Lenders take many things into account when financing a business. Not only will a lender look at your credit score and collateral, but they will also want to see your business plan.

Most banks or investors require a business plan. This is a detailed written summary of how a business or entrepreneur plans to organize and then run a potential business in a way that will allow it to succeed. Banks or lenders want to see a business plan so, as investors, they know the business is well-planned for and well thought out before investing money into it and not just a whim that hasn't been carefully researched.

How to write a business plan
In order to get financing for your business, your business plan should include a number of things that will help you map out your business.

There are many resources available to assist you in developing an effective business plan and include books, websites, and software. The following points should be included in your business plan and will help you get the financing you need:

• Executive Summary. Generally, this is designed for those reading your business plan. It should explain the basic business model and the reasoning behind why this strategy will result in an effective business.


• Mission. This optional section contains the purpose and mission statement of your company. It will also help you determine what you want to accomplish with your business.


• Keys to Success. This section will include the tools your company will use to set itself apart from the competition and succeed in the industry.


• Company Summary. For a brand-new company, the company summary should include expected number of employees, projected location, etc.


• Services Provided. This is a basic run-down of what services your company will be providing to its customers.


• Market Analysis Summary. This section should include the industry, product and pricing strategy, promotion and distribution strategy, and production information. For example, why you are going to charge certain prices, how you will promote the product, and how it will be made.


• Management Summary. The management summary will contain the background information of key personnel, their business achievements, and experience in the industry. If you are the sole owner of the business, it will basically be a relevant summary of your resume.


• Financial Plan. A detailed financial plan is crucial. Included in this section is source of funds, existing loans and liabilities, a monthly cash-flow analysis, and projected sales and costs. This will help the lender see the real costs associated with your business and how much you can really expect to earn.

After you've written your plan.
Once you have written your business plan, go over it carefully. Make sure there is nothing you have left out. Edit it for grammar mistakes and make sure it is carefully organized. You may also want to have someone who is familiar with the process look over your business plan and offer you helpful advice or tips.

A business plan is a key step in getting financing for your business. The above tips will show you how to write a business plan that will get you the financing you need.