Learning how to write a Business Plan is perhaps one of the most critical phases in a business life cycle. Why this is so, might be because its crucial to know how much money you’ll need to start and when you’ll likely run out of your cash. To address both these issues while crafting your plan, it is recommended to go through the process in incremental steps. Writing a business plan requires strong research and analytical skills; it essentially walks the reader through the thought-process of the entrepreneur.
If you live in the U.S., Europe, Canada or Australia, then you are one of the most fortunate people in the world. You can get business loans or credit cards almost instantly with a good credit score. You might have noticed that microfinance lending is gaining momentum,which is why we’re experiencing a boom in social lending platforms – companies like Kiva and Zidisha are…well…revolutionizing online lending. With already over $600 million raised, they focus on delivering small loans to individuals in emerging markets. This trend is… how to write business proposal for bank loan, how to write business plan on agriculture,
How to write business plan for microfinance
The business plan is a written document that describes the goals, objectives, and strategies of a company. It can be used in many ways: to obtain funding from investors, to get a loan from a bank or other financial institution, and to help management make decisions about future operations. A business plan should be short and concise – no more than 20 pages.
In this article we’ll discuss how to write business proposal for bank loan, how to write application letter to microfinance bank, microfinance bank business plan, how to run a microfinance business
How To Write Business Proposal For Bank Loan
A business plan is a written document that gives an overview of your business, its goals, and the plan for reaching them. A microfinance business plan is no different from any other type of business plan. It can be used as a tool to attract investors, lenders or grantors, or to solicit funding from any other source. A successful business plan will help you define your goals and identify potential problems before they happen. You can use it as a blueprint for starting your business and keeping it on track once it’s off the ground.
Here are some tips on how to write a microfinance business plan:
1) Identify Your Target Market:
Who is going to buy your product? This may seem like an obvious question but it’s not always easy to answer. For example, if you’re selling hand-made jewelry online, who are your customers? Are they men or women? Young or old? Do they live in rural areas or cities? These factors will determine which marketing strategies will work best for your product and target audience so be sure to think through all of these details before moving forward with the rest of your plan.
2) Create a Profit-and-Loss Statement
A business plan is a written document that describes your business and its goals. It helps you to define your business, identify its strengths and weaknesses, set goals, and make financial projections for the future. It also identifies the risks involved in starting and running the business and how you will overcome those risks.
Business plans help you think through all aspects of your business before you spend any money. They are particularly useful if you’re seeking funding from a lender or investor because they show that you have thoroughly planned how your business will operate.
A good business plan should include:
An executive summary – this is a brief overview of your entire plan that can be used for marketing purposes or to quickly communicate key points about your company to potential investors or partners
A description of the company – this includes information about its history, current status, products/services offered, target market etc
A description of the management team – this should include resumes of both owners and managers as well as any special skills they bring to bear on the project at hand
Financial projections – these detail projected sales growth over time along with expenses such as wages, utilities and other costs associated with running operations
A business plan is a formal and systematic statement of how you intend to start, run and achieve success in your business.
The process of developing a business plan helps you clarify your goals, identify opportunities, and create the framework for reaching them. It also helps you to put your ideas into action.
Here are some important things to consider when writing your business plan:
Identify your target market and competition;
Define your products or services;
Develop financial projections;
Analyze the competition’s strengths and weaknesses;
Consider all possible risks; and
Determine if this venture is right for you
The first step to writing a business plan is to write down all of the ideas that you have for your business. This can be done with pen and paper or on your computer. Once you have all of your ideas written down, it’s time to turn them into actionable tasks.
Once you have all of the tasks completed, it’s time to organize them into sections. The sections will usually include:
Company description
Marketing plan
Operational plan
Financial projections
How to write application letter to microfinance bank
1. Start with a cover letter that is short and descriptive. It should include the business name, contact information (include your email address), what you want to borrow and how much, as well as how long you expect it will take you to pay back the loan. The letter should also include a few sentences about why you are applying for this loan and what your plans are for using it (e.g., buying equipment, starting or expanding a business).
2. Include a business plan that demonstrates your ability to repay the loan and explains why you need it in the first place. The plan should have three sections: an executive summary; a description of your business’s current operations; and projections for future growth or expansion within three years from now. The executive summary should be no more than one page long but should include information about yourself and your company, including its history and legal status (i.e., whether it’s incorporated or unincorporated). This section also needs to include details about your industry sector, including market size and growth rate; any trends affecting your industry; other companies operating in the same space as yours; competitors’ strengths and weaknesses; how much capital investment is required to start up your
Microfinance is a financial service which provides small loans and other financial services to the poor. It is a type of alternative banking, made available to people who are considered too poor or too risky for loans from conventional banks. A microfinance institution (MFI) is an organization that provides microfinance services.
Microfinance became popular with NGOs in the 1980s as a way to promote self-employment and entrepreneurship among the poor. In recent years, a number of MFIs have increased their efforts to reach more groups, including women and youth. Today, most MFIs focus on lending for productive purposes such as agriculture, small business development and other income generating activities.
In 1961, the first “village bank” was started in Bolivia by Dr. Muhammad Yunus, who later founded Grameen Bank in Bangladesh in 1983 as a way to provide credit to rural poor people without collateral. The first village bank in Nepal was established by Dr. Govinda Raj Joshi in 1962 at Chisapani VDC of Makwanpur District with an initial capital of NPR 1,000 from savings of its members (Dr Joshi later received Nobel Peace Prize).