A bankable business plan clearly elaborates a business idea while it meets the needs of financial supporters. Financial supporters can either be investors, bankers, partners, family members or anyone who might be willing to invest in the prospective business. A business plan can be considered as bankable if it is unique, clearly elaborates the business financing structure and establishes the subsequent activities for business success. In this article, we explore 5 key elements of a bankable business plan.
1. Define The Idea In your Business Plan
A bankable business plan is identifiable by its ability to define the business idea and how it will be implemented for a profit. Businesses become successful for the simple reason that they are able to satisfy key player’s needs. Key players in business comprise of your customers, employees, investors, lenders and suppliers. A business plan will elaborate on how the business idea will result in tangible products that attract and satisfy customers while giving lucrative returns to investors.
A bankable business plan defines how customers will get a good product/service from your business idea. It further clarifies how investors will earn high financial returns and gives assurance to lenders that they will get their money back. Employees want fair compensation working in a safe environment and suppliers value good customers for their products. A bankable business plan captures and eloquently communicates these principles.
2. Market Yourself to investors
A bankable business plan is a tool for use to convince investors and lenders that you are up and ready for the task. A well written business plan will highlight the feasibility of the business owner to run the business. It attempts to make it clear that you have the time, necessary skills, money and how committed you will be to building a successful business. In a bankable business plan, you should make it clear judgement that you have the necessary skills and knowledge to take on the business venture. In areas where you are not fully equipped you also highlight how you will make compensation and obtain the skills for others.
Marketing yourself in a business plan also involves making an assessment of the available resources. A bankable business plan will also feature a financial feasibility test to establish whether start-up resources are available. In essence, it captures in a list all the necessary requirements for starting the business. A business plan should demonstrate a strong possibility of raising enough funds to secure all the necessary start-up requirements.
3. Show that you will be profitable
A bankable business clearly establishes that the respective business has a good chance to make profits. It shows justifiable estimations of the average revenue you expect your business to generate. You could be thinking of starting a poultry farming business, estimate how many birds you expect to sell and give an average price. Show how your working capital will be structured by determining how much money you will need for feed, medicines and heating equipment. Factor in salaries, utilities and advertising costs. A bankable business plan will show how revenue will exceed expenses in a given timeframe.
4. Show An Elaborate Winning Strategy
Start ups have different business plans and business strategies, but there are only few business principles which can be adopted by any business if it is to be successful. You need a competitive advantage. A businesscompetitive advantage sums up the reason why customers will choose your product/service offering over those of your competitors. A poultry farmer may choose to sell his/her birds dressed and packed in varying sizes and portions. Another competitor might opt for a specialised feeding program which results in fully developed birds which fetch a higher market price. Now, think about your business competitive advantage and let it give a reason why your business will succeed in the marketplace.
5. Show The Existence of A Viable Market
Products and services exist because they have a market niche. A bankable business plan will clearly highlight that a market exists for the product/service by defining the demography of the target market. In the case of a poultry business, restaurants, boarding schools and home owners make for a viable market to focus on and a reason for the existence of the business. A business plan should be able to establish the size of the targeted market. In ascertaining the size of the market there is also a need touch on the quality requirements of the said market.
The above sum up just about what you need to focus on as you write your business plan. You can also contact us via email to get a customised business plan.
