Smart Business http://onsmartbusiness.info All About Business Sun, 29 Aug 2010 05:33:50 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Bath Spa Business Economy the Effects of the Recession 2009 http://onsmartbusiness.info/2010/08/29/bath-spa-business-economy-the-effects-of-the-recession-2009/ http://onsmartbusiness.info/2010/08/29/bath-spa-business-economy-the-effects-of-the-recession-2009/#comments Sun, 29 Aug 2010 05:33:50 +0000 admin http://onsmartbusiness.info/2010/08/29/bath-spa-business-economy-the-effects-of-the-recession-2009/ The city of Bath has not been immune from the recession as UK unemployment recently soared to over 2 million in the first time since 1997. One of Baths key businesses – tourism on which the local hotel industry is dependent fared best in England in terms of England according to a recent survey of 18 locations in total. Although revenue per room fell by approximately 6%, occupancy rates remained at over 66%. This is thought to have been supported by the fact that more British holiday makers took short breaks or holidays in and around Bath rather than going abroad.
In such economic times the recession has had an impact on us all, whether it has been from an employment to savings, we have all seen the impact of the catastrophe of the financial market, through its naive investments in the American sub-prime housing market, and a question we are all asking is who ruined Britain?
The University of Bath has a long established tradition of strong links with industry, with global businesses such as motor manufacturers placing important research with the university. Approximately 140 companies work with the university helping lead key research to help generate jobs both locally and globally, with successful spin-out companies being a key success. Also over a 1000 organisations take students on their year long placement which forms a component of the 4 year degree course.
With over a hundred 100 pubs and bars in the city looking after the cities million visitors a year, their business is key to the local economy. While there has been some evidence of promotions on both drinks and food, most of the cities well established venues have not suffered the scale of downturn that they feared. While there have been pub closures these have been primarily outside the city centre. With a weak pound and stronger euro and dollar Bath licencees are keen to catch the year round tourist trade.
The recession has also delayed the 43 acre Western Riverside development, a major regeneration project which is to comprise of over 2000 homes, and also offices. The development will provide a major influx of much needed jobs in the construction sector and the local economy as the developer is still committed to moving the project forward.
Investment continues in Bath with the recently opened new bus station which is the first part of the £360 million pound Southgate development which will transform the southern area of Bath, formerly occupied by the old dairy and engineering buildings and the old Southgate centre. There will also be a multimillion pound investment in improving the railway station to create a transport interchange. Incorporating parking for up to 860 cars the development with its mixed usage, retail, leisure and housing is anticipated to provide approximately 400 jobs during construction and approximately 1000 jobs when all six phases are complete. The purpose of phasing the development is to minimise disruption, and it also allows the utilisation of the phase when complete.
With the announcement that the London to Bath railway line will be electrified it is believed that this will greatly improve access to Bath for both commuters and tourists alike. The new trains will be faster allowing easier access to both London and South Wales, and it is hoped that this will encourage more businesses to consider Bath as a prime business location with excellent facilities and a well educated workforce.
One area where companies are faring better is in the small to medium size private companies, who can control their finances and have the flexibility to make changes to accommodate the current financial climate, providing they are not solely reliant on bank funding which is still proving hard to come by for many small companies.
More and more people are increasingly looking online for job opportunities online such as activbath and even the possibility of working for themselves, there are an array of new opportunities out there just waiting to be explored and many can be achieved for very little investment.
Although there are many positive business factors immanent in Bath, a turnaround from the current recession, will still take some time, possibly a couple of years, but hopefully with the 2012 Olympics to be held not far away in London, this should bring the city a well needed boost to the economy with many global visitors wishing to visit this historic city of European heritage status.

]]> http://onsmartbusiness.info/2010/08/29/bath-spa-business-economy-the-effects-of-the-recession-2009/feed/ 0 Free Dry Cleaner Business Plan http://onsmartbusiness.info/2010/08/29/free-dry-cleaner-business-plan/ http://onsmartbusiness.info/2010/08/29/free-dry-cleaner-business-plan/#comments Sun, 29 Aug 2010 00:39:14 +0000 admin http://onsmartbusiness.info/2010/08/29/free-dry-cleaner-business-plan/ Free Dry Cleaner Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a dry cleaning business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Dry Cleaner, 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 dry cleaner, 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:

 

Dry Cleaner, Inc. (“the Company”) is seeking a business loan of $100,000 in order to launch the operations of a dry cleaning 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 Dry Cleaner will provide the outsourced cleaning of clothes to the general public and to other dry cleaners that solely operate in a drop store capacity. The business will generate substantial revenues from these services. In regards to maintaining a competitive advantage, the business will provide regular drop off and delivery of clothes that need to be dry cleaned on a regular basis to residents within the Company’s targeted market of San Francisco, California.

