Provide a Copy of Your Business Plan...
A business plan is a great idea. The SBA definition of a business plan, and what most people think of as a business plan - including agencies like Fannie/Freddie and others - allows you to memorialize how you will do business; the ways and means including LOS selection, pricing, startup costs, volume projections, staffing as well as unique business propositions, marketing strategies, and other relevant elements. It looks like this:
This is a sample of a table of contents of an SBA-Style Business Plan
But... THIS IS NOT what the regulator wants. The regulator wants an answer to specific questions about how you will do business. We recommend that you write a 1 pager and simply answer the questions in a Q&A format. In this way, there can be no question as to the narrative. For Example:
For the business plan requirement, we recommend that you simply draft a memorandum answering the questions:
- What is your marketing strategy?
- What products will you offer?
- Who will you market these products to?
- How will you operate - e.g., branch processing, centralized? Manager? Loan Originators? Processors? To whom will they report?