Impressing your Bank or Finance Provider

Follows blog post, Hospitality Industry Business Plan dated 14 April 2014. If your idea is to use your business plan to impress your bank or finance company and get a loan or lease, then your plan needs to address all aspects of your business, now and in the future. When completed, your business plan should be structured like this:**Cover sheet Statement of purpose Table of contents **The business • description of the business • your product or service : what you intend to market • market analysis : how you see your business competing in the current market • location • competition - what are they doing? • operating procedures • personnel requirements • business insurance • financial dataFinancial data • loan applications • capital equipment and supply list• balance sheet • breakeven analysis • income projections (profit & loss statements) - including

Have confidence

You must be confident that your business not only has every chance of getting started, but that it will be a tremendous success. In any meeting you need to be upbeat, positive and have a clear understanding of all aspects of your business. If your idea doesn't look like it will work on paper, then chances are it won't work in real life. Every small business that has ever been to a bank for finance has had to prepare the same information and put forward its individual case. The more thorough you are, the more professional you will look. It might seem like a lot of paperwork, but look on the process as training for the future of your business. If you can't be bothered then that should be a clear indication that you are not really suited to owning your own small business.1. three-year summary - detail by month, first year - detail by quarters, second and third years - assumptions upon which projections were based

Supporting documents

• personal financial statement• current balance sheet • most recent income tax statement • your cash flow, balance sheet and profit and loss statements and your projections • your debtors and creditors list • your business name registration or company details. • your company memorandum of articles and company seals • any documents relating to a licence agreement, franchise agreement, market analysis or consultants reports • copies of your trade or professional qualifications or experience• details of security offered, such as real estate mortgage papers or a bill of sale over specific assets that you are prepared to use as collateral • copies of letters of intent from suppliers, etc • your trading history, assets and liabilities, current performance and how you intend to finance your business - if you have one

Do it yourself

This is your business plan, so you should write it so that you can fully understand it. You may be writing it to impress someone like the bank manager or finance company, and you need to be able to explain everything in it to them, or they won't be impressed. If you are approaching a bank, then the plan should spell out the reasons why your business is a good investment and how you plan to repay the loans. Remember, you are putting forward a business proposal that should show a win-win situation for both of you. Forward your business proposals and plan well ahead of any scheduled meeting time so that if your banker requires additional information you can provide it without creating delays. If you are well prepared and well presented, then you are entitled to expect a decision by your banker on your meeting day. There is nothing worse than being sent away because you haven't supplied all the necessary details.Sydney Commercial Kitchens uses 2 main finance providers, who are both very experienced in the hospitality industry. In fact they are the 2 market leaders in this field. Click here to see them.