For ease, your appendix should have a table of contents directing lenders to the most important documents.

What Lenders Look for In a Business Plan

There are five things that lenders typically look at when making business lending decisions: character, capacity, capital, conditions and collateral. By understanding these key considerations, you can draft a business plan that speaks to a lender’s interests and concerns.

A business’ character includes subjective, intangible qualities like whether its owners are perceived as honest, competent or determined. Stated another way, lenders want to know that you are honest and have integrity. These qualities can be critical for evaluating candidates because most lenders don’t want to lend to someone they don’t feel they can trust.

To evaluate the character of you and your business, lenders look at your personal credit history as well as your business’ financial history. Use your business plan to bolster your character by including ample financial records, letters of recommendation and other relevant documents.

Lenders want to know that you have the ability to repay the loan. They evaluate this by looking at your business’ financial history to see how much revenue you have generated in the past and how much profit you have made.

Lenders might also judge your capacity based on your business’ financial projections as well as your personal credit history and household income. Where relevant, lenders look at your management team to see if they have the experience needed to grow your business or keep it on a path toward success.

When reviewing your loan application, lenders read your business plan to see how much money you need to borrow and how you will repay the loan. They also look at your financial statements to see how much cash you have on hand and how much debt you are carrying.

Likewise, lenders often prefer business owners who have made larger personal financial investments in their enterprises. A personal financial investment reveals your commitment to the business and demonstrates you have the resources to pay off a large loan.

Ultimately, a lender’s biggest concern is whether your business can realistically succeed. So, they judge your company’s chances of success using your business plan as well as current market conditions. A good business plan can improve your lender’s confidence by convincing the lender that market conditions and your business strategy increase your odds of success.

In some cases, lenders want to know that you have something of value that they can use to secure the loan. This can be property, equipment, inventory or even receivables. If you don’t have any collateral, lenders may still approve a loan if you have a good credit history and a solid business plan.

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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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We’ll start with a brief questionnaire to better understand the unique needs of your business.

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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How to Write a Business Plan for Loan with Free Template

A business plan for bank loan is instrumental in getting a loan and funding for your business. When you approach the lenders or investors with a proper business plan , you increase your chances of getting a loan for your business plan. 

Wondering how to write a business plan for a loan that could get you approved? Read our guide on the topic, check the business plan sample for bank loan, and use our business plan for loan template to make a killer business plan.

Get our affordable business plan writing services now!

Why do you need business plan for bank loan.

A business plan clears your mind about business, helps you prepare for it, and makes you a good candidate for loans, funding, and investments. In short, writing a business plan for a loan is worth it. 

For Later: To learn more about how to write a business plan specifically for a bank loan, check out our bank ready business plan .

A Business Plan Helps You Get Loans and Funding 

When you present your business idea before investors and lenders (or anyone else you are looking to for funding), you look serious with a business plan. 

You may not need a book in the name of a business plan but you need to present your business idea in a convincing way.

When they know your business idea is sound and you can return the loan, they will be inclined to give you a loan. 

A Business Plan Increases Your Chances of Business Success

A research on the impact of business planning shows that the businesses that start with proper planning have more chances of success. 

A business plan helps both the new firms and the established firms. 

A Business Plan Helps you Grow Strategically 

A business plan is a road-map for your business growth, whether you use it as a roadmap or not. When you put effort into making a business plan, you set priorities, establish goals, create a strategy for achieving those goals, and set a time frame for achieving those goals. 

A Business Plan Helps You Measure Business Growth 

The market conditions will never be exactly the same as you had expected in the business plan. 

Here, your business plan will help you compare planning against actual developments. You can see if you are going in the right direction as you planned or you need to change course.

Maybe you need to make a new business plan as your business might take a different shape than you expected.

What is included business plan for bank loan?

A business plan starts with an executive summary that briefly describes the business idea and ends with the appendix that includes lengthy financial documents or other reference materials. 

These are the parts of a business plan. 

• Executive Summary
• Business Overview 
• Business Objectives and Goals
• Competitor Analysis 
• Market Analysis  
• Product and Services
• Operational Plan 
• Business Structure and Management
• Financial Analysis
• Marketing and Sales

Process of Writing a Business Plan for a Bank Loan

Let’s see what you will write in each of the above-listed sections of the business plan for loan.

Executive Summary: Write this section after you have completed the business plan. Briefly discuss your business idea and its parts. 

Business Overview: Include basic details about your business like business name, address, year established, etc. 

Business Objectives and Goals: Discuss what are the short-term and long-term business goals and how do you plan to achieve them. 

Competitor Analysis: Conduct an analysis of your direct and indirect competitors. A SWOT analysis of your competitors can help you identify opportunities for creating your competitive advantage. 

Market Analysis: Discuss market conditions in your industry. Is your target industry seeing a growth trend or a decline? What are the driving factors for growth in your industry?

Product and Services: Introduce the products and services of your business, how your product or service works, how you will price them, and what is your sales and distribution strategy for your products or services. 

Operational Plan: Explain your operation plan and discuss how you plan to run your business. The operation plan will discuss organizational structure, team working, and almost all aspects of business operations. 

Business Structure and Management: Introduce business managers and key employees here. Also briefly discuss the legal structure of your business like if you are C-corp, S-corp, LLC , etc. 

Financial Analysis: Discuss initial business costs, running cost, business break even cost, the amount of funding you need and how you will spend that funding. Also create a financial forecast for your business. 

Marketing and Sales: This section will include the marketing and sales plan for your products or services.

Try to make it detailed so that the bank or your lender can understand how you will make your business profitable and if you will have solid capacity to pay back the loans. 

Appendix: Anything you didn’t or couldn’t mention in the previous business plan sections will go here. For example, you can include extended financial reports, research about your industry, detailed CVs of your team and management, etc. 

Download Free Example Business Plan for Loan

Make business plan for loan quick and easy, use this business plan template for loan. 

How to create a business plan for a loan with a Free Template?

A template is an easy and straightforward way to write a business plan. A template gives you step by step instructions on what each business section is about and how to write it. 

Wisebusinessplans offers business plan for bank loan template that guides you with questions in every section of the business. Simply answer the questions in each section and your business plan will be ready in no time. 

These are the steps to writing a business plan for small business loan with a template: 

Collection Business Information : Make business information available, keep business documentation at hand as you will need to use data from these documents. 

Write Business Plan : Proceed with writing the business plan. You will not stop until you reach financial analysis. 

Prepare Financial Projections : When you are applying for a debt, the lender will most closely look at your financial projections. Take your time to write financial projections. Make sure you sound convincing.

Also, don’t bury information in the spreadsheets or too much data. State inference you draw from the data first, include necessary financial projections in the business plan and put the rest of them into the business plan appendix. 

Proofread and Revise : Business plan is a thorough document. It is highly likely to leave some holes in the first draft. Proofread your business plan at least once to check for language and factual mistakes. You also come up with a new and better way of saying something. 

