Justin

This is how you make a strong financial plan

Is drawing up a financial plan relevant to you? Of course you want to get started as soon as possible, but how do you get the bank so that your business plan and the financing is approved? Give yourself a flying start with these tips from independent expert and learn how your bank assesses the financial chapter.

There are two types of entrepreneurs that a bank can immediately snatch. People who are going to start something without any experience and people who have a passion for something, without having to map out the opportunities, both need some special tricks.

That may sound cynical, but insurance and financial services helps day-to-day starters write their business plan and its financial underpinning. The bank is taking risks and wants to know what the opportunities in the market are and how you will tackle them.

Hard numbers

Anyone who wants to open a hip restaurant without any catering experience, or start a riding school with a passion for horses, must emphasize extra well in his business plan where he sees opportunities. The bank takes risks if it finances your company, they invest thousands, sometimes even hundreds of thousands of dollars in your company, so they want to know how concrete the opportunities are and how you are going to tackle them.

That is why it is important to substantiate your motivation. Of course it is important that you love horses if you want to establish a riding school, but also show how (and in what way) you are going to repay the loan from the bank with an interest rate of about ten percent.

Hasty rush

Another pitfall is starting with your own money, only to find out that your financial resources are not sufficient. Of course, Enthusiasm is fine, says Bas, but too much haste can also be explained as pride or impatience.

If you only call at the bank at that stage, you do not show that you can plan your finances properly or assess risks properly, all the conditions you have to meet in order to be able to keep the company running in the long term. will have less confidence in you in advance.

Track record

Building a new company from the ground up sounds attractive, but experience shows that the chances of financing can increase if you take over an existing company and that goes for an entrepreneur with limited experience, an existing company has proven its right to exist and has a track record and hard figures, in which case there is only one uncertain factor, and that’s you. The risks for the bank are often greater.