Sunday, July 14, 2013
Thursday, July 4, 2013
Electrician Business Plan
Free Business Plan TemplateAs with all business plans, we only start with creating an executive summary. The executive summary you should outline how much money are seeking SBA loan, their experience as an electrician, had written to operate his business profitably on a day-to-day basis, and your anticipated growth during the next five years of operation. As with all busienss plans, you can use free business plan tools and lender directories in order to assist you with this complex process.
First, you should provide an overview of the services you provide as electrician. This includes large-scale installations, electrical repairs, and ongoing maintenance of is related to electrician services.
Second, within the executive summary, you should provide a view as to how you intend to use your SBA loan. Foremost, you should concentrate on the amount of money that you're seeking via an SBA loan, the anticipated monthly repayment rate, anticipated monthly interest rate, and the term of the loan. As one provide a brief breakdown of how you intend to your loan funds as it relates to your electrician business.
Third, you're going to want to focus on your experience as electrician, your experience as an entrepreneur, and why you are a viable candidate to receive a SBA loan for your electrician business. You should provide an in-depth overview of your educational experience, entrepreneurial experience, and experience as an electrician and any appropriate licensure that many states to operate this business.
Next, you're going to want to focus on the anticipated profit and loss statements and cash flow analysis is of your business during the first five years of operation. This will immediately show your SBA loan banker and how you were able to pay the financing that you're seeking on a month-to-month basis. Here, you should include a profit and loss statement, cash flow analysis, and how the cash flow of your business will support the month-to-month payments associated with your SBA loan.
Finally within your executive summary, you should focus on how you intend to expand your business during the next five years of operation. This includes a hiring apprentice electricians, engaging in more complex installations, and generating income from the ongoing electrical maintenance a will provide to your clients on an ongoing basis.
SBA Loans for Electricians
In the second section of the business plan, you're going to want to focus specifically on your SBA loan and how you intend to use these funds. You should provide an in-depth breakdown of love costs related to office development, cost of the electrician equipment, other costs, marketing capital needs, and working capital.
Additionally, and very common within this section, you should provide a breakdown of the investor equity, management equity, or director's composition, any appropriate exit strategies that you will use as it pertains to your electrician business. Frequently, many electricians ultimately sell their business for a significant price to earnings multiple to an apprentice or turning an electrician does work with the business for significant.
Electrician Services
In the third section the business plan, you're going to want to focus substantially on the electrician services they provide. This includes large-scale electrical installations, electrical maintenance services, and electrical repair services are in demand on a year-round basis. You should really focus on this subject, before applying for an SBA loan, on this matter as it will show that your business is able to generate a highly predictable stream of revenue as it pertains to deep is this a were launching.
Additionally, many businesses and complexes are required to have ongoing electrical inspections as it relates to their business. As such, you will be able to remain profitable and cash flow positive despite any negative changes in the economy.
Electrician Industry Analysis
Next, we going to discuss the electrician industry analysis and the economy. As it relates to the economy, electricians typically are able to remain relatively immune from negative changes in the economy due to the fact that people are going to continue to require electrician services despite negative changes in the economy. As such, you will be able to remain profitable in any the economic climate.
Next, you're going to want to focus specifically on the electrician industry analysis. This includes discussing the number of electricians in the United States, the revenue generated by electricians, the number of electricians employed industry, annual payrolls within this industry, market trends, and any pending legislation that is applicable to this industry.
At the time of this writing, there are no new market trends or pending pieces of legislation that impact the way that these businesses operate.
Next, you're going to want to focus substantially on your target market analysis. As most electricians operate on a local basis you're going to want to focus on the number of homeowners, building managers, property managers, and property owners that operate within your area. Also, you should include an analysis of the target media in household income, and the median family income, population analysis, and other metrics that are foreign as it pertains to the types of individuals and businesses that you will be providing your electrician services for.
Finally, within this section, you're going to want to focus heavily on how you can effectively compete within your market as it relates to other electricians within your area. You are going to want to list the number of electricians that operate in the same target market is you, and how you intend to appropriately differentiate yourself from other providers of these services within your market. As with any service business, the best way to initially compete with any other business it is to have a lower pricing point as it relates to the services provided.
Electrician Marketing Plan
Now, would've focus on the electrician marketing plan. Here, you discuss how you intend to develop ongoing relationships with homebuilders, commercial property owners, building managers, property management firms, and other businesses that will effectively allow you to generate a substantial amount of predictable income by working with these individuals on an ongoing basis.