Get Second Opinion : Engage a trusted friend, or family member, or an advisor and get their opinion on your business plan. Their unique perspective will force you to improve it,

Sample Of Business Plan For Loan And Funding 

Want to see a sample on the quest of ‘how to make a business plan for a loan’, check the link below.This  business plan for bank loan example will help you see how an actual business plan for a bank looks like and what is the end-product you are working towards. 

Business Plan for Loan

Get this simple business plan template and make better business plan

 A business plan is essential when applying for a loan as it provides lenders with a comprehensive understanding of your business, including its objectives, financial projections, market analysis, and operational strategies. It demonstrates your preparedness and increases the likelihood of securing funding.

To write a business plan for a loan, start by outlining your executive summary, company description, market analysis, products or services, marketing and sales strategies, organizational structure, financial projections, and appendices. Utilizing a free business plan template can help guide you through the process.

 Free business plan templates are widely available online. You can search for reputable websites or organizations that offer templates specifically designed for writing business plans for loans. These templates typically provide a structured format and guidance to ensure you include all the necessary components.

The financial projections section of your business plan should include a sales forecast, cash flow statement, profit and loss statement, and balance sheet. It is important to provide realistic estimates based on thorough market research and a detailed understanding of your business’s financial performance.

Absolutely. Seeking assistance or feedback when writing your business plan for a loan is highly recommended. You can consult with business advisors, mentors, or industry experts who can provide valuable insights and help ensure your business plan is comprehensive, well-structured, and compelling to potential lenders.

Want to write a business plan?

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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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• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One
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• Partnership: Definition, How It Works, Taxation, and Types
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• Starting a Small Business: Your Complete How-to Guide
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• How to Start a Successful Dropshipping Business: A Comprehensive Guide

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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How to Write a Professional Business Plan for a Loan

Business Plan Template

• March 27, 2024

11 Min Read

So, are you thinking of getting a loan or funding to start an exciting business journey?

That’s great! But before you go any further, it’s very important to have a solid business plan in place.

Well, we understand that creating a successful plan for a loan can be a daunting task. That’s why we’re here to help you!

This investment-ready business plan template for loans will help you include all the essential elements in your plan, from summarizing your business concept to projecting the financial data. It not only impresses business loan lenders but also sets the stage for success.

Ready to get started? Let’s first understand how business plans will help you with loan proposals.

How business plans help in loan applications?

A business plan is a professional document that serves as a written loan proposal if you want to secure a loan for capital investment. It details every aspect of your business, including its concept, goals, market opportunity, and financial data.

Whether you’re a new entrepreneur or a small business owner, you’ll need a well-prepared business plan. It helps you persuade potential investors or lenders of its viability and potential for success.

Here are a few primary reasons why business plans are necessary in loan applications:

It helps you showcase your vision

A well-written business plan communicates your business vision effectively and allows you to demonstrate your clarity of purpose and strategic direction. It offers lenders a compelling narrative of what your business is aimed for and how it will achieve its goals.

It helps you prove your financial feasibility

Well, lenders need assurance that they’re making a wise investment. A detailed business plan presents them with realistic financial projections, along with how your business will earn money and repay the loan. This infuses confidence in lenders and convinces them that your business is a safe bet.

It helps you mitigate potential risks

Once you start your business, it naturally involves fair enough risks. However, a good business plan clarifies that you’re aware of those challenges and have backup plans or strategies to mitigate them. This shows lenders that you’ve considered different situations and keep contingency plans in place.

It helps you demonstrate your preparedness

A business plan shows lenders that you’ve carefully outlined every aspect of your business—from conducting market analysis to predicting finances. It assures that you’re serious about your business and well-prepared to manage the ups and downs of starting a business.

In short, having a solid business plan can be the cornerstone of a successful loan application that explains your business idea and how you plan to utilize the loan money to get started.

Now that you know how business plans help in a loan application, it’s time to check out and understand the key elements of a business plan for a loan template.

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Key components of a successful business plan for a loan

1. executive summary.

An executive summary is the first section of the plan, providing a concise overview of the entire business plan.

Generally, it is written in the last, as it summarizes the most important components you mentioned in your plan.

Since the potential investors or lenders would read this section first, make sure that you keep it simple, crisp, and compelling to build their confidence in your business. Also, it should not be more than 1 or 2 pages.

You may write your executive summary with a precise explanation of your business concept, the type of business you operate, and its status.

Here are a few primary elements you must add to your summary:

• Your company’s mission statement
• The product or service you intend to offer
• Market Opportunity
• Management team’s background and experience
• Growth plans or long-term objectives
• Financial projections and funding needs

2. Company Overview

As you’ll give a brief introduction in the executive summary, this chapter will expand on it, providing an in-depth understanding of your business.

Company description includes all the business-related facts, such as the startup concept, vision-mission statements, company location, etc. Also, it explains the problems or challenges you aim to solve.

In addition to that, consider answering a few questions that would help lenders to grasp the significance of your business:

• What is the legal structure of your business?
• Who is the business owner?
• Do you have any business partners?
• Why did you start this business, and when it was founded?
• What are your business accomplishments to date?
• Who will get benefits from your company’s product or service?

Note that the company overview section can be regarded as your extended elevator pitch.

So, it’s a good opportunity to present your business’s specific details and structural aspects that the financing partner needs to know.

3. Market Analysis

The market analysis section provides readers with a deep understanding of the specific industry or market in which you plan to serve.

This seems unnecessary but serves different purposes. Those who are looking to fund a franchise business should do some serious work for this section, as lenders will review it very closely.

To carefully draft this section, you should conduct thorough market research and industry analysis to define your target customers, industry trends, market demand, and competitors.

This will demonstrate that you understand the market dynamics and validate the demand for your products or services.

Here are a few elements you should include in your market analysis section:

• Ideal target market
• Market size and growth potential
• Customer segments
• Competitive analysis
• Emerging trends
• Applicable government regulations

4. Product or Service Offerings

In this section, you may provide a detailed description of your products and service offerings, along with their features, benefits, and pricing structure.

It helps you highlight what your business offers to its ideal customers, how your offerings will satisfy their needs and explains the value proposition of your products or services.

You may consider including these points in the product or service section:

• A brief description of your product & service
• Pricing details
• Intellectual property, copyright, and patent filings
• Quality measures
• Any additional offerings

5. Sales and Marketing Strategies

Your marketing and sales plan elucidates how you intend to market your products or services in greater detail. It helps you outline the marketing and sales strategies you’ll use to attract and retain potential customers.

The primary goal is to give a flexible and practical marketing and sales strategy that persuades the lenders you know how to advertise or develop a public relations campaign to reach the company’s revenue goals.

