| Aug. 09 2007 at 1:06 PM |
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I prepare business plans for my clients, because that is my strongpoint. I LOVE writing and possess a strong passion for new businesses. I started my company 6yrs ago and it was the best decision I ever made. But financials aren't my strong point, or I'd be an accountant or CPA! The business plan itself is VERY important, however, so are the financials! Most people reading a business plan will read the exec. summary and go straight to the financials. It's VERY important that both parts of the plan are very strong and professionals in both areas should be consulted. I enjoy helping my clients start their own business. It makes me smile and feel good to be a part of someone's dreams. 95% of the time, business plans are never read in its entirety, especially if in the hands of an investor. They get hundreds of plans. Keep them brief, to the point, and elaborate on key areas.
Jocelyn Saccuci
EZ Biz Plans, LLC
4898 S. Fresno Street
Chandler, AZ. 85249
(602) 430-3079 - Phone
(866) 220-9542 - Fax (Toll Free)
www.ezbizplans.com
jocelyn@ezbizplans.com
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| Aug. 10 2007 at 7:14 PM |
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Very true. Another concern in my experience is your target market and the share you intend to capture. Investors/lenders want to see realistic numbers over a 3-5 year period --- over a total market area. And be specific about which marketing methods you intend to reach that market.
Fortune Favors The Bold!!
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| Sep. 03 2008 at 3:01 AM |
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I always tell people that there are some items that they must get right. These include expenses like insurance, rent, occupancy costs, office furniture, etc. These expenses are easy to research, and quotes are easy to obtain.
Other items might be much more difficult to estimate or may fluctuate over time, such as fuel, health insurance, commodities, etc. For these items, you should just make your best guesses and go with them. The key is to communicate the underlying assumptions in your projections or in your business plan.
That way, you or your banker or investors can test whether the estimates seem reasonable or not. If something might vary, then you can perform a "sensitivity analysis" by changing just that variable and seeing how the bottom line is affected.
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| Sep. 03 2008 at 10:57 AM |
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Hi Jocelyn,
I’m not sure if your post includes a question, or if it’s just a pitch for your business planning service. In any event, your post is nicely written, so keep up the good work.
Just in case, including an accurate estimate of your cold hard cash requirements is crucial to developing a viable business plan. Many entrepreneurs vastly underestimate the start-ups costs of a new venture. To make matters worse, they are also overly optimistic when it comes to projecting potential revenues. This low-balling strategy can prove disastrous and leave them without cash if they don’t hit their revenue forecast spot-on. To be on the safe side I always recommend including at least 6-8 months worth of operating costs in their capital requirements.
Other than that, I think that the importance of projected financial statements in a business plan for a new venture is overrated. Let’s face it, they are merely educated guesses, which is why potential investors often discount them by 100%-200%.
Perhaps more than anything, they are used to judge the entrepreneur’s credibility.
I hope this helps.
Mark
Nothing is as powerful as an idea whose time has come.
http://www.FastVentures.com
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| Nov. 04 2008 at 12:00 PM |
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I am looking for realisitic numbers for the start-up cost for a foodservice distributor. Does anyone have experience with this type of business
Vonda
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