How Professional Business Plan Writers Perfect Financial Projections in the Business Plan

Professional Business Plan Writers spend their careers understanding and researching businesses. They know what makes them tick and what the audiences that will read about them want to see. That is why they have best practices that apply to every part, and that includes the financial projections of the business plan. 

They Approach Them Logically

The first thing a professional business plan writer will consider when sitting down to write a business plan is the audience. Every type of audience will have their own unique perspective and interest in the Financial Projections Business Plan.

A bank loan officer is going to be mostly focused on seeing positive cash flow to ensure you can make a monthly loan payment. In another example, investors would be mostly interested in big growth to gauge their potential ROI. If your business plan instead is for immigration it’s going to focus on generating enough money to support job creation.

If professional Business Plan Writers were theoretically writing the same business plan for all of these audiences, the basis of the financial projections would be the same. However, how they are presented and the narrative around them may vary widely.

They Ensure They Are Supported

Regardless of who your audience is, the financials projections in your business plan will be questioned. In order to proactively squash questions and to be prepared to answer any that do arise, professional business writers will make sure everything is supported.

In most cases, this level of detail will not appear in the main Financial Projections Business Plan. Rather, it will appear within the fine details as an appendix. This means showing research that supports expected expenses, as well as the basis for your projected revenue.

On the revenue side, that is going to be based off of the price you have decided to set and how much volume you think you’ll sell. While expenses can be more concrete based on the current price for things, revenue can be tricky. It will require sufficient market research to be supported adequately.

They Make Them Tell a Story

The financial projections are not about the numbers themselves but, the story you can paint around them. Professional Business Plan Writers know this and they have perfected the fine art of telling the story of the numbers. When we say “story” here, we don’t mean a work of fiction. Rather, we’re talking about the context that is structured around them.

In Conclusion

This insight above can be applied in one of two ways. The first, is to be used to approach your own Financials Projections and business plan the same way. The second, is to recognize the expertise that professional business plan writers bring to the table. Not only are the best to write the words of your plan, and lay out the numbers but they are also among the individuals best to conduct your market research. At many top-rated firms, such as Joorney Business Plans, they will even include basic market research to ensure your business plan has all the elements above.

 

When to Draft Your Franchise Business Plan

Franchising opportunities provide tremendous potential benefits for both franchisors and franchisees. On the franchisor side, you have an opportunity to expand your business without being required to supply all the capital and manpower. On the franchisee side, you get a ready-made business model, fully developed brand, and ongoing operational and marketing support. When executed well, franchising creates an advantageous opportunity for both parties. There are multiple ways to compose a Franchise Business Plan. It will all depend on your specific stake in the business and what your goals are. 

 

 

Read More When to Draft Your Franchise Business Plan

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6 Ways Loan Officers Expect to See Market Research Applied to Your Bank Business Plan

 

One of the main reasons that business failed is due to lack of proper market research. Bank loan officers know this. That is why they expect to see evidence of it throughout your Bank Business Plan.

What surprises most people is that loan officers expect to see market research in many ways. Some of these ways or more obvious than other. But, in either case, they will be looking for it so it’s important to know how it should be incorporated.

Executive Summary – This section of the bank business plan will be a broad overview of the entire business plan. Therefor, it should go without saying that market research will underpin a lot of the information presented here.

Industry Analysis – One of the more obvious places where Market Research is expected is the industry analysis. The research you do to determine and evaluate the overall size of the industry is purely market research. The sources you use to justify this information will also be scrutinized by the loan officer. So, make sure it’s a quality, reliable, trusted source.

Target Market – This should be a pretty obvious section of the bank business plan that will incorporate market research as well. While the industry analysis is the broad view, the target market hones in on exactly who your ideal client(s) is and why that is the case.

Marketing Plan – Once you understand your industry and target market through market research, you will be able to plan your marketing efforts. Marketing itself is another way that loan officers scrutinize your chance for success. Don’t skimp here. You need marketing or you will not have clients. No clients makes it pretty difficult to have sales. Without sales you can’t pay back your bank loan. Yet, many people justify skipping on marketing as a cost saving measure. It is a place officers would rather see you go big than ignore.

Sales Plan – Closely tied to the marketing plan is the sales plan. These are similar but address things from very different angles. Just as with the marketing section, make sure your plan ties back to the market research.

