Help...I need a 'simple' business plan (credit report, fees, loans)

[Luvbeinawmn]

Does anyone know if there is a 'simple' business plan online? I am a massage therapist/herbalist/esthetician. I am opening a small business soon, and would like to apply for loans and grants. I need a business plan, and have no idea what I'm doing. I've looked at several plans online, but they seem so involved. I have a definite plan. I know my competition, I know approx. how much income I'll generate etc, but I have no idea how to put that into a business plan that will convince someone, I want to ask for a loan, that I merit a loan, or grant. Isn't there a business plan, that does it all, and is straight forward? Please, understand I don't mind the effort of writing a complete and accurate plan. I just would like a simple way to do so.
Katie

[Humanoid]

I know approx. how much income I'll generate etc

How do you know this? Remember that everyone that tries to get a small business loan thinks they'll make $X amount of dollars and will be successful, yet most fail. You should write a business plan whether you want to take out loans or not, its essential to your success. When Banks read your business plan they will try to see if your plan is just filled with hot-air in which case the risk of giving you money is too high. Also, the act of writing a good business plan is a way for banks to screen-off people they don't want to give money to, if you can't figure out or spend the time writing a good business plan why do they want to loan you money? Anyhow, you need to convince people that your "I knows" are justified.


Anyhow, here is a list of many examples of business plans (go to the small business administration for more info):

SBA and Palo Alto Software

[Luvbeinawmn]

I'm working presently in a salon, and I have an established clientele. This is how I know how much income I'll generate. And, as I've stated, I do not mind the effort of writing a business plan, I would just like one that is straight forward, and simple. Thank you, for the information.

Katie

[jhlcomp]

humanoid gave you great info. As a business owner, I would also like to suggest you go to the SBA site. They have chapters at local universities where they will meet with you to review your requirements, make suggestions and basically guide you in the right step.

I know from personal experience that writing a solid business plan is no walk in the park. Good luck to you!

[Sgoldie]

It's not all that difficult especially since you have a background already.

Here's what you have to show them-

1) A biography showing your education/training, copy of licensing, and experience. You may also want to include some recommendations from present customers. They'll pull up a credit report too. Include your business type formation (dba, llc, whatever).

2) A writeup showing info about your location. Is it condusive for your type of business, have plenty of traffic, parking, zoning compliant, etc. Info about who your clientele is and why they would want your service, and how much they will pay for it (avg, hi, low), and how often.

3) How much loan you will need and for what. If it's for equipment, state items and where you will get them and at what price. Also show how much of your own money you're putting in and where it came from. They will expect to see operating funds either theirs or yours for a certain period of time so you're not cash strapped. A min of 6 months worth I would think.

4) You need a 'pro-forma'. What this is is a month to month accounting sheet showing all your expenses and income. Put figures in as nearly as you can and don't forget seasonal differences, up or down, as well as one time expenses such as insurance, deposits. Better to call around for them than guess. Be on the conservative side with projected income so you don't get into trouble yourself. Don't overlook obvious expenses as they won't. Add a misc category for expenses each month.

4a) You want to include in the above figures how you're going to pay back the loan you're requesting. Find out the monthly costs based on the interest rate they will give you and show it in the above figures. This is what they're really interested in. They want to see that you're not sloppy about things, have investigated the idea well, and are realistic. -Go to Staples and have the whole kit'n kaboodle bound for a buck or two before presenting it.

If you're having trouble it might be a good idea to make an appt with an accountant who can also give you a schedule of what state and federal fees are due when so you don't get killed with fines. This is a good idea anyway.

[Luvbeinawmn]

Yes,jhlcomp, the info that Humanoid gave me was excellent! I found a "day spa" example plan, and it was very close to what I was hoping for. The site is full of information! Thank you also, Sgoldie. I'm determined to write a good business plan. I've also signed up for a seminar for first time business owners. I want all the info, and help, I can get. I know that there are advisors that will help with the needed steps also. Thank you all. once more. Keep the information coming, if you have more to add. I can certainly use it.
Katie