When working with banks we recommend that you have monthly projections for the first two years and annual projections are fine after that (but the more detail the better). A formal business plan is just as important for an established business, irrespective of its size, as it is for a startup. It serves four critical functions:
1. Helps management or an entrepreneur to clarify, focus and research their company or project development and prospects.
2. Provides a considered and logical framework which a business can develop and pursue business strategies over the next three to five years.
3. Serves as a basis for discussion with third parties such as shareholders, agencies, banks, investors, prospective joint venture partners, etc.
4. Offers a benchmark against which actual performance can be measured and reviewed. Just as no two businesses are alike, so it is with business plans. As some issues in a plan will be more relevant to some businesses than to others, it is important to tailor your plan’s contents to suit individual circumstances.
A business plan should be a realistic view of the expectations and long-term objectives for an established business or new venture. It provides the framework within which it must operate and, ultimately, succeed or fail. For management or entrepreneurs seeking external support, the plan is the most important sales document that you are ever likely to produce as it could be the key to raising financing or obtaining vital new business opportunities.
Preparation of a comprehensive plan will not guarantee success in raising funds or mobilizing support, but lack of a sound plan will, almost certainly, ensure failure. If you are writing a business plan for your bank, your bank manager will want to see that your ideas are well thought out, but the most important aspect to him or her will be your financials. Are your projections realistic? And will the cash flow of the business be enough to ensure that you can make the monthly payments for the loan that you have requested? If your business is making $1,000 a month and your payments are $1,200 a month, the bank is likely to reject your application.
When considering an investment opportunity, most venture capitalists will look at the obvious trends and market niches. The most important factor in a decision to invest in a company is the quality of the people. In real estate, the three biggest factors are “location, location and location.” The venture capital factors are “people, people and people.” VCs will ask, how experienced are the people that are going to run this business? Do they have knowledge of the industry? Have they started successful businesses in the past? Make sure that your plan is clear, focused and realistic. Then show them that you have the tools, talent and team to make it happen.
7 Steps to Our Ultimate Business Credit Building System:
[learn_more caption=”Business Questioner and Evaluation:”]
- What type of business credit funding will I receive for my business? Cash or vendor lines?
- How much funding will I receive?
- How fast will I receive the funding?
[/learn_more][learn_more caption=”Personal Credit Training”]
- Personal Credit Repair
- Comprehensive Budgeting
[learn_more caption=”Compliance Process”]
- Separate Legal Entity
- Initial List Filed
- Business Address (combine 4 and 5)
- 411 Listing
- Local Phone
- Business License
- Web Site
- Fax Number
- Business Plan
- Bank Rating
- Business Classification Code
[learn_more caption=”Business Credit Bureaus”]
- D&B® set up
- Steps to Report to D&B®, Corporate Experian® and Corporate Equifax®
[learn_more caption=”Cash Funding and Vendor Lines of Credit”]
- Funding Specialist
- Funding Options
- Starter Vendors & Applications
- Vendors for Office Supplies, Marketing, Print & Applications
- Vendors for Building & Industrial Supplies & Applications
- Revolving Credit Accounts & Applications
- Revolving Accounts for Office Resources & Supplies
- Revolving Accounts for Building & Décor Supplies
- Revolving Accounts with No Personal Guarantee
- Additional Vendors
[learn_more caption=”Business Credit Coaching”]
- Certified Business Credit Coach
- Contact information & Hours
[learn_more caption=”Business Credit Training and Support”]
- The 55 Secrets to Secure Business Credit (CA$H) for Your Business AND Keep
- 100% Ownership of Your Company
- The 29 Credit Score and Repair Secrets, Plus 10 Bonus Secrets to Save Your Home
- CEO Scott Letourneau’s “Golden Rolodex” of Business Credit Vendors & Resources
- Business Credit
- Triple Overlap
- Joint Ventures
- Raising Money
- Incorporate Webinar
- Business Credit Webinar
- Call- in-days with Scott Letourneau