Working From Home

So you've decided to join the thousands of entrepreneurs and start your own business, but you're not exactly sure where to start!

Set your goals

1. How much time are you willing to invest

2. How much time is your family willing to invest

3. How much money are you willing to invest

Determine your time frame

1. Set your plan up based on your established time frame
2. When do you need to apply for loans
3. When does your business plan need to be complete

Find out your local regulations

1. Legal requirements
2. Insurance requirements
3. Zoning requirements
4. Licensing requirements

Ask for advice through SCORE or the SBA

In order to provide specific advice we'd need to know where you live, what type of business you're forming etc., so we can only provide you with general information

Don't be afraid to ask others for help!

The major difficulty in preparing business plans is in properly preparing them. Do not just randomly select information for your plan. Carefully research each sector of the market which you are about to become involved in.

Wrapping your plan. Do not underestimate the power of presentation. We recommend that you use a color photo of your product, your office or if this is a real estate related project, the property in question.

Remember to place your company name on the cover and Bind.

When necessary include a disclaimer that is from the legal counsel of your choice. This statement should be used especially if you have obtained material for your plan from outside sources.

You should always have a signed non-disclosure agreement with anyone receiving your plan. Include a signed copy in your plan. Also, any fees that you have agreed to pay to brokers or other referrals should have agreements and be included in this part of your plan.

The index portion of your plan should be as complete and thorough as possible. Be certain that your subtitles are listed here. Remember that most lenders/investors receive hundreds of plans a week for reviews. Most only look at a portion of the plans they receive. A well thought out and divided index could make the difference between your plan being read or not.

This need only be one page. This should basically be considered a "Use of Proceeds" statement. This page will include the amount of your loan, the cost of equipment, cost of financing, first years operating expenses, as well as any other costs you intend to pay from the proceeds of your financing. This page should also contain what you project your interest rate to be (remember, the lenders do set these rates and you may not get the rate you request). This will allow you to set your Debt Service Coverage Ratios. Also, this page should contain Loan to Value and Return on Investment figures.

Remember, you are more familiar with your subject matter than the reader will be. Any terms that are not considered public knowledge should be included in a "glossary" in this section of your plan. Explain any theories or special terminology directly related to your specific industry as clearly and concisely as possible. Explanations should be done in as basic terms as possible. It is preferable to set this up so that your definition is set apart by tabs from the word. I strongly recommend underlining your word here and if you feel it is appropriate, make note on the pages that these words appear which will designate GLOSSARY. This is a helpful feature for people who are not familiar with your industry.

The executive summary should be a short (approximately 3 -5 page) summary describing pertinent information about your company. The summary should explain why you feel it is time to expand (if this is purpose of loan) or why you feel this is a good time to enter this particular business (if new). Other pertinent information should be included, such as when and why you started your company, your goals and a thorough explanation of your business. It is important that during this summary you do your best to be as thorough as possible. Remember, that this may be the only chance you have to attract attention. Quite often these summaries are pulled from your package and sent to the lender/investor via file, fax, modem or other means and this will be the factor that determines if more material will be requested.

Resumes are perhaps one of the most important features of a good business plan. Let the lender/investor know your background in relationship to the business you plan to pursue. The resumes of all key personnel should be included in this section. Also, include a list of the "proposed" or "existing" board of directors. A "COMPANY" resume is also a good idea to include in this section. For start up companies explain the concept and what brought you to the stage where you are now pursuing financing.

A 1 - 3 page section that should include statistics about your chosen industry. This information can be from any source you deem reliable. Always include as many statistics about your industry as possible.

FOR EXAMPLE: INDUSTRY:Loan Brokerage NUMBER OF PEOPLE: 156,000 FEES IN 1991: $445,900,000 This information was received from Dun & Bradstreet on April 16, 1992.

When available documentation should be included in your plan under "SUBSTANTIATION DOCUMENTS".

