Business Planning for Small Businesses
Small, medium and large enterprises can always benefit by implementing and following a business plan with well balanced budget, realistic expectations, and proper issue resolution procedures.
Our experts wrote 100’s business plans with strategic planning, budgeting, properly calculated opening balance sheets, revenue and income projections and well modeled projected balance sheets.
Most small business loans applications required by all of the institutions require several basic documents that have to pass through strict guidelines implemented by the bank and also in many cases by the government of Canada.
Among major parts of the applications are:
- Business Plan.
- 2 year projected income statement monthly.
- 2 year projected balance sheet monthly.
- Opening Day Balance sheet.
- Use of proceeds.
Business plan has to incorporate strategic plan that is realistic and supported by the real life examples and performances of the actual real life businesses. This tedious work might take months without good data base of information and experienced writer. Also many strategic decisions of the plan has to fit in into banks understanding of different businesses in different segments and we strongly suggest clients looking for business financing to use experienced professional advisors so this document is done right from the beginning.
2 year income statement and balance sheet often has to be prepared on month to month basis using accurate and realistic assumptions supported by real life examples. Only individuals with strong and sufficient financial background can prepare these documents within the standards expected by the institutional lenders. Also real life data could be very difficult to find, so using services of a professional is definitely suggested.
Opening Day Balance sheet has to be prepared with the view of break even analysis so analysts reading this document will see that company has enough cash to sustain its operations until break-even is achieved and cash flow derived from the business can support its operations. We are experts and would love to help our clients with this matter as well.
Many small business loans have very specific acceptable uses of proceeds and many, especially start up needs could not be financed through the proceeds from loans. In order to maximize possible loan amount it’s wise to work on the budget together with one of our consultants so we can structure the finance in the way where money that can be sourced through the loan will be utilized the most – financing tasks and needs acceptable by the banks.