For a well-crafted marketing plan, you might consider adding the following details in your plan:

• Your target audience and brand positioning
• Detailed marketing strategy
• Sales and marketing goals and KPIs
• Sales and marketing budgets
• Customer retention plan

While reviewing your loan application, lenders would like to know how you plan to make money and how you overcome marketing and sales challenges, so ensure that this strategy is always relevant.

6. Operations Plan

The operations plan section provides a clear picture of your company’s day-to-day operations and activities. It is a detailed-oriented section that outlines how you’ll manage to run your business smoothly.

Also, operational excellence is necessary to achieve your goals, satisfy client commitments, and maximize results. So, try to mention your operational intricacies and showcase efficient systems and processes.

Here are a list of details you must include in your operations plan:

• Staffing & training
• Operational processes
• Inventory needs and supplies
• facilities & technology
• Regulatory compliance

By offering insights into these operational aspects, this section helps you instill confidence in lenders about your ability to effectively handle and grow your company.

7. Management Team

Your management team section introduces the key individuals who are responsible for driving your business ahead.

It helps lenders easily understand your team’s roles & responsibilities, educational qualifications, industry experience, and how you plan to compensate your leadership team.

Even this will assure lenders that your team is capable enough to navigate challenges, make informed decisions, and reach strategic objectives. Also, they feel confident giving you a loan—even if it’s your startup.

So, you may consider including the below information:

• Company owner profile
• Resume-styled summary of key executives
• Organizational chart
• Compensation plan
• Details of advisory board members(if any)

8. Financial Plan

A well-written and comprehensive financial plan is one of the most crucial sections of your plan, as it helps you prove to lenders your business’s financial health, growth potential, and ability to repay the business loan.

So, your financial analysis must include the projected financial statements for three years or more. The following are the key financial projections that you should add:

• Income statements
• Cash flow statements
• Capital expenditure budgets
• Balance sheet
• Break-even analysis
• Funding requirements

As well as you should also list hard or soft collateral if you possess it so that you can put it up to get a loan. Even lenders may request to add more granular data(such as cost of sales or cost per product/service).

Note that if you’re a startup and don’t carry enough data to highlight, consider including estimated costs, revenue streams, and other strategic future projections you may have.

9. Appendix

The appendix is the last section of a professional business plan that typically provides supplementary information and other supporting documents the lender may need for better understanding.

You may include the following details in an appendix:

• Business licenses and permits
• Contractual agreements or other legal documents
• Letters of reference
• Credit histories and tax returns
• Key managers’ resumes and certificates
• Product photos

By adding these details, you offer more detailed explanations or validation for your business plan, strengthening your discussions and claims.

What factors do lenders look for in a business plan

When you submit a business plan to secure funding, lenders will analyze it to evaluate the viability and creditworthiness of your loan application. Here are several key factors they look for:

Character of your management team

Lenders will assess a business’ character that includes subjective or intangible qualities like whether its owners or key executives are perceived as honest, competent, or committed. Also, they consider educational background, industry experience, skills, leadership capabilities, and credit histories. This can be critical for evaluating prospects as most lenders don’t wish to lend to whom they don’t feel trustworthy.

Your capability to repay loans

Loan officers also spend a lot of time analyzing the borrower’s ability to repay the loan. They will thoroughly examine the financial statements such as projected revenue, expenses, cash flows, growth plans, and loan payments. Further, lenders analyze the financial history to see how much revenue you have generated or how much profit you have made in the past.

The capital amount you’re seeking

While reviewing loan applications, lenders will go through your financial information that highlights how much funding you’re seeking, how much cash you carry on hand, and how much debt you have. Also, they assess your personal financial investments as a sign of commitment and seriousness. So, make sure your business plan clearly outlines your investment amount and funding needs.

Collateral or personal guarantees

In some cases, lenders may request collateral or personal guarantees to secure the loan. Thus, you should document any assets or valuable items you can offer as collateral or additional security. Even lenders may still approve your loan without collateral if you have a good credit history and a reliable business plan.

By understanding these key considerations, you can prepare a business plan that resonates with the lender’s interests and concerns. Now, let’s move to a few business plan examples for a loan.

Business plan examples for a loan

When you’re just venturing into your entrepreneurship journey, crafting a comprehensive business plan for a loan application can be overwhelming.

So, try to consider some sample business plan templates or resources to get started on the first draft of your plan. Here are a few business plan examples that you may find helpful:

• Sample business plan outline
• Small business plan template
• Comprehensive business plan writing
• Business Plan Workbook for Loan Applications

Start preparing your business plan

Finally, you understand the importance and key elements of drafting a business plan for securing a loan or funding. But it requires some extra effort to find success down the road.

If you’re still confused about where to start, Upmetrics could be a great choice. It’s a modern business plan app that helps entrepreneurs or small business owners create an actionable plan quickly.

With Upmetrics, you’ll get easy-to-follow guides, a library of business plan templates , AI support, a financial forecasting tool, and other valuable resources to streamline your entire business planning approach.

So, don’t wait and start preparing your business plan for a loan!

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

Do i need a business plan to get a loan.

Of course, most lenders or financial institutes require a solid business plan, even if you are a well-established business. A well-crafted business plan helps you highlight every essential information about your business and demonstrate to lenders that you have a realistic plan in place to generate income and repay the loan.

Can I write a business plan myself?

Definitely, you can write a business plan by yourself. Also, you can get help from various resources available, including business plan templates and guides, to create a comprehensive plan. But, if you’re unsure or need assistance, you may consider having a business plan software or hiring a professional writer.

How long should my business plan be?

The length of your business plan should be concise and focused, typically depending on its purpose. A one-page business plan is a single-page document, a lean or mini business plan comprises 1–10 pages, while a comprehensive business plan can range from 15 to 35 pages and beyond.

What's the most important element of a loan-seeking business plan?

The financial plan is the most crucial element of a loan-seeking business plan, as lenders want to check realistic and well-structured financial forecasts that present your ability to repay the loan. Also, this section can make or break a lender’s confidence and willingness to raise capital.

What format should I use?

It’s essential to select a format that can effectively convey your business idea, strategy, and financial projections to the lenders. Following are a few common options to consider:

• Traditional text-based document
• PowerPoint or Keynote presentation deck
• Executive summary or a pitch deck

So, whatever format you choose, it should align with your preferences, the lender requirements, and the complexity of your business.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

• Mar 30, 2023

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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​ [Sender.FirstName] [Sender.LastName] [Sender.Company] ​

​ [Sender.Company] ​ [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] ​

​ [Sender.Phone] [Sender.Email] ​

Bank Loan Proposal Template

Lender: [Lender.Company] ​

Attn: [Lender.FirstName] [Lender.LastName] ​

Table of Contents

Introduction, company profile, partner histories, loan request, loan repayment, financial statements.

Income statements

Cash flow statements

Balance sheet

Financial forecast, projections, business operational data, confirmation, loan proposal letter.

