The items are in the order they would appear in a finished business plan. Some sections like the cover page, table of contens, executive of summary, etc. should actually be created later in the process. The sections are noted with an asterisk "Executive Summary", This is optional. Write one if the written portion of the plan is longer than ten pages. The executive summary gives the reader a one page overview of the business and business plan.
Do it last:
· Name.
· Location and facility description.
· Introduction to Owners and Management team.
· Brief summary of sales and profits from last couple of years if applicable.
· Brief explanation of the product or services.
Information on the market, target market, competition, and how you will promote & sell the product/service,Summary of projections, loan requirements and time-frame for repayment of funds Use of Proceeds(Source & Application of Funds) Indicate how much money is needed, where it is coming from, and how it will be used. Many companies require multiple stages of financing. If this is the case, the actual timing of the sources and uses of funds will also appear on the cash flow projections. Gather information for everything you will need in order to open the doors. Get written quotes when possible. These quotes will be included in the appendix section.
Plug the total amounts in the total column. Estimate the maximum amount of cash that you can inject into the business and plug this amount in the bottom line of your equity investment column. This money must not be in the form of another loan and it should be money you can stand to lose. If you have other investors, plug in the amount they have committed.
If you have arranged other sources of financing such as a capital lease on major equipment or seller financing on real estate or an existing business, plug that amount in. The cash reserves (working capital) amount will be added later after the cash flow projections are complete.
The difference between the amount you need and the financing you have already arranged is the exact amount you will request from the bank. The specific items each source will fund can be determined later. Usually a bank will want to fund fixed assets such as building, land, and equipment and you will fund as much inventory, fees, working capital, and other soft costs as you can. This table will be re-worked several times before a final version is created for the financing proposal.
Regard,
Rofix lee
Saturday, January 17, 2009
The Bussiness Plan Outline
Business Plan - General Tips
Make it brief, to the point and easy to read,
The summary items (Source &Application of Funds, Statement of Purpose, Executive Summary)and financial projections are the first parts of the plan your banker or investor will read. If they make financial sense, then the rest of the plan will have additional value. Use layman’s terms (or include a glossary) if your industry uses technical terms.
Unless you are requesting a very large amount of money, don’t exceed 20 pages.Voluminous research data, surveys, letters of intent, catalog pages, samples, diagrams and other information should be included in a separate binder as an appendix.
Use a Market Driven Approach.
Marketing is the engine that drives the projected sales revenues. Demonstrate and substantiate how the customer will benefit and be motivated to purchase.
Exploit Your Company's Uniqueness.
Explain what will give your company a competitive edge in the marketplace (patents, trade secrets,copyrights, barriers to entry, etc).
Emphasize Management Strength.
Convince the reader that you have the skills and expertise needed to actively manage the business.If you need a key employee (i.e. a chef in a fancy restaurant) indicate the incentives that will keep them with you.
Present Attractive Projections
Paint a realistic picture - substantiated by assumptions - of where your company is going with the funding. Be detailed and keep it credible.
Weave the theme “This is how you get your money back” into the entire plan. Bedefinite about how investors will get their money back and when. For lenders, show that their funds are adequately secured and that your cash flow more than covers their interest and principal payments.
Avoid computer software business plans where you plug in numbers.
Individualize your financial projections because no two businesses are alike and a start-up company will not fit the standard industry norms.
Expect to spend a minimum of several weeks working on your plan.
As you gather information, the plan will need to be continuously revised and edited. It's not unusual to spend up to a year developing a detailed plan.
Borrow enough money up front.
Don’t assume that the bank will loan you more money if you need it.
Do your homework.
It is likely that the loan officer will have to present your plan to a loan committee. If your plan is not complete enough to sell itself, your chances of approval are slim.
Learn from your mistakes.
If you are rejected by the first bank you contact find out why and fix the problem.
Proofread the plan.
