OFW life is not forever. That’s true. In fact, there is even a possibility that you might not even finish your contract due to uncontrollable circumstances. This is why it is important to use your money wisely and place it in something that will help you grow it.
One of them is putting up your own business.
The good thing about business is that this could help you get through everyday without having to go back abroad. The downside is putting up your own business is not easy, especially if you don’t have sufficient capital – yet. To make this happen, you decided to go to lenders to borrow money for capital.
The catch: you need to submit a business plan.
A business plan is a document that indicates the nature of the business, financial background, sales and marketing strategies to be employed, and a projected profit-loss statement. Think of it as a roadmap that will guide you as you go through this track and what to do in case of any road bumps.
Apparently, most lenders require submission of business plan in case you are thinking of getting a business loan. How do you write it? Here’s how:
Step 1: Identify your business concept.
Apparently, that “Eureka” moment is just one step of being an entrepreneur. This has to be followed up with a mission and vision that reflects why you want to put up this business, the product or service that will address a specific need in the market, who your target market is, unique selling points of what you are offering, and branding.
Step 2: Learn about your target market and chosen industry.
This is a must. You need to know what your target market demands and at the same time, learn about your competitors and what they are offering. Look into the trends in your chosen industry and data about your competitors. At the same time, get to know your target market by gathering insights through social media websites. This way, you will know what the market and industry demands and find out a solution to address it.
Step 3: Create and develop your business plan outline.
It should contain the following:
- Executive Summary – This gives a brief overview of your business, nature, and your unique selling points or edge against competitors. It is also best to include your qualifications that could be useful in your chosen business.
- Marketing Plan – This should show how you will market your product or service. Therefore, indicate your market demographics, product or service offerings, analysis of competitors, and marketing strategies you will utilize to achieve sales.
- Production Plan – You need to convince the lenders that you are capable of handling a business – and this is the part where you do it. Inform lenders about the production process – raw materials, equipment, overhead expenses, and labor among others.
- Organization and Management Plan – This is the part where you convince lenders that you are worthy of credit. Indicate your qualifications and if any, experience as a business owner.
- Financial Plan – This portion shows the financial strength of your business. Include sales and profit forecast, breakeven analysis, cash flow statement, and return on investment. Since you are applying for a loan, make sure you indicate a time frame for loan repayment as well as your plan in case you of delay.
Step 4: Include supporting information.
Legitimacy is important, especially if you will need help from lenders. Therefore, you must be able to provide and attach the following documents in your business plan to show you are serious in your business venture:
- Bank statement
- License to operate
- Business permit
- DTI certification, if sole proprietorship
- Financial documents pertaining to your business such as Contract of Lease, Purchase Order, etc.
Step 5: Review and proofread.
The concept of business plan is to lay down your business and prove to lenders that you are worthy of credit. Now that you filled in the details, it’s time to check your work and make sure that your business plan is error-free. Review and proofread your work by correcting spelling or grammar issues and check for any typographical errors. It won’t be much of a difference, but it will show lenders that you really did your work.
“Kailangan pa ba yan?,” you might ask. Yes, especially if you plan to apply for a loan. Even if you don’t plan to apply for a loan, it is still advisable to draft your business plan that will act as your guide.
Once you’re done, you should know that Balikbayad is here to help. Submit your online loan application for pre-approval and let us help you make this entrepreneurial dream happen.