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Can you apply for a Bank Loan with a Pitch Deck? Business Plan vs. Pitch Deck

  When applying for a loan, it makes sense to present detailed documentation about your business, including all of its most important (financial) aspects of course. The purpose of these documents is to show your business’s prospects of repaying your debt. So it is understandable to submit the most thorough bank loan business plan you can formulate. However, you may be surprised to know that you can apply for a bank loan with a Pitch Deck just as well.

Namely, because loan officers can be overwhelmed with dozens of lengthy applications, having something compact that conveys the most important information will immediately stand out in the sea of Bank Business Plan pages. So here are some pros and cons, to help you choose the best application format.

Business plan - a comprehensive description

Business plans are a necessity for operating any business. Besides providing great guidelines that can help you make better business decisions, they are a detailed description of your business as well. This makes them extremely beneficial, especially if you wish to apply for a bank loan.

Bank loan business plans include your business’s past, present and even future finances, in addition to everything else that will convince loan officers just how successful your business is, and more importantly, will be. Lenders will be looking for all of the factors that show your business will keep producing a steady revenue: how it is organized, how it is operating, how skilled your personnel is, and how responsible you are with your finances.

Dangers of TL;DR

Like mentioned before, keep in mind that long bank loan Business Plan can be an immense strain to the reader. Being bombarded with information can be tiresome, therefore, submitting lengthy documents can backfire on you. Loan officers can get lost in the array of data you have to offer about your business. The goal is not to make them yawn and want to skip to the next page (or worse - next business plan), but to keep them engaged and interested instead.

Pitch deck - when less is more

Applying for a loan with a mere presentation can seem unorthodox, but it surely has it’s benefits. Because you will be limited to a few slides, you will be forced to put only the most crucial information in them. Stripping your business to its bare bones will instantly show loan officers exactly what they are looking for. Skipping all the formalities, and getting straight to the point is surely a great way to grab someone’s attention. But not only that, having a limited number of slides will also force you to get creative, and find the best way to present your business’s heart and soul, leaving a lasting impression on your audience.

Sometimes, less is just less

Making an attention grabbing Pitch Deck is definitely not as easy as it looks, because what seems to be its strength can also be its weakness. Since pitch decks are limited to only a few slides, you really need to make an impactful presentation, or things can easily go sour. You have a small window of opportunity to impress your audience, so make sure every slide counts and think carefully about how you will present your information to them.

Both Bank Business Plans and pitch decks have their good and bad qualities. When it comes to the battle of the formats there is just not a clear winner. But knowing all of the benefits and downfalls can definitely help you make the best decision. It all comes down to the individual case, so think long and hard what is best suited for you and your business. In either case, make sure your chosen format addresses a loan officers main concern: whether or not you’ll be able to repay your loan!

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5 Common Market Research Mistakes when Writing a Bank Loan Business Plan

Market research is an important component for any business plan, but that can especially be said for a Bank Business Plan. Getting a bank loan is not easy, there are many requirements for getting a loan approved, one of them being a well composed business plan based on solid research. With such a huge emphasis on the research, it is important to do it right, so here are some common mistakes to avoid.

Not using all available information sources

The first step of any research is to gather all of the available and relevant information. In case of Market Research, this is done through surveys, questionnaires, test groups and interviews; in other words, data is collected directly from the customers themselves. This type of information would be considered primary data, and many make the mistake of using it as their only resource.

However, there is another way of collecting information, which is through secondary research. This includes all of the data and research collected and done prior to your own, such as news articles, government census, industry reports, studies, etc.

Overlooking the competition

Focusing on your brand is great, but you are not operating in a vacuum. There are other companies climbing the ladder of success, and you do not want to be at the bottom of it. Therefore, gather as much information as you can on your competition, so you can see how you are positioned on the market and how you can improve.

How you compare to your competition is an indicator of your business’s potential success. This is crucial information for loan officers, since it will give them an idea of your business’s value in the marketer and ability to repay your debt.

Thinking the market does not change

If you need market research for a bank business plan, don’t dust off your old research and use it again for a new document. The market is constantly changing and your Bank Business Plan will not benefit from outdated research. Doing regular research and keeping an eye on the market will show loan officers you are aware of any new market trends and are able to overcome or create opportunities from changes. This is valuable information for getting a loan approved since it shows you will be able to adjust to the market and keep producing a steady revenue.

Cherry picking information

The reason you are conducting market research may be for your bank business plan, with an overall goal to get a loan approved, but that should not be your research objective. The desire to make an impeccable business plan, can make people cherry pick information for their research, sometimes without even realizing it. The result of this may be a seemingly bulletproof business plan, but in reality it is flawed.

Therefore, you need to have a scientific approach to your research, which means that it needs to be:

systematic - following a clear plan and path; using good methods and research techniques

and objective - not being biased in your research is crucial. If you only make it your goal to get approved for a loan, you might lose your perspective. Your objective with market research is to present reality as it is.

Presenting an unreadable paper

Do not oversaturate your findings with charts and graphs. By all means, use them, you need to after all, but know that you should tell a story. Your research should be easy to follow, read and understand. Knowing how to present your findings is crucial. And keep in mind that your readers may not be as knowledgeable of your industry as you may think, so avoid using industry jargon as well.

The scope of market research can be intense, which leaves a lot of room for mistakes. So, avoid the mistakes others make and base your bank business plan on the most accurate research you can do. If you find the Market Research portion of business planning difficult, consult experts that can do it for you. This will mitigate the chance of being biased in your findings as well.

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How to do Financial Modeling for a Pitch Deck

  Financial Modeling may be the deciding factor in gaining investment for your business. It is certainly what investors are the most interested in when you are pitching your business idea to them. That is why having an outstanding pitch deck is so important. But, fitting your financial model on a few slides can be a challenge, so here is the best way to do it.

Financial modeling in 4 simple steps

Before you even make your Pitch Deck, first make sure your financial model is complete and accurate. It is a number crunching process, but to make the whole experience a bit easier, it can be broken down into four steps:

Collecting data - Start by gathering all of the necessary information you can find. Look into your business’s history in sales, get data from doing market research, anything and everything you can get your hands on. The more the better.

Making assumptions - After getting every piece of information you can find, proceed by making a list of assumptions. This step should be taken very seriously, since the rest of the model will be based on it.

Forecast the 3 statement model

The three statement model consists of income statement, cash flow statement and balance sheet.

Income statement will show your income and expenses for a certain period.

Cash flow statement shows how much money is entering and leaving your business, or how much money your business has at hand for a specific time frame.

Balance sheet shows how much your business owns in assets, liabilities and shareholder’s equities for a given period.

Risk assessment and sensitivity analysis - financial modeling is not complete without testing your model first. By doing assessments and analysis you are checking for any discrepancies in your model, checking to see if it will hold up, and understanding where you may fall within a realistic range.

Organizing your financial model on slides

After you’re done with financial modeling, the next challenge is trying to figure out how to present it in your Pitch Deck. This is by no means an easy task, and there are a few things to consider:

Consider the number of slides

The whole pitch deck should not contain too many slides. Opinions on the slide number can vary. Some say no more than about 20 slides are necessary, but recently the trend is to keep your presentation down to only 10 slides. Keep in mind that only a fraction of those will be intended for your business’s finances, so your financial model may take up only about one or two slides.

Consider the visuals

Having only a couple of slides for your financial model will force you to get creative when presenting your numbers. The best way is to use visuals to convey information such as graphs and charts. But think about their design as well. It is not just about having an aesthetically pleasing slide, but it should be easy to read. Think about using adequate font and font size, and do not forget about having enough negative space, meaning do not cram your slide with too much text and visuals.

Preparing a presentation is not easy, especially if you have a lot of material to work with. A challenge with pitch decks has always been how to present all of your business’s aspects in a limited number of slides, and having to incorporate Financial Modeling into them does not make things easier. Luckily, using the aid of compelling visuals will get the job done every time.

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4 Common Financial Projection Mistakes when Writing an Information Memorandum

If you wish to sell your business or to do a merger, you – or an M&A advisor - might already be busy writing your Information Memorandum . By now, you might have noticed that it is not as easy to write it as initially seemed, especially when it came to making financial projections. Making projections is a long and complicated process and it is understandable that you are having trouble writing them. People usually make the same mistakes when projecting their finances for any business plan, and the same can be said for information memorandums. So here are a few common mistakes to avoid.

Making incomplete projections

When doing mergers and acquisitions it is logical to want to present your business in the best light possible. Information memorandum is a way to introduce your business to potential buyers, and it is therefore imperative to leave a good impression on them. However, for exactly this reason many people fall into a trap. They present only the good side of their business, while hiding the ugly. When presenting your projections it is imperative to be honest and show the whole picture, even if it is not favorable. But, fear not, a good strategy in this case, would be to include solutions to any future problem you may predict. After all, that is what Financial Projections are for anyway.

Not making enough assumptions

Another way people make incomplete financial projections is by making their list of assumptions too short. Making assumptions is a basic step in writing your projections, and maybe one of the most important ones. All of your projections will be based on these assumptions, therefore you should make as long a list as you can, in order to be able to make the most accurate projections.

Not doing market research

Entrepreneurs who underestimate market research, are missing out on all of the benefits it can bring to their business, especially when it comes to making financial projections. Having a good grasp of the market and its trends can be of great help when making your projections. All the data collected through Market Research can help you make your list of assumptions. Knowing all the changes the market is undergoing, or the ones that are about to happen, is a sure way to make the most precise financial predictions for your business.

Not basing your claims on data

Your Information Memorandum has to be based on facts about your business. So, when casting your projections, do not make your assumptions out of thin air, they have to come from somewhere. Just because you experienced a steady revenue growth for the past couple of years, does not mean it will continue into the next one. There are many contributing factors that can change the course of your business operations. That is why gathering all the information you can get your hands on and making your assumptions on actual data is what will make your financial projections credible, and consequently your information memorandum.

Avoiding these common mistakes will help you make the most realistic and accurate Financial Projections and a well formulated and well written information memorandum. Both of them are needed for a smooth merger and acquisition process, since they may be the biggest contributing factor for a successful transaction.