Have someone else read your plan for style, spelling, grammar, accuracy,consistency, and completeness. If it is an easy plan to read and understand, it will be easier for possible financing sources to say "YES!" If the lender can answer yes to every question associated with the 8 C's, they will probably make the loan. You will soon be experiencing 80-hour workweeks, sleepless nights, no vacations, domestic squabbles, and punitive government regulations. You may also experience a level of satisfaction unmatched by anything else you will ever do.
Regards,
Rofix lee
Monday, January 12, 2009
Types of Financing
Debt Financing
Debt financing does not give the lender ownership control, but the principal must be repaid with interest. Length of the loan, interest rates, security and other terms depend on what the loan is being used for.
Commercial Bank Loans
A. Short-term: Loans for short periods (30 - 180 days) usually made to cover temporary or seasonal needs for inventory or personnel. These are common for established businesses,but may be hard for a new business to obtain.
B. Medium to long term: These loans may be repaid over anywhere from 1 to 5 to even 20years depending on how the funds are used. The source of repayment is the cash flow of the business. Typical uses are for equipment, fixed assets, etc. Most loans to start a small business will be of this type.
C. Real estate financing: Real estate is typically financed over a fairly long term, 10 to 30 years. Expect a down payment of about 20%.
D. Accounts receivable financing: Money loaned against accounts receivable pledged as collateral.
Equity Financing
Equity is money put into a business by the owner, private investors, and/or venture capitalists. Equity gives an investor ownership and possibly some control of the business.
A. Your own savings: It is nearly impossible to start a business without using some of your personal funds. It is hard to convince someone to take a risk in your idea if you do not.
B. Friends, relatives, business associates, etc.: Most small businesses get started with this kind of help. They may provide some of the cash or may back a loan from a financial institution.
C. Venture capitalists:Groups invest in a new firm, looking for an obscenely high return on investment.Minimum investments are from several hundred thousand to millions of dollars.
Internal Financing
A. Customers can be a source of temporary financing if they provide the raw materials or if they pay a cash deposit. This is not feasible in most businesses.
B. Trade Credit: Once you have obtained a good reputation with your suppliers you may be able to have credit for anywhere from 30 to 90 days. You may be able to order, receive and sell the goods before the bill is due.
C. Profit: Hopefully you will earn enough profit to be able to invest in and expand your business.
Leasing
Leasing is simply another form of financing. Leasing reduces the cash needed up front, but like a loan you are obligated to the payment for a certain period of time. Some lease contracts give you ownership of the leased item at the end of the term for a specified amount. If your credit is less than perfect,leasing may still be an option.Leasing companies and manufacturers are sometimes less stringent with their lending practices because they are usually leasing equipment that can bemeasily repossessed. This might be a good option for vehicles, heavy equipment, computers, phone systems, etc.
Regards,
Rofik Lee
Itaewon(Seoul) Mosque
Itaewon is the most well-known place to foreigners. Many embassies, a mosque, and restaurants of various countries are located in this area.From subway line 6 Hangangjin station to Noksapyong station, you can find varieties of restaurants serving international foods. Asian restaurants...
ASIAN Restaurants: Pakistani, Thai, Indonesian, Indian, Chinese, Japanese, and Korean restaurants.
EUROPEAN Restaurants: Italian, French, Swiss and German
LATIN American: Mexican
For more detailed locations and information on restaurants: http:itaewon.go.kr/food/index.asp (Avaliable in Korea,English, Japanese, and Chinese)
Regard,
RofiX Lee
Sunday, January 11, 2009
Best Korean Food
Dishes with Meat,
a).Bulgogi, Sliced beef seasoned and barbequed. Sweet and tasty.
b).Galbi, Grilled rib of pork or beef
c).Samgyeopsal, Roasted pork. Eaten wrapped in lettuce.
d).Takgalbi, Stir-fried chicken with vegetables, Rather hot and spicy.
e).Jeyukbokeum, Stir fried pork with vegetables.
Dishes With Fish
a).Saengseonhoe (Sliced Raw Fish). Raw fish slices usually enjoyed with vinegared pepper paste or wassabi.
b).Saengseon-gu-i (Grilled Fish). Grlilled fish either salted or spiced.
c).Saengseonjjim (Steamed or boiled fish). Spiced...fish steamed or boiled.
d).Saengseonjorim (hard-boiled fish). Fish and vegetables hard boiled in soy sauce.
