You Need A Business Plan : Here's Why

Tweet

Business plan requirements are a common need for many of our clients at 7 Park Avenue Financial. Whether its a start up business plan, or one for an established firm we prepare and deliver on many business plans to our clients. There are a variety of needs when it comes to business plans, but our focus is typically on obtaining financing for our clients.

 The ' business plan ' is really a financing proposal - that's how we look at it at 7 Park Avenue Financial and our ability to customize your plan is our ' secret sauce '

Many bankers and commercial lenders and financiers have referred their customers to 7 Park Avenue Financial for such a document. They know we will deliver a professional industry-driven final document that's realistic and what the bankers and lenders want/need to see. They realize that a free business plan is worth just that ! Clients want more than just a business summary .

The sad truth is that many business plan templates available online are very marketing, or even ' ego ' driven. Our executive summaries and cash flow and financial projections are focused on obtaining financing for the products and services of our clients.

What Makes A Great Business Plan?

We're often asked ' how to write a business plan ' . It involves a significant amount of business expertise. Whether its a market analysis, a strong executive summary, or financial projections our focus is on creating a plan that attracts debt or cash flow financing and funding. An appropriate level of research is required for a good business plan, allowing your business to differentiate itself from the competition.

Cost of A Business Plan

Plans prepared by our firm are very reasonably priced and are almost always well below the price of other business plan preparers. Our plans are delivered in a timely fashion, but we stress to our clients that some key input and information around the business is required.

Almost every lender, banks included agrees that entrepreneurs and owners need business plans with a clear goal and outline for their business model.  Our plans are geared toward getting a loan, outside financing, or in some cases equity investment.

 The plans will show you bankers, financiers, investors, and potential acquisitors how you make money and how they will be repaid or in some cases earn a return on their investment. While some firms focus on clever ' pitch decks' and Powerpoint presentations they rarely are a replacement for a good business plan .

It's all about ensuring you have a document that includes data on your industry and information and statistics that prove financing viability . 

What Are The Key Components Of A Business Plan?

What's Important When Your Want To Create A Business Plan?

The format of a typical plan includes some key financial statement information such as opening balance sheets, 3 years of cash flow and revenue projections, and information on the owners and the team. Our plans include your website and social media strategy if applicable. Those digital and social media items certainly were not part of traditional elements of plans of the past! 

Remember also that the lender works for someone and it is key that your final document communicates the proper criteria for determining business loan or financing approval. You should be prepared to understand that in some respects the plan will be ' attacked ' by the lender, so your ability to show ' upside potential ' and to generate enthusiasm on your company is key.

It might, (but shouldn't ) come as a surprise that your full plan is not read in totality by lenders. Some experts refer to the ' 5 minute read ', with careful emphasis placed on financial and management experience. That's advice worth knowing. The takeaway? It's not always about the font and the pictures!

Here's Why Banks and other Commercial Lenders Want a Plan and Why Writing a Business Plan Summary  is so Important

That ability to provide clarity and a vision to your business will help attract the financing you need. So the step-by-step process of knowing what resources will best lean in your favour is key. Your final plan should identify yourself and your team as doers, not dreamers!

The sign of a well crafted business plan is one in which you have conveyed that you have a strong understanding of your industry, the costs of entering that industry, and competitive issues that will have your firm stand out, with customers clearly wanting to buy your product or service.

What Are The Key Elements of a Effective Business plan template  - What Business Plan Tools Are Required ?

Here is a list of the key elements of a business plan that we utilize at 7 Park Avenue Financial :

Executive Summary

Financial models - sales, expense, and profit projections ( Upside potential/profitability)

Marketing Strategy

Pricing/Product / Profit Margins

Industry / Management overview

Operations

Competition Analysis

Target market / customer

It is important to remember that business plans are usually used for different circumstances, in some cases they might be focusing on a startup business, while in other cases it might be for a loan or additional financing for equipment or expansion. Note also that a great business plan can simply be used as an internal document highlighting to management and employees the mission statement and financial goals of the company. In that case it should be designated as company confidential, rights reserved, and it can grow with your business .

In summary, we do not mean or infer that a plan is in fact absolutely required required for a lender or financing but a business owner or entrepreneur with no plan is, outside of luck, may be guaranteed to fail.

Seek out and speak to a trusted, credible and experienced business plan consultant who can assist you with your needs.

7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !



7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



Business financing for Canadian firms, specializing in working capital, cash flow, asset based financing, Equipment Leasing, franchise finance and Cdn. Tax Credit Finance. Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations.

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations. He is an experienced

business financing consultant

.

Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.


Stan has over 40 years of

business and financing experience

. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in-depth, hands-on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.









