Financing needs of a Business Plan

The purpose of this part is essential to determine the amount of different funding requirements deemed necessary to ensure the successful completion of the project.
- Need to block funding
- Amount of funds sought
- Return on Investment

Financial documents (see below)
Financial documents in this section should show all the various assumptions and choices made in the development plan (market share, industry growth, costs, investments, sales, etc..), Without revealing to inconsistency.

Output modes investors
Are taken into account by investors as capital gains may be realized by the investor and the liquidity of the investment.

Schedules
Financial Summary

Shared vision and shared the business plan over several years (3 minimum), the synthesis is to transform the information collected and presented in numerical predictions articulated for each period:
- Income statement,
- Cash flow statement
- Balance Sheet

The income statement
Presented on 3 to 5 years it will be monthly or quarterly for the first year.

The cash flow statement
As for the results, it is monthly or quarterly for the first year, giving it a character of annual cash flow forecast and in subsequent years.

Stock
It follows from the operational forecasts (income) and changes in cash flows.
From a starting balance sheet, corresponding to the start of the project, it is proposed for the end of each period of one year of activity.
Thus, in summary, on the economic and financial process of building a business plan is presented as follows:

To form his company size and its financing needs, all entrepreneurs will take care to first identify clearly and precisely what it needs to pursue sustainable business, the resources to implement an outcome will be. Adjustments are being made by the following iterative search for the best balance. It will avoid the opposite approach would be to their needs according to size of capital available to it.

Finally and most importantly, the owner of an SME will never lose sight that beyond these elements 'mechanistic' specific business plan, its primary mission is to sell its business plan to its bankers, partners, teams and other partners. .. Perhaps the theme of another post!

Components of a business plan

Rapid synthesis of the development plan in a few dozen lines, the executive summary should present the key points of the project to enable donors (shareholders and banks) to prompt a general idea and make them want to know more.
This includes:
- Presentation of the offer
- Description of the contract
- Description of Team
- Financing

Presentation of the offer of products / services:
The fundamental purpose of this section is to reach out clearly the characteristics of products and / or services.
The highlighted are:
- The nature of the offer
- Advancement Project
- Key technologies, patents, trademarks
- Prices and rates charged or proposed

Market - Competitive Environment
The market is a delicate operation, especially in emerging markets.
- Market characteristics and actors involved
- Customers

Targets:
The development plan is a management tool that is needed to draw lessons from the past and allow some adjustment. As such, the plan should include objectives that steps the company will achieve.

Business strategies:
The purpose of this section is to outline the strategies adopted to achieve the objectives. The key elements of this offer are products, pricing, distribution and communication.

Management Team - Management - Human Resources:
It is present in this part of the project's key people in describing their role, their experiences and their complement  are  to reveal the correspondence between them and the project.

Legal Aspects:
The description of the legal structure and capital allocation, as well as policy changes in the capital, is needed to assess the degree of coherence of the legal structure chosen (with the possible obstacles or constraints) in relation to development considered the company.
- Form - Calendar
- Changes in share capital
- Industrial Protection.

The Business Plan Part. II

Starting a business is of three main stages, each having a dimension iterative

• The first step is, according to the objectives and motivations that have led to a project to refine its knowledge of the environment in which the company operates, with an approach also known as SWOT EMOFF (Environment / Strengths / Weaknesses / Threats / Opportunities) and requires gathering information about clients, competitors, suppliers, regulators, and the key skills and resources available to the company or must have.

• The second step is to refine the project in terms of Key Success Factors (CSF) and variables or fields of Strategic Actions (VAS).

• The third focuses on the means (technical, human and financial) necessary and action plans from which the Business Plan is the subject of a valuation, and financial economic quantification.

The document that materializes this research, this reflection, the choices that result, the main actions and associated resources is called Business Plan. It has 2 parts:

• The first part, called pitch, is devoted to the arguments needed to validate and sell his project. This part of nature "literary", must be rigorously prepared to highlight the economic consistency of the project.

• The second part corresponds to a financial overview of the measures and Covering the project's economic viability.

The business plan

Starting a business is not only starting a business alone,  it involves raising  funds, developing  an business activity, diversifying it, transmitting , merging, adjusting, developing, negotiating and  communicating your dream business. There are many reasons for embarking on the adventure of developing a business plan.

Creating a project is not only the record of business plan alone but it also includes a financial component and a pitch.

As for investment, in financial terms, it can be defined as "sacrifice resources in hopes to draw more in the future," which indicates three key concepts: duration, cost and risk. Aspects profitability and financial flexibility are at the heart of the case. They underlie substantive issues such as: How to appreciate and take into account the reversibility of a project? Is there a business model in the business plan?

The financial calculations do not remain a simple decision support, and that beyond the virtues and pitfalls, advice and methodology presented in the Business Plan has many facets. And above all the business is a script of a wonderful story and which should be directed by the creator himself. It is the expression of a chosen strategy to be shared more or less detail, among its shareholders, bankers, employees and other stakeholders of the company if necessary.

The medium-term loans

The duration of the medium-term loans is of 2 to 7 years for the financial investments, and they are granted either by a single bank or a bank in competition with a specialized. There must be an association between the period of funding and the life of the asset financed.  The financial borrowing duration should not be longer than the duration of its use as medium-term financing. If it is so it should be avoided in all cases. Hence it is applicable to investments such as average length of vehicles and technology, and more generally, to most goods and means of production of the business. The loan period must be taken into account to the financial possibilities of the business. That is, during this period, company must not only ensure the repayment of the loan, but also interest payments.

In all cases, financial backing by a medium-term loan does not cover the entire investment, it is logical that the business wants to equip them to make an effort for the flow of money. The percentage of the investment program financed by a medium-term credit is generally between 50% and 75% of total investment.

The granting of loan for a medium term from the merchant banker is subject to a broad study because the risk comes from the period and volume of the loan. The merchant banker must study the market impact of the introduction of this equipment and provide the financial situation of the business, given its new production and also because of its new charges. This require  to develop a further plan for the funding that will parallel the total expenses and resources of the borrower, and more over in order to identify future opportunities for the company to meet its debts and thereby ensure a good outcome of operation of credit