Even if you are not borrowing money the production of a business plan however brief is designed to show

• the entrepreneur the way forward,
• he has thought of everything,
• a path to follow
• and a realistic way ahead.

The plan should have;

• An executive summary
• Financial information, showing historic information where possible or at least the basis of comparable sites and operations on which this plan is based
• Forecast profit and loss accounts in detail
• Forecast cash flow and balance sheets
• Details of capital requirements

Short term finance funds working capital

Medium term finance is to fund assets with relatively short (3-5 year) working lives

Long term finance is to last the length of the business

Match your criteria with your borrowing and at all times think ‘25 year mortgages for your housing’. This is the basis for any good borrowing practice.

Be savvy, don’t rush in and again fully realise that you are committed to pay off this loan. It is not a freebie.