A business plan is an essential ingredient to a successful business. In applying for a loan, It helps the lender understand how the business will operate and generate sales. Determining business viability is a critical factor in deciding whether a loan request is approved for funding. Although additional information may be requested, at a minimum, the business plan should include the following elements.

Executive Summary

  • In one page, capture the strengths of the business and the particular niche it holds in the industry.

Business Description

  • Describe the goods or services offered by the business.
  • Provide a brief history of the business.
  • Describe the company’s philosophy for doing business.

Market Information

  • Describe and quantify the target market for the goods and services.
  • Identify and describe the competition.
  • Identify and describe the company’s “competitive advantage” (characteristics which make it better than or different from the competitions in your market).

Marketing Plan

  • Identify specific tactics for informing your target markets that the product or service exists, i.e., public relations, advertising, promotions, pricing discount, sales force, etc.

Financial Plan

  • Submit copies of the last three years’ financial statements and the most recent interim statement, if avail- able.
  • Prepare a detailed budget for the start-up, relocation or expansion. This budget is usually the basis for the amount and the term of the loan, and should Incorporate all costs needed to complete the project.
  • Prepare an operating projection, providing monthly detail for the first year, yearly summaries for the sub- sequent year(s).

Management Plan

  • Identify the key principles in the business, including job descriptions and relevant background experience. Include plans for other personnel.
  • Discuss any expansion opportunities and plans.

Contingency Plans

  • Identify areas of risk to the successful operation of the business and describe your plans to mitigate each area of risk. Also explain how debt would be repaid in the event of business failure.


The Greater Keller Chamber of Commerce | 420 Johnson Road | Suite 301 | Keller, Texas 76248 P: 817- 431-2169 | F: 817- 431-3789   copyright 2010 Keller Chamber of Commerce