What’s in a Good Business Plan?

Many lenders require borrowers to create a business plan. A well-crafted business plan shows a borrower’s intentions. Crucially, this business plan is evidence that they are ready to take on debt to fund an existing or new enterprise.

Elements of a Strong Business Plan:

• Market Analysis: Lenders can be located all over the country. As a result, they may not know about the exact site of your business. They need to know about your business’ location and its strengths in addition to your position in your industry. What locally will drive people to your business? Who are your targeted customers? Who is your competition and what are your proposed advantages over them? Finally, are there market trends that support this enterprise?

• Detailed Plans for future Operations and Management: How is your business going to be structured? Most importantly, will this business be owner-managed or will you be hiring a management team? What experiences does your management team have in this industry? How will you handle hiring, training and supervision of employees? Who will be in charge of monitoring financials?

• Financial Projections: Creating a three year detailed financial projection can bolster a borrower’s case. Fortunately, GRP Capital is adept at helping to create, revise and analyze these documents in consultation with our clients. Financial projections need to include as many categories as you can think of. These categories include franchise fees if applicable, insurance, payroll, contract labor, daily operational costs and continued capital expenditures and renovations as needed.

• Strategies for Marketing: How will you get the word out there to your customers? Will you depend on a franchise for a marketing platform? Ultimately, do you have a plan to differentiate yourself from your competitors? Will you hire a marketing director? Who is responsible for monitoring online reviews and responding when possible?

• Possible Roadblocks: Try to imagine the scenarios that could be challenging. Specifically consider what are the risks in this business and in this location. How could you handle supply disruptions? Are there issues that could impact worker retention? If you are buying a business, what challenges did the sellers face and how would you handle these challenges if they recur?

Let GRP Capital Help You Craft a Strong Business Plan

Our GRP Capital team specializes in crafting financing solutions tailored to each client’s unique goals.

Whether you’re purchasing, refinancing, or building from the ground up, our extensive network of lenders ensures you’ll find funding that aligns with your goals and cash flow needs.

Here’s what sets us apart:

• We save you time by researching and identifying the best funding options for your project.
• Our expertise spans various loan products—including non-recourse loans, SBA loans, bridge loans, and conventional financing—so you can navigate even the most complex transactions confidently.
• Beyond lending, we provide strategic guidance on operational decisions that drive long-term business success.