Also, you're going to want to discuss how you intend to develop a Internet-based website that will allow you to focus substantially on how you can increase your visibility using the Internet. This website this website should include information as it relates to your parliamentary pricing, contact information, and the services that are provided by you as electrician.
Finally, you may want to discuss some of the preliminary pricing that you intend to have as it relates to your electrician business.
Electrician Financial Plan
Finally, we move onto the electrician of financial plan. Here, of all financial plans, you are going to want to focus substantially on the profit and loss statements, cash flow analysis, balance sheet, business ratios, and general assumptions that were used when you develop your electrician business plan. As always, do you not know how to properly put together an electrician business plan for a SBA loan additionally recommend that you hire a certified public accountant were qualified business advisor that can assist you with this matter. Finally, you may also want to provide an amortization schedule as it relates to your small business administration loan so that you provide your banker was the ability to understand how you intend to repay this financing on an ongoing basis.
Free Day Care Center Business Plan
Obtaining Business Financing
When obtaining a business loan for a day care center business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Day Care Center, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.
Executive Summary
Introduction
When obtaining a business loan for a day care center, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:
Day Care Center, Inc. ("the Company") is seeking a business loan of $100,000 in order to launch the operations of a day care center business that will be based in San Francisco, California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.
Products and Services
In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:
The Day Care Center will provide round the clock childcare services to the general public of San Francisco. The business will serve meals, provide basic educational services, and after-hours care services for parents that need assistance caring for their children during daytime hours. At all times, the Day Care Center will remain within the letter of the law regarding the sale of Day Care Services especially as it relates to hiring individuals that work with children.
Business Loan Terms
Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:
At this time, Mr. Doe is seeking a conventional business loan in the amount of $100,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.
Management Biography
Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Day Care Center, Inc. to profitability while ensuring that the business loan's payments and its covenants are met at all times.
Financial Statements
The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance's of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.
Expansion Plans
One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:
The Day Care Center will continue to expand through organic means including increasing the Company's advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional Day Care Center locations after the third year of operations.
The Financing
Use of Business Loan Proceeds
In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:
Management Equity
In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:
Mr. Doe will own 100% of the Day Care Center.
Board of Directors
When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:
Mr. Doe will be the sole director of Day Care Center, Inc.
Exit Strategy
Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell the Day Care Center to a third party for a significant earnings multiple. Day Care Centers usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.
Products and Services
When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:
As stated in the executive summary, the Day Care Center will provide a broad spectrum of daycare services to the general public including round the clock support for parents that cannot care for their child on a full day basis. The Day Care Center will serve meals, provide general education services, and provide transportation services for children when needed.
At this time, the business is seeking to obtain the appropriate licensure to ensure that the business can commence operations as soon as the Day Center receives the financing sought in this business plan.
Industry and Market Analysis
The Current State of the Economy
It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today's environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:
The current economy has remained difficult over the past few years. However, Day Care Centers typically operate with a strong level of economic stability as parents will continue to require to have their children cared for on a regular basis despite the current state of the economy. As such, the Day Care Center will be able to remain profitable and cash flow positive during any economic climate.
The Day Care Center Industry
In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:
There are over 62,400 childcare establishments in the United States. These businesses produce over $18 billon dollars a year in gross receipts. Additionally, the business employs over 628,000 people, and generates payroll figures of $7.2 billion dollars a year. Approximately 42,000 of these businesses operate as for profit businesses with the remainder of these companies providing services in a not-for-profit setting, such as a religious institution.
The industry has experienced a tremendous rate of growth over the last ten years. The industry from 1999 to 2005 experienced growth of more than 18% over the five year period. This industry is one of the fastest growing industries in the United States. This is primarily attributable to the extremely high divorce rate in this country. As single parent families have become normalized, the need for daycare services has grown immensely as the traditional nuclear family has become a rare breed. Additionally, many more families are two income families, and as such, the need for daycare centers among these demographics is immense.
Target Market
In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of Day Care Centers, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Day Care Centers.
Competition
Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is almost never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be able to gauge your ability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.
When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.
Marketing Plan
In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite understand how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.
Marketing Overview Example
Marketing Strategies Overview
Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business's operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:
The Day Care Center intends to use a number of strategies that will create instant traffic and customer flow to the Company's location. These strategies include not only using prominent facility and road signage, but also distributing flyers to people that fall into he Company's targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company's hours of operations, day care center services, and other information relating to the operation of the Day Care Center.
The business will also maintain a highly informative website that showcases the Day Care Center's services, its hours of operation, licensure information, and other relevant information in regards to the Company's services. This website will be listed on major search engines such as Google as many people now use the internet to locate local businesses such as Day Care Centers. The business will also develop ongoing referral relationships with local schools that have children that need after-hour childcare needs.