 

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 $100,000. 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 Dry Cleaner 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 Dry Cleaner 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 Dry Cleaner 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:

 

 

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 Dry Cleaner.

 

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 Dry Cleaner, 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 Dry Cleaner to a third party for a significant earnings multiple. Dry Cleaners 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 Dry Cleaner will primarily generate its revenues from the ongoing dry cleaning services offered to the general public through its retail location in San Francisco. All clothes will be dry cleaned on site and the business intends to have an onsite dry cleaning plant. This will allow the business tremendous pricing flexibility as the business can effectively control its underlying costs.

 

Additionally, the business will provide outsourced dry cleaning services to San Francisco area dry cleaners that  only operate in a drop store capacity.

 

 

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, people that are employed in offices will always require dry cleaning services. As such, the Dry Cleaner will be able to remain profitable and cash flow positive despite any deleterious changes in the economy. Additionally, the business generates substantial gross margins from its services and as such – the Dry Cleaner will be able to service its debt obligations in any economic environment.

 

The Dry Cleaner 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 approximately 13,000 businesses that operate one or more dry cleaning locations. Each year, these businesses generate more than $4 billion of revenues while providing jobs to more than 50,000 people. In each of the last five years, aggregate payrolls have exceeded $800 million.

 

 

 

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

 

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

 

 

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 Dry Cleaner 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, dry cleaning 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 Dry Cleaner’s services, its hours of operation, service 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 Dry Cleaners.

 

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

 

 

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:

 

]]> http://onsmartbusiness.info/2010/08/29/free-dry-cleaner-business-plan/feed/ 0 New Demands Bring Delicious New Trends in the Dog Food Business http://onsmartbusiness.info/2010/08/28/new-demands-bring-delicious-new-trends-in-the-dog-food-business/ http://onsmartbusiness.info/2010/08/28/new-demands-bring-delicious-new-trends-in-the-dog-food-business/#comments Sat, 28 Aug 2010 16:15:17 +0000 admin http://onsmartbusiness.info/2010/08/28/new-demands-bring-delicious-new-trends-in-the-dog-food-business/ Do you know what actually goes into the making of the standard dog kibble that you purchase and feed your dog friend on a regular basis? Are you sure that it is as nutritious as it should be and that it is also healthy. Is the Dog food that you are feeding your pet leaving it more susceptible to chronic diseases and even various forms of cancer? All of these questions are things that you should be giving some thought to if you currently are a dog owner.

Horrible True Facts

For years, dog food businesses across the globe have been using recycled restaurant grease as an additive in their products. This grease is loaded with unhealthy trans-fatty-acids that have been proven to wreak havoc on a dogs health. Also, Chinese dog food companies that export their product to the U.S. and Canada were recently found to be putting dangerous chemicals in their dog food that mimics the presence of protein when it was tested.

New Safer Dog Food

This means that you have to be more vigilant then ever when choosing the food that you are going to feed your pet. Fortunately, there are now dog food businesses that are actually interested in the health of your faithful friend and they are marketing dog food that is not only safe to eat but it is healthy as well. These same dog food businesses are also making and marketing newer tastier dog snacks that your dog will simply relish.

Consider Your Dogs Health

The fact is that trying to save a few bucks by feeding your dog cheaper, unhealthy, fat laden, corn meal based dog food will only cost you in the end. This is because, your dog will end up being chronically ill and you will lose out in the end when you have to pay the vet bills. Take a good look and smell of the kibble that you have been feeding your dog and then ask yourself how you would feel if you had to eat it every day.