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Why You Should Get a Professional Business Plan Writer to Write your Financial Projection

 When running your small business, cutting out the middleman may seem like a good way of decreasing your costs and expenses. But a lot of the time this kind of business strategy leads to a DIY mentality that can, quite frankly, be detrimental to your bottom line. Sure, if you are capable and know what you are doing then go for it. Just be aware of the toll that it can take on you and your business. Be aware of your limitations. Taking on more than you can handle can have serious consequences. So if you need to write your financial projection, consider hiring a Professional Business Plan Writer, and here is why.

Experience is everything

Having expertise means you’ve seen it all. It means you’ve been through enough to know what works and what doesn't. But can you really say that for writing financial projections yourself? Well, professional business plan writers can. They know the ins and outs of writing them and know all the tips and tricks.

Writing projections is definitely no easy task. It involves complex calculations, tests and analysis. Not to mention the various steps needed to complete them. It can definitely be an overwhelming task for a novice, but a walk in the park for someone with experience in this field.

It's all about getting the job done

Let's face it, a lot is hanging on the line when it comes to writing Financial Projections, the success of your business to be more exact. Writing them properly and diligently is a necessity and something to be taken very seriously.

Most of the time projections are used to gain investments or loans, or even just for organizing and managing a company. Therefore, when your reason for writing them is so immensely important, then half baked projections will not get the job done. Investors and loan officers will not take them nor your business seriously and brush them off immediately. But, professional Business Plan Writers know how to make the most complete and accurate projections. So do not take for granted the quality work they can provide you, especially when the stakes are so high.

Better task management

Like mentioned before, doing everything yourself may seem tempting but it is definitely not necessary. Multitasking may seem like a useful skill, but it can result in jobs half done, which is not something you want for operating a successful business. When running your business there are a lot of things to do and take care of. It is hard work to stay afloat or maintain growth, so why burden yourself unnecessarily? Outsourcing your Financial Projection writing to experts, can free your hands, and let you focus on other aspects of your business.

Having a professional business plan writer write your projections for you is not only freeing your hands, but mind also. Making projections is a long number crunching process and being free from it will give you an opportunity to set your mind on other projects. This way you will have better focus for your tasks and therefore, better outcomes for your business.

Do not take writing financial projections for granted. It is not an easy process and it most definitely needs to be done properly. The success of your business depends on it. So having Professional Business Plan Writers make them for you will save you a lot of headache in the long run. Rest assured that they can provide you with the best possible projections for the best possible achievements. So next time, think about hiring one when you’re in need of financial projections.

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Why You Should Research your Market and Industry for an Information Memorandum

  When doing mergers and acquisitions it is necessary to provide the most accurate information about your business, but also be persuasive and convincing. So if you're wondering what to include in your Information Memorandum, a first step would be to collect all the relevant data you can find. While gathering statistics and figures from your own busines’s archives is a good way to start, there is much more to consider. Namely, one of the most important aspects of your business is how it fares on the market, which is exactly what the buyers are looking for. So market research helps you paint the whole picture of your business in a few ways:

It helps you estimate your potential sales volume

Understanding the market and it’s needs is key for running a successful business. Market Research can show you if there is a need for your products in the market, and how much do the customers value them. The math is simple, if there is a demand for your products or services and room for you in the market, your business is more likely to have higher sales. Knowing this in advance is of great benefit.

The merger and acquisition process will go smoothly if the buyers know that your business will be able to make a considerable profit. If the research is in your favour, it will be easy to convince potential buyers your business is a good investment. If not, well, at the very least you’ll know exactly which areas of your business need improving. Therefore, you’ll have a chance to work on them before you put everything in your information memorandum.

Additionally, data collected through market research is crucial for writing other documents included in an Information Memorandum like financial projections. They are of great interest to any potential buyer in mergers and acquisitions, since they predict your business future financial state.

It helps you find your place in the industry

Another benefit of market research is getting to know your competition. It is not enough to just offer products that are desired in the market, because they will not fare well if you are outperformed by your competition. If your competitors cast a shadow on your business, you will not be able to stay afloat. Therefore, including in your information memorandum how your business compares to others in the industry is important. Potential buyers will want to know if your business will be able to outrank the competition. Moreover, having a watchful eye on your competitors will help you make business decisions that will keep you in the race.

It helps you stay on top of the market trends

In the ever-changing market it is important to do regular market research. This way nothing will pass you by unnoticed. Regularly tracking market trends is crucial for running your business. This way you are making sure there are no surprises. Being prepared for any curve ball thrown your way is important for maintaining a successful business. By doing research repeatedly you are keeping a close eye on any new laws and regulation or changes in customer preferences that can affect your business. This way you are making sure you are not including outdated data in your information memorandum. Moreover, it reassures your buyers that you have done your homework, and are prepared for anything.

All in all, Market Research is a great asset to any information memorandum. It provides crucial and complete information to potential buyers. They will know just what is the value of your business in the market and how it is able to compete in it.

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The Necessity and Benefits of Financial Modeling in a Business Plan

A business plan is an extremely useful document that can serve a few purposes: as a detailed step-by-step road map to follow, a document to make business decisions and track progress, and a tool for gaining investments and loans. But no matter its intent, its components are universal, one of them being your business’s finances. And what better way to present your business’s finances than through Financial Modeling, a process in which all of a business's earnings and expenses are put through a mathematical equation, designed to test multiple different scenarios and predict future financial outcomes?

There are a few reasons why financial models are a necessity for any business plan.

