Creating a Car Wash Business Plan

Before embarking on writing a business plan for starting a car wash, a definition of what a business plan is in order. A business plan is a document to identify an opportunity, research why this opportunity is profitable and the steps needed to capitalize on the opportunity. The business plan can be a formal document or it can be written on the back of a napkin but the mere act of writing the idea down forces you to get the idea out of your head and on paper which helps find hidden business flaws and makes you think carefully about each phase of your business.

Creating a business plan is something anyone can do, even if you don’t know anything about business or finances. Even though the business plan is critical to getting the idea off of the ground, many entrepreneurs procrastinate when it comes to preparing a written plan. If you don’t know anything about business or finances, this is the best time to begin learning as the chances of your business being successful will be limited without this knowledge. Just as a builder won’t begin construction without a blueprint, entrepreneurs shouldn’t rush into new ventures without a plan. The old saying that “those who fail to plan, plan to fail” is very relevant when talking about starting a business. SBA’s statistics claim over half of new businesses fail in the first three years and the common factor is poor planning or under-capitalization (which is also poor planning).

Getting Started
The first step in creating a business plan is just getting started. Writing the business plan may seem overwhelming at first, but if you break the plan down to bite sized pieces and work on one section at a time won’t seem as daunting. Begin with what you know first and describe your business and your product or services. Work towards the more difficult subjects such as marketing, operations and financials. Don’t worry about it being perfect now, just get the concepts on paper – expand and refine later. If you get stuck on a section in the plan, skip it for now and come back later when you have more details.

Who is your audience?
When writing your car wash business plan, you need to keep in mind who your intended audience is and why you are writing the plan. Why? A plan for the bank will be less interested in the exit strategy and return on investment than one for equity investors. Additionally, a plan for written for internal use will be different than one looking for financing as a bank is not necessarily interested in detailed operations of the business.

Structure
Business plans tend to have a lot of elements in common. While there is not a format that all business plans follow, there are generally accepted guidelines that most follow as the order in which the subjects flow are not random. The Business Description of a business plan is aimed at painting a picture of your business and why this business will be successful. The Marketing, Management and Operations sections are researched and a strategy of how your business will compete and operate is developed. Last financial projections show in numbers what you explained in the business plan for the sales and expenses.

Breaking these three major sections down even further, a business plan consists of six key components:

Executive Summary
Business Description
Marketing
Managers & Employees
Operations & Location
Financial Projections
In addition to these sections, a business plan should also have a cover, title page and table of contents.

How Long Should Your Business Plan Be?
The answer that nobody liked in school applies to a business plan which is, “as long as it needs to be”. The more complex a business or the more sophisticated investors or funds requested will increase the length of a plan. An average car wash business plan narrative should be 4-15 pages plus financials and appendix items.

Business Plan Outline

Executive Summary
The executive summary is the first part of the business plan but is the last to be written. It gives the reader a quick glance of what your business proposal is about and what you are asking for. This part is critical as most readers will scan this section before deciding whether to read further.

The executive summary should typically be about one-half of a page in length and include what you would cover in an elevator pitch such as:
Explain the condensed version of the business concept
Product description or service proposition
This section should emphasize any unique features or benefits that what is currently in the industry or area, aka why would someone buy your product over the competition.
The demographics of your market
The Management team
When the anticipated start date is
Your equity position
How much are you asking for

Concise is the key in the executive summary. You will go into more detail later in the business plan.

Business Description
The purpose of the business description is to objectively describe the car wash business details and future potential include:
Mission
What the business does
Description of products and/or services
Industry information
Business Organization
Status of the business (start-up, expansion or purchasing)
Current and future goals

Any facts or figures should be noted and sources included in the business plan. This information is important should you need to defend your data and assumptions. The business description is where you are trying to paint a picture of the potential of your business along with the facts to support it. Try to inject energy and excitement to get the reader enthusiastic about the idea, without going overboard of course.

After describing the business, it is time to describe and additional products or services your car wash is selling. Keep in mind that it is important to show how your products and services are better than the competition. If you don’t have a good answer than you should rethink your strategy. What is it about your car wash that is going to get the customer to change doing business with the competition?

Marketing
A very important part of your business plan is the marketing section. Regardless of the quality of your products and your services, your business will be lost in the clutter of advertising. If you don’t know your customers, how will they ever find you? All of this begins with doing some research.

