How much time should I spend on writing a business plan before applying for a loan?
There is no right or wrong answer. It all depends on whether you are writing a business plan for the first time and whether your company is a start-up or an already-existing business. A business plan may not be required based on the size of your loan request, your company’s time in business, and your lenders’ requirements. Ask your prospective lenders prior to investing a significant amount of time writing a business plan. Your timeline will also depend on how urgently your company needs a loan. My rule of thumb is to allow 2 to 4 weeks writing time if you want to create a meaningful plan and have enough time to develop its key points. Remember that you are writing your plan not just for prospective lenders but also for your own sake. If you rush through writing a business plan, it may come back to haunt you in the form of a turned down loan request or your business failing to make loan payments due to miscalculations. Here are a few suggestions: Do NOT to try to write your plan overni
