Helping You Obtain the Required Financing for Your Business
It is important to understand that business planning assumes that you already have a defined strategy in place for your overall business. This includes areas such as future goals, an understanding of your market, a defined corporate brand, a developed pricing model and actual pricing, ability to differentiate your products & services from your competition, and have go to market strategy. Without a business strategy or basic structure of your business it is difficult for anyone writing a plan to actually develop the detail required to convince a bank or investor to take the risk
We have been engaged in the past by business owners who were not able to answer basic questions about their business. These plans are about your business direction and financials, so we cannot develop a plan for you to obtain financing on our own. Since this has become the norm instead of the exception, we only offer business plans and feasibility studies through a work with you consulting delivery which includes a session with the owner to go through each area of their business. This will significantly improve your chances of developing a robust plan that will yield the results you are looking for in the end by way of financing.
We have an excellent reputation among lenders for writing feasibility studies and business plans and have not had a client turned down for financing that we have worked with on developing the required information. We have had several clients come to us after having paid and had a plan developed only to be turned down by the lender because they chose not to invest in having a plan developed by professionals.
All our financial models and generated proforma financials are developed by our partner that is a CPA, which will had credibility at a financial institution or lender.
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A feasibility study is used by businesses, lenders, and investors to determine if the project, business, or idea makes sense from an economic perspective. A break-even point will be determined to calculate how much revenue is required to meet your projected operating expenses. It also looks at your defined target and size as well as your top 3 competitors along with your organizational and operational requirements to generate a 5-year financial model which includes pro forma financial statements which can be provided to an investor or lender in a format they recognize and understand.
The assumption is that you have an understanding of your industry, market, and any demographics prior. If you require market research or market analysis on your target marketing - this is outside the scope of the engagement and is an additional fee.
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A business plan will document each area of your business, including your business goals, your forecasted financials, and the detail through each area of your business how you plan to achieve your goals. Your business plan documents your business strategy and tells how you plan to grow and develop your business.
If you are going to develop a business plan for yourself and not just for financing, you need to make sure that this is a working document that your update as your business strategy changes.
A business plan for a start-up will be different than one developed for an existing business A start-up business plan has to provide more backup and information than an existing business that has a financial track record. In most cases, this is where we find the business has not developed their strategy. There is a higher level of risk attached to any start-up business.
Your business plan documents and verifies how you meet your financial plan. If a lender cannot validate your numbers from the information in the plan, you will not receive the financing you require.
The goal of a financial model is to build "what if" scenarios based around your business such as your market size, forecast, pricing model, expenses, product and service types, seasonality, loan requirements, along with any additional pertinent variables. This data is then developed into a model for your specific business and is then used to calculate 5 years of forward-looking financial statements (balance sheet, income statement, and cash flow statement)
This model along with a feasibility study or business plan can be given to an investor or financial institution to help in obtaining working capital for your business. The financial model helps a bank or investor see first hand how the financials were calculated and provides the business owner with the ability to help determine financial changes in their business based on different decisions they may make.
A financial model is included in all of our business plan and feasibility study engagements, but can be purchased separately as well.
We have found many start-ups use them to determine whether they are going to be able to make money based on all the inputs before they invest time and money in their venture.