Over the past two decades, I have instructed and coached hundreds of hopeful entrepreneurs, who participated in a six-month small business training program, developed their own Plan and many are now living the American Dream.
You may be thinking, “Why should I take the time to create my Business Action Plan? This Plan is your exclusive personal and business profile that will lead you to reaching the American Dream. It’s the official document to take to your lender or anyone else who may need to know about your operations.
Let me state upfront that you have very little chance of securing a business loan unless you have a detailed Plan to take to your financial institution for the loan officer to review.
When others read your Plan it will give them an overview of your anticipated business venture and it adds credibility on whether or not your venture will be successful. This Plan is also your written communications tool when you need to orient others such as an attorney, financial advisor, employees, sales personnel, suppliers and any one else who needs to know about your business.
Lenders will want some type of collateral to ensure that you are serious about starting your business. The most common collateral is some of your savings or other assets and we will discuss loan rationale later on. A word of warning; I have met with entrepreneurs in the past who want to put their home up for collateral to guarantee their loan. This is a very serious choice because you certainly don’t want to jeopardize losing your home if your business encounters trouble.
The benefit of your Plan is that it can take you “over the top” when reaching for the American Dream. It makes it easier to inform everyone about what business you are opening. Your Plan is the path in seeking the American Dream because it guides you through the turbulent economic seas and into a “harbor of choice”.