]]> http://onsmartbusiness.info/2010/08/28/new-demands-bring-delicious-new-trends-in-the-dog-food-business/feed/ 0 Nokia Series Especially for E65, E51, E70: Smart Business Tools http://onsmartbusiness.info/2010/08/28/nokia-series-especially-for-e65-e51-e70-smart-business-tools/ http://onsmartbusiness.info/2010/08/28/nokia-series-especially-for-e65-e51-e70-smart-business-tools/#comments Sat, 28 Aug 2010 11:05:25 +0000 admin http://onsmartbusiness.info/2010/08/28/nokia-series-especially-for-e65-e51-e70-smart-business-tools/ It seems Nokia has made this series especially for the ingenious businessmen of today, with smart features like mobile email and voice calling functions. Designed to expedite corporate applications, Nokia E60, Nokia E61 and Nokia E70, are all smart business tools. Nokia E60, Nokia E61 and Nokia E70 feature the most advanced corporate email mobile solutions like Blackberry connect, Goodlink from Good technology Inc, Visto Mobile etc. Nokia E60, Nokia E61 and Nokia E70 feature superior voice functionality and quality. The devices support the latest voice services like VOIP (Voice over IP) phone calls and push-to-talk functionality. Nokia E51 and Nokia E60 offers you wide and flexible data connections with WCDMA. Nokia E61 is the best device for active voice communications, both in and out of office. It can also read attached documents whether spreadsheets, PDF viewers or PowerPoint presentations. Open Nokia E70 and you will find a full messaging keyboard for fast typing and also a document reading and editing function. Like Nokia E60 and Nokia E61, Nokia E70 also supports applications like email and advanced voice applications. Nokia is offering two versions of Nokia E70, one (GSM900/1800/1900/WCDMA 2100) optimised for mobile use in Europe and Asia and the other for use in USA (GSM850/1800/1900). With Nokia E series, Nokia offers a comprehensive service portfolio for its business devices and solutions ranging from technical support to implementation, professional services and technical training.Nokia E65 3G One Touch Access Keys (Mute, Contacts & Conference Call) smart phone is One Symbian Operating System with S60 3rd Edition Software. Nokia E65 has WLAN, Video & Audio Streaming, 2 Megapixel Camera with Camera Settings, Email with Attachment. Nokia E65 has 16 Million Colour QVGA Screen (240 x 320 Pixels) and you can but these phone with contract and payg.

]]> http://onsmartbusiness.info/2010/08/28/nokia-series-especially-for-e65-e51-e70-smart-business-tools/feed/ 0 6 Marketing Tips For Your Spa Business! http://onsmartbusiness.info/2010/08/14/6-marketing-tips-for-your-spa-business/ http://onsmartbusiness.info/2010/08/14/6-marketing-tips-for-your-spa-business/#comments Sat, 14 Aug 2010 06:03:17 +0000 admin http://onsmartbusiness.info/2010/08/14/6-marketing-tips-for-your-spa-business/

]]> http://onsmartbusiness.info/2010/08/14/6-marketing-tips-for-your-spa-business/feed/ 0 Free Yoga Studio Business Plan http://onsmartbusiness.info/2010/08/14/free-yoga-studio-business-plan/ http://onsmartbusiness.info/2010/08/14/free-yoga-studio-business-plan/#comments Sat, 14 Aug 2010 00:36:04 +0000 admin http://onsmartbusiness.info/2010/08/14/free-yoga-studio-business-plan/ Free Yoga Studio Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a yoga studio business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Yoga Studio, 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 Yoga Studio, 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:

 

Yoga Studio, Inc. (“the Company”) is seeking a business loan of $100,000 in order to launch the operations of a yoga studio 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 Yoga Studio will provide a broad number of classes that pertain to training the body via yoga and related stretching practices. The business will generate income from the ongoing fees associated with yoga classes at the studio while concurrently generating secondary revenues through the sale of yoga mats and related accessories used during the course of yoga training.

 

The third section of the business plan will further discuss the 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 $100,000. 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 Yoga Studio 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 Yoga Studio 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 Yoga Studio 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:

 

 

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 Yoga Studio.

 

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 Yoga Studio, 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 Yoga Studio to a third party for a significant earnings multiple. Yoga Studio 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 primary revenue center for the business will come from ongoing yoga classes hosted at the Company’s retail storefront location. For each yoga session, Management intends on charging a fee of approximately $10. The average yoga class will have five to ten students. Classes will be held five to six times per day.

 

The business will also generate sales through the sale of yoga mats and other products as they related to yoga training.

 

 

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, Yoga Studios have faired well despite the current economic issues. This is because yoga, by its students, as seen as an integral part of their lives. As such, the Yoga Studio will be able to remain profitable and cash flow positive in any economic climate.

 

The Yoga Studio 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 approximately 10,000 locations that operate as Yoga Studios. The popularity of yoga has increased substantially over the past ten years as more Americans have become concerned with their fitness. Each year, the industry generates more than $600 million of revenues. The excepted growth rate of the Yoga Studio industry is expected to remain in line with that of the general American 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 Yoga Studio, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Yoga Studios.

 

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

 

 

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 Yoga Studio 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, yoga studio services, and specials that are occurring within the Yoga Studio on a regular basis.

