YOU NEED A NEW BUSINESS PLAN .
DO YOU WANT TO ELIMINATE THE WORRY AND STRESS OF GETTING A PROPER BUSINESS PLAN COMPLETED ?
LET US DELIVER IN A PROMPT AND VERY COST EFFECTIVE MANNER A PLAN THAT INCLUDES ALL THE COMPONENTS OF A PLAN THAT YOU NEED .
We prepare and consult on many business plans for our customers . There are a variety of needs when you require a Business plan - We only focus one one of those ! ---> Our plans are focused on obtaining financing , as many other plans are too sales, marketing, or , unfortunately , ego driven .
Business plans prepared by 7 Park Avenue are very reasonably priced . We have researched the market and our plans typically range well below the price of other firms . We deliver the plans in a timely fashion, usually in less than one week . Plans require some input and key information from the business owner(s) , that consulting is included in our fee.
Most business people agree that entrepreneurs and owners need business plans with a clear goal and outline for their business model . Our plans are geared toward financing and investment . Our plans will show your bankers , financiers, and investors how you will make money and how debt will be repaid .
A business plan prepared for you by 7 Park Avenue Financial includes data on your industry and info and statistics that prove financing viability . Other components of our plans are owner overview and background, opening balance sheets, 3 years income statements and cash flow ( 5 if required ) etc. Typically our final plans are between 30-40 pages and include appropriate charts, graphs , etc.
Many bankers and financiers have refer customers to 7 Park Avenue Financial for such a document . They know we will deliver a professional industry driven final document thats realistic and what the bankers and lenders want / need to see.
Call now for a free consultation and a plan that will be delivered promptly at an affordable rate . Whether you are a start up, or require a plan for a new project or financing - Call now - 905 829 2653 , or email your questions to :
INFO@7PARKAVENUEFINANCIAL.COM
More information on Business Plans and Business plan consulting :
WHY DO LENDERS NEED A BUSINESS PLAN? - Stan Prokop - 7 Park Avenue Financial
Many business owners or budding entrepreneurs are taken aback when their lender asks ( or insists ) on a business plan . Why do lenders need a business plan ?
Lenders view the business plan as having forced the business owner or entrepreneur to look carefully in a critical way into their business project . They feel that if the company needs to grow or be successful such a document will guide the business person to their goals .
Ultimately those the business plan is a concise document which in effect communicates the business persons ideas to the lender .
In theory the business plan should identify areas of weakness or strength . If truth were to be known of course business plans tend to accentuate the positive . The writer of this article has a favorite saying - ' I never met a pro forma financial I didn't like '!
More about that last comment later , but suffice to say that in theory a good business plan geared towards financing should balance both the positive and negative aspects of the business and its financials . A solid business plan geared towards a lender will show you have ways of solving some of the business challenges raised in the business model and it's proposed financing .
We all know that stat's - half of new businesses fail within the first two years, 90 % within the next ten years . Why is that the case . Business guru's tell us its lack of planning . That is precisely why a business plan geared towards lending and the financials should be used as a critical follow up in the business . It should not be stored away ! As we all have learned, ' tuition is extremely high in the school of experience ' !
Most importantly though people that don't know you, or might not know your business model use a properly created plan to evaluate your business and lend you funds . The ' business plan ' in effect is really a financing proposal . That's how we look at it in our firm .
Let us remember how a lender , who you in many cases don't know, thinks. First of all he or she is hoping the information you have provided is true . Remember also that the lender works for someone, and they must communicate your idea to an underwriter of investment committee . If you haven't met the lender, trust me you definitely have not met the underwriter or investment committee.
Some of us also might think that we are the only business plan the lender is reviewing . That is not the case, our plan might be among 10-20 others in an given lending environment . And finally, people have biases - they will benchmark your own projections against their past experiences . If your business plan and financials make them think of Microsoft and Rim they will dig into the plan , if visions of Nortel come to mind that won't be the case !
Therefore business owners should put forth their plan on the basis that it will be ' attacked' by the lender , so the business owner must counter with ' real ' upside potential . The lender must genuinely feel some sort of enthusiasm about the business .
