If You want a Small Business Loan, You need a Business Plan.

Every business needs a plan, a road map on how to get from point A to point B. The only question is how detailed does it have to be? A business plan can be as simple as a goal plan for the next year but if you are wanting to apply for a business loan, very detailed.

Here are some questions to help you get started on your business plan:

1. Where do you want your business to be in 5 years? and How are You going to get there?
2. Why would you hire yourself? What makes you unique?
3. How do you promote your business to the marketplace? Past, Present & Future.
4. What experience do you have to show you'll be successful?
5. How many customers do you have now? why do they buy from you?

This is just a start. Your business plan needs to communicate to a loan officer that you know exactly what you want, you are capable of being successful and that the funds will increase your profits.

6. Why do you want the money?
7. What will you use the money for?
8. How is it going to increase profitability?
9. How are you going to attract more customers?
10. How is this going to benefit the economy or marketplace?

If you are applying for a business loan then you need to include financial statements. Ask your accountant to help you with balance sheets, past earnings, projected earnings, and statement of accounts. Make sure you include a present value of all assets - I would invest in a professional appraisal of all business assets. The money you spend getting a professional assessor to provide you with an Asset Value statement will go a long way in helping you secure the loan.

Where can you get a loan?

Your Bank will have a small business loans officer to help you.
The BDC or Business Development Bank of Canada
has lots of resources and will work with a small business owner
If you are in Alberta and a Women in Business the AWE has programs for you.
If you are in a Rural Area then Community Futures will be able to help you.
If you are on Employment Benefits then the Government has programs that can help.

The good news is there are lots of options so if you want a loan you have lots of different places to go. Just give yourself time, lots of time, to put together a good comprehensive business plan that shows what you want, how you will get there, and how the loan will increase your profits. Find a good accountant and a professional asset appraiser to help you, and use the services of the AWE the BDC and Community Futures organizations.

More advice on Business and Marketing Plans:
Creating a Marketing Plan