The SBA has many resources for anyone ready to explore starting a
business, including figuring out whether entrepreneurship is for you and
the important task of writing a business plan.
Putting a plan on paper forces you to think through important
issues a business will face and it becomes a valuable tool as you set
out to raise money.
There are places to look online for help when you're getting
started:
SCORE, an SBA resource partner, has business-plan templates
(www.score. org/template_gallery.html) and samples of plans and
financial statements created by its counselors. SCORE also has online
workshops (www.va-interactive.com/score) on topics including writing a
business plan and conducting market analysis.
SBA also offers resources online about startup basics, including
workshops (www. sba.gov/starting_business/startup/guide. html) and
articles.
After you've developed a business plan, if you're seeking
funding from a bank or other lender, a well-crafted loan proposal is
your next step.
A loan proposal must answer:
* Who are you?
* How much money do you need?
* How are you going to repay the loan?
* What happens if you can't repay it?
The SBA advises that a loan proposal contain:
A summary. This should be clear, concise, accurate and inviting.
Summarize how the loan will be used and repaid.
Top management profiles. You'll need resumes, summary of
experience, and qualifications and credentials for owners and key
members of management.
Business description. Include a brief history and summary of
current activities. It is helpful to include letters from suppliers,
customers and other business references.
Projections. Include projected income and cash flow for two to
three years.
Financial statements. Include business and personal financial
statements. Make sure you understand the "story" that your
financial statements tell.
Purpose of the loan. Present a detailed statement of how you will
use the loan proceeds. Include proceeds of the loan in your cash-flow
projections (and the interest in the projected income statement).
Amount. When determining the amount, ask, "How much money do I
need, and how much will they lend?" and not, "Will they lend
it?"
Repayment plans. Propose the terms you want, but ultimately this
will be a negotiated with the bank.
Read more about loan proposals and other finance topics at
www.sba.gov /starting_business.
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