Chief Executive Officer The Chief Executive Officer will be responsible for providing work direction for the business He will be responsible for building, communicating, and implementing the vision, mission, and direction of Vanguard lenders LLC — which also includes leading the achievement and implementation of all strategies. Makes sure of the operation of equipment by completing preventive maintenance requirements; calling for repairs. Is tasked with staying updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations. Builds the reputation of the firm by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
Microfinance Business Plan Business Plan Articles If you are starting a microfinance company, it is likely that you will require a business plan at some point.
The experts at Pro Business Plans has extensive experience working with microfinance companies to prepare plans for investment microfinance business plan template strategy. This article provides information on what to include in the plan and how it is typically structured.
Microfinance Business Plan There are several things to consider if you are starting a microfinance company that will influence the potential for success that investors and banks will use to review your company and analyze its potential. Among the most important are the nature of the positioning, such as the location that microloans will be provided and the structure in which they will be funded.
For instance, some microfinance companies apply the peer-to-peer lending model, whereas others acquire their own lines of credit, or get funding from institutional investors.
The specific structure of the microfinancing company and the unique structure of its operations Business Model The business model of a microfinance business plan is designed to provide information about how your company is different than others in the market based on its unique positioning.
There are several distinguishing aspects of each microfinancing business that would distinguish it relative to others in the market. For instance, some many focus on a specific area such as philanthropic lending and others may emphasize higher returns that target the predatory market.
There are also many areas within the business model that are unique to your company, regardless of its positioning, such as the management team and available resources.
The information below provides a breakdown to further illustrate these points. Market Positioning There are several angles of the market that you may take depending upon the focus of your positioning.
However, it may be challenging to find an untapped area of the microfinancing market and justify that it is a sustainable business model. For instance, you may be able to enter a specific country that has high interest rates or abnormally high requirements for financing.
The World Bank provides a breakdown of interest rates by country such that you may have a greater understanding of where a spread may occur. Management Team The management team is one of the core aspects of the plan because it requires that the team have a very high level of expertise, yet also be versatile and wholly focused on growing the company.
A well-structured management team will consist of a leader responsible for bringing together the business model, ideally someone with a background in finance and lending, and a business development person capable of sourcing plenty of microfinance deals.
The qualifications of the management are important because at an early stage, all that the company is worth can be determined by what the combined effort of the management team may be capable of accomplishing. Marketing Plan The marketing section of a microfinance business plan can focus on two approaches.
The first approach is loan origination, by focusing on how microfinance loans will be sourced and from what locations they will be generated. The second approach is investment generation, as money may be generated from both private and institutional investors, and potentially unaccredited investors if the company is structured properly.
Therefore, there are several aspects of the marketing strategy that the company may take in order to focus on value creation and bringing together people that require capital in exchange for people that are looking to make a higher and more stable return on their investment. Public Relations TWhen it comes to marketing for a microfinancing company, public relations are a strong way to establish a reliable brand identity in the market.
Not only may the company establish a strong brand in the market, but it may also build a reputation that it may nurture as it scales in the market. Consumers are placing a decreasing amount of credibility on advertisements and increasing credibility on information acquired from the media.
Fortunately, the media is easily bought and acquiring media coverage is very feasible through the proper channels. Strategic Partnerships The most effective method of quickly gaining traction in the market is through the formation of strategic partnerships.
Working with construction firms, real estate agencies, and vendors to offer financing for their customers is one approach. Another approach is to form strategic partnerships with loan origination companies and similar firms.
Financial Projections The financial forecasts for a microfinance business plan should provide information around the forecasted revenue and budget of the company.
The revenue projections are based on a large number of assumptions based upon an analysis of growth at similar companies to help investors better understand the potential profitability and identify risks that the company may face in the future. These projections are based on a variety of factors including macroeconomic drivers, the growth forecasts of your business, and those of comparable companies.
The revenue forecasts should be conservative yet optimistic, as investors will recognize those that are overly aggressive and based on unfounded assumptions.
A Sample Micro Lending Business Plan Template Are you about starting a micro lending business? If YES, here is a complete sample micro lending business . VI. Operations Plan Geographic location(s). Facilities, equipment and technology. Labor force. Control of PAR, eﬀorts to predetermine credit-worthiness of borrowers (e.g., credit bureau) or other issues speciﬁc to the products. Control of operating expenses. Function of internal audit unit, if applicable. Social beneﬁts expected to be realized. VII. A Sample Microfinance Bank Business Plan Template. Industry Overview; Microfinance banks provide microloans to individuals and small businesses. These individuals and small businesses tend to go for loans to be able to pay for the purchase of real estate and other transactions. This demand in turn makes the microfinance bank business a recession-proof business.
Budget Forecasts The most effective method to form a budget for a microfinance business is to base them on quotes from third parties including contractors, vendors, and service providers. If your company bases its budgeting on quotes, it is more likely to be accurate.
However, it is also a good idea to overestimate the budget in order to avoid having liquidity issues. By having a conservative budget, you can advert a financial crisis and steer away from liquidity issues.Annex 3b: Business Plan Format Provisioning & delinquency management: The most reliable way of measuring the quality of an MFIs loan portfolio is the Portfolio at Risk ratio.
Prisma MicroFinance, Inc., is a U.S. microfinance company with Nicaraguan operations where loans are made to residents in the urban area of capitol, Managua. The loans range in size from U.S.
$$15,, and are used for both personal and business purposes. A Sample Micro Lending Business Plan Template Are you about starting a micro lending business?
If YES, here is a complete sample micro lending business plan template & feasibility report you can use for FREE.
Prisma MicroFinance, Inc., is a U.S. microfinance company with Nicaraguan operations where loans are made to residents in the urban area of capitol, Managua.
The loans range in size from U.S. $$15,, and are used for both personal and business purposes. The business plan should contain an executive summary that should be restricted to two pages. It should also contain necessary information about: Microfinance industry, the institution and its products;.
Annex 3b: Business Plan Format Provisioning & delinquency management: The most reliable way of measuring the quality of an MFIs loan portfolio is the Portfolio at Risk ratio.