Include a Business Plan Purpose Statement on Your Plan

Include a "Business Plan Purpose Statement" when you create a business plan for submission to a bank for a loan. Although it is not absolutely necessary, it can have positive impact on getting the loan. It could be a page or less in the document detailing the impetus behind the development of a plan.

Here is an example Business Plan Purpose Statement:

"The XYZ Scuba Company is proud to present its Business Plan to the First Island Bank. The state of Florida has had a long and exciting history of growth and innovation that continues to this day. It is also a tremendous state for businesses that are able to spot opportunities and exploit them before the competition.

"One of the opportunities that we, the XYZ Scuba Company, has uncovered in recent months is a vast, unmet demand for scuba diving lessons and the rental of first-rate scuba diving equipment for beginners. While the advanced and expert divers bring their own equipment for diving here, new divers and those who want to merely dabble in the sport need to rent equipment when they take scuba lessons.

"Many casual divers might want to spend as little as a day in this activity, while others will commit much of their visit to here to learning how to dive. Although there are many "mom and pop" shops that offer some rental equipment, there are no retail outlets within 50 miles of our location that offers diving lessons and a full array of equipment to handle that one- to two-person group or the 50-person scuba outing.

"The bank loan we are seeking for this new venture will not only allow us to profit from this venture but it will positively impact our area. Through contacts we have in the media and our web site, we will draw many new vacationers and visitors seeking out scuba diving to our area. We will also hire an additional eight people to begin with to implement the new program."

Create a similar Business Plan Purpose Statement for your business plan and include not only your potential profit opportunity but the impact it will have on your area.

How powerful can these statements be? We were in contact with real estate developer/entrepreneur who brought a huge computer maker to his area to open a call center. Although he had sold the computer maker on coming into the area, it was terribly difficult to get a loan from the large eastern banks to build the call center.

He took his business plan to regional and local banks, who were interested but too small to do such a deal. However, as the business plan and business plan purpose statement revealed, the computer maker would bring so many jobs to the area that the regional banks formed a consortium to get this deal done. Even the governor of the state and the state legislature got involved and put up state money to make sure this call center got built.

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