Dear [Lender.FirstName] [Lender.LastName] ,

I have been in the restaurant industry for more than two decades, holding both front of house and back of house positions. I've worked in several major U.S. markets, including New York City and the San Francisco Bay Area, and overseas in South America and Europe.

I first started out in my grandfather's restaurant busing tables and doing dishes, and for the past 5 years I have been the manager of a highly acclaimed and popular destination restaurant in San Francisco. I also hold a Bachelor's Degree in Food Business Management from the Culinary Institute of America.

Since those early days in grandpa's kitchen, I have wanted to run my own restaurant. I believe my time is now, as I have the necessary experience, industry relationships and connections to make this happen. With help from those industry connections, I've created a sound business plan that borrows from established ventures but takes things a step further.

The following proposal will show [Lender.Company] why I’m seeking a loan to launch my restaurant and how the money will be used to complement my existing capital.

​ [Sender.FirstName] [Sender.LastName] ​

At its core, a restaurant is a gathering place to relax, refuel, and socialize with others. The world is full of different cultures, but one thing we all share are meals together. I've taken this ethos to heart, and it is the driving force behind my concept for a restaurant.

In San Francisco, it's not enough to just serve good food; you are selling an experience as much as a meal. The city is one of the top markets for restaurants in the country. It was one of the first two regions, along with New York, in the U.S. reviewed by Europe's esteemed Michelin Guide, and it contains the most restaurants per capita of any U.S. city. In essence, San Francisco is a trend-setter in the food world.

My restaurant is currently in the buildout phase, with an anticipated opening date of six months from now. We have secured a lease for a space in a neighborhood that has steady foot traffic, is popular with tourists and locals alike, and does not have any similar restaurants already.

The space will be bright and open, with an exposed kitchen in the rear to show off food production and a 360 degree bar in the center with ample space to wait for a table and have a drink. We are aiming for seating of up to 50 at a time in order to give patrons a more personal experience.

We envision a younger clientele, with plenty of out-of-towners due to the neighborhood being popular with tourists. Our prices will be very competitive in order to attract customers, but I also believe in living wages and benefits for our employees. To this end, all tips generated by the service staff are pooled together and dispersed equally depending on each employee's function in the overall operation of the restaurant.

In addition to myself, there are two more investors in my restaurant. We each bring something unique to the concept, all having spent our careers in the restaurant industry.

One investor is a veteran in beer, wine, and spirits who runs a bar consulting business in San Francisco. He has helped open some of the city's most popular and well-respected establishments. He has also won numerous industry awards. His focus is on using fresh ingredients to craft cocktails that pair well with food.

The other investor is a seasoned chef who has worked for some of the finest restaurants in the U.S. for two decades. He studied cooking in France, and held two apprenticeships in Spain. His food has been lauded as "cutting-edge California cuisine."

I bring to the team the front of house experience, handling the direct contact with customers and managing the service staff. I have over 10 years of direct restaurant management experience at high-volume locations in San Francisco and New York.

Our budget for the restaurant is $250,000. Of that, the three investors (myself and the two others mentioned) have raised $125,000, meaning we need another $125,000 to launch the restaurant.

Our existing investment is being used to pay lease costs on the space while it's built out and construction expenses to renovate the interior. It's also going toward city and state permit and licensing costs associated with restaurant and bar operations. As stated previously, we anticipate an opening date of six months from now.

The money we are requesting from [Lender.Company] will go toward the following needs:

Kitchen equipment, $75,000: We believe quality food comes from good products. We need to purchase general cooking utensils, tableware and silverware, a new industrial-size oven with a 10-top burner, and refrigeration equipment.

Bar equipment, $25,000: Our bar will use only the finest ingredients and spirits available, in addition to a small and well-curated beer and wine list. We have established relationships with beverage industry distributors for these products at competitive rates.

Food, $25,000: No restaurant is complete without its menu. Through our years of experience and vast connections, we have established relationships with food purveyors around the state of California and elsewhere in the U.S. to supply the restaurant. These products will be the last items ordered before opening.

We are asking [Lender.Company] for a loan of $125,000 to be repaid over one year at a rate of 6% interest, making payments of $11,041.67 monthly.

Our estimates for revenue are an average of $6,000 per day over 22 operational days per month for a total revenue stream of $132,000 a month. After factoring in staff costs of $25,000 per month and operational costs of $75,000, we are left with enough money to comfortably repay a loan under those terms.

Spreadsheets for each partner are attached showing various forms of collateral we are putting up as security for our loan request. Among them are mutual fund investments, equity from ownership of two separate residential properties, and savings accounts.

Attached to this loan request are personal and business financial statements for each partner.

Income statement

Mention your income statement details here

Cash flow statement

Other documentation attached to this request includes income and cash flow projections for the restaurant, and alternative operational structures in the event our projections do not materialize.

I, [Sender.FirstName] [Sender.LastName] , attest that all information mentioned above is true to the best of my knowledge and understanding.

​ [Sender.Company] ​

​ [Lender.Company] ​

​ [Lender.FirstName] [Lender.LastName] ​

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How to Write an SBA Business Plan + Template

Noah Parsons

10 min. read

Updated August 1, 2024

Applying for a Small Business Administration loan typically requires a business plan.

Unfortunately, there’s no SBA loan business plan format that guarantees approval. The SBA even states you should “pick a business plan format that works for you.” 

While I agree with this sentiment, I’ve found that entrepreneurs who explain how funds will be used and how they will repay the loan tend to be more successful. 

Luckily, these details can be covered using our SBA-lender-approved business plan format . I’ll go over that structure in this article, and focus on the sections that the SBA prioritizes, so you can maximize your chances of getting funded .

You can even download a free SBA-lender-approved business plan template to fill out as you read. 

Let’s get started.

• Why you need a business plan for SBA loans

SBA loans require good documentation of your business and personal finances. You’ll need to pull together your past tax returns, bank statements, and various application forms depending on the type of SBA loan you apply for.

The bank issuing the loan will also want to know about the future of your business. 

They’ll want to see how the loan will be used and if future cash flow projections are realistic and indicate you can afford loan payments.

That’s where writing an SBA business plan comes in. 

Not only will your business plan describe your business to the lender, but it will include the financial projections the bank will use to determine if you qualify for the loan .

• What your business plan should include, according to the SBA

Business plans for SBA loans follow a fairly standard structure, but that doesn’t mean you need to follow it exactly. 

The SBA even recommends adjusting the plan outline to serve your needs. If a section does not apply to your business, it’s fine just to remove it.

Here’s the successful business plan structure I recommend for SBA loans:

1. Executive summary

A great executive summary is a short, simple overview of your business. It should be easy for a loan officer to read and clearly understand what your business does. 

When applying for an SBA loan, highlight your: 

• Business opportunity
• Financial forecast
• How much money you want to borrow and how it will be used

Remember, an executive summary should be short and to the point. The rest of your business plan will provide additional details.

[Dig deeper: How to write an executive summary ]

2. Company description

Some people call this section “Products and Services.” Either option is fine. The important thing is that you use this section to explain what your business opportunity is. 

You need to cover: 

• The problem you solve
• Who you’re solving it for
• What your solution is and why it’s better

Be specific and tell the story of your business and your customers. Focus on your strengths and what sets you apart from competitors. 

If your company is developing a product, include information on:

• What the product life cycle looks like
• Intellectual property filings
• Current research and development

If these topics don’t apply to your product, that’s fine. Just be sure that the description of what you sell is clear.

3. Market analysis

The market analysis chapter explains who your customers are. It provides an overview of your target market, competition, and industry.

Your target market is essentially a description of your ideal customers. Be sure to include specific demographic information (like age, gender, location, income) and psychographic information (hobbies, purchasing behaviors). 

This data should reinforce that your target market needs your solution .

It’s helpful to also include information on the size of your target market . Lenders will want to see evidence of enough potential customers to drive growth. 

While your target market information describes your customers, an industry overview discusses the type of business you’re in and its potential for growth. 

For example: If you’re starting a fast-casual restaurant, your industry overview might discuss the increased interest in fast-casual dining and how more people are eating in these types of restaurants every year. 

Finally, you’ll need to include a competitive analysis . This is a list of current competitors and alternatives, with explanations of why your business is a better option. 

Your goal is to show how your business is unique, what opportunities and threats there are, and how you plan to address the competition.

4. Organization and management

Also known as your company overview, this section is where you describe your legal structure, history, and team .

For your SBA loan application, you should focus on describing who is managing the business as clearly as possible. 

You may want to include an organizational chart. You should provide detailed resumes for everyone in leadership positions. Each team member’s experience, skills and professional qualifications can mitigate risk in the eyes of a lender .

To show you’re thinking ahead, it’s also helpful to include key positions you plan to fill as you grow. 

5. Sales and marketing plan

Your goal in this section is to summarize how you will attract, retain, and sell to your customers.

The marketing strategies and sales methods you describe should always have the customer top of mind, and demonstrate that you know how to connect with them. 

To help a loan officer visualize this, you can provide examples of marketing messaging, visuals, and promotions. If you have any research or results to show that your strategy has merit, include those as well. 

6. Financial projections

SBA lenders typically require 5 years of financial projections — including profit and loss statements , balance sheets , and cash flow statements . 

Be sure to include the SBA loan in your projections in the following areas: 

• A liability on your balance sheet.
• Payments on your cash flow.
• Interest expenses on your profit and loss statement. 

I’ll dive into specific details of what you should focus on in the “how to improve your chances” section.

Your first year of financial projections should include monthly details. After that, annual summaries are usually sufficient for most SBA lenders. Occasionally, a lender might require 24 months of monthly projections, so check with your bank before submitting your business plan. 

If your business is up and running, you must also provide historical financial reports for the past 12-24 months of operations—including income statements and a current balance sheet.

Typically, you will also need to provide reports on your personal finances , including any assets you have, such as a home or car. 

Finally, include a section explaining your use of funds—what exactly you plan to use the loan for.

7. Appendix

The appendix is your chance to provide additional documents that support sections of your business plan. 

When applying for a loan, these may include:

• Employee resumes
• Licenses and permits
• Patents and other legal documents
• Historical financial statements
• Credit histories

Don’t worry about stuffing your appendix full of additional documentation. Only include information if you believe it will strengthen your approval chances, or if your lender specifically asks for it.

• How to improve your chances of being approved for an SBA loan

Your SBA business plan needs to focus on the loan you are applying for and how that will impact your business financially. 

Make sure to include the following information in your financial plan to increase your chances of success with your lender:

Funding request 

In your executive summary, document how much money you are asking for. It’s best to put your number where it can be clearly read, instead of trying to bury it deep within your business plan.

Remember, there are limitations to how much you can borrow through SBA-backed loans.  Most have a maximum loan amount of $5 million, while SBA Express loans have a maximum loan amount of $350,000. 

Use of funds

You should also describe how you plan to use the loan and which aspects of the business you want to invest in. 

Some SBA loans are designed specifically for expanding export businesses or funding real estate transactions. So, make sure your use of funds description is appropriate for the loan you are applying for.

Cash flow forecast

Be sure to include the loan in your cash flow statements and projections . You want to demonstrate that you’ve planned how you will use and repay the loan.

You need to show:

• When you anticipate receiving the loan.
• How the loan will impact your finances. 
• Loan payments for the life of the loan. 

Having this prepared won’t just increase the chances of your application being approved—It  will make it much easier to manage the loan after you receive funding . 

Balance sheet 

You’ll also want to put the loan on your projected balance sheet , and show how the loan will get paid down over time. 

The money you owe will show up on your balance sheet as a liability, while the cash you receive from the loan will be an asset. Over time, your forecasted balance sheet will show that the loan is getting paid back. 

Your lender will want to see that you have forecasted this repayment properly.

Profit & Loss forecast

Your P&L should include the interest expenses for the loan, and show how the interest will impact your profitability in the coming months and years.

• How long does an SBA business plan need to be?

The SBA doesn’t have an official recommended or required business plan length . As a general rule of thumb, you should make your business plan as short and concise as possible. 

Your business plan is going to be reviewed by a bank loan officer, and they will be less than excited about the prospect of reading a 50-page business plan.

If possible, keep the written portion of your business plan between 10-15 pages. Your financial forecasts will take up several additional pages. 

If you’re struggling to keep it short, try a one-page plan

A great way to start your business plan is with a simple, one-page business plan that provides a brief and compelling overview of your business. 

A good one-page plan is easy to read and visually appealing. Once you have your one-page plan, you can expand on the ideas to develop your complete written business plan, and use the one-page plan as your executive summary. 

Loan officers will appreciate a concise overview of your business that provides the summary they need before they start looking at your complete business plan and financial plan .

• Resources and tools for writing an SBA business plan

Remember, you can download a free SBA-lender-approved business plan template . It includes detailed instructions to help you write each section, expert guidance and tips, and is formatted as lenders and investors expect.

If you’re looking for a more powerful plan writing tool, one that can also help you create financial forecasts for the use of your loan, I recommend you check out LivePlan . 

With LivePlan, you get:

• AI-powered recommendations: Generate and rewrite sections of your plan to be more professional and persuasive.
• Step-by-step instructions: In-app examples, tutorials, and tips to help you write an impressive business plan.
• Automatic financials: Skip the spreadsheets and complex formulas, and quickly create accurate financial forecasts with everything a lender needs.
• A built-in pitch presentation: Print or share your full business plan, one-page pitch, and financial reports—all with a professional and polished look.

Whether you use the template, LivePlan, or try writing a business plan yourself, following the structure and tips from this article will improve your chances of getting an SBA-backed loan. 

And for additional SBA-focused resources, check out our guide on how to get an SBA loan .   

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

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Every business owner can benefit from writing a business plan, including those in the early stages of launching a business . A well-crafted business plan communicates the business’s strategy for growth to key leaders and investors. It’s also an important step to getting a business loan since many lenders require it.

Let’s walk through the steps and elements of writing your ideal business plan.

Key takeaways

• A business plan outlines how you plan to bring products or services to market
• Many lenders require a business plan be included with a loan application
• You can choose to write a lean or traditional business plan
• It covers everything from market research to your marketing and financial plan.

What is a business plan?

A business plan is a document that outlines a business’s strategy for bringing a product or service to market. It describes the company, product idea and goals or steps that the business will take to achieve growth. The document includes multiple sections that provide insight into each part of the strategy.

The business plan can be a simple document called a lean business plan or a more detailed traditional business plan. The lean business plan covers the basics of the company, product, target customers and how it will get revenue. It may only be one page with short descriptions for each part.

The traditional business plan includes more depth on the goals, measurements, research and marketing strategies to get the business where it’s going. Here are key differences in the information written for each type of business plan:

Although there’s no one-size-fits-all approach, follow these steps to create a strong business plan.

Write an executive summary

An executive summary is the introduction to a business plan, giving the key details about your business model and the product or service you’re offering. While there’s no strict formula for writing this section, you should include all the relevant details that you’d want a key partner or investor to know.

It should describe your product or service idea, target market and key objectives for growth within the next few years. It may also summarize your marketing and sources of revenue or funding.

You can adjust what to include based on the exact business you’re starting and its business model. Most business plans keep the executive summary to one to two pages.

Create a company description

The company description should overview important details about your company. It can state your company’s name, location and type of entity as well as describe its history. It should also clearly define the vision that you have for your company’s future in the form of a mission or vision statement.

You may also outline the structure for managing the business, listing key roles and responsibilities and the people filling those roles. Depending on the details you included in the executive summary, you might include information about your product or service.

Describe your value proposition

The value proposition is your chance to pitch what makes your business stand out. It identifies the customer’s problem or gap in the market for the product or service you’re offering. It then goes into detail about how your business will solve the problem.

The value proposition can also explain major barriers that customers have before making a decision and what your business will do to break through those barriers. It shows leaders and investors that you have a thoughtful purpose behind the business you’re creating.

State your business goals

The path to achieving success starts with knowing what success looks like. Many business plans state its main objectives in the company description. Others describe those goals in a separate part of the business plan to dive deeper into the specific goals.

You can also include key measurements you’ll use to gauge whether your business is achieving its goals. You would then use these goals in other business planning documents, further breaking them down into defined short-term steps that ladder up to the larger goals.

Outline your product and service

Next, you want to dive into the main product or service that your business is offering. Explain what the product is, how it works and the benefits that it brings to customers. If you’re planning to make multiple products, you can include a description of each product line. Show how this product or service is set apart from similar products from competitors.

You can also use this section to show how the product or service is produced, including cost of supplies and the price at which you plan to sell. Let the investors and stakeholders know if you have a trademark or patent for the products you’re creating.

Give a summary of market research

Next comes market research, the part of the plan where you do your due diligence to gather information and understand your target customers and competitors. First, you want to understand your target customers’ needs and any barriers they might have to buying your product.

You want to look for information about their demographics and how they might respond to the product you’re offering. This information will help you when designing your product and marketing it in a way that resonates with customers.

Then, you can look at the economy around your product, such as average pricing and sales revenue. This also includes research about your competitors, the market share that they hold and the barriers to entering your market. This section may include data from data research companies, surveys, focus groups and interviews.

According to the U.S. Small Business Administration , the questions you’re trying to answer include:

• Market size, or how many people may want to buy your product
• What people are willing to pay for your product
• Similar products already available
• Who your competitors are
• How your industry is doing
• Typical revenue gained by small businesses in your industry

Summarize a marketing strategy

Once you’ve clearly defined your product and who you’re selling to, you can come up with a strategy for how you’ll reach and sell to customers. In this section, you’ll include the different marketing channels you’ll use to promote your products and services.

These may include direct mailers, social media, traditional or online advertising or media events. The exact channels you use will depend on where you can easily find your target customers.

You can also describe the key messaging that you plan to use during marketing, which will pinpoint the value that it offers to customers. The marketing plan should also include the cost of marketing to different channels and your marketing budget. You can then outline the marketing goals and measurements you’ll use to see if you’re meeting those goals.

Create a logistics and operations plan

The logistics and operations section of your business plan is a detailed description of how your business will bring products and services to market. It explains how the business will run on a day-to-day basis. It should highlight your company’s management structure, give an overview of processes and describe the workflow from end to end. It can also include data on how many products you can make or how long it will take to make products or offer services.

Create a financial plan

Now that you’ve laid out the research, goals and planning, you can use that information to forecast revenue and build a financial plan. Use any past revenue or sales history as a starting point. Then, refer to your company’s recent growth and goals to calculate future financial growth.

If you’re a startup , you can use market research to estimate revenue for a startup in your industry. You can either forecast revenue manually or find software that projects revenue for you.

In your financial plan, you also want to create and track your business budget . You’ll track your estimated and actual revenue, updating regularly to keep the revenue forecast accurate and realistic. Next, you’ll list all expenses and their amounts, including one-time, variable, fixed or seasonal expenses. Here are some examples of different business expenses:

• One-time or capital expenses: Equipment, real estate, furniture, commercial vehicles, business licenses
• Variable expenses: Inventory, utilities, fuel, office supplies, shipping services, card processing fees
• Fixed expenses: Employee salaries and benefits, software, web hosting, office or equipment leases, business loan repayments

Business plan resources

Writing your business plan will take more than putting pen to paper. Try these resources to help you gather data, set up your finances and more:

• Business plan templates. Creating a business plan for the first time? Learn by looking up examples of other business plans or templates like these from Smartsheet .
• Software for accounting and financial planning. Many small businesses use Quickbooks, Xero or Netsuite to track revenue and expenses. These may also forecast revenue based on sales history.
• Business loan resources. To cover your funding needs, think through the types of business loans that would best serve your business. Once you’ve landed on a loan, compare features and interest rates to help you make a decision.
• Survey tools. For in-depth market research, you can build a survey and send to your target customers through a data research company like GWI.

