This cash flow conundrum is the reason so many fast-growing companies have to seek bank financing or equity sales to finance their growth.
They are literally growing faster than they can afford. Start by asking yourself what kinds of financing you're likely to need--and what you'd be willing to accept. It's easy when you're short of cash, or expect to be short of cash, to take the attitude that almost any source of funding is just fine.
Pirates studion franchise is a unique business venture with several programs ESSAY SAMPLE ON Entity Business Plan TOPICS SPECIFICALLY FOR YOU. Free business plan papers, essays, and research papers. [tags: Partnership, Corporation, Types of business entity]. Strong Essays words | ( pages) | .
But each kind of financing has different characteristics that you should take into consideration when planning your plan. These characteristics take three primary forms:.
Almost any source of funds, from a bank to a factor, has some guidelines about the size of financing it prefers. Anticipating the size of your needs now will guide you in preparing your plan. Believe it or not, part of planning your plan is planning what you'll do with it.
No, we haven't gone crazy--at least not yet. A business plan can be used for several things, from monitoring your company's progress toward goals to enticing key employees to join your firm. Deciding how you intend to use yours is an important part of preparing to write it. Do you intend to use your plan to help you raise money? In that case, you'll have to focus very carefully on the executive summary, the management, and marketing and financial aspects. You'll need to have a clearly focused vision of how your company is going to make money.
If you're looking for a bank loan, you'll need to stress your ability to generate sufficient cash flow to service loans.
Equity investors, especially venture capitalists, must be shown how they can cash out of your company and generate a rate of return they'll find acceptable. Do you intend to use your plan to attract talented employees? Then you'll want to emphasize such things as stock options and other aspects of compensation as well as location, work environment, corporate culture and opportunities for growth and advancement. Do you anticipate showing your plan to suppliers to demonstrate that you're a worthy customer?
A solid business plan may convince a supplier of some precious commodity to favor you over your rivals. It may also help you arrange supplier credit. You may want to stress your blue-ribbon customer list and spotless record of repaying trade debts in this plan. For most of us, unfortunately, our desires about where we would like to go aren't as important as our businesses' ability to take us there. Put another way, if you choose the wrong business, you're going nowhere.
Luckily, one of the most valuable uses of a business plan is to help you decide whether the venture you have your heart set on is really likely to fulfill your dreams. Many, many business ideas never make it past the planning stage because their would-be founders, as part of a logical and coherent planning process, test their assumptions and find them wanting. Test your idea against at least two variables. First, financial, to make sure this business makes economic sense.
Second, lifestyle, because who wants a successful business that they hate? Answer the following questions to help you outline your company's potential.
There are no wrong answers. The objective is simply to help you decide how well your proposed venture is likely to match up with your goals and objectives. Entrepreneur Media, Inc. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site both directly and through our partners. The table below describes in more detail the data being collected.
More from Entrepreneur. Get heaping discounts to books you love delivered straight to your inbox. Sign Up Now. Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level. Join Now. E Commerce Solutions.
Our Blogs. Leave a Reply Cancel reply Your email address will not be published. Telephone number.
Company name. Your location. Please describe your project or idea. Project requirements. When do you hope to launch. When do you hope to start. Please describe your desired look and feel. Any inspiration for your project. Anything else you want us to know.