Customers: Who Is Your Market
The first step is to determine who you are going to sell to by identifying common characteristics of your market such as age, income, race, religion, education, interests and/or geographic locations. While everyone will want to wash their car product how are you going to effectively advertise to everyone and still make a profit? What you need to do instead is determine the group or groups of people who are most likely to use your car wash services and market to them. After all you are trying to generate a positive return on your marketing dollars, so use them wisely.

Competition
In today’s ultracompetitive marketplace, there is going to be competition, no matter how creative your business concept is. Attempting to run a portion of your car wash business better than the competition may be a difficult challenge so it is often better to focus on planning on being different and competing with them less directly. Can you serve a particular market niche such as the elderly that isn’t being looked at? Can you identify a unique operations/marketing/distribution strategy with a mobile approach? Even if you don’t have direct competition in your area meaning someone selling the same or similar products/services, you will have indirect competition for replacement products/services. If you indicate in your plan there is no competition it will be viewed that there is either no market for your product or you have not done your r
esearch.

Optimally you will want information on at least three but no more than five competitors. List information about who they are, how long they have been in business, location, products or services offered, perception on pricing, quality, etc. and compare your advantages and disadvantages. If the information you are looking for is not available online, you may need to pretend you are a customer to get some of this information.

Distribution – How Will You Get the Product To The Customer: By looking at who your market and competition is, you will have an idea of how to get your product to them. Perhaps through your research you will find a strategic advantage to serve the customer that the competition does not.

Promotional Strategy
With the above steps researched, the promotional strategy follows. The promotional strategy is where most entrepreneurs fail as they use the blanket statement that they are going to advertise in the newspaper, radio and/or television without thinking through the process or the customer. The promotional strategy provides you a map of how you are going to reach your market in the most efficient manner possible. Advertising is expensive, use it wisely.

Sales Projections
On of the more difficult areas of the business plan is coming up with sales projections. This number is probably going to be wrong and that’s ok. What you want is a figure backed up with justifiable data. Just grabbing a number out of the air saying you will make 0,000 won’t work. There are many sources to help come up with this number including:
Industry journals
Trade groups
Car washes in similar demographic areas
Industry experts
Census data

Pricing
The effects of pricing play a large role on how your product is perceived in the marketplace. Price too low compared to the competition and your product could be perceived as cheap and unreliable. Price too high with the features and benefits of your product and few customers come through the door. While this is a complex issue, here are a few things to keep in mind.
Make sure you can make a profit at whatever price you are selling at.
If you want to have lower costs and “get your foot in the door” it may be better to offer discounts or coupons initially until your business is better known.
Don’t be afraid to charge more for your product or service than the competition if you have something of more value to offer.
Pricing is the easiest of the marketing mix to change. You may find that a large competitor will under price you to ensure you can’t make a profit and your car wash goes out of business.

Management & Employees
In this section you would describe who is going to manage the business on a daily basis as well as provide strategic direction (if these positions are separate). Each of these people need to have a brief biography included as well as a resume in the appendix. Try to show how the experience and education of these people will be able to successfully execute the strategy in the business plan and succeed. Many times the owner may not have the specific experience for this business, so it is very important to pull their other professional experience in and explain how it will make for a successful operation. Next, a brief explanation of the employees is in order including:
What positions need to be filled
When they need to be filled (This is important in developing financial projections as you may have some employees come on after you start)
How much they get paid (Be sure to calculate payroll taxes as well, estimate 15% if not sure)

It is also recommended to add the professional and advisors to your business. These people include:
Board of directors
Consultants
Accountants
Attorneys
Bankers
Mentors

Operations & Location
The operations and location section of the plan illustrates how you are going to make or acquire your product and information about your business location.

Operations – Explain how and where your products or services are made. A few points to include in your plan
How does your car wash operate, what steps are in your service?
Who are your suppliers?
What are the terms and lead time for this product?