The biggest secret of business plans , and yes , we are revealing it here, is that they generally are not read in totality by the lender . The real world dictates they are given a 5 minute read, and more careful emphasis is generally only placed on the financials . The owner should never think that either quantity or finesse in fonts and graphs will gain the funding they require.
In summary, we do not infer that a plan is in fact not required for a lender or financing, in fact a business owner or entrepreneur with no plan is , outside of luck, guaranteed to fail .
Business Plans - How They Help YOU!
Many people panic at the thought of writing a business plan; it sounds very formal and can be a daunting prospect. The fear of knowing what to include and what template to use (there are so many!) can be stressful. As an entrepreneur with a creative flair for new ideas, writing a business plan is likely to feel completely alien to you - dull and far removed from the reality of actually running a business. Well, here’s the thing, a business plan is as much for YOU as it is for the audience you are presenting it to. Writing a business plan will provide clarity and vision to help you achieve your goals. It will ensure you’ve actually thought about every aspect of you’ve your business; your competitors, target audience, distribution, marketing and other fundamentals that could help or hinder your success. You could consider writing two business plans, one with a formal tone and one with a more passionate feel to it (the latter being specifically for you). Either way, remember the real goal of a business plan is to demonstrate you are an entrepreneur fully equipped to take on the world with your business, you’re more than a dreamer you’re a doer.
A business plan is a statement of intent; of your goals and missions, of the competition and industry you are entering, of your business strategy. The style and format of your business plan should be tailored to the audience you are writing it for. If you are going to a bank for funding, then you should stick to a formal business plan (summarized at the end of this article for you). If you’re pitching to a business angel, you may wish to adopt a slightly different approach. Angels want to hear and see passion from you about your idea/business proposal, so you should think about how you could incorporate this into your business plan and make it a true reflection of you and your goals.
Remember, a successful business on paper doesn’t necessarily translate into a successful business in real life, so don’t worry too much about producing the perfect business plan. The key elements to include are:-
1. A full financial model
2. A marketing plan; including strategy, competition and product positioning
3. People management (including you)
4. A 2-5 year projection for the business
Whoever you are pitching to for funding, you should be able to demonstrate a complete knowledge of the industry you are looking at entering, including competition, target market, challenges etc. Knowledge is power and if you can competently and confidently talk about your business with real passion and enthusiasm, you’ll win the investors over every time. If you panic, flounder and are unable to answer numerous (all brought on by lack of insight and preparation) questions pitched to you, well I’m sure you can deduce the outcome. The real purpose of a business plan is to demonstrate to investors that you’ve actually thought about your business, you have a clear vision and you know the challenges and possibilities.
A formal business plan should include the following:-
1. An Executive Summary
a. This is a summary of your business plan, highlighting the key points of interest and value. It should be concise but not superficial. It needs to grab the readers attention, so needs to be interesting – think in marketing terms ‘AIDA’, Attention, Interest, Desire, Action. The aim is to get the investor to go through all of these states, resulting in the desire to invest in you.
2. Company Overview and Strategy
a. This should include the objectives, mission and feasibility of your company
b. The Price - detail what you plan to sell your product/service for and why you have decided on the price point outlined.
c. The Product - define your product and why you think there will be demand for it; include how you are going to develop it. What are the USPs? (Unique Selling Points)
d. Place – state your distribution plans; how are you going to sell your product?
e. Promotion – how are you going to promote your business? Think about your communications plan in terms of advertising, direct mail, merchandising, brand awareness
3. Competition
a. This should be as detailed and up-to-date as possible – their products, customers, distribution, service, known strategies.
4. The Market
a. What is the size of the market you are looking at entering, trends, influences, threats?
5. Customers
a. What is the target audience? Where do they live? What do they do? How old are they? Male/Female bias?
6. Managerial
a. Include yourself in this part.
b. Detail other members of your team, their skill set and the value they bring to the business (experience is of great value)
c. Training required?
7. Financial Projections
a. Include forecasts, cash flow and funding.
