The value of this exercise is to make you aware of your personal strengths and weaknesses in pursuing your entrepreneurial interests. Be honest with yourself as you make the decision to go into business.

A business plan defines your business, identifies your goals and serves as your firm's resume. Its basic components include a current and pro form balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

Can You Qualify for a Loan?

Obtaining a loan requires knowing the facts and solid preparation. Good preparation can make the difference between getting a loan and being declined.