Writing a business plan can be challenging but getting funding is another daunting task. Financial institutions focus on the ability of the business to generate revenues and profits to pay back the loan. A viable venture should be in a position to make timely interest repayments, cover its operational costs, and still remain profitable. In this business plan, a potential financer would focus on the following aspects:
The Competition
The textile sector is a highly competitive niche/segment. Companies around the world produce an array of products that suit the needs and demands of their customers so firms rely on product uniqueness and enhancements to improve revenues. According to the business plan, Southwest Woollen Mills is expected to earn a competitive advantage through product uniqueness, which will be reinforced with consumer friendly prices, promotions, and product quality.
The Product/Service
The solar-powered blanket is a less competitive niche in the textile industry. The business plan has focused on product uniqueness in ascertaining its ability to generate revenues and profits for Southwest Woollen Mills Company. Typically, financial institutions consider competitive advantages when considering funding for any organization and from this standpoint; the product is an attractive venture.
The Cash flow Statement
Based on the business plan, the company’s initial capital outlay is approximately £700,000, and it has a sales growth potential of £2,000,000 by the end of the second financial year. The cash flow statements depict initial losses and profitability after the first five months. Banks can consider awarding a one-year grace period before the firm starts repaying the loan.
The Company Directors
The business plan indicated that the company would operate under two directors and two competent managers. The directors are the actual business owners and have the skills and competency gained through years of working as directors in profitable firms. Such skills will ensure the business grows and remains profitable.
