Posts Tagged ‘Business Loan’

“Have Business Plan or Bust”

More than ever, it’s vital to have a plan for your business. And, I’m not speaking about having a marketing strategy just for when starting a new enterprise or making use of it for a business loan. Every business, new and established, must periodically re-evaluate their current plan to see if targets are being met or if they’ve changed and what the brand new strategies are.

Without planning and a strategy, an organization is simply “guessing” and has nothing solid with information on paper regarding the business’ successful attainment of goals.

Do You Know What a Business Plan Really Is and Does?

Many individuals have no idea what a business plan’s purpose actually is. That is the largest reason why people have so much difficulty writing them.

In a nutshell, such plan is about results. Your plan is a direct reflection of your purpose.

The long clarification of what a business plan is: any plan that works for a business to forecast what may be ahead, allocate resources, focus on key issues, and put together solutions to problems as well as opportunities.

Now, a ‘start-up’ plan these additions:

1. A summary about what the enterprise is and does.
2. A mission assertion that lets employees, clients, and lenders understand your ethics and goals.
3. An inventory of keys to success.
4. A market evaluation to determine who your opponents are as well as public demand for what you are promoting.
5. A break-even evaluation to seek out out when you might recoup your funding into the business.

A start-up plan for your small business will certainly settle any doubts as to whether or not to pursue beginning a business you take into consideration, but will also serve as your roadmap to take you to the next levels of growth.

Your plan will rely greatly on your specific business. The bottom line is to make your marketing strategy and business plan match your purpose.

Case Studies of Business Plans

With no plan, you don’t know where you’re going and you don’t know methods to get there.

1. Case Study of a Massage Therapy Business: Take the case of a therapeutic massage instructor who had a group of 30 students. Of course, every student’s dream was to graduate and begin their own massage therapy business. But there was a big problem: they graduated and thought they’d simply get clients with business cards and people would flock to them. Only TWO out of the 30 students went on to start out their own businesses. You see, whereas the rest might have mastered therapeutic massage strategies, they weren’t educated in business, let alone create a plan.

Now let’s take a look at how three companies created their plans according to their purposes:

1. Case Research of a Bicycle Frame Manufacturer (manufacturing): A high-end bicycle frame producer that caters to bicycle racers would need to set themselves apart from mountain bike producers and cyclists. As a result of how aggressive racing has become more popular, their plan contains how they may add extra workstations and designer-builders to increase its capability for customized frames. Their plan would additionally go on to explain how they’d use current leased space to make more room for the workstations. Plans are also laid out as to how additional tools for the workstations will likely be obtained.

2. Case Study of a Computer Training Company (service): A certified pc trainer with intensive experience is seeking to increase his enterprise to supply on-web site corporate training and managing coaching and upkeep operations for a large laptop corporation. In an effort to accomplish these objectives, he plans to build on his experience by creating a group of courses designed specifically to help small companies successfully use the preferred business software program packages.

3. Case Study of a Vending Cart Enterprise (retail): A fast-food vending cart enterprise proprietor operates his business on an indoor/outdoor basis. The indoor food cart sales have increased in high-rise business buildings in his downtown area. Consequently, this owner would like to borrow $1 million so as to increase operations by way of the acquisition of extra vending carts. He has an excellent relationship with three banks so, therefore, he simply needs to add a supplement to his current plan because the banks have already got his financial information and know his intended buyer base.

Now that you understand more what a business plan is and does, it’s time to start out….

Writing the Plan for Your Business

So, what are the obligatory elements in a business plan and what order do they go in, right? The how-to’s on that topic are a lot better addressed by an ebook or business plan template where you can ‘fill in the blanks’.

Other locations you possibly can search for steering and run searches for online are (“b”=business):

1. Sample enterprise plans
2. B-plan outline
3. B-plan examples
4. Free b-plan template
5. B-plan software programs

You can additionally search for books on Amazon.com and videos on YouTube, as well as web-based plan information, one one of which being, How to Write a Business Plan.

Simply remember: a business plan reflects your purpose and gives you and others a map to follow to get your business to where you want it to go successfully.