Location – Location is where you will be doing business out of. If you are in the classic, I can’t get my location until I get a loan so I can’t finish my business plan scenario, list what features you are looking at in a building along with average prices or rents and pad that number a little just in case. A few things to add:
Department of Transportation traffic count – most states have this information online to show how many vehicles pass your location each day.
Building description
What is the size
Where is it located
Specific reasons for this property
Proximity to suppliers, roads, airports, railroads, and shipping centers, etc.
Zoning
Average utilities – Be sure to get the last 12 months from the electric company if the building had been occupied. This could be an expensive lesson from a dishonest landlord. If you are opening a new location, try to talk with other car wash operators in a non-competitive area to get a estimate
Add pictures to the appendix
Add a floor plan to the appendix
Purchase price or monthly rent/lease
Include sales/rent/lease agreement in appendix
If building or renovating be sure to include quotes as this is an area frequently underestimated in costs.

Financial Projections
Financial projections are placed at the end of your business plan, before the appendix but it a very critical piece to the plan. The three must-have financial statements are a cash flow statement, a profit and loss statement and a balance sheet. The information already provided in the narrative portion of the business plan must match the financial projections. Most financial projections are three years in length. It is a good idea to include a Notes & Assumptions to Financial Projections page to both help make sure all of your numbers come through and provide an itemized list to provide clarity for the reader.

Notes & Assumptions to Financial Projections
Loans
Break out each loan (building, equipment, inventory)
Amount
Interest rate
Length
And any monthly costs not discussed in business plan narrative
Cost of goods/inventory
Advertising
Employee wages
Insurance
License & fees
Miscellaneous
Professional fees
Rent/property taxes
Repairs & maintenance
Supplies
Telephone
Utilities
Vehicle expense
Etc.
Anything else that needs to be explained in the financials that is not in the narrative

Financial Projection Sections

Startup Expenses – These are all expenses you will incur prior to opening your car wash. It is recommended to have quotes available or in the appendix for the larger items. It is also recommended that you pad your numbers some as there will always be unexpected expenses that were not accounted for.

Sources and Uses of Funds – This section details how the loan money will be used (inventory, car wash equipment, repairs and improvements, working capital, etc) and who is providing it (bank, investor or owner). You will likely need to be injecting 20% of your own money and maybe more depending on the risk assessment of the business and your personal finances.

Cash Flows – The cash-flow statement is one of the most important pieces of your business plan. It shows a schedule of the money coming into the business and expenses that need to be paid and whether you have enough cash to sustain the business gained during the warm month to cover the costs during the winter months. Every part of your business plan is important, but none of it means a thing if you run out of cash. Should this
number be negative, you either need to raise sales, reduce expenses or have more cash. Your cash flow statement will typically be three years in length with the first year analyzing the monthly figures and later years by quarter. Don’t be intimidated with the cash flow statement as it is merely a future look into your checking account.

Profit & Loss – This statement, while similar to the cash flow statement but illustrated annually looks at the effects of non-cash charges such as depreciation and amortization to get an accounting overview of the operations of your business.

Balance Sheet – The balance sheet is a summary of the value of all assets, liabilities and equity for an organization at the end of each year. A balance sheet is often described as a “snapshot” of a company’s financial condition and will show the value of the business over time.

Personal Financial Statement – If you are looking at bank financing every person who will have a 20% or more ownership position will need to provide a personal financial statement to show how effective they are at managing your money. This statement will show your assets (checking & savings accounts, cd’s ira, 401K, valuables, home, vehicle, etc) as well as assets (mortgages, credit card bills, installment accounts, etc)

Appendices
Appendix items are various pieces of information that help make your case. Include details and studies used in your business plan; for example:
Quotes for items over 0
Resumes of the management team
Industry research
Demographic data and trends
Maps/floorplans/blueprints of location
Leases and contracts
Letters of support

There is a lot to creating your business plan but will definitely make your business stronger. While it may seem easier to have someone else write your plan, there is no substitute to writing it yourself. This is your business and by writing it yourself you will have a better understanding of your business and strategies for success. There are also many free business plan templates and workbooks available on the web to help you get started. You can use these to help get started creating your business plan and then modify it for your car wash business.

For more free articles and resources for starting a car wash are available at www.StartingACarWash.com.

Additionally, business plan help can be found at www.TheBusinessPlanFactory.com

Plan a Better Future for Your Business With our Professional Business Plan Templates

Every journey requires a plan.  It is considered crucial to have a clear image of your goals, this will allow you to be able to take advantage of any unforeseen circumstances. In business, having a plan is not a guarantee that you will be successful, but it is certainly true that not having a plan is an invitation for failure. A business plan gives your direction and this is the first step. Having a professional business plan template is a signal that you are a serious entrepreneur.