Regard,
Rofix lee
Saturday, January 10, 2009
About South Korea
GEOGRAPHY :
Area: 98,480 sq. km. (38,023 sq. mi.); slightly larger than Indiana.Cities (2005): Capital--Seoul (10.3 million). Other major cities--Busan (3.7 million), Daegu (2.5 million), Incheon (2.6 million), Gwangju (1.4 million), Daejeon (1.5 million), Ulsan (1.0 million).Terrain: Partially forested mountain ranges separated by deep, narrow valleys; cultivated plains along the coasts, particularly in the west and south. Climate: Temperate, with rainfall heavier in summer than winter...
GOVERNMENT :
Type: Republic with powers shared between the president, the legislature, and the courts.
Constitution: July 17, 1948; last revised 1987.
Branches: Executive--President (chief of state); Prime Minister (head of government. Legislative--unicameral National Assembly. Judicial--Supreme Court and appellate courts; Constitutional Court.
Subdivisions: Nine provinces, seven administratively separate cities (Seoul, Busan, Incheon, Daegu, Gwangju, Daejeon, Ulsan).
Political parties: Grand National Party (GNP); Democratic Party (DP), formerly known as United Democratic Party (UDP); Liberal Forward Party (LFP); Democratic Labor Party (DLP); Creative Korea Party (CKP)
ECONOMY :
GDP (purchasing power parity in 2007): $1.201 trillion.
GDP growth rate: 2004, 4.7%; 2005, 4.2%; 2006, 5.1%; 2007, 5.0%.
Consumer price index: 2004, 3.6%; 2005, 2.8%; 2006, 2.2%; 2007, 2.5%.
Natural resources: Coal, tungsten, graphite, molybdenum, lead, hydropower potential.
Agriculture, including forestry and fisheries: Products--rice, vegetables, fruit, root crops, barley; cattle, pigs, chickens, milk, eggs, fish. Arable land--16.58% of land area.Industry: types--Electronics and electrical products, telecommunications, motor vehicles, shipbuilding, mining and manufacturing, petrochemicals, industrial machinery, steel.
Trade (2007): Exports--$379 billion f.o.b.: electronic products (semiconductors, cellular phones and equipment, computers), automobiles, machinery and equipment, steel, ships, petrochemicals. Imports--$349.6 billion f.o.b.: crude oil, food, machinery and transportation equipment, chemicals and chemical products, base metals and articles.
POPULATION PEOPLE :
Korea's population is one of the most ethnically and linguistically homogenous in the world. Except for a small Chinese community (about 20,000), virtually all Koreans share a common cultural and linguistic heritage. With 48.38 million people, South Korea has one of the world's highest population densities. Major population centers are located in the northwest, southeast, and in the plains south of the Seoul-Incheon area.
Korea has experienced one of the largest rates of emigration, with ethnic Koreans residing primarily in China (2.4 million), the United States (2.1 million), Japan (600,000), and the countries of the former Soviet Union (532,000).
KOREAN LANGUAGE :
The Korean language is related to Japanese and Mongolian. Although it differs grammatically from Chinese and does not use tones, a large number of Chinese cognates exist in Korean. Chinese ideograms are believed to have been brought into Korea sometime before the second century BC. The learned class spoke Korean, but read and wrote Chinese. A phonetic writing system ("hangul") was invented in the 15th century by King Sejong to provide a writing system for commoners who could not read classical Chinese. Modern Korean uses hangul almost exclusively with Chinese characters in limited use for word clarification. Approximately 1,300 Chinese characters are used in modern Korean. English is taught as a second language in most primary and secondary schools. Chinese and Japanese are widely taught at secondary schools.
KOREAN RELIGION :
Half of the population actively practices religion. Among this group, Christianity (49%) and Buddhism (47%) comprise Korea's two dominant religions. Though only 3% identified themselves as Confucianists, Korean society remains highly imbued with Confucian values and beliefs. The remaining 1% of the population practice Shamanism (traditional spirit worship) and Chondogyo ("Heavenly Way"), a traditional religion.