With over 20 years of writing experience, Shawna Newton is a contributing author to A Touch of Business which serves the online community with invaluable Small Business Articles and Tips.

Author: Shawna Newton
Article Source: EzineArticles.com
Smiling shark

A business plan is a critical document for any business. PERIOD

SCORE – the Senior Corps Of Retired Executives lists the lack of a business plan as one of the top three reasons a business fails. Any creditable book on owning or running a business ownership states its importance.

If you put a business plan together there are two types. The first is a business plan for a brand new business with second type for an existing business. To create the best business plan that you can, consider the following ten tips.

1. Complete all sections
Business plans take a little time to create. Don’t rush the process. Part of its value is making you take a thought in your head and convert it to a valuable and considered idea.

2. Focus on cash flow if this is to support a loan application
If the business plan is to support a loan application to a bank, make sure the cash flow projections are solid and make sense. If financial planning is not one of your strengths, consider getting help from a professional so you get it right. Preferably work with someone that you will use on an ongoing basis in the business so they can provide continuous and consistent advice.

3. Include a Break-even analysis for a loan application
A bank is in business to make money. The bank therefore want to see from you that you understand there will be income and costs but more importantly, how long it will be before you get to a break-even situation and whether you have the resources to get there, and just as importantly, what buffer you have if it takes longer than you think.

4. Financials need to be realistic
Points two and three above also concern your finance, but this one is just as important and that is, make sure your financial projections are realistic. If the reader doesn’t think your financial projections are realistic they will question the rest of the business plan, if they decide to take your document seriously.

5. Tell a story but don’t hype the story
This is not a marketing document for somebody to buy your product or service. It’s a document to explain the what, how, when, where, why of both the present and future of the business.

6. Write the plan to the person who knows nothing about the business
A business is a living and breathing entity that essentially has two main components; people and money. The goal is to explain in simple terms to anyone who reads the business plan what the business is about and what it stands for and how the thoughtful and proper use of both capital and labor will be successful and what help is required to contribute to that success, if the business plan’s purpose is to support a loan application. Remember, write the business plan according to the audience that will read it.

7. Keep it business-like and professional. Not a place for humor or personality.
If the business plan is to support a loan application, most lenders are looking to see the direction of the company, whether their capital investment will be used wisely and that the business is something they can believe in.

8. Make sure the details are accurate – don’t exaggerate
A business plan is a place to introduce and explain. Wherever possible, support opinions, thoughts or suppositions with facts and statistics; this is not the place for unrealistic exaggerations. Every business fits broadly into an SIC or NAICS. SIC stands for Standard Industrial Classification whereas NAICS stands for North American Industry Classification System. Reports and information about these industries are available and provide readily available data about an industry and the direction it’s going. Use this data in your reports to give credibility to the business plan. Your local library will help with getting access to this information.

9. Be concise, clear and simple
This is a business document. The reader is not looking for a novel, they can get that from a bookstore.

10. Be careful with the use of technical jargon
Technical jargon can speak to the sophistication of the business plan but it can quickly alienate a reader who is not familiar with all the terms. Use technical jargon sparingly or provide a simple and clear definition, if it’s important to use. Make sure the explanation is generally accepted; not the writer’s pet project. If in doubt, have someone removed from the business read and offer constructive criticism.

Andrew is a 5-time business owner that loves helping entrepreneurs exit or enter business ownership. His services include helping owners sell and/or buyers purchase a business, consulting on purchasing a franchise, certified machinery and equipment appraisals and business valuations.

Andrew currently holds the Certified Business Intermediary (CBI) designation from the International Business Brokers Association (IBBA), the highest designation awarded by the IBBA. Andrew has also earned the Certified Business Broker (CBB) designation from the California Association of Business Brokers. He holds a Certified Machinery and Equipment designation (CMEA) from the NEBB Institute and is a Certified Senior Business Analyst (CSBA) with the Society of Business Analysts. He also holds a Brokers License with the California Department of Real Estate, is a member of the Sacramento Metro Chamber of Commerce and the Chair of the Sacramento Chapter of the California Association of Business Brokers.