Remember nothing is set in stone; there is no perfect template. But, if you know your market, product, finances and competition and have oodles of passion and enthusiasm, you’ll stand out as a professional rather than an amateur. Source : E. Mitchell www.articlecity.com
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Writing a Business Plan
And the Necessary Sections of the Business Plan
A business plan is a devise used to develop or define business initiatives. It is often compared to a blueprint or road map. Planning a business and mapping out its course can prevent serious mistakes and uncover fatal defects. Errors made on paper are less devastating and, in most cases, can be easily corrected. Errors made during the actual operation of the business, however, can prove detrimental to its future existence.
A business plan outlines where a company currently stands, where it anticipates to be in the future and how it intends to get there. The plan details who is or who will be controlling all decisions made within the organization. It describes the product/service being offered. It provides background information on the industry, a description of the market in terms of size and growth, a profile of the target consumer, an analysis of existing competition, methods for distributing products, defined pricing strategies, and all promotional vehicles intended to be employed. The business plan also provides details on the company's selected suppliers of materials, the production process, licenses and permits required, capital asset requirements, proprietary information, facility specifications, and details regarding research & development.
One of the most important areas of a business plan is the financial projections. The financial projections forecast the potential profitability and capital requirements of the proposed enterprise. Well developed business plans include a three year forecast of the income statement, balance sheet, cash-flow statement, break-even analysis, sensitivity analysis, and ratio analysis.
A business plan is not a magical tool ensuring success. Moreover, the act of creating a business plan does not create financial stability for its author. A business plan, on the other hand, is a tool used to help determine the feasibility of a new venture, to determine the visibility of an expansion for an existing business, or to determine whether a newly developed initiative will provide profitable results.
The remaining topics to be addressed under this topic include the following:
PART A. Three Types of Business Plans
PART B. Sections of a Business Plan
PART A. - THREE TYPES OF BUSINESS PLANS:
The three (3) types of business plans include a Full Business Plan, a Brief Business Plan and an Operational Business Plan.
The Full Business Plan is prepared by entrepreneurs or organizations requiring large amounts of financing. In addition, aspiring entrepreneurs usually develop a full business plan to add credibility to themselves and to their proposed venture. Furthermore, these entrepreneurs usually have little business experience and therefore must prove to investors that they have "schooled" themselves in the activities of the industry and are aware of what they are getting into.
Depending upon the complexity of the proposed business, a Full Business Plan can range between forty and eighty pages in length. The format provided under the "Writing a Winning Business Plan" section outlines how to develop a Full Business Plan.
A Brief Business Plan is much shorter; generally between twenty and thirty pages in length. It summaries all major functional areas of a business. It is usually created by an existing business who requires an increase in their operating loan or require a loan for a planned expansion. Furthermore, since a banker usually has a basic knowledge of the existing business (from prior visits or loan applications), fewer details are required and focus tends to be placed on the company's past ability to repay loans or other debt. A Brief Business Plan can also be used to stimulate an investor's interest and/or to monitor their reaction to the existing/proposed product or service.
An Operational Business Plan is used by existing businesses to forecast their upcoming year's revenues, expenses, cash inflows & outflows, break-even point, sensitivity analysis etc. This type of business plan is often developed on an annual basis to keep key employees focused on the organization's goals, objectives, and strategies. Furthermore, an Operational Business Plan generally is prepared for internal purposes only - it's not used as a tool to apply for bank loans or acquire capital from investors.
PART B. - SECTIONS OF A BUSINESS PLAN
All business plans have a basic format or structure. Below outlines and briefly describes each component of a business plan.
THE TITLE PAGE
The title page of a business plan depicts the company's name and address. The name and contact number of the owner/CEO is also provided in a standard title page. Additionally, some business plan writers include a confidentiality and proprietary statement along with a disclaimer of securities. As you may suspect, the title page is one page in length.
THE TABLE OF CONTENTS
The table of contents outlines a chronological listing of all sections and subsections of your business plan. Page numbering is used to reduce the reader's search for specific information. Most business plan writers place the table of contents on one or two pages; three pages are too many.
THE EXECUTIVE SUMMARY
The executive summary highlights the most crucial aspects of each major business plan section. Its purpose is to entice readers (investors) so that they continue to read the entire plan. The length of an executive summary usually ranges between two and five pages.