The first thing you do after coming up with a business idea is to create a business plan, which can be doing using business plan software, a business plan sample, a business plan template, or by purchasing a how to write a business plan book. A good business plan gives you guidance and confidence in your business and we make it easy for you to create the best business plans for your business by offering you Professional business plan template, Free business plan template, Business planning template, Professional business plan template software, Free business plan template benefits, Business planning template software at our site http://www.createmybusinessplan.com .

A sound business plan template will consist of what you want to achieve for your business, what you need to do to succeed and how far you want to go. Your business plan template contains all relevant information about your new business and financial figures should be projected so that all aspects of the business can be looked at. The business plan will serve as a reliable foundation for your business to measure success in the future. When you are creating a business plan it is important that you identify all factors that might affect of your financial projections. The resources needed to operate the business are also clearly marked out in the sample business plan.  A business plan will be a guide to know if your actions were able to contribute positively to the business. Business plans also serve an important role for the investor.  A proper business template will acts as marketing tool for the entrepreneur to convince the investor to invest in your idea. The business plan should bring the business plan to life for the investor.

Investors will base their decision to invest in your business solely based on your business plan, which will include details regarding operations, management, and financial projections. Therefore, a good business plan software program will be one that answers all the questions the investor wants asked. Investors know exactly what they are looking for, and that is a business that can earn them a solid rate of return.  In order to accomplish that aim they will likely look at countless business plans so it is essential that your plan be well presented, thorough, and well written.  Investors will demand that the business plan be built according to best practice standards and the only way to do this is to look at samples, templates, and previous works.
CreateMyBusinesPlan.com is one excellent source of information to use while creating your business plan.  The proprietary software walks you through every aspect of the business planning process.  The benefits of having a professional business plan template are tremendous and CreateMyBusinessPlan.com was created to provide this service.  The company was created in 2006 and during the past 2 years has helped write over 2,000 business plans.

Do I Really Need a Scrapbook Business Plan?

Many new business owners start a home business and don’t take the time to write out a business plan. By failing to write a business plan, you greatly decrease your chances of success. The following are some reasons why every business needs to put a business plan into writing.

You have probably heard the old saying, “If you fail to plan, you plan to fail.” That is very true when it comes to your business. The more planning you do in the beginning, the greater success you will see in the future.

If you decide to take your home business to the next level, a business plan can help you secure financing. A financial institution will want to see, in writing, the reasons that they should loan you money. Simply walking in and telling them why you know you’ll be a success isn’t good enough. However, if you can hand your lender a document that states your business idea, your business goals, a list of steps you plan to take in order to reach your goals, as well as your estimated earnings, you will be seen as a professional and the lender will take you more seriously.

Your business plan will also help you determine your action plan. Your action plan consists of the steps you plan on taking in order to achieve your goals. This is another task that people usually sidestep. Instead of “just kind of knowing” or “having the ideas in your head”, you should take the time to put them on paper. The reason this part of the business plan is so important is that it literally walks you from point A to point B. While your business plan, in general, serves as a map, your action plan is the “step-by-step directions.”

Having a business plan to present to your spouse can also help your spouse realize your business idea is more than just a passing amusement or hobby. This can really help you, especially if your spouse is skeptical. Your spouse can see that you are serious and will become more helpful and more encouraging. Having the support of your spouse can really motivate you and help you find success.

A business plan maps out your future. If you have decided you are ready to start a business, your first step should be to write out your plans for what you want to do with the business and where you see the business going in the future.

If you and your family were going to drive to your vacation destination, you wouldn’t just get in the car and start driving without knowing where you were going. Would you? You shouldn’t start a business without a map either. If you are planning to have a simple home business, built around the Internet, you may not think you need a business plan. You may think only high level businesses need them in order to secure corporate funding but that’s not true.

Every business needs a business plan.

When you sit down to write a business plan, you are literally mapping out the path you want to take in your business. Not only will your business plan help you define what you want to accomplish, it can help you streamline your business and create focus.

