You’ve got a great idea for a business. You’ve gathered the numbers, done the research, and assembled a rough outline of how to bring your vision to life. Now what? A formal business plan is the crucial next step, covering everything from an analysis of your company’s target market to its funding requirements over time. Each point in your business plan should help paint a clear picture of your business and what it aims to accomplish, allowing you to effectively explain your vision to potential investors, lenders, partners, and stakeholders. However, beyond a solid business plan, one of the most critical components of a successful startup is having the right banking partner by your side. A knowledgeable banker can help entrepreneurs navigate challenges, secure necessary funding, and offer strategic financial advice that aligns with long-term goals.

Crafting a Business Plan
Creating a business plan is a pivotal step in establishing a successful venture. Here’s a step-by-step guide to help you create an effective plan:

1. Draft an Executive Summary
   Every business needs to be able to summarize its objective and value at a high level. Who are you? What are your products and/or services? What market or markets does the business operate in? Think of an executive summary as an elevator pitch: a concise overview of your business, described in a way that any listener will comprehend. Your Executive Summary is the first impression you’ll leave on potential financial backers, so it needs to be compelling and transparent. Start by introducing your business and its core mission, then highlight your product’s value proposition, and what problem it solves for the target market.
2. Company Overview or Description
   Next, work on a company description that discusses more specifics. Establish your business name and legal structure, whether it be a nonprofit, LLC (Limited Liability Company), sole proprietorship, partnership, or another entity type. Mention the business’s physical location(s), as well as how the business came to be and its current status. This section sets the foundation for the rest of your business plan, offering crucial context and a snapshot of your current standing.
3. Market Research & Analysis
   Outline the target market, including key demographic, geographic, and psychographic attributes of your audience. Demographic characteristics include factors such as age, gender, income, and occupation, allowing for some concrete data points that identify the business’s primary customers. Geographic characteristics point to the specific regions or areas where the highest concentration of potential customers lives or frequents. Psychographic attributes pinpoint the lifestyle, values, interests, and buying behaviors of customers, painting a picture of their deeper preferences. This information lays a foundation for creating a buyer persona, or an outline of a person who represents the target audience.
   Be sure to also address the fundamental question: What problem are we solving? This will affirm your value proposition, or what genuine need your product or services fulfills. Additionally, you will be able to establish product-market fit, or an understanding of how your product aligns with the needs of your market segment. It’s not about the product itself, but rather the outcome the product provides and how closely that aligns with the needs and desires of your intended market. With a keen understanding of your own target audience, turn focus to a competitive analysis. Evaluate your competitors’ strengths, weaknesses, and unique value propositions. This will help surface and identify a strategic advantage in positioning your business, while also unearthing potential gaps in the market and areas where you can differentiate your offerings.
4. Products or Services
   Use the products or services section to provide a clear description of what you’ll be offering. Be sure to articulate the unique value proposition and competitive advantage that sets your product apart from your competitors. What do you do better than others? How do you do it? Whether it’s new technology, exceptional customer service, or a different approach to a common problem, make it clear why there is a need for your product in the market. Emphasize the quality and specific design features that make your product innovative. This section is an opportunity to sell the essence of your product.
5. Marketing & Sales Strategy
   In this section, establish your brand identity and the visuals your audience will know you by. This includes your company’s name, logo, brand colors, and tone. It should be reflective of your brand’s values and resonate with your target audience. From here, you can begin detailing advertising and promotional strategies. These
   strategies can include a mix of campaigns, social media marketing, and traditional advertising channels such as print or direct advertising. Consider details such as what platform your audience spends the most time on and whose opinion they trust when it comes to new products and services in your category.
6. Create Financial Plans
   Once you’ve covered the details, it’s time to outline the financial aspects that are necessary in growing and sustaining the business. Forbes’ business plan guide recommends a budget for weekly, monthly, and annual spending. Begin by detailing your business’s operational costs, such as rent, utilities, salaries, resources, and any other day-to-day expenses. Be realistic with your expectations, and focus on conveying that you have a clear and logical understanding of what it will take to run your business financially. Keep in mind there will be plenty of unexpected expenses throughout the process, making an emergency fund especially wise.

Identifying Startup Costs and Funding Needs
After crafting a detailed business plan, focus on the capital needed to launch your business. Compile the expenses associated with getting the venture started, such as equipment costs, commercial space, legal fees, inventory, website creation, and marketing expenses. After establishing a clear picture of your startup costs, consider your funding strategy, which might include personal savings, a commercial loan, crowdfunding, a grant, or investors. When approaching potential funders and financial partners with your idea, it’s important to be completely transparent about the amount of capital you’re seeking from them and how it will be utilized.

Thinking Beyond Early-Stage Capital
Relationships forged in the start-up phase of a business can last a lifetime and impact future growth, making it important to be intentional about how you use your initial business plan to secure capital. Ryan Haugo, the president of Midwest Ironworks, knows firsthand the importance of having the right banking partner. After years of building his business, Ryan faced a major crossroads and financial decision—buying out his business partners. “It was deflating,” Ryan recalls. “You feel like you’re in a bad situation and there’s no way to get out of it.”

After struggling to find a bank that understood his needs, Ryan was introduced to the business banking team at Cornerstone Bank. From the first meeting with the Chief Banking Officer of Cornerstone, Dan Staller, and business banker, Jake Lind, things felt different. Instead of seeing obstacles, they saw potential. “They walked through the business evaluation process with me,” Ryan says. “They looked at my business and me differently, and they just had confidence.”

Thanks to Cornerstone’s support, Ryan successfully finalized the buyout in 2023. The following year, the bank helped him secure capital for a new property, allowing his business to continue growing. Beyond financing, Ryan now relies on his Cornerstone Bank team for ongoing advice and support. “I call Jake all the time—whether it’s about buying equipment or just bouncing ideas off someone who can give me real answers,” Ryan explains. “They’ve been through tons of these transactions and see things coming that I might not.”

The Right Banking Partner Makes All the Difference
Ryan’s experience underscores a crucial lesson for entrepreneurs: choosing the right bank is just as important as having a strong business plan. “In the business world, it’s everything. It’s a game-changer,” Ryan says. “When you’re talking about big transactions, they’re impossible to do without a bank like that.” He advises other entrepreneurs to find a banking partner that understands the vision and is willing to come along for the ride. “You need a bank that can see your potential—not just the numbers on paper,” Ryan says. “If a bank is too limited in its outlook, that’s not who you want to be doing business with.”

Ready to Take the Next Step?
Whether you’re launching your first business or looking to scale an existing one, having the right financial partner is crucial for success. Cornerstone Bank’s expert business bankers are ready to help you navigate the complexities of securing capital and growing your business.

Start the conversation today with a banking expert who understands your vision and is ready to help you achieve it.