THE MISSION & STRATEGY STATEMENTS
Your mission statement details where your business is currently and where it intends to be in the future. The strategy statement usually outlines the tactics you intend to employ in order to achieve your company's missions, objectives and goals. The average length of this section generally ranges from one to four pages.
MANAGEMENT & STAFFING SECTION
This section of the business plan details your company's planned or existing management team, outside supporters, strategic alliances and staffing requirements. The Management & Staffing section must prove to investors that you have developed or intend to develop, a Team that will produce the results outlined throughout your business plan.
THE OPERATIONS OF YOUR COMPANY
The operations section of the business plan will provide basic information on the company's current situation and/or background information for existing businesses. Other topics addressed under this section include direct material requirements, the production process, facility specifications, permits & licenses, research & development initiatives, capital asset requirement, milestones, and external influences just to name a few.
THE MARKETING & PROMOTIONS SECTION
The Marketing and Promotions section of your business plan provides background information on the industry, a description of the market in terms of size and growth, a profile of your target market, an analysis of your competition, distribution channels, your pricing strategies, and the promotional vehicles you intend to employ. The marketing & promotions section of the business plan is one of the most important sections and therefore, great consideration should be given to its structure and level of detail.
THE FINANCIAL PLAN
The Financial plan is possibly the most scrutinized section of any business plan. It usually consists of three parts, namely 1) an introduction, 2) the forecasted financial statements, and 3) notes to the forecasted financial statements.
The introduction tells the reader what he/she is expected to find under the financial plan. The forecasted financial statements consist of projections over a three year period of the following items; forecasted income statement, balance sheet, cash-flow statement, break-even analysis, sensitivity analysis, and ratio analysis. The Notes to the Financial Statements summarize or explain the "assumptions" made by the entrepreneur when creating the forecasted financial statements.
THE APPENDICES
The appendix provides information and/or documents that support any claim made throughout the body of the business plan. Letters of intent from suppliers & customers, supporting charts & diagrams, resumes, patent or trademark documents, quotations, financial budgets, floor plans, facility layouts, and demographic charts are common examples of items appearing in an appendix of a business plan.
There are some strict guidelines to follow when structuring your business plan. The title page always appears as the first page of the business plan. The table of contents will then follow. The executive summary must follow the table of contents. Appearing after the executive summary will be your mission and strategy statements.
The sequence of the next three sections is left up to the entrepreneur. Moreover, placement of Management & Staffing section, the Marketing & Promotion section, and the Operation's section usually depends on the flow of the business plan. The Financial Plan will be the next section to appear. Finally, the Appendices will ALWAYS appear as the final section of your business plan. SOURCE : K JOHNSTON www.articlecity.com
Business Loan - Tips on How to Secure a Business Loan
By Troy Degarnham
Getting a business loan is an important step, no matter how big or small a company is. Mega corporations need loans, as do the smallest individually run companies. If a small business fails to obtain a loan, they could face serious trouble, including not being able to pay employees, buying supplies and equipment, or having to cease operation completely.
A business will need to be prepared in order to convince a bank or other financial institution to lend them money. There are many things that can prevent them from getting a loan such as being seen as too much of a risk and not having a good business plan.
Being seen as too much of a risk is the biggest reason why a lender will turn down a business from getting a business loan. Banks will conduct a risk assessment, looking at many things to decide whether or not a business will be able to repay the money borrowed should the bank decide to lend it to them. A business will likely be given a loan if it is determined that they pose little risk of not being able to repay the loan. It will most likely be denied a loan if it poses a higher risk of not being able to pay back the loan.
The first thing a bank will look at when deciding whether or not to give out a business loan is a business plan. Many other things are looked at by lenders such as the personal credit history of whoever is applying for the loan, that person's experience, education, as well as feasibility. All of those will be factors when determining how likely a business is to repay a loan, but a business plan will be the main focus. A business plan will provide lenders with valuable insight into what the business wants to do with a loan.