HISTORY :
The myth of Korea's foundation by the god-king Tangun in BC 2333 embodies the homogeneity and self-sufficiency valued by the Korean people. Korea experienced many invasions by its larger neighbors in its 2,000 years of recorded history. The country repelled numerous foreign invasions despite domestic strife, in part due to its protected status in the Sino-centric regional political model during Korea's Chosun dynasty (1392-1910). Historical antipathies to foreign influence earned Korea the title of "Hermit Kingdom" in the 19th century.
With declining Chinese power and a weakened domestic posture at the end of the 19th century, Korea was open to Western and Japanese encroachment. In 1910, Japan began a 35-year period of colonial rule over Korea. As a result of Japan's efforts to supplant the Korean language and aspects of Korean culture, memories of Japanese annexation still recall fierce animosity and resentment, especially among older Koreans. Nevertheless, import restrictions on Japanese movies, popular music, fashion, and the like have been lifted, and many Koreans, especially the younger generations, eagerly follow Japanese pop culture. Aspects of Korean culture, including television shows and movies, have also become popular in Japan.
Japan's surrender to the Allied Powers in 1945, signaling the end of World War II, only further embroiled Korea in foreign rivalries. Division at the 38th parallel marked the beginning of Soviet and U.S. trusteeship over the North and South, respectively. On August 15, 1948 the Republic of Korea (R.O.K.) was established, with Syngman Rhee as the first President. On September 9, 1948 the Democratic People's Republic of Korea (D.P.R.K.) was established under Kim Il Sung.
On June 25, 1950, North Korean forces invaded South Korea. Led by the U.S., a 16-member coalition undertook the first collective action under United Nations Command (UNC). Following China's entry on behalf of North Korea later that year, a stalemate ensued for the final two years of the conflict. Armistice negotiations, initiated in July 1951, were ultimately concluded on July 27, 1953 at Panmunjom, in what is now the Demilitarized Zone (DMZ). The Armistice Agreement was signed by representatives of the Korean People's Army, the Chinese People's Volunteers, and the U.S.-led United Nations Command (UNC). Though the R.O.K. supported the UNC, it refused to sign the Armistice Agreement. A peace treaty has never been signed. The war left almost three million Koreans dead or wounded and millions of others homeless and separated from their families.
In the following decades, South Korea experienced political turmoil under autocratic leadership. President Syngman Rhee was forced to resign in April 1960 following a student-led uprising. The Second Republic under the leadership of Chang Myon ended after only one year, when Major General Park Chung-hee led a military coup. Park's rule, which resulted in tremendous economic growth and development but increasingly restricted political freedoms, ended with his assassination in 1979. Subsequently, a powerful group of military officers, led by Lieutenant General Chun Doo Hwan, declared martial law and took power.
Throughout the Park and Chun eras, South Korea developed a vocal civil society that led to strong protests against authoritarian rule. Composed primarily of students and labor union activists, protest movements reached a climax after Chun's 1979 coup and declaration of martial law. A confrontation in Gwangju in 1980 left at least 200 civilians dead. Thereafter, pro-democracy activities intensified even more, ultimately forcing political concessions by the government in 1987, including the restoration of direct presidential elections.
In 1987, Roh Tae-woo, a former general, was elected president, but additional democratic advances during his tenure resulted in the 1992 election of a long-time pro-democracy activist, Kim Young-sam. Kim became Korea's first civilian elected president in 32 years. The 1997 presidential election and peaceful transition of power marked another step forward in Korea's democratization when Kim Dae-jung, a life-long democracy and human rights activist, was elected from a major opposition party. The transition to an open, democratic system was further consolidated in 2002, when self-educated human rights lawyer, Roh Moo-hyun, won the presidential election on a "participatory government" platform. South Koreans voted for a new president in December 2007. Former business executive and Mayor of Seoul Lee Myung-bak's 5-year term began with his inauguration on February 25, 2008
Best Regard,
Rofix Lee.
