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How do you create an effective business plan in this situation? Well, simply stated, place yourself in the shoes of the person lending the money. What would you as the lender want to read in a plan? First and foremost, these individuals want to see that you have demonstrated the ability to repay the loan with the required level of return on investment (ROI) and within the required time frame.

In essence, here is a great way to think of superior business planning. Imagine you are taking a road trip from California to New York. No planning ("flying by the seat of your pants") would involve you getting in the car and driving "East" on every freeway you come across. Adequate planning would involve mapping out your course, planning where to stay overnight, where to eat, sights to see, and so forth.

Include a personal background. There are many good reasons to start a catering business and you should let readers know why you are drawn to this industry above all others. Outline your working history and attach any relevant reference letters as an appendix to the plan.

If your answer is no, you may have been able to easily accomplish this goal by planning for such expenses in advance through a business plan. Even if having cash at the ready is not a viable alternative for you, you may have planned to have a line of credit available for such opportunities, knowing that in your field these opportunities do arise from time to time.

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