The Financial Plan
Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:
Assumptions
Proforma Financials for a Business Loan
Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan.com has developed an easy to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:
When obtaining a business loan for a day care center business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Day Care Center, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.
Executive Summary
Introduction
When obtaining a business loan for a day care center, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:
Day Care Center, Inc. ("the Company") is seeking a business loan of $100,000 in order to launch the operations of a day care center business that will be based in San Francisco, California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.
Products and Services
In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:
The Day Care Center will provide round the clock childcare services to the general public of San Francisco. The business will serve meals, provide basic educational services, and after-hours care services for parents that need assistance caring for their children during daytime hours. At all times, the Day Care Center will remain within the letter of the law regarding the sale of Day Care Services especially as it relates to hiring individuals that work with children.
Business Loan Terms
Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:
At this time, Mr. Doe is seeking a conventional business loan in the amount of $100,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.
Management Biography
Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Day Care Center, Inc. to profitability while ensuring that the business loan's payments and its covenants are met at all times.
Financial Statements
The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance's of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.
Expansion Plans
One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:
The Day Care Center will continue to expand through organic means including increasing the Company's advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional Day Care Center locations after the third year of operations.
The Financing
Use of Business Loan Proceeds
In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:
- Day Care Center Establishment - $50,000
- Day Care Center Licensure and Professional Fees - $10,000
- Working capital - $40,000
Management Equity
In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:
Mr. Doe will own 100% of the Day Care Center.
Board of Directors
When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:
Mr. Doe will be the sole director of Day Care Center, Inc.
Exit Strategy
Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell the Day Care Center to a third party for a significant earnings multiple. Day Care Centers usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.
Products and Services
When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:
As stated in the executive summary, the Day Care Center will provide a broad spectrum of daycare services to the general public including round the clock support for parents that cannot care for their child on a full day basis. The Day Care Center will serve meals, provide general education services, and provide transportation services for children when needed.
At this time, the business is seeking to obtain the appropriate licensure to ensure that the business can commence operations as soon as the Day Center receives the financing sought in this business plan.
Industry and Market Analysis
The Current State of the Economy
It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today's environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:
The current economy has remained difficult over the past few years. However, Day Care Centers typically operate with a strong level of economic stability as parents will continue to require to have their children cared for on a regular basis despite the current state of the economy. As such, the Day Care Center will be able to remain profitable and cash flow positive during any economic climate.
The Day Care Center Industry
In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:
There are over 62,400 childcare establishments in the United States. These businesses produce over $18 billon dollars a year in gross receipts. Additionally, the business employs over 628,000 people, and generates payroll figures of $7.2 billion dollars a year. Approximately 42,000 of these businesses operate as for profit businesses with the remainder of these companies providing services in a not-for-profit setting, such as a religious institution.
The industry has experienced a tremendous rate of growth over the last ten years. The industry from 1999 to 2005 experienced growth of more than 18% over the five year period. This industry is one of the fastest growing industries in the United States. This is primarily attributable to the extremely high divorce rate in this country. As single parent families have become normalized, the need for daycare services has grown immensely as the traditional nuclear family has become a rare breed. Additionally, many more families are two income families, and as such, the need for daycare centers among these demographics is immense.
Target Market
In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of Day Care Centers, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Day Care Centers.
Competition
Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is almost never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be able to gauge your ability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.
When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.
Marketing Plan
In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite understand how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.
Marketing Overview Example
- The Day Care Center will place prominent signage on the facility to draw a significant amount of foot traffic.
- The business will maintain listings in the Yellow Books.
- The Day Care Center will also maintain an internet website that showcases the Company's operations, hours of operation, and relevant contact information.
- The Day Care Center will also work closely with local schools for referrals to the Company's services.
Marketing Strategies Overview
Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business's operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:
The Day Care Center intends to use a number of strategies that will create instant traffic and customer flow to the Company's location. These strategies include not only using prominent facility and road signage, but also distributing flyers to people that fall into he Company's targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company's hours of operations, day care center services, and other information relating to the operation of the Day Care Center.
The business will also maintain a highly informative website that showcases the Day Care Center's services, its hours of operation, licensure information, and other relevant information in regards to the Company's services. This website will be listed on major search engines such as Google as many people now use the internet to locate local businesses such as Day Care Centers. The business will also develop ongoing referral relationships with local schools that have children that need after-hour childcare needs.
The Financial Plan
Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:
Assumptions
- Day Care Center, Inc. will have an average annual growth rate of 10% per year.
