Recently, a prospective client came to me looking for help gaining some extra resources to grow their business. He wondered what would be required to get an SBA Loan. We walked through a list of qualifications together, and everything seemed to check out just fine until it became apparent to him that he'd have to draft a business plan.
He already had a well-functioning business with a great-looking cash flow statement, so why would he need a business plan? He assumed that business plans were typically drafted for startups or new companies just trying to get off the ground, but not for an existing business entity with a proven track record.
As we continued with the conversation, we discussed how much this prospective client was looking to borrow and why he wanted a loan from the Small Business Administration in the first place. He stated that he needed about a half-million dollars. Wow, this guy must have big plans, I thought to myself.
However, when I asked what his plans...