Anyone ever write a business plan? Help needed.

[BoxingGenius27]

so you're just about to start a business?

business plans are supposed to be based on your past business operations but since you don't have that it's gonna be hard for you to get a loan from the bank. you got no business and credit history to begin with. yours is a start up plan but it's based entirely on what you plan to do and achieve. it won't stand alone. you've got to have tangible assets that you can offer to the bank as a lien to your loan.

you can't go to the bank and say you wanna start a business but it all depends on if they will give you a loan or not. you've got to have your own capital to start your business. you go to the bank for a loan if your capital is in the form of fixed assets but you need cash to get your business operational.

I have a good credit score, but you're right, I don't have business history.

Unless you're talking about credit history with a business?

[BoxingGenius27]

so you're just about to start a business?

business plans are supposed to be based on your past business operations but since you don't have that it's gonna be hard for you to get a loan from the bank. you got no business and credit history to begin with. yours is a start up plan but it's based entirely on what you plan to do and achieve. it won't stand alone. you've got to have tangible assets that you can offer to the bank as a lien to your loan.

you can't go to the bank and say you wanna start a business but it all depends on if they will give you a loan or not. you've got to have your own capital to start your business. you go to the bank for a loan if your capital is in the form of fixed assets but you need cash to get your business operational.

Makes sense.

Do you know the recommended amount of cash one must have (i.e 20k or 30k)?

Would a house or car be considered an asset the bank will accept?

[brick wall]

I have a good credit score, but you're right, I don't have business history.

Unless you're talking about credit history with a business?

yeah that's what i'm talking about. your personal credit history is good for personal matters but what you want to get is a business loan. i'm not saying they will not consider your personal credit rating because they'll most probably will but it's not enough.

[brick wall]

Makes sense.

Do you know the recommended amount of cash one must have (i.e 20k or 30k)?

Would a house or car be considered an asset the bank will accept?

i think banks would be more interested about your banking/financial history rather than your current bank account balance. and besides you want to get a loan because you don't have cash ready in time for you to start the business. but as i've mentioned, you should have assets other than cash.

banks have loan advisors, you should talk to one of them and they will tell you what kind of properties they will accept as lien to a loan.

[chav]

I

So what is it you are aiming for exactly? A loan to buy a franchise or start up a small business and hopefully put down as little capital as possible?

If that's the case, in simple terms, you need to show the bank their investment is safe and how quickly they will get it back by breaking down the costs, profit & loss. The more you want them to carry the risk, the more they will charge you ( interest) and the general terms won't be as favourable as they would if you were putting money in with them.

If you have solid personal credit, you could always consider setting up as sole trader and then incorporating later, but you would carry the personal risk on any loans/ credit and couldnt fold the company and walk away if it goes **** up.

[ANDROIDISM]

Based off your experience, would you say banks are looking for me to have a percentage in cash based on the amount I'm getting the loan on?

For example, if I'm getting a loan for let's say 50k, what percentage of that should I have in cash?

If I'm going to have to have a certain amount in cash, I should probably know now what to shoot for....

It's hard to tell. I'm telling you right now your business is already failing before it starts. You have to have cash to start a business. Banks want to see business owners with cash. Starting a business is very very very expensive and most small business fails. Something like 80-90 % of new small business fail. If you don't have the money to withstand the first few years of losses that every business goes through, you will fail.

I have a degree in business I can get into it with you in detail, but I'm telling you right now if you haven't put your life and every penny into saving for this business you are going to fail, well not really because youi're not getting a loan. You need to spend the next several years putting every ounce of effort into saving for your business. Once you have A decent amount of money (20k, 30k, 40k etc etc) that you are WILLING TO LOSE, notice I didn't say might lose. You WILL lose money and you have to be willing to do that if you want to start a business.


good luck and make the necessary lifestyle changes that will allow you save up for your business.

[BoxingGenius27]

So what is it you are aiming for exactly? A loan to buy a franchise or start up a small business and hopefully put down as little capital as possible?

If that's the case, in simple terms, you need to show the bank their investment is safe and how quickly they will get it back by breaking down the costs, profit & loss. The more you want them to carry the risk, the more they will charge you ( interest) and the general terms won't be as favourable as they would if you were putting money in with them.

If you have solid personal credit, you could always consider setting up as sole trader and then incorporating later, but you would carry the personal risk on any loans/ credit and couldnt fold the company and walk away if it goes **** up.

I think I want to go the small business route, while putting down as little cash as possible, but letting the bank cover everything. Especially since I'll be providing jobs for the economy. I thought that would be a perk in my request.

Sole trader? I'll have to look at that more.

Either way, thanks for the sound advice Chav.

[BoxingGenius27]

It's hard to tell. I'm telling you right now your business is already failing before it starts. You have to have cash to start a business. Banks want to see business owners with cash. Starting a business is very very very expensive and most small business fails. Something like 80-90 % of new small business fail. If you don't have the money to withstand the first few years of losses that every business goes through, you will fail.

I have a degree in business I can get into it with you in detail, but I'm telling you right now if you haven't put your life and every penny into saving for this business you are going to fail, well not really because youi're not getting a loan. You need to spend the next several years putting every ounce of effort into saving for your business. Once you have A decent amount of money (20k, 30k, 40k etc etc) that you are WILLING TO LOSE, notice I didn't say might lose. You WILL lose money and you have to be willing to do that if you want to start a business.


good luck and make the necessary lifestyle changes that will allow you save up for your business.

Makes sense Androidism. We'll see what happens.

[BattlingNelson]

I think I want to go the small business route, while putting down as little cash as possible, but letting the bank cover everything. Especially since I'll be providing jobs for the economy. I thought that would be a perk in my request.

Sole trader? I'll have to look at that more.

Either way, thanks for the sound advice Chav.

The bank wont take that kind of risk alone unless your idea is second to none. I don't know what you can expect but they Will want security for the money the put forth (house, car and/or other assets).

What you need to do is to show the bank some numbers. Ie you need to prepare a budget for costs and revenue (sales). I reckon you need a 3 year plan depending on your business.

[Run]

Intro

Philosophy statement

Body (Describe it)

Methodology (show in figures how it works)

Repeat philosophy and briefly touch on methodology again.


That's really it.

I think you need to burn the bottom line figures into someone's head and back it up with your own business philosophy.



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