FINANCIAL BUSINESS PLAN PART 1 BUS 301

Mission Statement

Business Plan Mission The Executive Summary Sales Revenue Forecast Industry & Trends Risk Management Marketing Plan & Sales Strategies Operations Management & Organization The Financials Cash Flows Income Statement Balance Sheet

Description of the Business

Legal Structure

Products & Services

FINANCING A BUSINESS OR RAISING CAPITAL Suppliers of funds include lenders and investors Lenders increase debt and include banks and any other lender The amount of the loan. How the funds are used. What the loan will accomplish and how it makes the business stronger. How many years to repay the loan What collateral is being offered for the loan.

Sources of Financing Sources of financing typically include: Personal assets: savings, investments, credit cards, and home equity lines. Equity financing: retained earnings, fixed assets (buildings, equipment, and inventory) as collateral. Small Business Administration: Not a lender but a guarantor of a percentage of the loan amount. 504-Major machinery or building construction or expansion. 7(a)-Guarantee Loan Program. Other programs: Micro-Loan Technical Assistance Grants, SBA Micro-Loan and Patriot Express Pilot Loan Initiative.

Investors and Grants Investors increase company equity and expect a positive return on their investment: Company owners Angel investors provide seed money and mentoring to start- up businesses Venture capitalist normally invests in companies with proven track record Grants are monies provided to the firm which do not have to be paid back as long as grantee provides services for which the grant was approved.

STARTING A BUSINESS Strengths & Weaknesses are internal to the business. Strengths are the core competencies of a business. They are those factors that will make your business succeed because you perform in these areas better than your competitor. Weaknesses are those areas of your company that definitely needs improvement. Opportunities & Threats are external to the business and exist in the external environment. Opportunities are factors that exist outside of your business, but that if taken advantage of, will help your business to grow and prosper (e.g., low interest rates for business loans). Threats are factors that exist in the environment that may impede the growth of your business, directly or indirectly (e.g., new competition).

SWOT