A lender of money will be impressed with a well-documented business plan. If the lender is unwilling to make a conventional loan, ask if the lending institution will consider making the loan with a guarantee from the Small Business Administration.
Contents of a Business Plan:
Name of Firm or Business
Owners or owners-to-be
Information about the business
Type of business, product, or service
Goals and objectives
Target market
Selling techniques
Quality of product vs. competition
Average price of product vs. competition
History
Ideas behind new direction
Present business (age, growth, profitability)
Offices/plants
Addresses and physical description
Terms of occupancy (rent, lease, own)
Accessibility
Personnel
Present
Future
Qualifications of staff
Market analysis and strategy
Customers and competition
Advantages and disadvantages
Sales strategy and promotions
Financial data
Sources of funds
Purposes for funds
Statements of historical and projected income
Accounting
Method to be used for bookkeeping (traditional, computer-based spread sheets)
Qualifications of accountant or financial staff
Inventory
Inventory and supplies available
List of suppliers or vendors
Legal aspects
Business organization
Licensing requirements
Zoning requirements
Insurance requirements
Financing
Statement of expected profit, return on investment, and salaries
Statement of assets
Statement of necessary start-up funds
Projections
Monthly profit and loss statement for one to two years
Monthly cash flow (SBA Form 1100) for one year
Estimate of break-even point based on sales, variable expense, and fixed expenses