Making financial projections

Financial models are used to cast predictions on a business’s future performance, in other words making Financial Projections. Making models is a long number crunching process but to put it simply, models are made by making various assumptions, based on which numerous scenarios can be made to calculate multiple possible outcomes.

Having several scenarios (or financial projections) for your business is very beneficial, as it will show you the full spectrum of possibilities for your business. Making the most realistic, the best and the worst scenarios will show you what to expect, what you can aim for, but also what to be on the lookout for. Seeing exactly where your business might be headed can help you make decisions early on, that can prevent disasters, or at the very least, help you make a plan b.

Gaining funds for your business

Furthermore, financial projections are one of the most important aspects of your business plan, since many investors or lenders will be interested to see if your business will be able to make a profit in the future. Investors are looking for an ROI, and lenders will want to make sure you can repay your debt. So if your goal is to get investments or lonas, doing financial modeling for your Business Plan, you will greatly increase your chances for success.

Making decisions

One of the biggest benefits of financial modeling is just how great of a decision making tool it is:

It is a great way for planning projects and deciding on their budgets. For a successful project, good planning is needed from the start. Financial modeling can provide a perfect overview of the funds needed for the project and whether they can fit in your budget. But, it can also predict the losses in the event that the project fails. Having all of the possibilities displayed can help you make the best possible decision.

Models can show whether there is excessive spending in certain areas of the company or if others are lacking resources, showing ideal opportunities for better allocation of funds, and making your business operate more smoothly and efficiently.

To make a long story short, Financial Modeling is necessary for any decision making process in a business, but also for gaining funds and investments. It is not only necessary for making the most optimal business plan, but it is of great benefit when aiming for success.

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7 Things to Know When Writing a Business Plan – Professional Business Plan Writer’s Tips

  When starting your business, you will most definitely need to write a business plan. This document will help you organise your business, help you make good decisions and even help you get fundings. Because of their importance, having a well written plan is a must, so here are some tips from a Professional Business Plan Writer.

Write with a purpose and know your audience

There are many reasons you will need a Business Plan and know that in order to achieve your goal, you will have to adjust your plan depending on its intended purpose. Knowing your audience helps as well, if you are for example looking to get investments, you will make investors ROI the main focus of your plan.

Consider what to include

While business plans are a detailed description of your business, know that they do not necessarily need to be too long. You should of course cover all of the main and most important aspects of your business, but you should not oversaturate your plan with unnecessary text. Professional Business Plan Writers know that while painting a full picture of your business is important, omitting some of the minor details is fine, as long as the integrity of the plan is intact.

Be honest

It is logical to want to present your business in the best light possible but do not fall into the trap of using your business plan as an advertising tool, especially if you are pitching it to investors. They will want to know everything about your business before they make a decision, the good and the bad. So do not fret about including your business’s weakness in it as well. It may seem counter intuitive, but professional business plan writers say it is necessary. Just be sure to provide ways to overcome your business’s shortcomings too.

Market research is a helpful tool

Your Business Plan greatly depends on the information you manage to gather. So, the more, the most accurate and up to date information you can find, the better your plan will be. Market research can be of great help in making your plan failure proof.

Think about the language and structure

Since you are writing a formal document, formal language should be used, your document should be professional. However, this rule can be seen more as a suggestion, if you consider who your audience is. Your writing style should be adjusted to your reader’s style and preferences, so your plan is easy to read and understand.

Do not forget to use references and support assumptions

Investors will not take you seriously if you do not have anything to support your claims. Sure, you say your product will sell well, but based on what? Have you done your market research? Have you made your financial projections? Always show where your numbers are coming from and where you are drawing your conclusions from.

Double check

Professional business plan writers know that the job is not done until everything is proofread (multiple times even). Always make sure everything checks out and is in order. Edit and make changes where necessary. And then check again, because it is better to be safe than sorry.

Having a well formulated business plan is essential for operating a business and for gaining funding, but it can be quite a challenge to write it. Asking Professional Business Plan Writers for help can certainly put some pressure off. Their tips can help you write the best possible plan to reach your goals and achieve success.

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2 Key Elements of Financial Modeling for a Bank Loan Business Plan

  Just like for financial projections, you need to base your financial model for a bank loan business plan on the three statement model, which consists of the income statement, balance sheet and cash flow. Alongside with the three statement model, making assumptions is the key for Financial Modeling . While there are many other elements of financial modeling, maybe none are more important than these two.

Making assumptions

Assumptions are the foundation of financial modeling. So dedicate some time to considering them and committing them to paper. You will need to have a wide scope of assumptions from best to worst case scenarios in order to make a proper financial model for your Bank Business Plan . Brainstorm all of the possible outcomes you can imagine.

Making correct assumptions about the future financial state of your business is important for constructing the most optimal financial model. Therefore, before you start making your assumptions, collect all of the information you can find. Go through your own company records, conduct market research, search through public archives. The more information you can find the more accurate your assumptions will be.

While the future is hard to guess, preparing for a multitude of different outcomes based on facts will benefit you in making the best bank loan business plan.

The three statement model

After making a list of assumptions, continue your financial modeling by forecasting your three statement model.

