How to Write a Business Plan to Present to a Bank

The primary reason for submitting a business plan to a bank is to secure capital funding, so a business plan for a bank needs to have solid, detailed, verifiable financial information. Every bank is different, but they have in common an interest in managing money in sustainable, profitable ways. Although your business plan is simply a document that you will present to your bank's loan officer or small business representative, it is also important for you to make a positive impression on them personally and to make them want to work with you to grow your business.

Instructions

Things You'll Need:

• Cash flow projection
• Profit and loss statement
• Balance sheet

1. Step 1

   Speak to your bank's small business lender before starting to write your business plan. Ask about the bank's specific criteria for lending to small businesses as well as the format that they prefer for business plan presentations. Try to get a sense of their personal preferences and biases. Don't ask, "Will your bank lend my business money?" but rather, "What do I need to do in order to ensure that your bank will lend my business money?"

2. Step 2

   Write the text of your business plan with an emphasis on the financial angle of your operations and objectives. Provide a mission statement, as well as background and history sections, biographical information about yourself and any other significant stakeholders, and a marketing plan. Include a financial perspective when presenting your mission and goals, and focus on your financial experience and your business's financial achievements in the background and history sections. Express your marketing plan and marketing strategy in quantifiable terms, demonstrating that you have a solid understanding of the steps you will need to take to implement this strategy, including the cost and the projected returns.

3. Step 3

   Include copious financial documentation with your business plan. Footnote your cash flow projections with explanations detailing how you arrived at the particular numbers they contain. If you encountered atypical situations during the years covered in your profit and loss statements, attach explanations that account for the precise effects of the variables that affected that particular year's business activity. Attach supporting information to your balance sheet documenting the lender and circumstances behind each of your liabilities.

4. Step 4

   Show your business plan to your accountant and ask for feedback and suggestions before submitting it to your bank.