Stan Prokop

7 Park Avenue Financial/Copyright/2020

You Need A Business Plan : Here's Why

Tweet





YOU NEED A NEW BUSINESS PLAN

DO YOU WANT TO ELIMINATE THE WORRY AND STRESS OF GETTING A PROPER BUSINESS PLAN COMPLETED ?

LET US DELIVER IN A PROMPT AND VERY COST EFFECTIVE MANNER A PLAN THAT INCLUDES ALL THE COMPONENTS OF A PLAN THAT YOU NEED

Information on business plans in Canada. Here's why banks and other commercial lenders want a plan

Many business owners or budding entrepreneurs are taken aback when their lender asks ( or insists ) on a business plan . Why do lenders need a business plan ?


Lenders view the business plan as having forced the business owner or entrepreneur to look carefully in a critical way into their business project . They feel that if the company needs to grow or be successful such a document will guide the business person to their goals .


Ultimately those the business plan is a concise document which in effect communicates the business persons ideas to the lender .


In theory the business plan should identify areas of weakness or strength . If truth were to be known of course business plans tend to accentuate the positive . The writer of this article has a favorite saying - ' I never met a pro forma financial I didn't like '!


More about that last comment later , but suffice to say that in theory a good business plan geared towards financing should balance both the positive and negative aspects of the business and its financials . A solid business plan geared towards a lender will show you have ways of solving some of the business challenges raised in the business model and it's proposed financing .

We all know that stat's - half of new businesses fail within the first two years, 90 % within the next ten years . Why is that the case . Business guru's tell us its lack of planning . That is precisely why a business plan geared towards lending and the financials should be used as a critical follow up in the business . It should not be stored away ! As we all have learned, ' tuition is extremely high in the school of experience ' !

Most importantly though people that don't know you, or might not know your business model use a properly created plan to evaluate your business and lend you funds . The ' business plan ' in effect is really a financing proposal . That's how we look at it in our firm .

Let us remember how a lender , who you in many cases don't know, thinks. First of all he or she is hoping the information you have provided is true . Remember also that the lender works for someone, and they must communicate your idea to an underwriter of investment committee . If you haven't met the lender, trust me you definitely have not met the underwriter or investment committee.

Some of us also might think that we are the only business plan the lender is reviewing . That is not the case, our plan might be among 10-20 others in an given lending environment . And finally, people have biases - they will benchmark your own projections against their past experiences . If your business plan and financials make them think of Microsoft and Rim they will dig into the plan , if visions of Nortel come to mind that won't be the case !


Therefore business owners should put forth their plan on the basis that it will be ' attacked' by the lender , so the business owner must counter with ' real ' upside potential . The lender must genuinely feel some sort of enthusiasm about the business .


The biggest secret of business plans , and yes , we are revealing it here, is that they generally are not always read in totality by the lender . The real world dictates they are given a 5 minute read, and more careful emphasis is generally only placed on the financials . The owner should never think that either quantity or finesse in fonts and graphs will gain the funding they require.


In summary, we do not infer that a plan is in fact not required for a lender or financing, in fact a business owner or entrepreneur with no plan is , outside of luck, guaranteed to fail .

WHY BUSINESS PLANS FROM 7 PARK AVENUE FINANCIAL ?

We prepare and consult on many business plans for our customers . There are a variety of needs when you require a Business plan - We only focus one one of those ! ---> Our plans are focused on obtaining financing , as many other plans are too sales, marketing, or , unfortunately , ego driven .

Business plans prepared by 7 Park Avenue are very reasonably priced . We have researched the market and our plans typically range well below the price of other firms . We deliver the plans in a timely fashion, usually in less than one week . Plans require some input and key information from the business owner(s) , that consulting is included in our fee.

Most business people agree that entrepreneurs and owners need business plans with a clear goal and outline for their business model . Our plans are geared toward financing and investment . Our plans will show your bankers , financiers, and investors how you will make money and how debt will be repaid .

A business plan prepared for you by 7 Park Avenue Financial includes data on your industry and info and statistics that prove financing viability . Other components of our plans are owner overview and background, opening balance sheets, 3 years income statements and cash flow ( 5 if required ) etc. Typically our final plans are between 30-40 pages and include appropriate charts, graphs , etc.

Many bankers and financiers have refer customers to 7 Park Avenue Financial for such a document . They know we will deliver a professional industry driven final document thats realistic and what the bankers and lenders want / need to see.

Call now for a free consultation and a plan that will be delivered promptly at an affordable rate . Whether you are a start up, or require a plan for a new project or financing - Call now - 416 319 5769 , or email your questions to :

info@7parkavenuefinancial.com


7 Park Avenue Financial :
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com


Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations .

' Canadian Business Financing With The Intelligent Use Of Experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop