My Small Business Blog:
Running your own business can be very rewarding however it is certainly challenging too. You’ll find yourself working long hard hours and making difficult decisions day in day out, so it is definitely not an easy option. A heavy dose of realism and plenty of research is a must before you take that first step and approach your bank manager for finance.
Writing your plan
The importance of a good business plan can not be overstated when you are starting up in business. Although the initial objective of the document is to help you raise finance for the business, it will also help you understand what you wish to achieve from the business and is an essential document to review the performance against your projections and can alert you to anything that is not going according to plan. The plan should demonstrate that you understand the business opportunity and unsurprisingly, a bank will only lend when it has a very good chance of being repaid. You may wish to seek free business advice when drafting the plan although it is too important to be left to someone else to write. Banks can supply a business plan template to give you guidance as to what to include in the document. Accountants and Business Link advisors can also provide valuable assistance in producing a business plan.
You must be able to confidently answer any questions raised by the bank manager about the business, your chosen market and the financial projections. The bank manager will want to see a robust plan summarising the business opportunity however they won’t be interested a lengthy document covering the operation of the business in minute detail. It’s always a good idea to practice presenting your proposal before you actually meet the bank manager.
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