- Mr. Doe will acquire $100,000 through a business loan in order to launch the operations of the business.
Proforma Financials for a Business Loan
Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan.com has developed an easy to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:
- Profit and Loss Statement for your Day Care Center
- Cash Flow Analysis for the Day Care Center
- Balance Sheet for the Day Care Center
- Business Loan Amortization Tables
Free Dry Cleaner Business Plan
Obtaining Business Financing
When obtaining a business loan for a dry cleaning business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Dry Cleaner, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.
Executive Summary
Introduction
When obtaining a business loan for a dry cleaner, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:
Dry Cleaner, Inc. ("the Company") is seeking a business loan of $100,000 in order to launch the operations of a dry cleaning business that will be based in San Francisco, California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.
Products and Services
In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:
The Dry Cleaner will provide the outsourced cleaning of clothes to the general public and to other dry cleaners that solely operate in a drop store capacity. The business will generate substantial revenues from these services. In regards to maintaining a competitive advantage, the business will provide regular drop off and delivery of clothes that need to be dry cleaned on a regular basis to residents within the Company's targeted market of San Francisco, California.
Business Loan Terms
Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:
At this time, Mr. Doe is seeking a conventional business loan in the amount of $100,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.
Management Biography
Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Dry Cleaner to profitability while ensuring that the business loan's payments and its covenants are met at all times.
Financial Statements
The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance's of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.
Expansion Plans
One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:
The Dry Cleaner will continue to expand through organic means including increasing the Company's advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional Dry Cleaner locations after the third year of operations.
The Financing
Use of Business Loan Proceeds
In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:
- Dry Cleaner Establishment - $50,000
- Dry Cleaning Equipment - $10,000
- Working capital - $40,000
Management Equity
In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:
Mr. Doe will own 100% of the Dry Cleaner.
Board of Directors
When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:
Mr. Doe will be the sole director of Dry Cleaner, Inc.
Exit Strategy
Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell the Dry Cleaner to a third party for a significant earnings multiple. Dry Cleaners usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.
Products and Services
When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:
As stated in the executive summary, the Dry Cleaner will primarily generate its revenues from the ongoing dry cleaning services offered to the general public through its retail location in San Francisco. All clothes will be dry cleaned on site and the business intends to have an onsite dry cleaning plant. This will allow the business tremendous pricing flexibility as the business can effectively control its underlying costs.
Additionally, the business will provide outsourced dry cleaning services to San Francisco area dry cleaners that only operate in a drop store capacity.
Industry and Market Analysis
The Current State of the Economy
It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today's environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:
The current economy has remained difficult over the past few years. However, people that are employed in offices will always require dry cleaning services. As such, the Dry Cleaner will be able to remain profitable and cash flow positive despite any deleterious changes in the economy. Additionally, the business generates substantial gross margins from its services and as such – the Dry Cleaner will be able to service its debt obligations in any economic environment.
The Dry Cleaner Industry
In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:
Within the United States, there are approximately 13,000 businesses that operate one or more dry cleaning locations. Each year, these businesses generate more than $4 billion of revenues while providing jobs to more than 50,000 people. In each of the last five years, aggregate payrolls have exceeded $800 million.
Target Market
In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of Dry Cleaners, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Dry Cleaners.
Competition
Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is almost never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be able to gauge your ability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.
When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.
Marketing Plan
In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite understand how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.
Marketing Overview Example
- The Dry Cleaner will place prominent signage on the facility to draw a significant amount of foot traffic.
- The business will maintain listings in the Yellow Books.
- The Dry Cleaner will also maintain an internet website that showcases the Company's operations, hours of operation, and relevant contact information.
Marketing Strategies Overview
Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business's operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:
The Dry Cleaner intends to use a number of strategies that will create instant traffic and customer flow to the Company's location. These strategies include not only using prominent facility and road signage, but also distributing flyers to people that fall into he Company's targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company's hours of operations, dry cleaning services, and specials that are occurring within the store on a regular basis.
The business will also maintain a highly informative website that showcases the Dry Cleaner's services, its hours of operation, service information, and other relevant information in regards to the Company's services. This website will be listed on major search engines such as Google as many people now use the internet to locate local businesses such as Dry Cleaners.
The Financial Plan
Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:
Assumptions
- Dry Cleaner, Inc. will have an average annual growth rate of 10% per year.
- Mr. Doe will acquire $100,000 through a business loan in order to launch the operations of the business.
Proforma Financials for a Business Loan
Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan.com has developed an easy to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:
- Profit and Loss Statement for your Dry Cleaner.
- Cash Flow Analysis for the Dry Cleaner.