Income statement

A forecasted income statement will predict your business future revenue. By comparing all of your revenue and gains to the total of your expenses, they show if your business will be able to make a profit or will be at a loss. This will be one of the most important things to present in your bank loan Business Plan . You will need to provide loan officers with proof that you'll be able to repay your debt, and an income statement is the way to do it. Managing a steady income is one of the things loan officers are expecting from your business.

Balance sheet

Loan officers take careful consideration when choosing the right candidate for a loan. Banks do not take risks, and always do risk assessments. But even if candidates have good credit scores they still need to show what they have to offer as collateral. Collateral is usually in the form of assets that can be seized in event your business fails and you are not able to repay your loan.

This is why balance sheets are useful when doing your Financial Modeling. They show your business’s assets, shareholder equity and liability. For this reason, a balance sheet shows loan officers proof your business is financially stable and reliable, as well as

what you have to offer as collateral.

Cash flow

Cash flow calculates the difference between inflow and outflow of money. This will show you how much money you will have on hand at any given moment. It compares all of the revenue you make from sales and all possible expenses you will have. Making sure you do not run out of money before you pay your loan fees is not only the key to running a stable business but also a requirement for getting a bank loan.

Financial modeling is a long number crunching process that has many elements and steps to it. But if you are making a financial model for a Bank Business Plan, pay extra attention to the assumptions you make and the three statement model, which are the key elements to getting a loan for your business.

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How to do Financial Modeling for an Information Memorandum: 5 Simple Steps

  An information memorandum is necessary to prepare for mergers and acquisitions. It provides a summary of your business to potential buyers, so naturally it is important to write it properly. Keep in mind that your business’s biggest selling point will be it’s past financial performance, but the buyers will want to know about the potential for future success as well. And here is where Financial Modeling comes into play.

What are financial models?

Financial modeling is a process of making an overview of a company's finances in the form of a spreadsheet. Using a mathematical equation a financial model is made in which any variable can be changed to create different scenarios and outcomes. They are usually used for making business decisions, managing a company, setting budgets and organising projects. But they are also a necessary component in mergers and acquisitions, which is why they are included in Information Memorandums.

Financial modeling process can be lengthy, but it can be broken down into a few steps.

Collect your financial information

Financial modeling starts by collecting all of your financial history, your sales records, costs and expenses. The further back you go the better. But for the most optimal results, collecting at least 3 years of your financial history will be enough for making the most accurate financial models.

Study your numbers

After gathering every financial piece of information you have, it is time to analyze it. Try spotting common trends and reocccurancess. Study growth rates and turnovers. Learn everything you can form your financial ratios. This will later be useful when trying to make financial projections for your business.

Make assumptions

Making assumptions about your business’s future performance is done through drawing conclusions from what you previously learned from your analysis, or by doing market research. Understanding market trends can greatly help with determining the future performance of your business. Since you will make assumptions based upon what you already know, it is beneficial to collect as much information as possible, and Market Research can be of great help.

Make financial projections

After making your assumptions, proceed to build upon them by creating financial projections based on a three statement model (income statement, balance sheet and cash flow). This may be the most important part of your information memorandum since it will show the buyers your business may have a promising financial future.

Run assessments and analyses

The next step is to conduct additional tests and analysis, because Financial Modeling can not be complete without them:

Discounted cash flow analysis (DCF model) - calculate the value of your company

Sensitivity analysis - make different scenarios by changing the variables in the model to test different outcomes. This means adjusting the assumptions you made and seeing how the changes to the assumptions will impact the final result.

Stress testing - test the model by assuming the worst case scenario. This way you will be able to see if your business will be able to withstand extreme circumstances.

Since financial modeling is such an integral part of an Information Memorandum it is important to do it right. Going carefully through each step will assure your model will be convincing and accurate.

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How to Start Market Research for a Business Plan

You are already busy with writing your business plan, you got the executive summary done, you have written your business description, and now you have to do Market Research, except you do not know where to begin. Do not worry, the key is to make a good plan, and you’ll be all set to go. You will see that with good preparation and a well formulated execution plan, your research will be done with ease. So here are a few things to help get you started.

Determine the purpose of your research

To start your market research, the very first thing you need to do is determine its purpose. Why exactly do you need it for? Well, since you need it for your business plan, the bigger question is what do you need your Business Plan for? Is it for managing your internal or external business operations?

The purpose of your research will determine its scope, whether it be for managing your business or gaining investments. If you are looking to gain investments you will need to do as detailed research as possible to convince investors you are familiar with the market. You are more likely to get investments if you show that you are making well informed decisions that will result in a successful business.

Make a strategy

After deciding the purpose of your research, it is time to make a plan. Having a well formulated strategy is winning half the battle. You simply cannot proceed with your market research without having set up a straightforward and clear path to follow. This means knowing exactly what questions you need answering, what type of research to conduct, who is your target demographic and where to get your information from.

Choose the type of research

There are many types of Market Research for you to choose from, the most common ones being surveys, interviews, focus groups and observation. Consider your budget when making your decision, as some of these can be costly and time consuming. And of course, no matter the type of research you chose, prepare well for it. For example, think long and hard what questions you will be asking your customers in the interviews or surveys.

