6 Ways Loan Officers Expect to See Market Research Applied to Your Bank Business Plan

1. 6 Ways Loan Officers Expect to See Market Research Applied to Your Bank Business Plan One of the main reasons that business failed is due to lack of proper market research. Bank loan officers know this. That is why they expect to see evidence of it throughout your Bank Business Plan. What surprises most people is that loan officers expect to see market research in many ways. Some of these ways or more obvious than other. But, in either case, they will be looking for it so it’s important to know how it should be incorporated. · Executive Summary – This section of the bank business plan will be a broad overview of the entire business plan. Therefor, it should go without saying that market research will underpin a lot of the information presented here. · Industry Analysis – One of the more obvious places where Market Research is expected is the industry analysis. The research you do to determine and evaluate the overall size of the industry is purely market research. The sources you use to justify this information will also be scrutinized by the loan officer. So, make sure it’s a quality, reliable, trusted source. · Target Market – This should be a pretty obvious section of the bank business

2. plan that will incorporate market research as well. While the industry analysis is the broad view, the target market hones in on exactly who your ideal client(s) is and why that is the case. · Marketing Plan – Once you understand your industry and target market through market research, you will be able to plan your marketing efforts. Marketing itself is another way that loan officers scrutinize your chance for success. Don’t skimp here. You need marketing or you will not have clients. No clients makes it pretty difficult to have sales. Without sales you can’t pay back your bank loan. Yet, many people justify skipping on marketing as a cost saving measure. It is a place officers would rather see you go big than ignore. · Sales Plan – Closely tied to the marketing plan is the sales plan. These are similar but address things from very different angles. Just as with the marketing section, make sure your plan ties back to the market research. · Financials – The financials are an area of the SBA Business Plan where people don’t always associate market research. Yet it is a key part of most of the assumptions you will make. For example, when you research what a commercial lease will cost in the city you plan to locate, that’s market research. When you determine what to sell your product for you’ll likely consider competitors. That’s also market research. This list goes on and on. This will be one of the most important areas of the bank business plan so make sure your assumptions are well supported with market research. From the beginning to the end of the business plan, market research will play a vital role. These are some of the most important places but, not the only ones. Do thorough market research and without even realizing it, it will find its way into your plan. If you’re not sure where to start, hire a Professional Business Plan Writers. It is so important to the success of your bank business plan that it is well worth the investment.