This weeks discussion is a written summary of the key financials investors would like to know before deciding to look at your business plan in more detail.
Do not copy tables from the Excel document in the discussion response.
Start your response with a brief description of your business (company name, what you do, and what you sell). This description should not be longer than 3 sentences.
Discuss the following and use bold headings to organize your response. You can find the numbers you need in your Excel document your completed last week (Business Plan Financials). Check the table provided in the discussion for the exact worksheet of where the information can be located. Be sure to include a brief description of your business.
- Specify your how many product lines or service options you offer for sales, then specify what these are.
- Specify the total projected sales per year for years one and two (from the sales projections worksheet). You can mention your goal to reach sales of over 1 million by the end of the second year.
- The projected sales will help the investors understand your sources of revenue (product lines or service options) and your projected sales.
- Clarify how many employees you currently have and how many you plan to have in the future.
- Specify how many people you have in your management team and their roles. Mention the key skills and experience for each person on your management team (one sentence per person focusing on the most important information). This will help your investors understand you have a competent and experienced team to grow the business.
3.Funds to Date and Funds you plan to raise
- Provide a list of the funds you already have (loans, money in the bank, etc.)
- Provide a list of the funds you are planning to raise from the investors and the equity you plan to give in exchange for these funds. Remember, we are writing the business plan for this purpose.
4.Use of Funds
- Provide a list of expenses you plan to make (major expenses) with the funds you plan to raise from the investors. Include the cost for each major expense. They would want to know what you plan to do with the money.
- The break-even number will clarify how much you need to sell just to cover your expenses.
- Provide just the average monthly break-even number for years 1 and 2.
- Specify the projected yearly profits for the first and second year from the income statement.
- The projected profits will indicate when the company will become profitable and how much these profits are expected to be.