Andrew is also the author of four books in a series. The titles are: Successfully Sell Your Business, Successfully Buy Your Business, Successfully Buy Your Franchise and Successfully Start Your Business. These books are available with more information from Andrew’s website at http://www.Andrew-Rogerson.com There are also free resources for business owners you can download from this same website by going to the Samples page.

Author: Andrew Rogerson
Article Source: EzineArticles.com
Unix inter-process communication (IPC)

Surprisingly, many people claim that a business plan has no value & is just a waste of time – they tap their heads knowingly saying that it’s all in there.

Well this notion can be dismissed as being without any logical basis as every single activity, from the day to day running of your business to long term projects requires planning, investigation and analysis.

No Business Plan?
Fail to Plan = Plan to Fail

Having a business plan is just as essential for your business as it is knowing where you are going when you drive out of your house, ie if you don’t know where you’re going, you aren’t going to make much progress in getting there.

So whilst its fairly obvious that any business, new & existing, needs proper planning, there are some less obvious reasons for this.

5 Top Reasons Why You Need a Business Plan for Your Business

1. To Test the Feasibility of Your Business Idea –

   Formulating a business plan can save you a great deal of time & money as it will soon reveal that your business idea is untenable if this is in fact so. Whilst an idea for a business often sounds like a real winner, it can often be found wanting & therefore discarded at the marketing analysis or competitive analysis stage.

2. To Secure Funding –

   Any potential investor in your enterprise will want to see a well developed business plan before investing, ie, they need to ensure that the return on their capital will be secure.This also applies to established businesses as they often need capital for expansion or to carry them through market downturns. The same applies to lenders if you need to get a short term business loan.

3. Targets –

   A business plan must contain realistic targets, short, medium & long term, that should be aligned to the core objectives & mission statement of the business. This gives the entrepreneur the framework as to what must be achieved.

4. Focus –

   Reducing your well though out ideas to writing will ensure that you focus your efforts, set objectives and formulate company direction & policies.

5. Growth –

   Without proper planning & growth objectives you will be in the dark as to whether you are on track with your business’ growth projections.

So whether you’re just starting out, need funding or want to monitor the health & growth of your business, creating a business plan is essential for the successful management of any business regardless of its size or turnover.

PS.

For your new or established business, you can get all the information you need to Create Your Business Plan here

The author, a university graduate, is a successful businessman and entrepreneur exploring various Free Online Business StartUp ideas.

Author: Mark Bellinger
Article Source: EzineArticles.com
Excise Tax

What is a Business Plan?

A business plan is basically a blue print to success. It sets out the parameters of how the business will operate, who the key players are, the plan going forward and any other relevant information that the author deems necessary should be included.

Why do I need a Business Plan?

You need a Business Plan for a number of reasons. First and foremost it is will focus your mind on where you are going or where you intend to go. It will dictate the speed of growth and will also allow your staff and other members of your team to share the vision.

Secondly, a Business Plan will be required if you intend to raise finance. If you intend obtaining a Business Loan or finance through other funding streams then again you will need a Business Plan. One thing is for certain, it is imperative that you construct a plan and amend/update it regularly.

Does the Business Plan change?

Yes it does. As your Business grows and changes, so should your Business Plan. It is wrong to assume that a Business Plan, once created, is filed away in a draw for 12 months. It should be kept in an easily accessible place and be update on a regular basis – for this reason alone it will focus your mind on where you are going.

What should the Business Plan contain?

This will depend on your own requirements but let’s take a look at some basic components:

SECTION 1 – Principle Business Details and Activities.

1. NAME OF BUSINESS

The name of your Business goes here.

2. BUSINESS ADDRESS

Company address goes here.

3. BUSINESS TELEPHONE CONTACTS

Your business telephone contacts go here.

4. DATE BUSINESS COMMENCED

This is the date that your business started or was registered with Companies house.

5. LEGAL STATUS

Whether you are a sole trader or a Limited company.

6. PRINCIPAL ACTIVITIES

Describe your main business activities. For example:

The development and creation of jewellery which is then sold via the internet worldwide.