Create your customer personas

Find out who your customers are. For the benefit of your business plan you will need to know your target customers. Who is buying your products/services and why? What is driving their spending? What is their age group, gender, income, education level ect. Knowing all of this will help you make adjustments and set the right price for your products and services, or even help you predict future sales.

Choose your source of information

Collecting information directly from your customers is not the only way to learn about the market. Conducting interviews and getting first hand information from your customers would be considered primary information. On the other hand, secondary information is all of the data from public resources like libraries, government agencies, industry associations ets. The plus side of secondary information is that it is readily available and free, and very detailed specific information can be purchased from other sources as well.

Market research is definitely no walk in the park, there is a lot of work involved in gathering information and analysing it. You also have a lot to consider before you even begin your research. But if you have a good start the rest will fall into place. With a well conducted market research for your Business Plan, you will be one step closer to achieving your goals. 

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How to create a Winning Pitch Deck - Professional Business Plan Writer's Advice

  Chances are you are not the only one needing investments for your business. There are many other businesses looking for fundings and pitching their business plans to investors, in hopes of impressing them. So, the question is, how do you make your business stand out in a sea of others? Well, a winning Pitch Deck is the one that grabs the investors attention. This might seem like a lot of pressure, but here are some tips from Professional Business Plan Writers to ease you through it.

Know your audience

Most professional business plan writers know that the most memorable pitch decks provide the audience with what they are looking for, or to be more precise, what the investors are looking for in a business. Therefore, the focal point of your presentation should be the investor's ROI. And don’t forget to support your claims with numbers, otherwise they’ll lose interest if you do not have anything to show for your bold statements.

Keep it short

Do not make too many slides! It is not necessary to include every single detail in your presentation. Investors are on a tight schedule, they do not have the time to sit and listen to you drag on about your business, nor do they really wish to. There is an unwritten rule that your presentation should not be longer than 10 slides (give or take). Listen to professional Business Plan Writers when they say: “the fewer slides the better”.

So, anything you wish to include in your pitch deck should fit on those 10 slides. That means curating the information you would like to include in your presentation. Having a limited number of slides will force you to provide only the most important facts about your business, in other words, it’s heart and soul. This way you are more likely to spark investors' interest in your business.

Less is more

Making slides should be easy enough, but do not just put your numbers and spreadsheets in them and call it a day. Your presentation should be pretty to look at and easy to read. Professional Business Plan Writers know not to oversaturate pitch decks with text and long lists. Sure, you need to provide numbers to support your claims, but keep in mind that too much information at once can be extremely overwhelming for your audience.

Studies have shown that human memory capacity is limited. People's short term memory can only obtain about 7 pieces of information at a time. Any more than that increases people's contemplation time, which hinders their decision making, something you definitely do not want to happen with your audience.

Tell a story

Another tip from professional business plan writers is not to underestimate the power of storytelling. Any good story has a conflict and resolution, an issue that only the main character can resolve. So use these storytelling elements in your presentation to your benefit. Present a problem, or a need in the market that your business can solve. Here is where your products or services save the day by addressing the market demand. Presenting your business like a story narrative is a way to keep your audience engaged throughout your presentation, because everyone likes a good story, don’t they?

Look at pitch decks as an opening act to your business plan. They prepare the audience for what is to come, “the headliner”. They need to get them interested and curious about your business. So, using tactics from professional business plan writers for your Pitch Deck will surely score you a second meeting with the investors.

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How to Create a List of Assumptions for a Financial Projections in a Business Plan

If we had a crystal ball to see the future, writing Financial Projections would be so much easier. But, unfortunately we don’t. So, the next best thing is to make educated guesses. Financial forecasts require making a long list of assumptions about the future financial state of your business and all of the conditions and circumstances you may encounter along the way. These can be very difficult to predict, but here is how you can make your list of assumptions for the most accurate forecasts in your Business Plan.

Start by collecting (your) data

First thing’s first, gather your numbers. All of them. Look at your business records, it’s sales history, all of the bills and receipts, cost, expenses and losses you had in the past. But know that, searching through your own company archive is not the only way to collect data. You can either conduct market research, or you can get information from public records. Libraries, government records, and industry associations have plenty of free information available to the public. So, do not overlook these treasure troves of data, because the more information you manage to get your hands on the better. It will guarantee more accurate assumptions.

Asume your expenses and production costs

After getting all the information you need (or can get), the best way to start making assumptions for your financial projection is to predict your costs. Most of them will be recurring. But be aware that these expenses can change in the future. For example, the price of materials can go up, causing your production cost to rise. So be sure to make multiple assumptions, including the worst case scenario. This way you will not be blindsided by an unexpected event, which is excely what makes a good financial projection and business plan.

Assume your sales

For an accurate Financial Projection Business Plan, you will also need to predict sales, or how many units you will be able to sell for a given period of time. This will later be necessary for projecting your income statement and cash flow. Use market research to determine what the demand for your product is, or will be, and just how fierce your competition is.

Price your product

While making assumptions you will need to know the value of your product, the exact need of your product on the market and how much your customers are willing to pay for it. To set the price right you need to take into account not only production cost, but your competition and customer’s needs as well. That is why Market Research will be necessary in determining your products market value. So don't be hasty by setting your product price only according to its production cost, it will be detrimental to your bottom line.

