The starting point for a lender when reviewing a proposition, particularly a new start, will be the Business Plan. You may find people trying to sell their own ability to write you a plan but if you have had the idea to set up a business in the first place then chances are you can save money and write a cogent business plan yourself.

It's an important document but follow a few rules and the lenders will be appreciative and able to understand your ideas.

Try to keep the plan to 9 sections,

1) EXECUTIVE SUMMARY. Clearly but succinctly (the detail will follow in subsequent sections so keep this brief!) describe the businesses activity including a brief indication as to what will make your business unique. This section should include appropriate background information such as when & why the company was formed together with a brief outline of sales (if any) achieved so far. The market in which the business operates (will operate) should be summarised along with its perceived potential size, both domestic & overseas. The management and their individual skills should be outlined. (An appendix, at the conclusion of the Plan should be relevant CV's)

At the conclusion of this section you should specify exactly what it is you are asking for, some business plans look brilliant but never actually say what is wanted, so if you need a loan of £25,000 then say so.

2) BACKGROUND/INTRODUCTION. Describe precisely the background to the request and why you are setting the operation up or looking to expand

3) THE BUSINESS. The outline was provided in Section 1 but detail here your proposed activity, objectives and your state of preparation. Detail the legal, capital and ownership structure of the business.

4) MANAGEMENT, ORGANISATION & PERSONNEL. Establish the credibility of the management team, listing the key positions within the business who fills those positions and why they are suitable for the job given relevant experience or ambition. Detail any advisors the business has and don't be scared about outlining any deficiencies in personnel.

5) THE MARKETS. Detail your target customers both in actual identity and quantity. Discuss the market trends and its size and segmentation.

6) COMPETITION. Don't shy away from the fact you are entering a potentially competitive market but let the reader be aware that you know your competition and have the strategy to compete successfully.

7) MARKETING. How precisely will you be selling, what promotional plans do you have and have you considered all possible selling channels (web, agents etc etc)

8) OPERATIONAL DETAILS. Premises, equipment, transport & distribution, materials, suppliers, staffing (other than key personnel highlighted earlier), insurance & legal requirements.

9) FINANCIAL OVERVIEW. Sales, profit and cashflow forecasts are vital to lenders in assessing any proposed investment. Make sure you know your margins and make provision for all possible overheads. Err on the side of conservatism as far as expected sales income.