You may be under the impression that business plans are huge documents that can be difficult to write. On the contrary, you do not have to create a huge document at all. Your business plan can consist of a single page outlining your basic goals. The point is to put your thoughts and ideas down in writing.

When you take the time to think about your business, where you want your business to go, and estimate your costs as well as your profits, you are much more likely to succeed. Rather than working sporadically and blindly, you will be able to look at your business plan and know exactly what you need to be working on. This can serve as a great motivator and help you reach your business goals.

A common myth is that a business plan is rigid. That once you write it, you have to stick to it. As your business grows, you can change your business plan to suit your needs. You may find certain aspects of your business growing at a faster pace than others and decide to focus more on those areas. For instance, you may have started out in your business strictly as a custom scrapbook artist creating completed albums. However, you found yourself creating more and more themed mini albums and may decide to add that stream of income to your portfolio.

Having your business plan by your side can help you evaluate your decisions and decide what is going to add value to your business and what will take away from your business. Before you start a new project, take out your business plan and see if this new project will fit in with the plans you have already made. This can save you a lot of time, energy, and money.

Do You Need a Business Plan to Get a Credit Line?

When applying for a credit facility, you will most likely be required to have a well written business plan to showcase what you intend to do with the business loc. This may not be the case if you are using a home equity line of credit secured by your personal residence. If you are seeking to obtain a standard business line of credit then you will most certainly be required to have a business plan. BusinessLOC.com has a sample business plan outline that you can use to develop a plan that showcases how you intend to use the debt proceeds.

 

The key to a good business plan is to have a 25 to 45 page summary of your business, how you intend to use the capital sought, a description of the product/service you a selling, and a three year financial model that showcases you previous and anticipated profit and loss statements, cash flow analysis, balance sheet, and breakeven analysis. Again, these tools have been included for free by BusinessLOC.com.

 

If you are having significant trouble with writing your business plan then you may want to consider hiring a professional firm to assist you in this process. Often, business planning firms have extensive relationships with banks, finance companies, and private lenders that will be interested in your business project or established company. These firms may or may not take a success fee if they are able to secure a business loc for you. Prior to working with a business planning firm, you should check the credentials of the individual producing your business plan, make sure that they are registered with the Better Business Bureau, and that they have an established track record of obtaining credit facilities through their produced business plans.

 

Free Barber Shop Business Plan

Free Barber Shop Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a barber shop business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Barber 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 barber 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:

 

Barber Shop, Inc. (“the Company”) is seeking a business loan of 0,000 in order to launch the operations of a barber shop 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 Barber Shop will provide its customers with a broad range of barber shop services including traditional hair cuts for men, clean shave services, and sales of hair care products to the general public. The business will employ licensed barbers (as well as licensed independent contractors) that will render these service at the Company’s facilities.

 

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 0,000. 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 Barber 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 Barber 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 Barber Shop 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:

 

Barber Shop Establishment – ,000
FF&E – ,000
Working capital – ,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 Barber 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 Barber 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 Barber Shop to a third party for a significant earnings multiple. Barber 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:

 

As stated in the executive summary, the Barber Shop will specialize in providing a number of services that are commonly found among traditional barber shops. These services include hair cutting, styling, color treatments, shaves, and other services that are frequently rendered by barbers.

 

The business will also generate secondary revenues from the sale of hair care products.

 

 

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, Barber Shops typically operate with a strong state of economy stability as no one has the ability to give themselves a haircut. This, coupled with the low pricing point of the Company’s services, will ensure the continued positive cash flow of the business. As such, the business should be able to remain profitable and cash flow positive in any economic environment.

 

The Barber 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 cosmetology industry has a very interesting model of economics and profitability. Prices for haircuts can range from six dollars to six hundred dollars. Haircutters have the ability to enjoy prestige within their profession, and therefore the pricing and branding models can be structured so that two service providers can provide equivocal service and charge vastly different prices. This has caused the industry to have many different pricing models that vary among different target markets.

 

The prices for haircuts have an inelastic pricing model, and haircutters have enjoyed stable job growth and prosperity over the years. The prices of haircuts tend to grow at a faster pace than that of inflation. In 2002 Economic Census report issued by the U.S. Government it was found that from 1992-1997 the barbering and cosmetology industry grew from a ten billion dollar industry to a thirteen billion dollar industry in five years. This corresponds to a 5.3% average growth rate per year.

