5 Must Have Ingredients for your Business Forecast
Before submitting your loan aplication, make sure your business forecast includes these five ingredients lenders may want to see.
1. Your customer profile
A detailed description of your target customer.
B2C customer profiles should include:
- Education level
- Customer pain points your product/service addresses
B2B customer profiles should include:
- Industry Details
- Company size
- Quality, technology, price or other pain points of your business customer
2. Competition Summary
Including profiles of two or three of your top competitors shows lendors you have a good grasp of the competition in your market. Each profile should detail the following:
- Market Share
- Typical Customers
- Products & Services
- Strengths & Weaknesses
3. Your Market Standing
Where does your busines fit into the current market? Remember to include a short section on your market standing in your business forecast. Use the U.S. Small Business Admiinistration (SBA) Sizeup Tool to identify your top competitors (based on info in the SBA databas) and how your business ranks against them. You'll need your email address, industry and location.
4. Local Economic Forecast
To demonstrate your awareness of the factors that could impact your business success, share your knowledge of the current and future local economy in a short forecast.
Try finding regional information at:
- Local SBA office
- Chamber of Commerce
- PNC Economic reports
5. Potential Seaonal Factors
Consider including a listing of seasonal factors that could impact your business, such as weather, travel patterns or holiday spending. Although seaonality may not seem very important, it shows lenders you've carefully considered all factors that could impact your business success.
Ready to apply for a business loan or line of credit? Consider speaking with the business bankers at PNC Bank.