save with the acquisition of a commercial loan from a cell phone company, it is essential that you have a well-structured business plan, help the way your cell phone shop, as the company works, as the carriers on the market, the expected results of your business and how you plan to pay his debts. The business plan prepared sample is necessary in o cheap nfl jerseys rder to start a loan or extend those SummaryIntroductionWhen businessExecutive acquire a commercial loan from a mobile phone shop, it is essential that your business plan, a clear and concise summary provides an overview of what they are trying to achieve, the amount of capital they have tried to improve the biography of the management company owner, and an overview of the expected benefits and losses of the company. Here is an example of how the title of the paragraph should be written: Handy-Shop, Inc. be (the Company ) for a business loan of $ 100,000 to start the business of a retail cell phone looking in San Francisco, California. The
Company was founded in (Insert Year). The business was founded by Mr. John Produ Doe.cts 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:
Cell Phone Store, Inc. will generate substantial revenues, via its retail location, from the retail sale of cell phones as well as from activation fees, sales of accessories, and other ancillary revenue streams from mobile phone services.The third section of the business plan will further document the products services offered by the business.Business Loan TermsNow 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 Cell Phone Store 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 Cell Phone Store 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 Cell Phone Store locations after the third year of operations.
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:
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:
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 Cell Phone Store to a third party for a significant earnings multiple. Cell Phone Stores 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 Cell Phone Store will specialize in making sales of cell phones to the general public. The Company anticipates that it will generate gross margins of approximately 40% on each cell phone sold. The business will also generate additional revenues from ongoing servicing of mobile phones as well as from initial activation fees when a customer signs up for a new cell phone plan. These service based revenues carry extremely high margins for the Cell Phone Store, Inc.
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, Cell Phones have become an extremely important part of an individual's life. In fact, many people now forego the use of a traditional land line and simply use a cell phone. As such, the business will be able to remain profitable not only from the sale of cell phones but also from the ongoing subscription and activation fees rendered to customers.
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