Entrepreneurial Workshop I
The Planning Process
Assessing personal and
The importance of a
Understanding business plan
The Reality of Obtaining Financing
• What banks look for when
assessing a loan request
• How to complete a loan
What Banks Look For
What Banks Look For
Contribution (or capacity)
Character (industry / references)
1. Do you have children?
2. Do you have savings?
3. Is your spouse employed?
4. What do you do with your free time?
5. Are you accustomed to working long hours
6. Are you a morning or night person?
Business Assistance Areas
• Tax Knowledge
Business Assistance Areas (con’t.)
• Business Finances
• Presentation Skills
• Communication Skills
• Legal Aspects
• Banking Services
• Selecting a Business Name
• Business Identification Numbers
• Licenses and Permits
• Accounting System
Structural Forms of Business
• Sole Proprietorship
• S Corporation
• C Corporation
• LLC – Limited Liability Co
Useful Web Sites
Internal Revenue Service - MA Department of Revenue -
Inc.com - Where to start and Entreworld - A World of
grow your business. Resources for Entrepreneurs
Official Website of the State Official Website of the State
of MA - of RI -
All Business - MA Assoc. of Community
Champions of Small Business Development Corporations -
U.S. Small Business e Podunk -
Administration (SBA) - www.epodunk.com
Why Write a Business Plan?
• A plan gives you a path to follow
• Planning forces you to examine all
aspects of your business
• Planning is ESSENTIAL to raising
• Your plan is a management tool
• Your plan is a communications tool
Business Plan Format
• Neatness Counts!
• Use Simple Language
• Keep Your Points Concise
• Make Use of Tables and/or Graphs
Business Plan Format (con’t.)
Effective Formatting includes:
Business Plan Outline
B. Table of Contents / Cover Page
C. Business Description
D. Marketing Plan
E. Financial Plan
Statement of Purpose
This is the doorway to your plan.
Keep it short, but illustrate the main points.
State purpose/structure of your business
State purpose/amount of financing sought
State any key operational expectations
b) Status (e.g. start-up, existing)
c) Form (e.g. proprietorship, corporation)
d) Location/Hours of operation
e) Market description
f) Description of competition
Marketing vs. Sales
Generates Generates orders
interest receivable and/or
and leads. cash receipts.
Your Customer are the Market!
Describe Your Customers
Industry Trends and Characteristics
List and Description of Your Competition
Description of Your Niche and
• Product – good or service
• Pricing – mark-up and break-even analysis
• Promotion – advertising
• Place – channels of distribution
Management and Personnel
• How many employees needed?
• What kind of skills required?
• Experienced or trainable?
• Management/People skills?
• Balance Sheet
• Projected Income Statement –
• Sources and Uses of Funds
• Projected Cash Flow by Month –
Financial Plan (con’t.)
• Historical Financial Statements of Business –
• Personal Financial Statement
• IRS tax returns(personal & business) –
Reminders for Completing Loan
• The more the person reviewing
your request can know about you
AND your business, the better.
• Neatness and conciseness count
• Be honest.
Loan Application (con’t.)
• Emphasize your strengths and state
Let the loan officer know that YOU
recognize areas for improvement.
• If you have questions, CALL!
Don’t submit an incomplete
Services Offered by SEED
Business Support Center
Micro Loan/Mini Micro Loan
Revolving Loan Fund (RLF)
SBA 7A Packaging