Small business mentoring

Experienced mentors can guide you to making effective business decisions and unlock new potential for growth. Where to find small business mentors:

• SBA. You can find resources and free or low-cost mentors through the SBA’s local assistance tool .
• Small Business Development Centers. SBDCs provide specialized training programs in your local area covering specialized topics like marketing, data research and business management.
• Community Development Financial Institutions. CDFIs   are financial organizations like banks and credit unions that are built to develop the community. Alongside banking and lending services, CDFIs offer training programs and resources.
• SCORE. SCORE is an organization that partners with the SBA to bring resources to small business owners. Mentorship is at the core of what the organization does, and it can match you with a local mentor through its online locator tool.
• Local Chamber of Commerce. These local organizations are known for supporting business networking. They may help you find a mentorship program, or you may build a relationship with another successful entrepreneur through networking events.
• Nonprofit organizations. Some nonprofit organizations are dedicated to supporting small business owners with funding, trainings and mentorship programs. These are typically local programs. For example, NYPACE is a nonprofit that offers free consulting to underserved entrepreneurs in New York.

Bottom line

Your business plan should outline key information about your company, products and the strategy for getting those products in the hands of your customers. Every business plan looks different, but there is essential information to include in every plan, such as who your target customer is and your expected revenue. The business plan serves to help you get business funding and outline exact goals and steps to growing your company.

Frequently asked questions

Do i need a business plan to apply for a business loan, how do i write a simple business plan, what basic items should be included in a business plan.

Related Articles

How to get a startup business loan: 5 steps

How to get a business loan in 6 steps

What is a financial plan? How to build one for your goals

How to create a business budget

Bank Loan Business Plan [Sample Template]

Home » Business Plans » Financial Services

Do you need a loan for your business? If YES, here is a detailed sample bank loan business plan template & proposal for a beverage distribution company.

Loan Proposal for Charlie & Tango Beverage Distribution Company®, LLC.

1. industry overview.

Charlie & Tango Beverage Distribution Company®, LLC is seeking to:

(a) Convert existing short-term notes of $165,000 to a long-term note to be repaid at $3,000 per month (plus interest).

(b) Establish a credit line of $300,000 to finance expected seasonal fluctuations in inventory and accounts receivable.

We have structured the business in such a way that repayment on long-term financing will come from continuing net profits that we will generate. So also, the repayment of the seasonal credit line will come from liquidation of inventory and receivables.

• Corporate Data

Name: Charlie & Tango Beverage Distribution Company®, LLC

Address: 1310 – 23nd Avenue N.W.

Seattle, Washington 98128

Phone: (206) 478-2600

Date Established: January 3, 2005

Form of Organization: Washington Corporation

Incorporated by Irwin and Irene Dickson on March 1, 2005.

Charlie & Tango Distribution Company®, LLC is a family business that is owned by Irwin Dickson and his immediate family members. Irwin Dickson has a B.Sc. in Business Administration, with over 8 years of hands on experience in the retailing and distribution industry, working for some of the leading brands in the united states.

Although the business is launching out by focusing on Trenton – New Jersey, but there is a plan to expand our distribution network all across the state of New – Jersey.

2. Executive Summary

Charlie & Tango Beverage Distribution Company®, LLC is a Seattle-based corporation that distributes different types of beverages to retailers and distributors out of a North Seattle warehouse location. The average customer is a small or medium – sized retailer of beverages, and other related retailers including mom and pop shops and shopping malls.

Estimated sales for fiscal 2005 is $1,250,000. Advertising expense has been low since most advertising is at the retail-level, co-op by the manufacturer of the products we will be distributing.

The primary focus of the business is excellent service and quality product delivery — and the ability to keep beverages in stock. Most accounts are carried on a 2 percent 10/Net 30 basis; few customers take discounts. Third party distributors are generally carried on a Net 10 basis.

Distribution is from a central warehouse in North Seattle, which is connected to a small showroom and also contains the corporate offices. Lead-time on ordering for inventory is quite short and style changes generally occur once per year.

Our major supplier is Nestle. Nestle’s terms are 2% 10/Net 30. Almost all the suppliers offer discounts, some even larger than 2% 10/Net 30. During 2005 there was one major price increase of about 5 percent. Charlie & Tango Beverage Distribution Company®, LLC operates out of leased premises and holds a very favorable lease through 2007.

For a business such as ours, location is not critical, although our current location does provide excellent access for delivery trucks. This is a distribution business and, therefore, depends upon efficient routing and /or shipping. It is important to note that bad debts have recently taken an alarming upturn in our line of business.

3. Our Products and Services

• Distribution of functional beverages and sports drinks
• Distributions of carbonated soft drinks
• Distribution of bottled water
• Distributions of fruit juices and cocktails
• Distribution of teas
• Distribution of energy and sport drinks

4. Our Mission and Vision Statement

• Our vision is to ensure that we not only meet but exceed the expectations of our clients no matter what those expectations are.
• Our mission is to build a world best loan business company that will favorably compete with other loan business in the industry.

Our Business Structure

Below is our management and organization structure please note that this excludes unskilled laborers who we will engage from time to time;

• Chief Executive Officer (Owner)
• Warehouse Manager
• Human Resources and Amin Manager
• Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive
• Drivers / Distributors

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Warehouse Manager:

• Responsible for organizing the safe and efficient receipt, storage and dispatch of warehoused goods
• Responsible for liaising with customers, suppliers and transport companies
• In charge of planning, coordinating and monitoring the receipt, order assembly and dispatch of goods
• Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
• Responsible for keeping stock control systems up to date and making sure inventories are accurate;
• Responsible for producing regular reports and statistics on a daily, weekly and monthly basis
• In charge of overseeing the planned maintenance of vehicles, machinery and equipment.
• Ensures that proper record of goods are kept and warehouse does not run out of products
• Ensure that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
• Control beverage and carbonated soft drinks distribution and supply inventory
• Supervise the workforce in the warehouse floor.

Merchandise  Manager

• Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of beverages and carbonated drinks for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Manage the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Distribution Truck Drivers

• Assist in loading and unloading beverages and carbonated soft drinks
• Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assist the transport and logistics manager in planning their route according to a distribution schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Report defects, accidents or violations

Modus Operandi and Source of Supply

It is the duty of our merchandise manager or marketing manager to help the organization source for beverage manufacturing companies to help distribute their products. We will go out there to source for good wholesale distribution deals and also ensure that we do not only distribute at the right prices that will guarantee the organization good profit margin, but also, we will ensure that we distribute beverages that are in demand.

Once the deal is sealed, the drivers either load their trucks directly from the company or warehouse and then go around distributing it. Once the products are distributed, we will either collect money on delivery or we will go back later to collect our money. Usually there will be a business agreement with the beverage manufacturing companies and we can access credit based on our capacity.

The names of our major suppliers are;

• The Coca Cola Company
• PepsiCo Inc.

When it comes to available storage facilities, our warehouse is designed based on the requirements of our major suppliers and the zoning regulations of our location.

