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How To Write A Business Plan and Financial Model

Pre-Qualify for a start-up loan

A well thought out business plan and financial model (financial projections) will help you establish the type of financing to look for and how much capital you need and equally important, it should contain enough detail to provide lenders with an understanding of the transaction and help them assess the risk. Depending upon your level of expertise, this how to write a business plan guide will provide you with the insight necessary to write an effective and professional business plan. When creating a business plan you may want to use a business plan template, or a Business Plan Writing service to assist you, although many franchise systems provide assistance or templates for their franchisees.

When Writing A Business Plan you should include

  • An executive summary which is a brief description of the business
  • A company description, including goals, industry description, products and/or services and business structure (e.g. corporation, limited liability company, partnership etc.)
  • Management bios, qualifications, education and experience
  • Industry market analysis and analysis of competition
  • A marketing plan, you should include an analysis of your potential customer base and how you intend to capture your share of their business
  • Analysis of the strengths, weaknesses, opportunities and potential threats to your business (also known as the SWOT analysis) - Examples of strengths could be superior or unique product or service, location, population density and demographics, management experience. With respect to the weaknesses and threats, you should discuss any risk mitigating factors. For example if your new business is part of an established franchise system but your management team lacks experience, a mitigating factor could be franchisor training and assistance.
  • Capitalization and Financing including the amount and use of loan proceeds, equity contributions and working capital reserves. Make sure that your use of proceeds includes closing costs and expenses such as legal fees, filing fees, lease deposits, appraisals etc.
  • Milestones - basically a timeline and goals you expect to meet during the start- up phase.

Discover if you pre-qualify for a business loan before you invest in a business. Get a a objective assessment and potential pre-qualification offers at

Financial Modeling (Projections)

The financial model or projections will be the road map you have established and which you will need to adhere to or exceed to achieve success. Your assumptions should be clearly stated since they will be carefully analyzed by lenders for reasonableness and compared to industry standards. The projections of the financial model must reasonably show sufficient excess debt service coverage or DSC for you to get your loan approved. Again, depending upon your level of experience, you may want to seek professional assistance when preparing your financial model. You want to ensure that you are including all relevant items of income and expense and that your forecast of revenues and ratios of expenditures are reasonable when compared to industry standards in your locale. It is extremely important that you include sufficient working capital reserves because start-up businesses always contain an element of uncertainty and unforeseen delays or events could jeopardize your plans.

Your model should include:

  • A detailed twelve month Profit and Loss Projection
  • At least two to three additional years profit and loss projections
  • Projected cash flow for each of the projected years
  • A break even analysis
  • An opening year balance sheet

BoeFly's free Fundability App will give you an idea as to how many of its 5,000 lenders might be interested in your loan and also provide information about the strengths and weaknesses of your loan request. BoeFly's universal SmartForm loan application enables you to provide all of the key financial and business information a lender will want to see (financial strength, liquidity, collateral, projections, use of proceeds etc.). BoeFly will also enable you to securely upload supporting documents such as business plans, tax returns, projections etc., and its matching technology will assist you in connecting with compatible lenders. BoeFly's has also introduced bQual, product will provide you with your business credit score , personal credit score, credit report and potential pre-qualification offers from business lenders.

Business Plan Writing Services

We provide discounted and free business plan writing services for the options below with our business loan plans. Sign-up for a BoeFly plan before visiting the sites below to save money. (Our Recommendation)

Additional Start-Up Related resources for Business Plans

Start Up Business Loans and How To Get One
Start Up Business Funding - What Lenders Want to See

Business Plan Resources

Financial Modeling Resources