| You've got a great idea for a business - you know it | | | | simple, objective, reasons why your business plan will |
| will be successful - if you can just get the money to | | | | succeed. |
| make it happen. You know that the best way to | | | | Avoid technical or industry jargon. If you must use |
| present your project to lenders is with a business plan. | | | | jargon, make sure that you explain its meaning. No one |
| Lenders have money to lend - if they can just find a | | | | is impressed that you know all the latest buzzwords |
| business that they can reasonably expect to be | | | | within your industry. Rather, they are unimpressed that |
| successful. They know that the easiest way to review | | | | you weren't able to communicate your message |
| a project is by reading its business plan. | | | | without resorting to jargon. |
| Presenting your business plan to a ready lender should | | | | Quote research and sources. To state "the industry |
| be a match made in heaven, right? Yes, but... | | | | will grow at a rate of 15% annually" is likely to be read |
| Every borrower thinks that theirs is a great deal. To | | | | as a sales pitch. To state "A recent US Department of |
| hear some borrowers tell it, the millions will magically | | | | Commerce study shows that..." is likely to be read as |
| appear with no chance of failure. Life is good and it's | | | | fact. Good sources of low cost or free independent |
| going to get better. | | | | research include government agencies, industry |
| Lenders, on the other hand, are paid to make objective | | | | associations, franchisors and, if yours is an industry |
| judgments - to get past the sales pitch and identify the | | | | with public companies, stock analysts. |
| real deal. Lenders don't care what you think about your | | | | Avoid stating your own opinions. Rather than saying |
| project - they know that you love the deal even | | | | "We believe..." state the reason you believe, hopefully, |
| before they open your business plan. Their job is to | | | | as a believable fact. If you must use an |
| make an objective assessment of your plan. In a word, | | | | unsubstantiated opinion try to use that of an outside |
| they need facts. | | | | professional (your accountant, lawyer, appraiser, etc.). |
| A fact can be defined as knowledge or information | | | | The watch phrases for a successful business plan are |
| based on reality. While you can present anything as | | | | "short, sweet and to the point" and "factual and if not |
| knowledge or information, the lender will decide | | | | provable, believable". A short, well written plan loaded |
| whether or not they believe that your information is | | | | with verifiable facts is much more likely to succeed |
| based on reality. Do the following and lenders will likely | | | | that a long, poorly written one, loaded with flowery |
| conclude that your statements are factual: | | | | writing and your personal opinions. |
| Keep your statements clear and concise - unread is | | | | The one area of your business plan to which the |
| worse than unbelievable it's unknown. Use as few | | | | above does not apply is the Executive Summary. |
| words as possible while still getting across your | | | | Look for our forthcoming article on that subject. |
| message. Lose the flowery adjectives and state | | | | |