If you are thinking about starting your own brokerage, you most likely already know what a business plan is. You’ve probably had it pounded into your head that you need a business plan before even thinking about opening your doors to clients, but it’s equally likely you’ve also thought, “I’m here to source capital for business owners large and small. Why would I limit my pool of borrowers?”
It seems smart to say “we’ll source capital for any business need,” but when it comes to finding borrowers and sourcing capital, sourcing requires some niche skills, depending on the circumstances. That means, sourcing loans for anyone and everyone becomes a process of relearning and adapting with every loan. It’s exhausting and frankly, unsustainable.
A smarter growth strategy starts by identifying categories of borrower needs and building actionable plans to serve each category. Yes, you can serve more than one audience, but often you need unique approaches to connect with each audience and to build the network of borrowers to address the needs of each one. These niches become the foundation of your well-written business plan.
Small Business Plans Explained
In it’s simplest form, a business plan is a document that outlines the basics about your business, products, and services; the market you are targeting; the goals you have for your business; and how you will achieve those goals.
A business plan is one of several important plans you should have when you are starting your brokerage, the others being a marketing plan and a financial plan. Your business plan will pull all three of these plans together, incorporating elements of your marketing plan and your financial plan into a comprehensive document. Think of your business plan as a map or blueprint that will guide your business from the start-up phase through establishment and eventually business growth.
Businesses thrive when they have a clear goal and path to success. Writing a business plan for your company puts you on that path. Here are a few best practices to keep in mind when writing your business plan:
Follow a Process to develop your Business Plan
Your business plan doesn’t have to be an elaborate document or overly formatted and designed. It simply needs to be clear and easy to understand by you, your employees, and anyone with whom you’ll partner while on your business journey. Business plans often start with an executive summary, but we recommend writing that last. Identify who you want to serve, how and where you’ll connect with them, what common loan amounts and loan types these borrowers pursue, what barriers they face to financing, and how you’ll serve them better than the other financing options on the market. which you’ll use to describe the particular field in which your business aims to succeed.
The Commercial Loan Broker Institute has created a workbook for individuals and teams seeking to launch or refine their business loan brokerage. The guide is broken down into several sections:
How to use the Business Plan Development Guide
The introduction explains how to use the guide. It includes sections to write, steps to complete in each section, and samples that demonstrate the types of content business owners might create.
Sections include: Mission, Vision, and Values; Product/Service description; Competitive Advantage; Short, Medium, and Long-term Objectives; Organizational Structure; Office Location; Deal Highlights; business and industry overview; Market Gaps and Opportunities; Competitor Analysis; and more.
Developing a comprehensive plan requires discovery, data assessment, and one-on-one conversations with various sectors of the market. It’s not completed overnight, but becomes more of a journey than a destination. Over the years, updating the business plan helps you and your team maintain focus and adapt to changing business scenarios.
Continue reading to download your business planning guide.
Give it Some Thought
As mentioned above, your business plan should be easy to understand but thorough. A solid plan will involve some research if you intend for the document to be useful to those reading it. While it might seem like a chore, the opportunity to research business trends and market data is one of the bonuses of writing a business plan, allowing you to differentiate your business and to stand out in the market.
Share Your Plan
Some business owners think it’s best to keep a business plan under wraps. But, in order for your company to thrive, every employee should be aware of the plan’s dynamics. It helps foster a sense of focus and should be shared with your team and close partners. You’ll likely get unsolicited but valuable information that can help you refine your focus and approach.
Stick to the Plan
Your business plan isn’t a task to get out of the way, never to think of it again. Think of it as a road map to your business – always worth checking to make sure you’re on the right path. Keep in mind that you may need to revise your business plan as your company grows. Keep it current by revising research and updating estimates as new information comes available.
What We Do
The Commercial Loan Broker Institute gives you the tools and skills you need to become a successful commercial loan broker. We know what it takes for your brokerage to be successful. We help you through every step of the way, including creating a comprehensive small business plan once you’ve completed our training program. We are dedicated to your success as a broker and can’t wait to help your brokerage succeed.
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