Helping You Obtain the Required Financing for Your Business
Developing Plans for Your Business
We develop financial models and feasibility studies for clients who are looking to ensure their idea is viable before investing themselves or going for external financing/investment. The business plans we develop are for financing/investment only. Developing a feasibility study or business plan for investment/financing is more than a feasibility study or business plan writing service, it requires an in-depth understanding of the client's business as well as what is required by investors, banks, and other lenders.
We are able to tell a client fairly quickly if they will be considered for financing/investment. As part of the engagement we will speak to your lender/investor on your behalf and answer any questions related to the plan and financials if needed.
What is Business Planning?
It is important to understand that business planning assumes that you already have a defined business strategy in place for your business. This includes:
Go Forward Goals
Understanding of Your Industry & Market
Defined Products with a developed pricing model and actual pricing
Go To Market Strategy
Marketing Plan to meet your forecasted sales
Understand the skills and employees required to hit your forecasted targets
Understand what Is Included in Operations for your business
Have a Basic Understanding of Your Revenues, Costs, Expenses, Assets, and Liabilities
Without a business strategy or basic structure of your business it is difficult for anyone to develop a plan and 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, as this is not our business, it is yours, and a lender or investor will expect you to be able to know and understand what is in the plan - as they are taking the risk on you. Unfortunately, with many start-ups, this has become the norm, so we are requiring clients to take a small survey prior. If basic questions about your business cannot be answered, then we will require business coaching which is a separate engagement before we take on developing your business plan or feasibility study.
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.
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.We provide a business plan guide and template that you can purchase in ouronline store.
What is a Feasibility Study ?
A feasibility study is conducted for businesses themselves, for lenders, and investors to determine if a business idea, project, or proposed business makes sense.. The purpose of a feasibility study for a proposed business, business idea, or project is about determining the viability of from an economic perspective. A break-even point will be determined to calculate how much revenue is required to meet your projected operating expenses.
A feasibility study looks at the following:
Define what your idea, project or business is
Your Industry, Addressable Market and Defined Target Market and Size
Your Background and Experience
We look at your top 3 competitors
We look at your Organizational and Operational Requirements to meet financials
We build a 5-Year Pro-Forma Financial Model which looks at your financial requirements, assumptions related to building the model: upfront costs, expenses, products/services, pricing, target market size, and seasonality to name a few. These will differ depending on your individual business..
The assumption is that you have an understanding of your industry, market, and any demographics prior and have done some base level of market research on your own. We do not perform detailed level of market research for the price offered. Market research is provided for an additional fee. We cannot fix price this as we will not know how much information is available on your market. There are industry studies available that can be purchased from market research firms, but cost in the thousands of dollars for most. As with business plans, we are not developing your idea, project, or business for you. We are developing the plan to help you determine if you can make a profit going forward.
Why a feasibility study is important is it allows you to determine if your idea, project or business has an opportunity of success before you invest your time and money in moving forward.
What is a Feasibility Study versus a Business Plan?
** Depending on the lender, you may only require a feasibility study instead of a full business plan. This is especially true in the case of start-up businesses. Provide both descriptions to your lender or investor in advance before you choose having a full business plan developed for financing.
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.
About Our Planning Services
We cannot make any guarantees as financing has to do with your industry, risk factors, and your credit rating in addition to the plan, but we can assure that the plan and your financials have the best chance of success.
As of 2019, we have not had a client turned down for financing where we developed the plan and 5 years of proforma financials.
We have also developed business plans for insolvent businesses to help provide a go forward plan to a lender or investor to stop foreclosure.
We have existing relationships with traditional lenders, investors, and third party lenders in case you need help finding a financing partner.
All of the financials and financial models for plans or studies are developed by our Partner who is a CPA. As part of the engagement, he will be happy to speak to your lender or investor on your behalf if required.
Our offices are located in Southwestern Ontario but we are able to provide most of our services across Canada as most services are performed remotely.
We will provide onsite services that require at least one day onsite in Sarnia, Chatham-Kent, London, Windsor, Woodstock, Leamington, Waterloo, Cambridge, Kitchener, Guelph, Milton, Oakville, Mississauga, Burlington, Hamilton, Toronto, Vaughan, Markham, Brampton, Richmond Hill, Newmarket, Whitby, Oshawa, Ajax, Pickering, Uxbridge, Pickering and surrounding locations in the GTA and Southwestern Ontario. For other businesses in Canada who want service onsite and are outside our onsite area, please contact us to discuss your requirements as outside our outlined area will require fees for travel & living. For businesses in the United States, our services are performed remotely in Canada utilizing Zoom for online meetings.
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