Preparing Business Loans With Tutoring Business Plans

Preparing Business Loans With Tutoring Business PlansWhen you are applying for money from a lending institution, what is the most important factor in your application for a business loan? It may seem like it's a simple question, but it is in fact quite complex.Before you even step foot in the lending facility to apply for a loan you have your application ready, all you need to do is to see how much time you will have to spend writing a business plan. You can submit your plan as a document, or you can also put it into an electronic format which is very convenient to use.There are a lot of people who do not give much thought to writing their business plans. While they have a checklist that they can refer to when they're writing it, they forget that some of the most critical aspects of the plan may not be covered. The three most crucial areas of the business plan that no-one will ignore are the proposal, strategic plan and financial forecasts.An example of how someone writes their busin ess plan is 'Cathy and her friends intend to offer tutoring to clients.' Now of course this is not the complete application, but it does tell us that there are specific aspects of the tutoring business plan that will be looked at. Let's look at a few of these areas that may be excluded. First of all the people who Cathy is tutoring are not provided with a copy of the business plan.Secondly they are not able to view any background information such as board of directors and corporate financials. The third most vital part of the business plan is the strategic plan, which is what the members of the board of directors are looking for before they approve the business plan. If Cathy is working with her brother on what they call an 'A' corporation and the tutoring she's offering is being done via an 'S' corporation, then the strategic plan is only going to be read by Cathy.As the complete business plan for the tutoring business will be reviewed by the board, it is vitally important that the board of directors is made aware of any changes that have occurred in the last two years. Sometimes you may get a report stating that there is no change to the strategic plan. If you are applying for a business loan, it is important that you will provide a copy of the most recent version of the business plan to any other party you may be working with. This information is critical in making sure that the company you are doing business with has the capability to handle any new requirements you may have.All three sections of the business plan will be reviewed, but in my opinion they are the most important parts of the application, and most likely will not receive any special attention. If you are filling out your application form with your business plan attached, then the financial forecasts will be reviewed.It is recommended that you include the financial forecasts as part of your business plan because the business plan is not reviewed until the end of the loan process. Also in all b usiness plans you should include a summary of the recent changes in the business.