 

The profitability of barber shops is very good. As it is a service oriented industry, the highest expense is the cost of labor. A study conducted by the management showed that the approximate before tax profit margin of the average barber shop is 35%.

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 Barber 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 Barber Shops.

 

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 Barber 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 Barber 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 Barber 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 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, barber shop services, and specials that are occurring within the barber shop on a regular basis.

 

The business will also maintain a highly informative website that showcases the Barber Shop’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.

 

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

 

Barber Shop, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire 0,000 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 Barber Shop
Cash Flow Analysis for the Barber Shop
Balance Sheet for the Barber Shop
Business Loan Amortization Tables

The Beauty of a Contingency Plan for Small Business Loans

Getting a small business loan for the first time can be a stressful experience, especially during these hard times. Getting a loan from the bank, especially now has also fallen into hard times. So here are plans A and B to help you start your own small business. Plan A is for acquiring a small business loan from the bank, and plan B is your contingency plan, so take notes,

PLAN A

Know yourself. Before approaching a bank or any other lender, be sure you know your own history in terms of personal credit. Is your credit history good or bad? Due to the current recession, you can be sure to see that banks have become more strict in reviewing records before making any decision for business loans. You can obtain your credit history from companies like TransUnion, Experian, or Equifax via fax, mail or online.  Also, be sure to check if the records are right. Companies with credit card services sometimes make errors in logging cancellations or adjustments to your credit limit. These misreported transactions in the past  may appear as available credit to the bank.

Prepare a competitive business presentation. A good presentation should initially be able to make the bank understand what you plan to do with the money and not simply WHY you need the money. Remain objective in your explanations and try not to attach too much personal reasons in your answer. The bank’s concern is not with you, but with the money they will give you. A cash flow projection will be of good help during your presentation because the bank can quickly assess the benefits and risks for them. However, a cash flow projection is different with a cash flow statement. The projection is an expectation on how money will come in and out, while a statement shows how money arrives and leaves the business. You can make a projection on a monthly basis over one year for a better outlook of your expectations for the business.

Prepare other documents. You may need to present other documents like a credit rating report. Though this is not an actual requirement, it will still be useful for the bank to know your loan payment history and other dealings with other credit card services. After all, most banks only approve businesses that are able to accept credit cards.

Get to know the bank. It is also important to do a little research on your lender’s point of view. Again, the first question in the bank’s mind is, “what are you going to do with our money?” The second question would be, “Why should we risk our money for your business?” Providing the bank with the right answer boosts your chances of getting that business loan by more than 50% of the time.

Bear important facts. You need to be honest to the bank on certain areas like, how much money are you willing to put in to the business, the collateral you currently have, and how much do you really know about the industry you’re planning to venture in. Enduring the bank that you’re not completely in the dark on your planned business will somehow put their minds at ease with regards to the loan they will be giving you.

PLAN B

If all else fails with the bank, do not despair. There are other means of acquiring small business loans for yourself. Many business cash advance companies are now available to serve you. Borrowing money from these companies are relatively easier than getting one from a bank. They will review your credit record but they are less strict in terms of seeing a few bad records on your history. With a business cash advance, you will be able to start your own small business, expand, pay off debt or taxes, and get emergency funding. However, make sure that the company you will be applying to is legitimate with negotiable terms with payment.

Good luck!

Free Car Wash Business Plan

Free Car Wash Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a car wash business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Car Wash, 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 car wash, 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:

 

Car Wash, Inc. (“the Company”) is seeking a business loan of 0,000 in order to launch the operations of a car wash 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 Car Wash will provide customers with the ability to quickly have their cars exteriors and interiors cleaned by the Company’s professionally trained staff. The business will not have an automated drive through car wash, but rather individuals will wash and clean the car by hand. The business will generate revenues through the services rendered by the Company’s staff as well as through the sale of car care products.

 

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 0,000. 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 Car Wash 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 Car Wash 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 Car Wash 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:

 

Car Wash Establishment – ,000
Car Wash Equipment and FF&E – ,000
Working capital – ,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 Car Wash, Inc.

 

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 Car Wash, 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 Car Wash to a third party for a significant earnings multiple. Car wash businesses 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 Car Wash will provide general car cleaning (of both the interior and exterior of a vehicle) to the general public within its San Francisco based market. The business will generate significant high margin revenues from these services.