Financials – The financials are an area of the SBA Business Plan where people don’t always associate market research. Yet it is a key part of most of the assumptions you will make. For example, when you research what a commercial lease will cost in the city you plan to locate, that’s market research. When you determine what to sell your product for you’ll likely consider competitors. That’s also market research. This list goes on and on. This will be one of the most important areas of the bank business plan so make sure your assumptions are well supported with market research.

From the beginning to the end of the business plan, market research will play a vital role. These are some of the most important places but, not the only ones. Do thorough market research and without even realizing it, it will find its way into your plan. If you’re not sure where to start, hire a Professional Business Plan Writers. It is so important to the success of your bank business plan that it is well worth the investment.

Answering the Question: Would You Ever Need a Pitch Deck and an Information Memorandum?

When seeking an investor or a buyer for your business, you’ll need to have your business documents in order. What documents you need will depend on who you’re appealing to and what you’re trying to do. Two of the most popular when dealing with investors or buyers are a Pitch Deck and an Information Memorandum.

Understanding these documents begins with understanding their purpose and intention. Only then can you determine if you will ever be in need of both.

The Pitch Deck Defined

A pitch deck is a brief presentation, typically in a slide format like PowerPoint or similar software, meant to overview a business investment or purchase opportunity. These come in all lengths, and some are more creative than others but, they tend to be very visual as well.

The Information Memorandum

According to Corporate Finance Institute, “A Confidential Information Memorandum (CIM) is a document used in mergers and acquisitions to convey important information about a business that’s for sale including its operations, financial statements, management team, and other data to a prospective buyer.” Unlike a pitch deck, this document tends to more closely resemble a business plan in terms of its depth but, it can appear in either a more visual or more text-based format.

The Pitch Deck and Information Memorandum in Context of the Business Lifecycle

Both the pitch deck and information memorandum are used in what is a commonly referred to as a pre-transaction stage of a business. Now, businesses may undergo many transactions throughout their lifecycle. For example, start-ups who go through several rounds of investments, are conducting a “transaction” every time. Another common transaction is the sale of a business.

So, the information memorandum and Pitch Deck are meant to solicit those interested in making a transaction. It makes no different if that is an investment or a sale, those are both transactions that typically begin with a pre-transaction document.

How Might Both Documents Be Used & Are They Used Together?

Knowing which document is best and when, or if you should have both can be pretty confusing. It depends on a variety of factors. These include the size of your business, what you’re aiming to do, and your potential audience to name a few. To make it even more confusing, some people ever refer to an information memorandum as a pitch book.

Don’t Go It Alone – The Power of Professionals

The good news is you don’t have to figure this out on your own. In fact, in order to maximize a potential investment or purchase of your business, you shouldn’t. This is why the savviest of entrepreneurs and businesspeople rely on professionals.

These professionals tend to come in two forms. First, business advisors. Advisors can help you determine who you should approach, how much you should be asking for, and how you should be asking (i.e. what type of documents are best. It will also come in the form of Professional Business Plan Writers.

Often, these will be two different companies/professionals but, every now and again you find a great, highly knowledgeable, and well respected company that can handle both aspects, like . Let them be your one stop shop to determining the best course of action for your transaction and your pitch deck or information memorandum.

Answering the Question: How Important is Financial Modeling in Creating Financial Projections of a Business Plan?

 

People who are unfamiliar with Financial Modeling often consider it as something scary and overwhelming. It seems like a tall task outside of creating the financial projections for the business plan. However, this is not the case. Before we go too far, let’s answer the question above.

So, how important is financial modeling in creating the Financial Projections Business Plan?

The short answer: imperative.

You Can’t Have Financial Projections in a Business Plan Without Financial Modeling

Why is it so imperative? The biggest reason and explanation for this is because you literally cannot have the projections without the modeling. That’s just not how it works.

Think about it, when you sit down to determine the Financial Projections for your business plan, you will usually start by putting down your current financials. Then, you layer on top of that the assumptions about what your business will do in the future. This use of math to arrive at the new number is financial modeling.

Usually, financial modeling is done in a spreadsheet like Microsoft Excel or Google Sheets. But, even if what is discussed above is done on a cocktail napkin, it’s still a form of modeling.

Financial Modeling Isn’t as Scary as People May Think

The example given above is a very simple, basic example of financial modeling but, it’s nonetheless relevant. When people think about it in terms of these complicated equations and big spreadsheets it may seem overwhelming. But, it doesn’t have to be and it is rarely the case.

If you are an entrepreneur and you’ve been running or planning a business, you will already have the key ingredients that should go into your model. You have an idea – more officially called an assumption in modeling – of what your business will do based on various factors.

These factors will typically include things like market research, customer feedback, level of competition and other things that you are probably already thinking about. All Financial Modeling prompts you to do is quantify this knowledge and apply it in a numerical equation to arrive at a certain number.

If You’re Still Unsure or You Really Do Need a Complex Model, Hire a Professional

The part some people struggle with the most isn’t the knowledge about what direction the business will go in but, how to use Excel, other spreadsheet, or modeling software. As a busy entrepreneur if this is not already in your skillset it can be daunting to learn.

In this case, it may be most practical to bring in an advisory professional who can help! You may be able to find people that list themselves as financial modelers but, a better option may be a business plan writer with advisory experience.

Why is this? Because unlike Excel savants, business professionals understand the numbers in context. They will be able to ask the right questions to create the right model. They don’t simply put in the numbers and assumptions you may provide them but, they will also validate and question them as you go.

This process is usually highly beneficial because if you are creating Financial Projections Business Plan it is most likely for an external audience like a bank loan officer or an investor. They will scrutinize your numbers closely so, having the backup of well thought through and supported financial modeling will go a long way.

7 Quick Tips to Improve Your Bank Business Plan

There are a number of factors that will go into whether or not a business bank loan is approved. Some are more controllable than others. Among those that can have an immediate impact is the business plan that will accompany the application. Here are seven things you can do to ensure your Bank Business Plan helps instead of hurts your case.

Use appropriate tone

In a lot of ways, trends in the business world are moving things in a less formal tone. This is not yet the case in the banking world. Make sure your Business Plan Writers with a professional tone and appropriate language.

Write for your audience

Throughout writing your Business Plan you have to keep your audience in mind. Bank loan officers biggest concern when reviewing your bank business plan is whether or not you will pay your loan back. This requires a convincing overview of not only your business but your personal finances. We’ll touch more on this below.

Focus on cash flow

The thing that will be most interesting about your business plan to a loan officer is your cash flow. When working on your financials, you should approach them with this in mind. You should not make up your numbers unrealistically but, you should actually plan your financials with this in mind.

Discuss your personal finances

Unlike many other types of business plans, in the Bank Business Plan you should include mention of your personal finances. They will ask you to include this information in your application as well. However, including it in your business plan allows you to present it as you want it to be perceived and wrap it into your entire business perception. Rat

Mention collateral or cosigners

It can not be stated enough that your main concern needs to be proving you can repay your loan. If you are not approved on your own merits or have high enough business or personal credit, don’t shy away from proactively mentioning that you have collateral or cosigners lined up.

Do your market research

Few things will inform your overall business plan and improve its believability more than doing thorough market research.

Use a professional 

It can be hard to capture all of the above. Solid bank & SBA Business Plan take a great deal of research and a significant time investment to write well. Plus, appearance matters. Some people that can write great business plans can’t necessarily design them. Those that can write and design aren’t necessarily good at researching. Holistic Professional Business Plan Writers, especially firms, tend to be able to cover it all to make sure your plan is as strong as it possible can be. 

There is no perfect business plan but, there are many things you can do to make your bank business plan more impactful. The tips above will be a big step in the right direction. The most important thing is to keep in mind that purpose of the business plan. Ultimately, that is to convince someone to loan you money by proving you can pay it back. Writer from that perspective and you will create a Business Plan stronger than many, whether you hire a Professional or not.

How Market Research Applies to the Pitch Deck

 

As a very basic explanation, a Pitch Deck is an abbreviated business plan. There is a lot more to it but, that is a great way to understand it at a fundamental level. One thing that is incredibly important to both documents is Market Research.

If you’re familiar with business plans, then you already understand the importance of market research. But, it applies to pitch decks in much the same way. Let’s explore. 

