A Business Plan
Explain why Kyle and Chad need a business plan.
Without a business plan a company can run blindly, missing crucial opportunities. Most importantly, without a business plan you have no means to attract investors or lenders. A business plan is the companies resume. It is your plan for the present and future. It identifies the strategies of the business and the goals for the future. It is what guides the company through good times and bad, to help make good business decisions. It will demonstrate how the company is organized and how it will continue to meet its current financial needs and the possibility of proposed financial needs.
Prepare an outline of the elements you would recommend these two young entrepreneurs include in their business plan.
The United States Small Business Administration lists the following elements for a business plan.
Elements of a Business Plan
1. Cover sheet
2. Statement of purpose
3. Table of contents
I. The Business
A. Description of business
D. Operating procedures
F. Business insurance
II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
Detail by month, first year
Detail by quarters, second and third years
Assumptions upon which projections were based
F. Pro-forma cash flow
III. Supporting Documents
Tax returns of principals for last three years Personal financial
statement (all banks have these forms)
For franchised businesses, a copy of franchise contract and all
supporting documents provided by the franchisor
Copy of proposed lease or purchase agreement for building space
Copy of licenses and other legal documents
Copy of resumes of all principals
Copies of letters of intent from suppliers, etc. 1
What do bankers, other lenders,