The document outlines ten essential elements lenders consider in a business plan, which include a clear financing request, business description, management expertise, financial plan, and cash flow projections. It emphasizes the importance of defining target markets, assessing market demand, and preparing a contingency plan to mitigate risks. Additionally, it suggests having a professional review the plan to ensure it meets lenders' requirements.

1. | 1Each One, Grow One: Ten things a lender looks for in a business plan
Each One, Grow One
Ten things a lender looks
for in a business plan

2. | 2Each One, Grow One: Ten things a lender looks for in a business plan
Your business plan
It’s your roadmap and a tool to
attract investors. Most plans include:
1 Executive Summary
2 Company Profile
3 Product / Services
4 Marketing
5 Operations
6 Financials
7 Appendix

3. | 3Each One, Grow One: Ten things a lender looks for in a business plan
What lenders
focus on when
reading your plan
1 Financing request
2 Business description
3 Management expertise
4 Financial plan
5 Cash flow projections
6 Contingency plan
7 Security
8 The marketplace
9 Market demand
10 Third-party review

4. | 4Each One, Grow One: Ten things a lender looks for in a business plan
Your financing request
Be clear about the amount you need
Describe how you will spend it
Ask yourself: would you risk your
own money on this business?

5. | 5Each One, Grow One: Ten things a lender looks for in a business plan
Create your
business description
 Define your product or service
 Describe your market
 Outline your business objectives

6. | 6Each One, Grow One: Ten things a lender looks for in a business plan
Highlight your
management expertise
Outline your business management
experience in these key areas:
 Products or services
 Marketing and sales
 Finance

7. | 7Each One, Grow One: Ten things a lender looks for in a business plan
Map your financial plan
Define your start-up costs
Decide how much equity to contribute
Project your revenues and expenses
Ask yourself: can you repay the loan?

8. | 8Each One, Grow One: Ten things a lender looks for in a business plan
Project your cash flow
You’re more likely to get approved
for a loan if you can demonstrate:
 Sufficient cash flow
 Proven or supported cash flow
projections
 The ability to make monthly
loan payments

9. | 9Each One, Grow One: Ten things a lender looks for in a business plan
Prepare your
contingency plan
Things don’t always go as planned.
It helps to identify potential risks:
Create a plan to mitigate each risk
 Economic
 Legal
 Technological
 Social
 Political
 Environmental

10. | 10Each One, Grow One: Ten things a lender looks for in a business plan
Options to
secure your loan
Loans can be secured by
your assets, such as:
 Real estate
 Equipment
 Vehicles
 Inventory
 Cash

11. | 11Each One, Grow One: Ten things a lender looks for in a business plan
Define your
target market
Consider your potential:
 Customers
 Competition
 Suppliers
 Industry trends

12. | 12Each One, Grow One: Ten things a lender looks for in a business plan
Evaluate the
market demand
Why will people choose you over
your competition?
What is the demand for your product
or service?
How do you plan to reach customers?

13. | 13Each One, Grow One: Ten things a lender looks for in a business plan
Have a coach
review your plan
A review from a small
business coach can help you:
Discover gaps in your plan
Make improvements or clarify
statements
Meet your lenders’ requirements

14. | 14Each One, Grow One: Ten things a lender looks for in a business plan
Interested?
For more information:
 CommunityBusinessBanking@vancity.com
 www.vancity.com/BusinessTools