Page 2 of 2 FirstFirst 12
Results 11 to 14 of 14

Thread: nail salon

  1. #11
    Web Consultant
    Array
    Join Date
    Aug 2008
    Location
    Las Vegas
    Posts
    9,856
    Blog Entries
    1

    Default

    Quote Originally Posted by BIZDEV View Post
    Well you just described a classic business plan. Call it BS if you want, but try walking into a bank to ask for a loan with anything other than a formal, traditional business plan. You won't get very far.
    When I say BS, I mean that they are numbers that you pretty much make up based on goals that you want to reach. Some business plans include details on how they plan to reach those goals, but it's still a crap shoot. The numbers aren't based on anything that is a definite.

  2. #12
    Registered User
    Array
    Join Date
    Jan 2009
    Location
    USA
    Posts
    38

    Default

    Quote Originally Posted by Harold Mansfield View Post
    When I say BS, I mean that they are numbers that you pretty much make up based on goals that you want to reach. Some business plans include details on how they plan to reach those goals, but it's still a crap shoot. The numbers aren't based on anything that is a definite.
    If a business plan's numbers weren't based on anything definite no bank would ever issue a loan. Of course the numbers are "definite". You should have definite numbers for rent cost, inventory cost, supplies cost, utilities costs, insurance costs, payroll costs, etc, etc, etc. The unknown definites are revenue. But you damn well better have a good estimate or you shouldn't be starting a business. The whole point of creating a formal business plan is to get all these numbers.
    Sylvia
    http://businessplanmentor.com/
    Free business plan tutorial and step by step how to start your own business.

  3. #13
    Web Consultant
    Array
    Join Date
    Aug 2008
    Location
    Las Vegas
    Posts
    9,856
    Blog Entries
    1

    Default

    Quote Originally Posted by BIZDEV View Post
    If a business plan's numbers weren't based on anything definite no bank would ever issue a loan. Of course the numbers are "definite". You should have definite numbers for rent cost, inventory cost, supplies cost, utilities costs, insurance costs, payroll costs, etc, etc, etc. The unknown definites are revenue. But you damn well better have a good estimate or you shouldn't be starting a business. The whole point of creating a formal business plan is to get all these numbers.
    OK, maybe I'm not being clear enough. Let me narrow it down to just projections. No matter what you put on paper, there is no formula or guarantee that you will make a dime and ever reach those numbers.

    They are goals. Not guarantees. And they are not revenue.

    Actual cash money coming in is revenue. What you put in paper is NOT revenue. It's projections. It's hope. You hope to meet those goals.
    You are basically saying to a bank or investor, "Here's what we're hoping to make". And if you're smart, you'll have a realistic plan on how you hope to make it.
    Last edited by Harold Mansfield; 08-20-2013 at 06:23 PM.

  4. #14
    Registered User
    Array
    Join Date
    Feb 2013
    Location
    Ontario, Canada
    Posts
    1,382

    Default

    Quote Originally Posted by BIZDEV View Post
    Well you just described a classic business plan. Call it BS if you want, but try walking into a bank to ask for a loan with anything other than a formal, traditional business plan. You won't get very far.
    I actually tried this when looking for a 5K credit card or a Visa working LoC for 20K, albeit with a formal business plan, and all I got were directions to the exit (I had no debt and a 750ish credit score). Even though they say the opposite, banks do not want to put "their money" at risk in a start up unless there are going to be guarantees from government or private equity firms.
    Brad Miedema
    Fulcrum Saw & Tool

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •