Alaska Growth Capital (AGC) steers your start-up in the right direction using our unique experience as a lending institution. We utilize business plans in our funding decisions every day, so we know what to look for in a plan. Starting a business is one of the most difficult undertakings in life. 25% of businesses fail in the first year, and 50% fail in the first two years of existence.
Planning, location, capital, marketing and gross profit margins are the main reasons companies fail. The most important component of a business is a well-defined plan; this plan includes where to locate the business, how much capital is needed, what products are sold and for how much. Of the five main reasons businesses fail, a good business plan addresses all five.
Why do loan officers keep asking for business plans?
A business plan shows a loan officer what you want your company to be over the course of time, and how you will get there. A good plan discusses your products, your strategies for success, how you will finance the business, and management’s ability to carry out the plan. Think of the business plan as your “homework” for starting a business.
What should my business plan look like?
Business plans change from industry to industry and even business to business. The business plan should answer the basic questions anyone might have when looking to provide financing for a business, which is basically “why will this business be successful?” Different businesses will have different answers to this question. The consultant’s job is to design a document that fits your situation.