DEMOGRAPHICS This section of your business plan should include as much information about the area which you intend to locate your business in as you are able to compile. Statistics are usually available at the town hall or the state house. These statistics should include average age and household income for your area, as well as the Business description of the area (i.e. professional, factories etc). Also, include in this section why you feel that the demographics of the are will support a business in the field you have chosen.

COMPETITION This 1 - 3 page section of your business plan should include all pertinent information about your competition, including the length of time they have been in business, where they are located in comparison to your chosen location and what their average annual sales are. In addition, you should explain your company strengths and weaknesses are in comparison to the strengths and weaknesses of your competition. Explain how you intend to overcome your competition and your expectations of the impact your company will have on their business.

MARKETING This 5 - 8 page section of your plan should include all information you have obtained in seeking out a viable marketing plan for your company. In addition it would be useful to compare your marketing ideas with the methods that are used by your competitors in this industry. Comprehensive data about pricing strategies, specials to be offered to clients etc. should be included in this section. If you have designed a logo, your stationary and / or advertising materials they should be included in your plan.

EQUIPMENT This section of your plan should describe all equipment that you have (or intend to use) for your business. As minor as you may feel it is even your office typewriters and word processors should be included here. An explanation of specialized equipment should also be included. Obtain a current market price for all equipment as well as a "fire sale" price for your equipment. Include Cost Projections.

GOALS This will be the most critical part of your business plan. Explain where you see your company in one year, in two years and so on up until approximately the fifth year. Further explain the methods you feel will assist you in obtaining these goals. Included in this section should be data that will explain what will happen in different economic environments. That is if we have a strong environment, what will your goals be and if we have a weak environment how will this affect your goals.

CONTRACTS WITH CLIENTS If you have contracts that you have developed with clients they should be included in this section of your plan. Complete contracts with names, addresses and telephone numbers as well as expiration dates should be included. Any caveats in your contract which forbids potential lenders from contacting should also be noted in this section as an addendum. EMPLOYMENT CONTRACTS If you have signed any employment contracts with projected employees they should be included in this section of your plan. This material will remain confidential.

EMPLOYEE CONSIDERATIONS This section of your plan should include information about the projected staff for your company. Include the projected salaries, benefits as well as the minimum requirements for employment (i.e. experience). Please include all positions you forsee necessary and what each positions responsibilities are to be.

INSURANCE CONSIDERATIONS This section should include all health, life and disability insurance information you intend to offer employees. It should further include any special insurance you are required to carry in your geographic location and/or in your industry. Quotes should be included as "SUBSTANTIATION DOCUMENTATION".

FINANCIAL INFORMATION - PERSONAL This section of your plan should include the last three years income tax returns, both federal and state for all of the principals in your corporation. It should also include a financial statement dated within 60 days for each of these principals. If available also include a current credit report for each principal. We strongly recommend you include your social security number as well as banking references.

FINANCIAL INFORMATION - CORPORATE The same information as requested above should be included. In addition you should include a copy of all outstanding debts within the business.

PRO FORMA PROJECTIONS The proforma section of your business plan will be read and reread. Although the normally acceptable way to prepare pro forma projections is to prepare them annually and on a "sideways" printout, we suggest printing them in the same format as the rest of your plan. It does take more room to do this however it makes your plan much easier to read. We use regular spreadsheets to do our pro forma projections and print only the months that can be fit across an 8 1/2 X 11 page. This does make easier reading without having to tip your volume to the side.

C

A LEADER says "I'm good but I'm not as good as I'm going to be, I'll take time to grow"

A LEADER listens and makes people realize they are important

A LEADER cares about people and results

A LEADER takes time to be healthy

A LEADER takes time for recreation, quiet, and most important, for loved ones

A LEADER wins them over than that wins over them

A LEADER believes that actions speak louder than words

A LEADER keeps an open mind and avoids defensiveness.

A LEADER shows great respect for a job well done and none for shoddy work and poor performance.