Cash flow planning

Cash flow planning is about predicting how much money you will have at hand for a certain time period. It compares cash inflow and outflow, and helps you make sure you do not run out of money in the future. If you plan well, and have a good cash flow, you will not run out of money to pay your expenses. Predicting cash flow is important for making reliable business plans.

Making assumptions for Financial Projections can be tricky, but it helps if you are well prepared and have all the information you need to make the most accurate assumptions. A business plan cannot be completed if you cannot predict your business’s financial future.

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3 Key Elements of Financial Projections for a Bank Loan Business Plan

Bank loan business plans center around your business’s finances. They are all about proving to lenders that you have been running a successful business in the past, but more importantly, they will want to know if you can keep it up. Enter Financial Projections, a window into the future of your business’s finances. They can predict success or failure, therefore it is important to try and make the most accurate forecasts, especially if you are trying to get a loan. To break them down, there are three key components of financial projections.

Pro forma income statement

Pro forma income statements predict your future revenue, and they are the biggest portion of your financial projection. They include all of your operating expenses, taxes and show your earnings for a specific time period. So in order to project income statements you will need to make assumptions about potential sales. For that, you will need to look back into your history in sales and/or conduct market research. This part of the financial forecast is extremely important in your Bank Business Plan, because it shows your business will be able to generate enough income to repay your debt.

Cash flow

Cash flows represent money movement, more precisely the amount of money going in and out of your business for a certain period of time. They consist of two parts:

Cash inflow (revenue) - all the money accumulated through sales

Cash outflow (cash disbursements) - all of the expenses your business has

Cash inflow and outflow are later compared to calculate money surplus or deficit. Cash flows are necessary for financial forecasting and bank loan business plans because they can predict future money movement in your company and can be used to calculate your credit risk. They show the lenders just how responsible you will be with your business’s finances and if you will have enough money on hand to repay your loan.

Pro forma balance sheet

Pro forma balance sheets present a total estimate of your business’s net worth including assets, liability and equity. In order to make a good balance sheet you will need to gather data, the further back the better. It is generally recommended to collect at least two years of your business’s financial history. A pro forma balance sheet predicts what business will own and owe, which determines if you are a suitable candidate for a loan. Because banks do not tend to take big risks, having something to offer as collateral helps minimize that risk and show that there is a safety net in case your business fails or you otherwise default on your loan. It is important to note that a pro forma balance sheet has to match your income statement and cash flow, any inconsistencies will deter loan officers from approving your loan.

In the end keep in mind...

Pro forma income statements, balance sheets and cash flow are all necessary parts of financial projections. But because they are all based on assumptions it would be beneficial to make several different projections. Collecting all of your business’s financial data helps, but a good financial forecast will take into account other factors as well, such as market trends and currents, or unexpected costs and losses. That is why usually more than one forecast is included in bank loan business plans, ranging from the most optimistic to the most pessimistic scenarios.

Bank Business Plans are written with a purpose of getting a loan approved. Therefore, they rely heavily on the most accurate and detailed financial projections. If made properly, they can show your business will produce a steady revenue, and you'll be able to repay your debt.

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Tips from Professional Business Plan Writers on How to Present a Pitch Deck

So, you would like to present your business to an investor. You will likely contact a Professional Business Plan Writer to compose a business plan for you. But what if a business plan is not your first choice? There is a document that is made just for presenting - a pitch deck.

A pitch deck is a visually oriented brief presentation, that overviews your business plan. The most common way of using a pitch deck is in a face – to face meetings with potential investors.

But, having an adequate document does not mean your business journey is over. There is one crucial thing when you are presenting a Pitch Deck – the way you present it.

Here are professional business plan writers’ tips on how to present a pitch deck.

Have a Strong Beginning

Potential investors are busy people who have seen hundreds or thousands of presentations. Likely, the investors will not even pay attention to your presentation if you do not captivate their attention right from the start. There are many ways on how you can grab their attention:

- Personal story

Everyone loves to hear a good business story, and that definitely includes potential investors. Talk about your business journey, how it all started and your ideas in order to form that emotional connection with the audience, in this case, investors

- Imagination

Ask them to imagine a what-if situation, or to think of something that relates to their personal lives, etc.

- Tell a joke

You do not need to be a professional stand-up comedian to crack the investors up and use a joke as your ice breaker. However, if you go this route, make sure to test this out on a few different types of audiences first to make sure it will land.

Maintain Eye Contact

Not only professional business writers but everyone who communicates and has a conversation with someone should pay attention to eye contact. Maintaining eye contact makes you seem confident, and respectful towards your audience.

Professional Business Plan Writers suggest that the easiest way to maintain eye contact during your pitch deck presentation is to find a fixed point in the room. In this case, you should choose a wall behind your audience, so that it may seem that you are looking directly towards them.

Do your Homework

Come prepared. Know your numbers and metrics. It can speak louder than words. To make your pitch deck presentation successful, it is crucial to know your numbers by heart and be prepared to answer any questions that may come up.

Speak freely, but clearly

Avoid reading your presentation from your slides or a piece of paper. Know your text. If you are not that confident about how you will present your pitch deck, have a few note cards but try not to read directly from them so your presentation still feels fluid.

Look out for filler words

We all have used – “um”, “uh”, “er”, “like”, “ah”, when talking, without even realizing that we do it. Try not to use them at all while presenting your pitch deck.

