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
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