If your business will have employees and not just managers, you will need a Personnel Plan showing what types of employees you will have for example, cashiers, butchers, drivers, stockers and cooks , along with what they will cost in terms of salary and wages, health insurance , retirement-plan contributions , workers compensation insurance , unemployment insurance , and Social Security and Medicare taxes.
So how, exactly, do you plan to use any money that lenders or investors offer you? Potential lenders will want to know how and when you intend to repay the loan or line of credit, so you should put together a proposed repayment schedule and terms. Also describe what collateral is available to secure the loan, such as inventory, accounts receivable, real estate, vehicles or equipment. Be aware that lenders do not count the full value of your collateral, and each lender may count a different percentage.
Potential investors will want to know when their investment will pay off and how much of a return to expect. They will also want to see that you have an exit strategy to cash out on your investment — and theirs. Do you plan to sell the business outright to another individual or company? Hold an initial public offering and go public? What will your exit strategy be if the business is failing?
At what point have you determined that you will cut your losses and sell or close down, and how will you repay investors if this happens? Remember, no one has to lend you any money or invest in your company.
When they are considering doing so, they will be comparing the risk and return of working with you to the risk and return they could get from lending to or investing in other companies.
You have to convince them that your business is the most promising option. Do You Need One? Describing Your Business Business Plan: Analyzing Your Industry Business Plan: Marketing And Sales Business Plan: Your Financial Plan Business Plan: Presenting Your Plan Business Plan: Structuring Your Financial Plan Begin your financial plan with information on where your firm stands financially at the end of the most recent quarter what its financial situation has looked like historically.
Three Key Financial Statements Your financial plan should include three key financial statements: Lenders and investors want to know what kind of numbers your company is working with and whether your company is profitable or expects to be soon.
Within each category are numerous subcategories. For example, your assets will include cash, accounts receivable, inventory and equipment. Your liabilities will include accounts payable, wages and salaries, taxes, rent and utilities, and loan balances.
How much will these expenses be, and how often will you need to pay them? Will you have trade credit, and how long will you have to pay your suppliers? To learn more about what investors will be looking for, see Reading The Balance Sheet Use realistic projections.
Additional Financial Information In addition to financial statements, prospective lenders or investors will also want to see a Sales Forecast and, if your business will have employees, a Personnel Plan. Sales Forecast The Sales Forecast is a chart that breaks down how much your business expects to sell in various categories by month for the next year and by year for the following two to four years.
Personnel Plan If your business will have employees and not just managers, you will need a Personnel Plan showing what types of employees you will have for example, cashiers, butchers, drivers, stockers and cooks , along with what they will cost in terms of salary and wages, health insurance , retirement-plan contributions , workers compensation insurance , unemployment insurance , and Social Security and Medicare taxes.
Proposed Repayment Schedule or Exit Strategy Potential lenders will want to know how and when you intend to repay the loan or line of credit, so you should put together a proposed repayment schedule and terms. A balance sheet and cash flow statement will help you understand where you stand financially.
Taking these three steps will help you assess and plan your financial future. Taking these steps in your 20s can help you reach your goals and achieve financial success later in life. In addition to competency, a financial planner should have integrity, trust and a commitment to ethical behavior and high professional standards.
You want a planner who will put your needs and interests first. Also, many planners specialize in working with certain types of clients, such as small- business owners, executives or retirees. Many have minimum income and asset requirements. Some specialize in certain areas of planning such as retirement, divorce or asset management.
This is why we recommend that you interview at least three planners in person to find the right one to serve your needs. First, request a written disclosure document from the planner.
This should answer many of your questions. You may then want to follow up with a personal interview, which many planners will do for free. A face-to-face interview also should give you a personal sense about the planner. Does the person seem forthright in their answers? Do you have a sense of trust and rapport? Is the person focused on your needs, not selling products? At the heart of any working relationship with a financial planner is trust.
Trust is built on two factors: For example, what business relationships does the planner have? These might be relationships with companies whose products the planner sells, or referral fees the planner earns by referring you to certain professionals. Compensation is received solely from the sale of financial products you agree to purchase in order to implement financial planning recommendations.
A fee is charged for consultation, advice and financial plan preparation on an hourly, project or percentage basis. In addition, the planner may receive commissions from the sale of recommended products used to implement your plan.
Commissions from the sale of financial products are offset against fees charged for the planning process. Some planners work on a salary and bonus basis for financial services firms. In all of the above categories of compensation, you should request information on any real or potential conflicts of interest. In addition to commissions received from any financial product sales, you should ask whether there are outside incentives or bonuses to be gained by the planner for certain recommendations.
Its members are dedicated to supporting the financial planning process in order to help people achieve their goals and dreams. To locate a Certified Financial Planner professional in your area, log on to www. Calling all CFP professionals in Massachusetts! The event is free, and breakfast will be provided. Typically the valuation of assets is effective on the date of the divorce , not the date of separation. That is realistically when the marital partnership ended.
Why Hire a Financial Planner? How a Financial Planner can help you. Making Your Financial Dreams Come True Like most people, you have hopes and dreams and life goals for yourself and your family. Financial planning can help you.
If you have a killer idea for a startup, but lack the time, resources and budget to develop a business plan, a business plan-generating app can help you get your plan on paper and, ideally, off the ground.
This guide will explain why a business plan is a must-have, provide a shortcut to the business planning process, help you collect important background information, and get .
A business plan is more than a tool for getting funding. What you learn will help you do an even better job next time. When a prospect asks to understand your business, you can hand them a. Jan 20, · To write a business plan, start with an executive summary that lays out your grand vision for your business. Follow that with a section that describes what products and 95%(22).
Jun 03, · 3 Apps That Can Help You Craft an Ironclad Business Plan. Advertiser Disclosure. and that’s no good for you or addictivatarisoundsystem.tk You’d be no closer to getting a product you . Oct 23, · First, you want your business plan to be read (and no one is going to read a page or even page business plan). Second, your business plan should be a tool you use to run and grow your business, something you continue to use and refine over time/5().