| Your road map to business success. | | | | collateral and a statement on how you plan on paying |
| More then ever, a well thought out Business Plan is | | | | back the loan if the business fails. Your relationship |
| seen as a necessary tool for building a viable | | | | with the lender is strictly business as they want |
| business. Whether you are seeking financing from a | | | | assurance of repayment. You must provide them |
| lender or plan on approaching the Small Business | | | | reasonable assurance you know what you are doing |
| Administration for a loan guarantee, a business plan is | | | | and how you plan on doing it. |
| essential for presenting the formalities of the | | | | The Business Plan Provides: |
| business. In today's highly competitive marketplace, a | | | | A picture of past experience |
| formal business plan may mean the difference | | | | A plan for the future |
| between success and failure. | | | | Makes financial needs clear |
| What is a Business Plan? | | | | Identifies possible threats and provides reasonable |
| Simply put, a Business Plan is a written statement | | | | solutions |
| outlining how you intend to operate your business | | | | Serves as a communication tool |
| into the future. While most business owners have a | | | | Establishes direction and sets company goals. |
| general idea of how they want to run their business, | | | | Do not take anything for granted. Be prepared for |
| those intentions are not written down. As the | | | | anything that can happen before it happens. If you |
| business grows and new challenges emerge, the | | | | put it off until something happens it will cause a |
| business owner often needs to involve others in the | | | | disruption in your ability to preform. Every section of |
| venture. This is a time when the business owner | | | | the Business Plan should be considered. First settle on |
| finds himself/herself under pressure to formulate a | | | | your legal description, name, product or service and |
| plan for future growth. Unfortunately this time period | | | | logo. Then find a good location and bring everything |
| affords the least amount of time for planning. | | | | together with your Business Plan. |
| The following are compelling reasons for developing a | | | | Here are some of the things a Business Plan should |
| formal Business Plan. | | | | contain. |
| A Road Map To Success | | | | The Business |
| Very few entrepreneurs achieve their goals without | | | | A. Description of Business |
| first formulating a well thought out plan of action. | | | | Form of Ownership |
| Any responsible entrepreneur will spend the time | | | | Location |
| necessary to record his/her expatiations for the | | | | Products or service offered |
| business. Good planning guarantees preparedness for | | | | History of past experience |
| the future thus reducing challenges to their lowest | | | | What is the Niche served |
| denominator. Lessened challenges means less risk and | | | | Need for niche - demand |
| a higher probability of success. It just makes good | | | | Growth potential |
| business sense to plan ahead when risking money | | | | Longevity of product of service |
| and resources. | | | | B. Marketing |
| Predetermined Check Points For Measuring | | | | Customers |
| Progression Of Goals | | | | Competition |
| Like a traveler sets off on a journey and plans when | | | | Products |
| to reach his/her destination, a Business Plan also | | | | Strategy |
| serves as a guide for the journey. With a Business | | | | C. Management/Personnel |
| Plan in hand, a business owner can set check points in | | | | Financial Data |
| which progress can be measured and adjustments | | | | A. Pro forma Cash |
| made. As each step in the business plan is reached an | | | | Detail by the month for first year |
| evaluation is made. Further funding can be applied for | | | | Detail by Quarter, Second & Third years |
| physical expansion, upgrading equipment or more | | | | Notes of Explanation |
| employees. As each goal is satisfied a cycle of | | | | B. Pro forma Balance Sheet |
| activity signifies the beginning of new goals. New | | | | Income Projection (profit and loss) |
| goals, mean an extension to the plan. | | | | Detail by Month, first year |
| The Business Plan Is A Vehicle For Involving Others | | | | Detail by Quarter, Second & third years |
| Into The Venture | | | | Notes of Explanation |
| Even if there has been no need for employees, a | | | | D. Financing Requirements |
| Business Plan sets the stage for bringing new people | | | | E. Insurance Requirements |
| into the business. This assures everyone understands | | | | All expatiations should be considered when writing a |
| the goals of the business and what is expected of | | | | Business Plan. Project one year, five years and ten |
| them. Far to often the business owner thinks he/she | | | | years. Break down each segment into its lowest |
| can commutate with their small staff of workers only | | | | denominator. If you want to make x amount of |
| to find out their employees ideas and theirs differ. A | | | | dollars, how many sales will it take and what will each |
| Business Plan provides the needed direction for | | | | sale consist of? Find the answers and put them on |
| everyone to stay on the same track. The planning | | | | paper. |
| process also assist in the expatiation of meeting | | | | Plan to be productive and successful. Contemplate |
| goals to the employees and reducing the number of | | | | any and all possibilities good or bad. Consider the |
| unscheduled crises that tend to arise. | | | | "what if" factor. Seek professional advice and don't |
| The Importance Of Developing A Loan Application | | | | sell yourself short. Being self-employed is not for the |
| A good Business Plan will be required by the lending | | | | faint at heart. It is a tough road to take. You will |
| institution before financing can be had. Evan if you | | | | have to work hard spend long hours and put up with |
| want to apply to the Small Business Administration a | | | | a lot of rules and regulations. It is not the answer if |
| lending institution must make the loan. The SBA will | | | | you are seeking freedom from an employer. |
| guarantee the loan up to 80% but the lender will | | | | Self-employment will suck the energy from you but if |
| need proof of capability. Are you capable of running a | | | | you planned right you'll be able to spend some time |
| business? The lender will ask for proof of experience, | | | | with the family after a few years. |