A business plan shows many things, including how much money will be required from a business loan. A business that is just starting up will need to show its initial capital too. A business plan should also describe how the money borrowed will be spent should a loan be given out, as well as how the loan will be paid back and when. A business will need to show in its business plan that it will be make enough profit to repay the loan. It also helps to show how a business plans to finance its operation should it be denied the loan. Source:Troy Degarnham www.goarticles.com
Business Plans - How They Help YOU!
Many people panic at the thought of writing a business plan; it sounds very formal and can be a daunting prospect. The fear of knowing what to include and what template to use (there are so many!) can be stressful. As an entrepreneur with a creative flair for new ideas, writing a business plan is likely to feel completely alien to you - dull and far removed from the reality of actually running a business. Well, here’s the thing, a business plan is as much for YOU as it is for the audience you are presenting it to. Writing a business plan will provide clarity and vision to help you achieve your goals. It will ensure you’ve actually thought about every aspect of you’ve your business; your competitors, target audience, distribution, marketing and other fundamentals that could help or hinder your success. You could consider writing two business plans, one with a formal tone and one with a more passionate feel to it (the latter being specifically for you). Either way, remember the real goal of a business plan is to demonstrate you are an entrepreneur fully equipped to take on the world with your business, you’re more than a dreamer you’re a doer.
A business plan is a statement of intent; of your goals and missions, of the competition and industry you are entering, of your business strategy. The style and format of your business plan should be tailored to the audience you are writing it for. If you are going to a bank for funding, then you should stick to a formal business plan (summarized at the end of this article for you). If you’re pitching to a business angel, you may wish to adopt a slightly different approach. Angels want to hear and see passion from you about your idea/business proposal, so you should think about how you could incorporate this into your business plan and make it a true reflection of you and your goals.
Remember, a successful business on paper doesn’t necessarily translate into a successful business in real life, so don’t worry too much about producing the perfect business plan. The key elements to include are:-
1. A full financial model
2. A marketing plan; including strategy, competition and product positioning
3. People management (including you)
4. A 2-5 year projection for the business
Whoever you are pitching to for funding, you should be able to demonstrate a complete knowledge of the industry you are looking at entering, including competition, target market, challenges etc. Knowledge is power and if you can competently and confidently talk about your business with real passion and enthusiasm, you’ll win the investors over every time. If you panic, flounder and are unable to answer numerous (all brought on by lack of insight and preparation) questions pitched to you, well I’m sure you can deduce the outcome. The real purpose of a business plan is to demonstrate to investors that you’ve actually thought about your business, you have a clear vision and you know the challenges and possibilities.
A formal business plan should include the following:-
1. An Executive Summary
a. This is a summary of your business plan, highlighting the key points of interest and value. It should be concise but not superficial. It needs to grab the readers attention, so needs to be interesting – think in marketing terms ‘AIDA’, Attention, Interest, Desire, Action. The aim is to get the investor to go through all of these states, resulting in the desire to invest in you.
2. Company Overview and Strategy
a. This should include the objectives, mission and feasibility of your company
b. The Price - detail what you plan to sell your product/service for and why you have decided on the price point outlined.
c. The Product - define your product and why you think there will be demand for it; include how you are going to develop it. What are the USPs? (Unique Selling Points)
d. Place – state your distribution plans; how are you going to sell your product?
e. Promotion – how are you going to promote your business? Think about your communications plan in terms of advertising, direct mail, merchandising, brand awareness
3. Competition
a. This should be as detailed and up-to-date as possible – their products, customers, distribution, service, known strategies.
4. The Market
a. What is the size of the market you are looking at entering, trends, influences, threats?
5. Customers
a. What is the target audience? Where do they live? What do they do? How old are they? Male/Female bias?
6. Managerial
a. Include yourself in this part.
b. Detail other members of your team, their skill set and the value they bring to the business (experience is of great value)
c. Training required?
7. Financial Projections
a. Include forecasts, cash flow and funding.
Remember nothing is set in stone; there is no perfect template. But, if you know your market, product, finances and competition and have oodles of passion and enthusiasm, you’ll stand out as a professional rather than an amateur. Source: Emma Mitchell - www.articlecity.com
<H6>BUSINESS PLANS</H6>