 

Additionally, the business will generate additional streams of revenue from the sale of car care products that customers can use at home.

 

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, Car Wash businesses typically operate with a strong state of economy stability as these businesses provide a broad level of car cleaning services with a relatively low pricing point. As such, the Car Wash will be able to remain profitable and cash flow positive at all times despite the current state of the economy.

 

The Car Wash 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 13,600 car washing establishments in the United States. These businesses produce over billon dollars a year in gross receipts. Additionally, the business employs over 124,000 people, and generates payroll figures of .2 billion dollars a year. The industry has experienced a tremendous rate of growth over the last ten years. The car washing industry from 2000 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.

 

 

 

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 Car Was businesses, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of the Car Wash.

 

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 Car Wash 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 Car Wash 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 Car Wash, Inc. 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, car washing services, and specials that are occurring within the Car Wash’s location on a regular basis..

 

The business will also maintain a highly informative website that showcases the Car Wash’s services, its hours of operation, service 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

 

Car Wash, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire 0,000 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 Car Wash
Cash Flow Analysis for the Car Wash
Balance Sheet for the Car Wash
Business Loan Amortization Tables

Free Consignment Store Business Plan

Free Consignment Store Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a consignment store business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Consignment Store, 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 consignment store, 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:

 

Consignment Store, Inc. (“the Company”) is seeking a business loan of 0,000 in order to launch the operations of a consignment store 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 Consignment Store will provide customers with the ability to consign clothing and other items through the Company’s retail location. The business will receive a fee equal to 40% of the consigned products sold through the Consignment Store’s location. The business will specialize in the sale of clothing and other related small retail products.

 

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 0,000. 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 Consignment Store 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 Consignment Store 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 Consignment Store 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:

 

Consignment Store Establishment – ,000
Opening Inventory – ,000
Working capital – ,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 Consignment Store.

 

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 Consignment Store, 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 Consignment Store to a third party for a significant earnings multiple. Consignment Stores 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 Consignment Store will specialize in the retail sale of items on behalf of individuals within the Company’s target market. The business will charge a fee equal to 40% of the sale of each consigned item. The business will use a number of means in order to generate sales through the Company’s store. This includes listing items on EBay and other popular websites so that the business can generate substantial sales outside of the Company’s retail location.

 

 

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, Consignment Stores typically operate with a strong state of economy stability as these businesses are often used as a last resort among people that are seeking to sell their clothing or other retail items in exchange for a significant percentage of the value of the merchandise.  As such, the business should be able to remain profitable and cash flow positive in any economic environment.

 

The Consignment Store 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:

 

In the United States there are over 17,000 businesses that specialize in the sale of consignment apparel to the general public. Among these businesses, the aggregate receipts generated from the sale of used merchandise are approximately billion dollars per year. The industry employs more than 97,000 people and provides gross payrolls of .2 billion dollars.

 

 

 

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 Consignment Stores, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Consignment Stores.

 

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 Consignment Store 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 Consignment will also maintain an internet website that showcases the Company’s operations, hours of operation, and relevant contact information.
The business will also using popular sites such as EBay in order to generate additional sales from outside of the retail location.

 

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 Consignment Store 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, consignment store 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 Consignment Store’s services, its hours of operation, consigned product listing 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 business will also use major sites such as EBay to generate sales of items consigned through the Company’s location.

 

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

 

Consignment Store, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire 0,000 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 Consignment Store
Cash Flow Analysis for the Consignment Store
Balance Sheet for the Consignment Store
Business Loan Amortization Tables

Free Cell Phone Store Business Plan

Free Cell Phone Store Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a cell phone store business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Cell Phone Store, 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 cell phone store, 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:

 

Cell Phone Store, Inc. (“the Company”) is seeking a business loan of 0,000 in order to launch the operations of a cell phone retailing 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:

 

Cell Phone Store, Inc. will generate substantial revenues, via its retail location, from the retail sale of cell phones as well as from activation fees, sales of accessories, and other ancillary revenue streams from mobile phone services.

 

The third section of the business plan will further document the products services offered by the business.

