Strategic Planning, Marketing Plan, Cash flow plan

//Strategic Planning, Marketing Plan, Cash flow plan

Strategic Planning, Marketing Plan, Cash flow plan

Strategic Planning, Marketing Plan, Cash flow plan required for small business loans financing.
We continue to review and elaborate on business plan structures. This includes a marketing plan and cash flow plan required by all financial institutions in order to review a small business loans application. Most entrepreneurs have very small or little idea how to write a proper business plan required to obtain business financing. One of the most important part of the strategic plans is marketing plan. As marketing creates new business that is required for business growth. We will review major points of the marketing plan and advise further on how to write this in the business plan.

Most small businesses in Canada have very small number of marketing options that could increase their business and also target the correct clientele. Since most institutions that are financing entrepreneurs have a vast experience with different segments of economy, underwriters look into the small business loan application for select keywords and strategies. One of the most important strategies is local marketing. When writing a business plan, demographics and target clientele should be one of the most important points of the marketing plan. The marketing plan simply has to make sense. When a client is opening a Laundromat in an area where 90 percent of people live in single detached homes, with their own washer and dryer in the basement, any underwriter will reject the financing request. On the other hand, if entrepreneur opens a Laundromat next to large college or university with apartment buildings all over the place, this is totally different story.

  •  What entrepreneurs must include in the business plan when it comes to local marketing?
  •  Who is the businesses primary target clientele?
  •  Major reasons why this group is our target clientele?
  •  Demographics of our primary target clientele?
  •  Where our target clientele lives?
  •  Where our primary clientele is looking for similar businesses or products? (Newspaper, internet, social media, street media, transport media etc.)?

Once the above questions are answered in detail, the marketing part of the business plan needs to be expanded to include sources of money used to finance marketing plan. Also the approximate cash burn and return on investment on each marketing initiative taken by the entrepreneur. Approximate cash flow proforma for the next 12-24 months with several different marketing options used either one by one or simultaneously.

Lastly internet and social media marketing became important parts of any small business enterprise and entrepreneurs are using these two very intensively. Major reasons for this usage is the simplicity of budgeting and market trends driving new generation more towards internet and social media. We strongly suggest our client’s entrepreneurs to include these marketing initiatives into their business plans as they highlight the use of technology and efficient usage of marketing budget with easy controls of spending.

When talking about local media ads such as street benches, newspapers, bus ads, entrepreneurs have to identify that primary clientele is really looking into those media avenues as their primary source of information. Business plans that have local and old media style marketing campaigns included into a budget need to justify why these avenues are better than dynamic avenues on the internet and social media. After all underwriters that are looking into this have another 100 business plans showing effective and efficient internet ad campaigns, therefore justification is a must.

Identifying primary clientele and demographics in business plan is super important as well. The number of people living in the area that might use products or services of our client entrepreneur might drive the budget up or down and might confirm our client’s cash flow models or not. Good statistics of local market and demographics is a must to be detailed and clear in this portion of the business plan. We normally suggest our clients to use this statistics in a clear fashion so when stats is reconfirmed underwriters will not provide information that is the opposite of the one supplied in the business plan.

As usual we suggest our clients and entrepreneurs going for business financing consult with our knowledgeable associates in order not to worry about the strategic planning and initial due diligence on the project. Let professionals handle the technical part of the process.

Happy financing every one!

By | 2018-02-15T16:02:58+00:00 February 15th, 2018|Blog|0 Comments