 

The business will also maintain a highly informative website that showcases the Yoga training services, its hours of operation, 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 Yoga Studios.

 

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

 

 

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:

 

]]> http://onsmartbusiness.info/2010/08/14/free-yoga-studio-business-plan/feed/ 0 How to Start your Own Baby Food Business Part #1: Introduction http://onsmartbusiness.info/2010/08/13/how-to-start-your-own-baby-food-business-part-1-introduction/ http://onsmartbusiness.info/2010/08/13/how-to-start-your-own-baby-food-business-part-1-introduction/#comments Fri, 13 Aug 2010 15:56:59 +0000 admin http://onsmartbusiness.info/2010/08/13/how-to-start-your-own-baby-food-business-part-1-introduction/ When I decided to turn my baby food delivery business idea into a reality I imagined that someday I would open outlets all over the country. Or perhaps I would franchise the business. I thought that one day I would be the CEO of a baby food empire.

Over time I came to realize that this business is not about empire building. It is about heart. It is about love. And it must be run by individuals that have a true passion for infant nutrition and believe that a child’s taste for food is formed from the very first bite…..mothers. It cannot be run by some “hired gun” store manager. Or a franchisee who cares more about opening a string of sites than changing the lives of children and their families.

Childhood obesity is an epidemic in our society. Helping children form healthy tastes and eating habits is going to require commitment and training at an individual level. No corporation can facilitate change in the same way that a mother supported by her friends can.

I also figured out that I do not want to be the CEO of a big company. CEOs don’t have time to change diapers and drive kids to soccer practice. CEOs don’t have time to get to know their customers on a personal level. CEOs are too bogged down with board meetings, personnel issues, and operational chaos. The reason I started my baby food delivery business is because I wanted to stretch myself intellectually every day just as I had during my 15 year career in high tech. While at the same time being a conscious parent involved in every aspect of my children’s lives

]]> http://onsmartbusiness.info/2010/08/13/how-to-start-your-own-baby-food-business-part-1-introduction/feed/ 0 Walking Away From Your Home.. Smart Business Decision? http://onsmartbusiness.info/2010/08/13/walking-away-from-your-home-smart-business-decision/ http://onsmartbusiness.info/2010/08/13/walking-away-from-your-home-smart-business-decision/#comments Fri, 13 Aug 2010 10:32:30 +0000 admin http://onsmartbusiness.info/2010/08/13/walking-away-from-your-home-smart-business-decision/ There are many corporations in the residential real estate sector and commercial sector of real estate who have made the decision to perform short sales or let the banks take back the properties… Many say it is a smart business decision on their part. However, a homeowner or investor of real estate walks away, that person is called names but some… In this market more than ever, you need to look at your personal finances and figure out what your game plan is both for short term and long term. I tell many people who call me on short sale advice to just try to take all emotion out of this and put pen to paper and logically work your numbers. It may be a very good decision to let some bad investments go – And in some cases it may be your primary residence… I suggest to all people to talk to others, talk with you family and really put you first if you have gotten into certain projects that have not panned out well… Here is a start: Put pen to paper:

Life is short and these decisions now may make life less stressful in your future. If you can take the short term emotion out of these decisions and base them more on long term financial logic, you will be happier further down the road. You can be confident in your choice.