 

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 0,000. 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 Cell Phone Store 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 Cell Phone Store 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 Cell Phone Store 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:

 

Cell Phone Store Retail Location Establishment – ,000
Opening Inventory and FF&E – ,000
Working capital – ,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 Cell Phone Store.

 

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 Cell Phone Store, 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 Cell Phone Store to a third party for a significant earnings multiple. Cell Phone Stores 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 Cell Phone Store will specialize in making sales of cell phones to the general public. The Company anticipates that it will generate gross margins of approximately 40% on each cell phone sold. The business will also generate additional revenues from ongoing servicing of mobile phones as well as from initial activation fees when a customer signs up for a new cell phone plan. These service based revenues carry extremely high margins for the Cell Phone Store, Inc.

 

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, Cell Phones have become an extremely important part of an individual’s life. In fact, many people now forego the use of a traditional land line and simply use a cell phone. As such, the business will be able to remain profitable not only from the sale of cell phones but also from the ongoing subscription and activation fees rendered to customers.

 

The Cell Phone Store 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 more than 100,000 retailers and distributors of cell phones that operate one or more retail facilities. Approximately 75% of Americans now use a cell phone and require regular services for their mobile phone devices. In each of the last five years, the aggregate sales generated through the sales of cell phones has exceeded 0 billion. This demand is not expected to wane although Management does anticipate that cell phone stores will face stiffer pricing competition as more competitors enter the market.

 

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 Cell Phone Stores, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Cell Phone Stores.

 

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 Cell Phone Store 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 Cell Phone Store 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 Cell Phone Store 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, cell phone products and  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 Cell Phone Store’s products and services, its hours of operation, cell phone product listing 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 cell phone stores.

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

 

Cell Phone Store, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire 0,000 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 Cell Phone Store
Cash Flow Analysis for the Cell Phone Store
Balance Sheet for the Cell Phone Store
Business Loan Amortization Tables

Free Liquor Store Business Plan

Free Liquor Store Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a liquor store business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Liquor Store, 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 Liquor Store, 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:

 

Liquor Store, Inc. (“the Company”) is seeking a business loan of 0,000 in order to launch the operations of a Liquor Store 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 Liquor Store will provide its customers with a broad array of wines, beers, and spirits for sale to the general public. At all times, the Liquor Store will comply with all applicable state and federal laws regarding the sale of alcohol to the general public. The business anticipates that it will generate gross margins of 40% on all alcoholic beverage products sold through the liquor store.

 

The third section of the business plan will further discuss the operations of the business.

 

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 0,000. 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 Liquor Store 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 Liquor Store 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 Liquor Store 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:

 

Liquor Store Establishment – ,000
Opening Inventory – ,000
Working capital – ,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 Liquor Store.

 

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 Liquor Store, 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 Liquor Store to a third party for a significant earnings multiple. Liquor Stores 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 Liquor Store will carry an extensive and diverse inventory of wines, beers, and spirits. Primarily the Company will focus on the sale of wine as it produces the highest margins for the business. At all times, the business will have appropriate checks in place to ensure that people under the age of 21 do not buy alcoholic products from the Liquor Store.

During the holiday seasons, the business will generate additional revenues from the sale of gift baskets that contain wine, chocolates, and other goods. This will substantially increase the revenues of the Liquor Store during the holiday season.

 

 

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, Liquor Stores and drinking establishments tend to fair well during difficult economic climates. As such, the Liquor Store will be able to remain profitable and cash flow positive in any economic climate.

 

The Liquor Store 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:

 

On a nationwide basis, there are more than 45,000 stores that specialize in the sale of liquor, wine, beer, and other spirits to the general public. On an annual basis, these businesses aggregate generate more than billion of revenue and employ more than 200,000 people. This is a mature industry and the future expected growth rate of the business is expected to mirror that of the general economy.

 

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 Liquor Stores, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Liquor Stores.

 

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 Liquor Store 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 Liquor Store 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 Liquor Store 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, liquor store products, and specials that are occurring within the store on a regular basis.

 

The business will also maintain a highly informative website that showcases the Liquor Store’s products, its hours of operation,  liquor product listing 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

 

Liquor Store, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire 0,000 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 Liquor Store
Cash Flow Analysis for the Liquor Store
Balance Sheet for the Liquor Store
Business Loan Amortization Tables