SECTION 2 – Your key Business Objectives

SHORT TERM BUSINESS OBJECTIVES

Here you should include your short term vision. An example of this would be as follows:

To develop a sustainable business through the development of excellent products and customer service. We aim to develop 30 products within the first 12 months of trading, and achieve a turnover of £50,000.

MEDIUM TERM BUSINESS OBJECTIVES

A medium term business objective should be 3 to 5 years maximum. Include here where you want to be by this time and how you plan to get there. For example:

We aim to have created 100 products by 2008. The majority of these will be created by staff that will be employed as a result of the short term aim achievement.

Our turnover by this date will be £250,000 with a profit margin of 35%. Our sales will be predominantly achieved through internet advertising although we expect during this period to trial other methods such as National newspaper advertising.

LONG TERM BUSINESS OBJECTIVE

The long term business aim should be your ultimate goal. This can be any length of time from 5 years to 15 years. An example of this would be:

To have 50 different retail outlets strategically placed around the UK in areas of high demand. The company aims to exceed an annual turnover of £2,000,000 with a profit margin of 35%. The company will still continue to trade via the internet and it is expected that this will account for 40% of our business.

SECTION 3 – Key personnel

NAME AND POSITION

Insert name and position. Example:

Richard McMunn – Business Development Director

DOB

Insert date of birth

STATUS

Business Development Director and shareholder.

EXPERIENCE AND KNOWLEDGE OF THE INDUSTRY

Insert any experience and knowledge of the industry.

PREVIOUS EMPLOYMENT

Insert previous employment here.

QUALIFICATIONS

Insert qualifications here.

NAME

Repeat the above for all key personnel.

SECTION 4 – Premise details

In this section, indicate where the business is registered and where the business operates out of.

SECTION 5 – Equipment

Include all equipment that is owned by the company. Examples of these would be:

- Computers including software and hardware
- Vehicles
- Manufacturing equipment etc

SECTION 6 – Products and services

Indicate here what services and products are offered by the company.

SECTION 7 – Advertising

Here, include details of how the company advertises its products. This may either be in the form of internet advertising (Google, Yahoo or otherwise), Newspaper advertising (either National or local), other media avenues such as Admedia or any other form of advertising.

SECTION 8 – New products and services

Include here all of your predicted new products and services that will go on sale within the next 12 months.

SECTION 9 – Pricing

- How do you price your products?
- What is the profit margin of each product?

Include a breakdown of how much each product is on sale for and how much that product costs to produce.

SECTION 10 – Customers

What is your target audience and how do you know this? (i.e. ages 16 – 30). How to you reach your customers? How many visits does your website get each week?

SECTION 11 – Business strengths

Include here all of your business strengths.

SECTION 12 – Areas for Improvement

Here, include all of the areas you believe you can improve on. A business that has no areas to improve on is not telling the truth!

Be honest and look critically for ways in which you can improve or develop.

SECTION 13 – Business competition

Who are your major competitors? How do you monitor your performance against theirs? What are they doing that’s different or better than you?

SECTION 14 – Market predictions

How do you predict your market and adapt to the changing conditions? For example, during Christmas time sales may increase depending on the type of product you are selling or the service you provide. January through to April maybe slow in terms of sales due to the fact that people are less likely to spend after the expensive Christmas period.

Think about your business and how the market will vary from month to month. It is essential that you begin to track your daily sales/turnover right from the word go. After a year or two of trading, you will be able to predict your sales and adapt accordingly.

SECTION 15 – Sales and Promotions

What are your predicted sales and the reason why? Are you planning on running any promotions throughout the year?

SECTION 16 – Financial Information

How long have you been trading and what is your monthly/annual turnover?

How much have you spent on starting up your business? How did you finance this initial investment?

What is your predicted turnover for the next 12 months and why?

SECTION 17 – Business asset statement

What are the financial assets of the business including stock.

Richard McMunn, a Firefighter for the last 17 years and a HSBC Award winning Entrepreneur, has created a winning formula that will show you how to succeed at any business, even if it’s part time. Claim Richard’s free course now : => http://www.how-to-start-a-business.co.uk.

Author: Richard McMunn
Article Source: EzineArticles.com
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