Having a business plan is very crucial when you have an intention of collecting a bank loan for your business in Nigeria. In the business world, having a good business plan is one of basic necessities people ought to have before venturing into any business of their choice.
For those who do not have the finance to start up their business, and intends to apply for a Bank Loan in order to get financial assistance, this article would be very helpful to you. Banks are always willing to assist people by giving them loans to enable them start their choice of business but they can only grant such loan if the person is willing to provide a good business plan and collateral. There is a 50% chance that such loan would be granted if one is able to write a good business plan. However, some people may find it difficult to write a good business plan and it would may therefore make the Bank not to grant them loan for their business.
Steps in writing a good business plan
1. Business idea
This is the first thing to write in a business plan. Before one can venture into any business as a career, one must ensure that he has adequate knowledge about the business he intends to start. One must undergo a training if possible in that business in order to know pros and cons involved in the business.
2. Type of business
In a good business plan, one must state the type of business he wants to start-up. This is the second thing to write in a business plan. It is different from the business idea.
3. SWOT Analysis
This is the another segment in a business plan where one has to make an analysis about himself and the business. The acronym SWOT means “Strength, Weakness, Opportunity and Time” . I will explain each of them.
I. Strength – This is an analysis where the individual states his good qualities and abilities which can help him in the business. Such as Smartness, to be outspoken, boldness, ability to advertise his business.
II. Weakness –This is an analysis of the flaws of the individual towards the growth of the business. Such as shyness, lack of patience.
III. Opportunity – This is an analysis of what may likely occur in the business that can help in the growth of the business. Such as nearness to market.
Iv. Time – This is an analysis about the period of growth in the business.
This is a segment in the business plan where one has to tell about how and when he intends to start the business.
5. Legal responsibility and insurance
Every business ought to have a legal backup and insurance, so when writing a business plan, one must ensure he includes the legal policy and insurance as well.
In a business plan, one must also write about the market strategy and market target of the business. A good marketing strategy would create awareness and growth of the business in the long-run.
This includes the direct cost and indirect cost. The direct cost involves, the direct material cost and the direct labour cost. In a business plan, it is necessary to write about what it will cost to start the business.
8. Required start-up capital
In a business plan, this section is where an individual will write the amount needed to start the business.
9. Source of start-up capital
This is the financial planning segment where the individual has to write about the source of capital either bank loan or already available money.
10. Record keeping
This is very important in a business as it can be a form of measuring the growth of the business. Therefore, in a business plan, it is mandatory to write about the means of record keeping.
11. Payment schedule
This is a very important section of the business plan because in this section, the person has to write about how to make the payment of the bank loan that will be collected and the duration of payment.
12. Economic and social value of the business
This section of the business plan will tell how the business will be affected based on the social and economic values of the individuals in the locality of the business.
This is where the person write a brief analysis of the whole business plan.