Professional and Advisory Support

Board of Directors

• Irwin Dickson – Chairman
• Irene Dickson (Mrs.) – Director
• Isabella Dickson – Director
• Maria Rosenberg – Director
• Collins Jones – Director
• McCain Greene – Secretary

Management Advisory Board

• Luke Sharpton
• Allen Shaun
• Cecelia Hall

Attorney – Bar. Felix Leighton (LLB, LLM)

Accountant – Deb Rosen

Insurance agent – Alliance Insurance Group

Banker – Platform™ Investment Bank, Inc.

6. SWOT Analysis

Our intention of starting out in Trenton and distribute our goods only within Trenton – New Jersey is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then start distributing all around the state.

We are quite aware that there are several beverage distribution companies all over Trenton and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Charlie & Tango Distribution Company®, LLC employed the services of an expert HR and Business Analyst with bias in retailing and distribution to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Charlie & Tango Distribution Company®, LLC;

Our location, the business model we will be operating on (robust distribution network), varieties of payment options, wide range of products from top brands and our excellent customer service culture will definitely count as a strong strength for us. Also our management team members are people who have what it takes to grow a business from startup to profitability with a record time.

A major weakness that may count against us is the fact that we are a new beverage and carbonated soft drink distribution business and we don’t have the financial capacity to compete with leaders in the industry for now.

• Opportunities:

The fact that we are going to be operating our business in Trenton – New Jersey provides us with unlimited opportunities to sell our goods to a large number of retailers and businesses. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our products and services; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a similar business in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Distribution of goods as wholesaler to retailers has been in existence for as long as human started trading goods, but one thing is certain, the distribution industry is still evolving. The introduction of technology has indeed helped in reshaping the industry.

Lastly, it is now a common phenomenon for distribution companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their business to meet their needs; in essence, the use of technology helps businesses like ours to maximize supply chain efficiencies. Data collected from customers goes a long way to help beverage and carbonated soft drinks serve them better.

8. Our Target Market

The beverage and carbonated soft drinks industry has a wide range of customers; a good number of people on planet earth consume beverages and carbonated soft drinks and it is difficult to find people around who don’t.

In view of that, we have positioned our company to service businesses in Trenton – New Jersey and every other location. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to retail (distribute) a wide range of beverages and carbonated soft drinks from different production companies to the following businesses;

• Retailers of beverages and carbonated soft drinks
• Restaurants
• Night clubs and bars

Our Competitive Advantage

A close study of the beverage and carbonated soft drinks industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other leading supermarkets and grocery stores in Trenton – New Jersey.

Charlie & Tango Distribution Company®, LLC is launching a standard beverage and carbonated soft drinks distribution business that will indeed become the preferred choice of retailers, hotels, and restaurants et al in Trenton – New Jersey.

One thing is certain; we will ensure that we have a wide range of products available in our warehouse at all times. One of our business goals is to make Charlie & Tango Distribution Company®, LLC is a one stop beverage and carbonated soft drinks distribution company. Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Charlie & Tango Distribution Company®, LLC is in business to retail a wide range of beverages from top beverage production companies to hotels, restaurants and retailers in Trenton – New Jersey. We are in the distribution industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.

Our source of income will be the retailing (distribution) of a wide range of beverages at affordable prices. We will generate income for the business by;

10. Sales Forecast

One thing is certain when it comes to the distribution business, if your business is centrally positioned coupled with effective and reliable vans/trucks and distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are positioned to take on the available market in Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operations and grow the business and our clientele base.

We have been able to examine the beverage and carbonated soft drinks distribution industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Charlie & Tango Distribution Company®, LLC.

• First Fiscal Year:  $240,000
• Second Fiscal Year:  $450,000
• Third Fiscal Year:  $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products, home delivery services and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Charlie & Tango Distribution Company®, LLC, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for beverage and carbonated soft drinks retailers, hotels, and restaurants in Trenton – New Jersey.

We hired experts who have good understanding of the retailing and distribution industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Trenton – New Jersey.

In summary, Charlie & Tango Distribution Company®, LLC will adopt the following sales and marketing approach to win customers over;

• Open our business in a grand style with a party for all.
• Introduce our business by sending introductory letters alongside our brochure to beverages and carbonated soft drinks retailers, hotels, restaurants, households and key stake holders in Trenton – New Jersey
• Ensure that we have a wide range of beverages and carbonated soft drinks from different brands within and outside the United States at all times.
• Make use of attractive hand bills to create awareness business
• Position our signage/flexi banners at strategic places around Trenton – New Jersey
• Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

Despite the fact that our beverage and carbonated soft drinks distribution business is well structured and well located, we will still go ahead to intensify publicity for the business. Charlie & Tango Distribution Company®, LLC has a long-term plan of opening distribution channels all around the state of New Jersey which is why we will deliberately build our brand to be well accepted in Trenton before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Charlie & Tango Distribution Company®, LLC;

• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Trenton – New Jersey
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact beverage and carbonated soft drinks retailers, hotels, restaurants, night clubs and bars by calling them up and informing them of Charlie & Tango Distribution Company®, LLC and the products we sell / distribute
• Advertise our grocery home delivery services business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and distribution vans / trucks and ensure that all our staff members wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to distribution companies and retailers, it is normal for retailers to purchase products from distribution companies that they can goods at cheaper price. We will work towards ensuring that all our goods are distributed at highly competitive prices compared to what is obtainable in the United States of America.

We also have plans in place to discount our goods once in a while and also to reward our loyal customers from time to time.

• Payment Options

The payment policy adopted by Charlie & Tango Distribution Company®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Charlie & Tango Distribution Company®, LLC will make available to her clients;

• Payment via bank transfer
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via POS machines
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Charlie & Tango Distribution Company®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 month at $1.76 per square feet warehouse facility in the total amount of $105,600.
• The total cost for warehouse facility remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of beverages, and carbonated soft drinks) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost for the purchase of distribution vans / trucks – $25,000
• The cost of launching a website –  $600
• The cost for our opening party –  $7,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our beverage and carbonated soft drinks distribution business in Trenton – New Jersey.

Generating Funds/Startup Capital for Charlie & Tango Distribution Company®, LLC

Charlie & Tango Distribution Company®, LLC is a private business that is solely owned and financed by Charlie Tango and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Charlie & Tango Distribution Company®, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail / distribute our beverages and carbonated soft drinks a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Charlie & Tango Distribution Company®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Attached Documents

• Lease (or copies of proposal)
• Franchise agreement
• Purchase agreement
• Articles of Incorporation
• Partnership agreements
• Copies of business licenses and registrations required my us to conduct business
• Copies of contracts with third parties

Include details and studies used in your business plan; for example:

• Brochures and advertising materials
• Industry studies
• Blueprints and plans
• Maps and photos of location
• Magazine or other articles
• Detailed lists of equipment owned or to be purchased
• Copies of leases and contracts
• Letters of support from future customers
• Any other materials needed to support the assumptions in this plan
• Market research studies
• List of assets available as collateral for a loan

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