Industry & Market Overview – Within the pitch deck, you are likely going to briefly overview the industry and market of your business. The only way to do this adequately is through market research. This is usually an expected part of a Business Plan Writer or pitch deck and will be an early section. So, market research begins to play a role early on.

Product/Service Demand – Unless your product already exists, you have to prove there is a need for it. Even if the product does already exist, you’ll have to prove people will be interest in whatever you are going to do to make the product different. If your business is not yet up and running, you’re going to have demonstrate that there is a real demand for your product. No market demand is one of the top reasons that startups fail so, this is imperative.

Target Market – Within the pitch deck, you will discuss who your target market(s) is. The only way to discuss them in depth and fully understand them, is to do your market research. This will then inform things like how you intend to market to them. All of which is expected to be addressed in the Pitch Deck.

Financial Projections – This is perhaps the place where market research will have the biggest impact. One part of having reasonable projections, especially if your company is brand new, is understanding the total market potential. Then, you must understand how much of that potential is already being captured by your competition. Not just that but, how strong those competitors are.

There are other factors, of course. But, those factors are not nearly as impactful or prevalent. You may not even cover or mention your assumptions in the actual presentation, but when a potential investor does their due diligence, it will certainly come up.

Bringing it All Together

When preparing your pitch deck - or business plan - it should be evident that market research will play a big role. Whether directly or indirectly, it is obvious it will be included throughout. It’s not just a matter of completing it. It needs to be completed well. Yet, market research is one of the parts of the business plan that people have the most difficulty with.

In order to have the strongest pitch deck, and ultimately the most successful business, don’t skimp on the market research. If you are not familiar with the process or how to approach it, consider hiring professionals. It can be difficult to invest in solid market research at the beginning of your business planning process. Even if you can’t do it right from the beginning, you should make it a priority as soon as you have some cash flow. Ideally before you approach investors, if that is possible.

Regardless when you do your Market Research, or what you do to ensure it is done in a meaningful or informative way, make sure you do it to have the best pitch deck possible.

5 Reasons to Turn to Professional Business Plan Writers for Your Information Memorandum

Often, when people find themselves in need of a business plan they will turn to Professional Business Plan Writers. What many people don’t know is that they usually also do other types of documents like Pitch Deck and information memorandums.

Information memorandums, also called confidential information memorandums (CIMs), are a marketing document used to solicit interest from potential buyers or investors in a business. There are many reasons why to trust this critical document to professional business plan writers.

1. Business Plan Similarities – The most obvious reason is that an Information Memorandum is so similar to a business plan. If professional business plan writers are great at business plans, it stands to reason they will also be great at a CIM. This is simply because so many of the sections and other aspects overlap. But, that’s far from the only reason.

2. Objective View – Professional business plan writers are so valuable because they offer an objective view. If you are selling your business, an objective set of eyes can be invaluable. When you work within your business it’s common to have difficulty “seeing the forest from the trees” as the saying goes. However, potential buyers want to know that they are getting a clear picture from the information memorandum. So, it helps to have someone who will realistically present the positives but, also positive address the negatives.

3. Understand Investors (or Audience in General) – One of the best reasons to turn to professional Business Plan Writers is because they have a deep understanding of the investors and know how to write for the audience. Two of the most common types of business plans are for bank loans and investors. Whether you are writing your Information memorandum for a complete sale or a partial investor, they will have an investor mindset. Choosing someone who knows how to write to appeal to them will be invaluable.

4. Time Is of the Essence – Creating the information memorandum can often create a bottleneck. This slows down the speed at which you can sell your business. Whether you are an individual owner or an M&A firm, time is of the essence. If you go with professional business plan writers, especially a firm, they tend to offer excellent turnaround times, sometimes as little as 3-5 days, which means you can sell your business quicker or run more deals in parallel.

5. Professionalism Is in the Name – One of the quickest ways to turn someone off from reading your Information Memorandum and considering purchasing your business is to present an unprofessional CIM. You should hire professionals because, well, they are professional and will prepare a professional document. This will get you one step closer to getting a great offer for your business.

Because an information memorandum is not a business plan, the first thought isn’t always to hire Professional Business Plan Writers. However, for the reasons above and more, they should be one of the first calls you make. Their experience, objectivity, and professionalism will add something to your CIM that allow it to stand out from all the other businesses for sale and help you fetch the best price possible. Consider contacting one today!