- Balance Sheet for the Dry Cleaner.
- Business Loan Amortization Tables
Free Pawn Shop Business Plan for Loans
When obtaining a business loan for a pawn shop or related pawn brokering business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your pawn shop, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.
Executive Summary
Introduction
When obtaining a business loan for a pawn shop, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:
Pawn Shop, Inc. ("the Company") is seeking a business loan of $100,000 in order to launch the operations of a pawn brokering business that will be based in San Francisco California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.
Products and Services
In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:
The Pawn Shop will provide general pawn brokering services to the general public, which includes providing small collateral loans to individuals based on the value of the property that they bring into the Company's store. The business will specialize in making loans that are specific to jewelry.
Business Loan Terms
Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:
At this time, Mr. Doe is seeking a conventional business loan in the amount of $100,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.
Management Biography
Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Pawn Shop to profitability while ensuring that the business loan's payments and its covenants are met at all times.
Financial Statements
The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance's of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.
Expansion Plans
One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:
The Pawn Shop will continue to expand through organic means including increasing the Company's advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional locations after the third year of operations.
The Financing
Use of Business Loan Proceeds
In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:
- Pawn Shop Store Establishment - $50,000
- Inventory - $10,000
- Working capital - $40,000
Management Equity
In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:
Mr. Doe will own 100% of the pawn shop.
Board of Directors
When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:
Mr. Doe will be the sole director of Pawn Shop, Inc.
Exit Strategy
Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell the Pawn Shop to a third party for a significant earnings multiple. Pawn Shops usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.
Products and Services
When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:
The Pawn Shop will specialize in making small collateral loans to individuals that will last two weeks. On each item brought in by the customer, the Company will grant a loan equal to 10% to 20% of the saleable value of the item. The customer, should they return to receive their item back, will be required to pay back the loan amount plus a fee equal to 20% of the loan amount. On every item accepted for pawn brokering by the Company, the business will follow all applicable state laws regarding the acceptance and handling of merchandise. Additionally, the business will generate secondary revenues among people that do not return for their merchandise. In this event, the Pawn Shop will resell the item to the general public or to a used goods wholesaler.
Industry and Market Analysis
The Current State of the Economy
It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today's environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:
The current economy has remained difficult over the past few years. However, Pawn Shops typically operate with a strong state of economy stability as these lenders are often used as a last resort among borrowers that are in need of quick loans or do not have the ability to sell the merchandise that they can use as collateral. As such, the business should be able to remain profitable and cash flow positive in any economic environment.
The Pawn Shop Industry
In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:
The Pawn Shop industry, despite the current economy climate, has remained strong despite the fact the general economy has suffered. Within the United States, there are 20,000 businesses that operate in a pawn brokering capacity. On a yearly basis, these businesses generate revenues of $6 billion and provide jobs to more than 100,000 people. The total payrolls paid by the pawn shop industry has exceeded $1.4 billion on an annualized basis over the past five years.
At this time, there is currently no pending legislation or changes to the economy that are expected to change the nature of how the Pawn Shop Industry conducts business.
Target Market
In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of pawn shops, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of a pawn shop.
Competition
Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is almost never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be able to gauge your ability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.
When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.
Marketing Plan
In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite understand how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.
Marketing Overview Example
- The Pawn Shop will place prominent signage on the facility to draw a significant amount of foot traffic.
- The business will maintain listings in the Yellow Books.
- The Pawn Shop will also maintain an internet website that showcases the Company's operations, hours of operation, and relevant contact information.
Marketing Strategies Overview
Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business's operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:
The Pawn Shop intends to use a number of strategies that will create instant traffic and customer flow to the Company's location. These strategies include not only using prominent facility and road signage, but also distributing flyers to people that fall intot he Company's targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company's hours of operations, pawn shop and pawn brokering services, and specials that are occurring within the store on a regular basis.
The business will also maintain a highly informative website that showcases the Pawn Shop's services, its hours of operation, collateral and lending information, licensure information, and other relevant information in regards to the Company's services. This website will be listed on major search engines such as Google as many people now use the internet to locate local businesses.
The Financial Plan
Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:
Assumptions
- Pawn Shop, Inc. will have an average annual growth rate of 10% per year.
- Mr. Doe will acquire $100,000 through a business loan in order to launch the operations of the business.
Proforma Financials for a Business Loan
Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan.com has developed an easy to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:
- Profit and Loss Statement for your Pawn Shop
- Cash Flow Analysis for the Pawn Shop
- Balance Sheet for the Pawn Shop
- Business Loan Amortization Tables
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