]]> http://onsmartbusiness.info/2010/08/13/walking-away-from-your-home-smart-business-decision/feed/ 0 Mobile Spa Business: Bringing the Business Right to Clients http://onsmartbusiness.info/2010/07/30/mobile-spa-business-bringing-the-business-right-to-clients/ http://onsmartbusiness.info/2010/07/30/mobile-spa-business-bringing-the-business-right-to-clients/#comments Fri, 30 Jul 2010 05:21:25 +0000 admin http://onsmartbusiness.info/2010/07/30/mobile-spa-business-bringing-the-business-right-to-clients/ These days, there are plenty of good day spas thriving in the world. Because people are more familiar and more particular about overall relaxation integrated with beauty treatments, day spas have truly come of age. So fast has been the emergence of the spa industry that currently, there is a new trend on the rise.
Mobile spas are starting to proliferate and operate actively in most markets. Conceptualized and developed on the principle that clients are more at home and comfortable having spa services provided right at the coziness and privacy of home, mobile spas are truly patronized well. In fact, mobile spas are most in-demand in busy markets across the United States, Canada, Australia, and Europe.
Clients are ultimately enjoying and taking advantage of mobile spas. For them, day spas that are brought to the comfort of their own homes are really a pleasure. No wonder, mobile spas have been welcomed by the market with warm and amiably open arms.
If you are an entrepreneur and you want to enter into the day spa business, or if you are already into spa operations, you should consider getting into the mobile spa business. Because clients are raving about the idea and the concept, you can always be sure you will have a huge demand for your spa services. There are other logical and appealing reasons why you should take your spa business right to the doorsteps of clients.
* Mobile spas require little cost. Because you will not pay higher rents for business sites and establishments, you will not incur much for operating expenses. Utility bills, maintenance, premium-rate insurance, and business tax implementations can be waived or at least significantly minimized.
* There is much flexibility and freedom. You will work on your own schedule and not be boxed within set hours and enclosed areas. There is an ongoing excitement everyday because routines are broken down. Everyday, you could take your business to different places.
* The business income could become unlimited. Because your mobile spa is your business, your efforts will dictate your profitability. In other words, your earnings and revenue potential can be limitless, depending on the number of calls and service orders you receive.
* Business risks can be somehow limited. Your mobile spa can be a part-time business if you like to retain your present job for security purposes. Once you establish your clientele and have your own niche and a bunch of loyal patrons, you can decide whether you will like to go full time or maintain the part-time status.
* You can realize several tax advantages by claiming legal business expenses from your gross income. Thus, your supplies, vehicle expenditures, and home office supplies can be declared as official business expenses.
* Lastly, there is a potential for total career satisfaction. When you get into the mobile spa business, you are outright building a business based more on your level of efforts, skills, and expertise. Try putting up and operating a mobile day spa and experience for yourself why many clients and entrepreneurs are all getting more into it.

]]> http://onsmartbusiness.info/2010/07/30/mobile-spa-business-bringing-the-business-right-to-clients/feed/ 0 Free Pawn Shop Business Plan for Loans http://onsmartbusiness.info/2010/07/30/free-pawn-shop-business-plan-for-loans/ http://onsmartbusiness.info/2010/07/30/free-pawn-shop-business-plan-for-loans/#comments Fri, 30 Jul 2010 01:59:29 +0000 admin http://onsmartbusiness.info/2010/07/30/free-pawn-shop-business-plan-for-loans/ Obtaining Business Financing

Free Pawn Shop Business Plan for Loans

 

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

 

Pawn Shop, Inc. (“the Company”) is seeking a business loan of $100,000 in order to launch the operations of a pawn brokering 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 Pawn Shop will provide general pawn brokering services to the general public, which includes providing small collateral loans to individuals based on the value of the property that they bring into the Company’s store. The business will specialize in making loans that are specific to jewelry.

 

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 $100,000. 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 Pawn 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 Pawn 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 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:

 

 

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 pawn 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 Pawn 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 Pawn Shop to a third party for a significant earnings multiple. Pawn 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:

 

The Pawn Shop will specialize in making small collateral loans to individuals that will last two weeks. On each item brought in by the customer, the Company will grant a loan equal to 10% to 20% of the saleable value of the item. The customer, should they return to receive their item back, will be required to pay back the loan amount plus a fee equal to 20% of the loan amount. On every item accepted for pawn brokering by the Company, the business will follow all applicable state laws regarding the acceptance and handling of merchandise. Additionally, the business will generate secondary revenues among people that do not return for their merchandise. In this event, the Pawn Shop will resell the item to the general public or to a used goods wholesaler.

 

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, Pawn Shops typically operate with a strong state of economy stability as these lenders are often used as a last resort among borrowers that are in need of quick loans or do not have the ability to sell the merchandise that they can use as collateral. As such, the business should be able to remain profitable and cash flow positive in any economic environment.

 

The Pawn 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 Pawn Shop industry, despite the current economy climate, has remained strong despite the fact the general economy has suffered. Within the United States, there are 20,000 businesses that operate in a pawn brokering capacity. On a yearly basis, these businesses generate revenues of $6 billion and provide jobs to more than 100,000 people. The total payrolls paid by the pawn shop industry has exceeded $1.4 billion on an annualized basis over the past five years.

 

At this time, there is currently no pending legislation or changes to the economy that are expected to change the nature of how the Pawn Shop Industry conducts business.

 

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 pawn 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 a pawn shop.

 

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

 

 

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 Pawn 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 intot he Company’s targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company’s hours of operations, pawn shop and pawn brokering 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 Pawn Shop’s services, its hours of operation, collateral and lending 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

 

 

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:

 

]]> http://onsmartbusiness.info/2010/07/30/free-pawn-shop-business-plan-for-loans/feed/ 0