You will sound more professional, trust us. Our professional business plan writers advise you to slow down and make shorter sentences when talking. It will reduce the usage of filler words.

How you present your pitch deck is equally important as the document alone. Implement these tips from professional business plan writers, and you will present your pitch deck successfully.

To present a Pitch Deck, you need to have one. Find experts, like those in the Advisory division at Joorney Business Plans, who will not only write and design your deck but are also willing to give you tips for an effective presentation!

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4 Key Customer Data Market Research Methods for an Information Memorandum

Market Research is beneficial for your information memorandum in many ways. You can gather data and learn more about your target audience, and if done effectively, you can bring home the victory of succeeding in your market industry.

Whether you have a B2C or B2B company, market research is a crucial part of your business journey. The goal of every business is to focus on the customer and to understand their needs. A common approach is to do customer data.

There are several methods of customer data market research you can do for your Information Memorandum.

Here are 4 crucial customer data methods that everyone should know.

Surveys

This is the most common method for doing customer data research. A survey is a list of versatile questions where you can collect specific data from a particular group of people. You can conduct this method either in person or online. These questions can be open or close-ended. Some of the close-ended surveys can be in a form of:

- Multiple-choice questions

- Demographic questions (besides the provided information, asking about gender, age, education, etc.)

- Ranking questions

- Checkbox

An important part of this method is knowing what questions to ask, but what is also important is how you ask them. Good questions with a good approach to the person you are questioning will lead to a good analysis.

Focus Groups

This is a simple yet often tricky method to put into practice. You carefully select a specific group of people, ask them questions about your product, services, their user experience, etc. By doing this, you will gain deeper insights. This is an open-end questionnaire, like a conversation, where the person can spontaneously talk and share their thoughts about the topic.

Business plan experts recommend using this method if you have a well-established business model and experience in the market.

Interviews

This is one of the most insightful customer data market research method. It is a face–to–face (in person or virtual), and one–on–one conversation with a selected target audience member. This method is insightful because it is personal and in-depth, with open-end questions. It also helpful because it allows you to ask follow-up and deeper question on the spot.

The only downside of doing interviews for an Information Memorandum is that it is time-consuming and it can get expensive. Be smart when with your resources and do whatever is most beneficial for your company.

Observation

This is the most powerful market research method where you monitor and observe your target audience. The key is that the audience behaves naturally with no pressure. This way, you will get real insights and get the most out of your results.

This method is often suggested for use in retail. Observing shoppers on special occasions or seasons is the most common way to get that insight.

As you can see, there are many customer data market research methods for an information memorandum or any other document. Understand your needs, and ways to achieve them, and you can easily choose the perfect Market Research for your business.

If you have doubts about choosing a customer data Market Research method, considering contacting professionals who can help you develop your methods and even be the ones to conduct the research for you!

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A Professional Business Plan Writers Tips on How to do Market Research

  Conducting market research is a great idea that can benefit your business in many ways. It can be used to make various business decisions such as marketing strategies, product improvement, budgeting, as well as be used in documents to gain fundings and investments. But because of the scope and the complexity of the task, many companies hire specialized agencies and Professional Business Plan Writers to conduct market research for them.

However, if outsourcing your research to other agencies is not an option for you, here are a few useful tips from an expert himself to guide you through your research.

“A good beginning makes a good ending”

Collecting, going through and analyzing all the data you need for your research can seem like a tremendous task, but if you know where to start and how to proceed, it makes things a bit easier. Professional business plan writers know that a good start will determine the quality of your Market Research, and any good research starts with a good formulated question and an execution plan.

That is why setting the parameters and research scope early on is the best way to ensure you do not get lost along the way and waste your time and resources with bad quality research and inconclusive or inaccurate findings.

“There is a lot of (free) information available”

Market research is a way of gaining information about your customers and industry, and there are many ways you can do that. Telephone polling, mailed questionnaires, online surveys and personal interviews just to name a few. These would all be considered primary research, because all of the information comes from the customers directly.

On the other hand, secondary research is conducted by gathering information about the customers from other sources and public records like (public or university) libraries, government agencies, industry associations etc. A professional Business Plan Writers advice is not to overlook this kind of research since it can be a valuable source of information. Secondary research is a great way for finding information about your target demographic as well as your competitors in the industry.

“Dive deeper into your research”

There will come a point in your market research when you think you have everything you need and you found what you were looking for. But it actually might be a good idea to continue with your research. Professional Business Plan Writers always keep in mind that correlation doesn't imply causation and some things may not be what they seem.

There can be underlying factors that drive consumer behaviour that you just did not pick up from your initial research. So in order to derive the most accurate conclusions from your research it is best not to leave any stone unturned when gathering the information you need.

“Keep researching”

Market research is never ending, because the market is ever changing. Experienced business owners are aware that continuous and repeated research is necessary to be able to stay on top of the competition. If you are basing your business decisions on outdated models, statistics and data, your business will surely suffer. That is why professional business plan writers suggest to keep doing regular research to be able to keep track of market trends.

Market Research can be a strenuous task, especially if you’re doing it on your own. Luckily, we can always turn to the experts for help. Their advice can guide you through the whole process and show you how to conduct the most optimal research and get the best results for your business.