Attract better financing options during your next capital raise with a current business plan.
As we’ve mentioned in other blogs, business plans are important for many reasons. The most obvious one is to outline your business goals and map out the plan for achieving those goals. However, some executives and CEOs don’t realize business plans are also necessary to get money from a bank or potential investor when trying to raise capital.
It’s true! Before a bank or investor will give you money, the first thing they’ll ask to see is a current, solid business plan.
An up-to-date business plan is crucial when seeking funds for capital. If your plan shows that your business has the potential to make a profit, you have a better chance of securing bank loans and attracting potential investors. After all, funders will have more confidence in your business’ success if they see a plan backed up with statistics, facts, and figures.
Additionally, keeping a current business plan in place will save time when you need to raise capital quickly. It will be one less thing you’ll need to gather and update during the process.
Of course, that’s easier said than done! In our experience as commercial real estate advisors, we’ve found most executives and CEOs say they are too busy to sit down and put together a business plan or, more commonly, they just don’t have time to keep the one they have current.
Building a quality business plan that addresses banks’ and investors’ concerns can be intimidating. However, there are a variety of apps out there, and some offer free trials and step-by-step easy planning software. Be sure you weigh pricing, along with pros and cons, before signing up for any business plan app.
Here are five apps we think a busy CEO might find helpful:
There’s no better way than a business plan to let banks know you can pay back a loan and let potential investors feel confident that their investments will have a return. When you put together a business plan, it reassures banks or investors that you have a plan for the future and increases your credibility as a business owner.
Don’t put off putting together that business plan another day; you might need it for loans, if nothing else. Apps make it easy!
Contact Verity Commercial if you have questions about how to put together a plan or what you need to get a bank loan for your next real estate capital raise. We’re happy to help!