When you’ve got a business that you’re looking to build and turn into a prosperous company, you’ll almost certainly need to raise capital along the way whether its through making a pitch to investors or getting a business loan.
Since lenders offering business loans want to know that their loan has a high chance of succeeding in your business, you’re going to want to present them with a real actionable business plan that they can follow. A real business plan isn’t just simply the idea behind your business or a brief introduction on what your business does. It is working details on how your business is run.
Formulating A Real Growth Strategy
As Technofaq states, a business growth strategy is going to have plans for down the road. For example, you might plan out a time that you will be leasing office or retail space for your business until you’ve purchased your own property, or you might map out how certain operations will be carried out until you reach a certain goal.
Basically, you want to show your lender where you’re going to start at and how you’re going to get from point A to point B.
Making An Actual Budget Your Business Will Use
In order to know that your business is going to succeed, most lenders are going to want to see a budgeting plan that outlines how finances will be managed. They’ll want to know that finances are covered for hiring new staff, covering tax costs, keeping the power on and flexible enough to make cuts when necessary.
According to Inc Magazine, you want to have timetables planned out in your budget such as quarterly and yearly sales and profit lines. While much of your budgeting and expected sales will be estimates, it’s good to expect on the lower side than try to meet goals you’ve not done your due diligence on.
Planning Your Exit Strategies
Exit strategies may be pre-planned or they may need to be a backup plan just in case your business doesn’t meet the goals you had set for it. The strategy should include knowing how to sell or liquidate your assets to repay your loan, or to pass the business on to someone else who might be able to rebrand it. While most businesses that have good leadership and good financial usage can succeed, you never want to be unprepared for the worst case scenario.
Once you’ve prepared your business plan, your chances of receiving financing will be much greater, but even if the loan officers of your local bank or a big city bank don’t grant your business loan request, you may be able to find alternative loans. Person-to-Person lending has grown in recent years and many P2P lenders work with small business owners and starting entrepreneurs. But there are even more fast loan options out there besides these such as auto title loans or personal installment loans. You just simply need to determine how much capital you’ll need upfront and whether you can make repayments on time.