[...]... A stitch in time saves nine.” (proverb) A What Is a Business Plan? A business plan is a written statement that describes and analyzes your business and gives detailed projections about its future A business plan also covers the financial aspects of starting or expanding your business how much money you need and how you’ll pay it back Writing a business plan is a lot of work So why take the time to. .. a task Occasionally, a service business sells products as an ancillary function For example, a baby diaper cleaning service may also sell diapers and baby accessories Service business customers normally come from repeats and referrals It’s common to have to meet state licensing requirements Hairdressers, carpet cleaners, consultants, housecleaners, accountants, building contractors and architects are... inconvenience to reach my goals.” D Reality Check: Banker’s Analysis Banks and institutions that lend money have a lot of knowledge about the success rate of small businesses Bankers are often overly cautious in making loans to small businesses For that very reason it makes sense to study their approach, even though it may seem discouraging at first glance 1 Banker’s Ideal Bankers look for an ideal loan applicant,... some basic questions about who you are and what you are realistically qualified to do As a result, you should now have a better idea of whether you are willing to pay the price required to be successful as a small businessperson If you are still eager to have a business, you have said, “Yes, I am willing to make short-term sacrifices to achieve long-term benefits and to do whatever is necessary—no matter... 3 .How to make customers and employees think the business is special 4 .How to know what the customers want—today and, more important in the clothing business, to keep half -a- step ahead 5 .How to sell 6 .How to manage inventory 7 .How to judge people 3 Your Likes and Dislikes Take a few minutes and make a list of the things you really like doing and those you don’t enjoy Write this list without thinking about... For example, if you have profitably run a clothing store for an absentee owner for a year or two, a lender may believe you are ready to do it on your own All you need is a good location, a sound business plan and a little capital Then, watch out Neiman-Marcus! Further away from a lender’s ideal is the person who has sound experience managing one type of business, but proposes to start one in a different... a plan If your business passes all these steps with flying colors, it means it’s a good idea to write a full business plan; it doesn’t guarantee success On the other hand, if your proposal doesn’t pass, you’ll probably want to modify or change your plans altogether If you’re like most people, chances are your business will pass some tests easily and fail some of the others Antoinette faces just that... securities regulations after you complete your plan and before you take any money into your business from selling shares or partnership interests 4 Your Management Skill This book shows you how to write a very good business plan and loan application However, your ultimate success rests on your ability to implement your plans—on your management skills If you have any doubts about your management ability, check... is helpful to know how well they typically fare For instance, these businesses have higher than average failure rates: •computer stores •laundries and dry cleaners •florists •used car dealerships •gas stations •trucking firms •restaurants •infant clothing stores •bakeries •grocery and meat stores If your business idea is on this list, it doesn’t mean you should abandon it automatically However, it... investors require a written business plan before they will consider your proposal seriously Even some landlords require a sound business plan before they will lease you space Before making a commitment to you, they want to see that you have thought through critical issues facing you as a business owner and that you really understand your business They also want to make sure your business has a good chance . Berra Overview Here is a book designed to help you write a first-rate business plan and loan application. How to Write a Business Plan contains. book shows you how to design a business plan and loan package you will be proud to show to the loan officer at your bank, the Small Business Administration