Clients & Case Studies
Carolina Recreation
Business Plan for Purchase of Business with SBA Loan
I received a call from two business partners, Anthony & Franklin
Here’s how the call began:
Dwight,
We have found a business to buy.
The bank and the SBA are requiring us to provide a business plan with the loan application package.
We need it in two weeks!
Can you do it?
I responded:
Yes, we can. Email me the loan requirements the banker provided you with and we’ll get started.
A business plan for purchasing a business must include at least two years of historical financial information and two years financial projections looking forward. Additionally, the past numbers must be compared to the projected numbers to ensure the business model will be successful under the new ownership.
We detailed the historical numbers by obtaining the past financial statements from the current business owner. We forecast the projections based upon what the current owner feels the business is capable of and combining that with the plans of the new business owners. This extensive data and information gathering allows us to paint a past and future picture of the business.
Keep in mind, it is an underwriter who will ultimately decide if the loan is approved. We took the financial information, added the Mission and Vision Statements, Executive Summary, Company Description, Products and Services Offered for Sale, Marketing Plan, Sales Forecast, Operational Plan, Staffing and Compensation, Revenue and Expense Forecast, Funding Requirements and Appendix Items.
Having this comprehensive information provides the underwriter what they need to answer the three critical questions and approve the loan request:
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First, How much money do you need?
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Second, What will the money be used for?
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And Third, How will you pay them back?
We completed the plan in less than two weeks and the $1.1 million loan was approved. Anthony and Franklin purchased the business, just as they wanted to!
Do you need a business plan to buy a business? Call us right now and we’ll get to work.
Carter Home Health
Franchise Business Plan Business Plan for Purchase with SBA Loan
Ralph called and asked if we could write a business plan for him. He just bought the franchise territory for an In-Home Care Agency.
The bank he was hoping to get the loan from required a business plan. Also, the State was offering a special loan program, and the deadline was in three weeks. I could sense the urgency in his voice as there was a lot of money already invested in the business.
I assured Ralph that we would write the business plan he needed and meet his deadline.
We gathered the information the franchisor supplied and began putting the details together. The franchise documents detail the services the company will provide, and the territory Ralph purchased with the franchise rights. We had several screen sharing sessions to detail the volume of work which could be performed and the charge to the customer for the services: ultimately resulting in the month-by-month revenue projections. Next, we detailed every expense related to running the business. When buying a franchise, there are very specific fees which must be paid to the franchisor and are to be itemized in the expenses. Just as with the revenue, the expenses are tabulated month by month for a three-year period.
Ultimately, we look at the total revenue for a month, subtract the expenses and determine if there is a profit or loss for the month. The same calculation is performed for each quarter and each year.
We took the financial information, added the Plan Purpose and Audience, Mission and Vision Statements, Executive Summary, Company Description, Services Offered for Sale, Marketing Plan, Operational Plan, Staffing and Compensation, Sales Forecast, Startup Expenses, Revenue and Expense Forecast, Explanation of Expense Items, Funding Requirements and Appendix Items.
Having this comprehensive information provided the underwriter exactly what they needed to answer the three critical questions and approve the loan request:
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First, How much money is needed?
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Second, What will the money be used for?
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And Third, How will the money be paid back?
The plan was completed in time and the $180,000 loan closed. The business has launched!
Need a business plan to buy or build a franchise? Call us right now and we’ll get to work.
Laurel Oak Bistro
Restaurant Startup Business Plan
Two cousins dreamed of having their own restaurant for over a decade. Richard is a chef and Laura will take care of the front of the house.
After having searched for years for the perfect location, they finally found one.
We quickly put together the Revenue and expense forecasts. Combined those with the Plan Purpose and Audience, Mission and Vision Statements, Executive Summary, Company Description, Marketing Plan, Operational Plan, Staffing and Compensation, Startup Expenses, Funding Requirements and Appendix Items.
Their Custom Business Plan was submitted for the loan request, their loan was approved, and the restaurant is now open.
Their dream became their reality. We love working with entrepreneurs and helping the dream of business ownership come to life.
Call or text us right now and we’ll get started on your Business Plan.
Richland Investment Company
Business Purchase Business Plan for Manufacturer
I received a call from an entrepreneur.
Gerald said: Dwight I found a great business to buy. The sellers have already retired, and the company is not even operating right now. I can get a great deal on it, but I need to move quickly. Can you get a Business Plan written for me to include with the loan package?
I replied, of course. Email me the business listing information from the business broker and we’ll get started right away.
We gathered the historical financial information provided by the seller. Organized the product line and pricing into financial forecasts. Determined the Costs of Direct Materials, Direct Labor, and Factory Overhead. Determined the remainder of the selling and administrative expenses along with the net income.
We then bolstered the numbers with the narrative sections of the business plan including the Plan Purpose and Audience, Mission and Vision Statements, Executive Summary, Company Description, Marketing, Explanation of Revenue and Expense Items followed by the Appendix.
The Business Plan was instrumental in quickly obtaining funding and closing the deal. Manufacturing and sales are re-launched, and this multi-generational business is functioning once again.
