Mission

No one understands a successful company's mission like entrepreneurs who have built successful companies themselves. See Money Hunter’s Mentors at http://www.moneyhunter.com/htm/mentor/mentors.htm.

Mission Statement

Our goal is to become [describe your ultimate goal, or insert your mission statement; example; the leading manufacturer and marketer of branded in-line skate replacement wheels or the first name in low fat cheese].

We aspire to carry a reputation in the marketplace for developing and delivering [time saving, better-way products sold at a fair price for uses in the {x} market]. We can achieve this by [cutting edge product development, close understanding of market trends and needs, innovative and profitable merchandising and packaging].

To accomplish our goal, [your company name] needs [capital, management talent, larger, more efficient facilities]. 

In pursuit of our goal, we resolve to treat stakeholders, customers, and the community with [description of  the reputation your company seeks]. These groups see our company as providing [describe benefits to each group of being associated with your company].

The Company

[The Company] was founded in [date] and [describe what your business does, such as baby products manufacturer, distributor of pencils, provider of medical services]. The legal name of the business is [x]. Include dba in the legal name.

It is a [legal form of your company, such as LLC, S-Corporation, C-Corporation, Partnership, Proprietorship]. Our principal offices are located at [list primary address as well as any other facilities]. We have approximately [x] square feet of office space and [x] square feet of [factory or warehouse]. Our current capacity is [x] units per month. If we exceed [x] units per month, we will need additional space. We expect this facility to be adequate for the company's needs for [two years, a year, a week] after funding.

Regulations and permits- cut now if inappropriate.

[Your Company Name] operates in the [toxic waste, weapons and armaments, genetic engineering, explosives] industry, or [uses controlled substances in the manufacturing process or delivery of service], and falls under the jurisdiction of the [name government agency].

[Your Company Name] has all necessary permits to operate, and has an up-to-date record of inspections. These permits include; [list briefly here]. These agencies regulate our business in the following manner; [we must document and account for uses and disposal of all toxic materials or we must document and background check all employees with access to the launch codes for our missiles].

Strategic Alliances

The leverage from relationships can be appealing to investors. Explain how you work with others to improve your performance.

[Your Company Name] has developed important and profitable strategic alliances with the following larger, more established business; [describe each company, it's position in the marketplace, the details of the alliance, and what risks are involved in the alliance]. For example, we have developed marketing agreements with [x], the [market leader in gummed erasers] which will enable us to sell, along side them, our [extra messy children's pencils].

The side by side positioning at retail, as well as the ability to share wholesale sales leads with their established customer base can help us penetrate the market more quickly.

The risk in the relationship is that they may [decide to sell pencils themselves] and cut us out of the process.

Another type of strategic relationship that benefits the company is our development joint venture with [x]. We would never be able to fund the research of the new [low fat Swiss cheese that melts smoothly], but with access to their prior research in [smooth melting cheddar] we cut our development time in half. By using some of their [equipment, or people] who we not being utilized fully, we were able to avoid the expense of [major capital expenditures, additions to the payroll]. We have agreed to pay a royalty of [x] to this development partner for their role in this products ultimate success.

We have a strategic relationship with a number of suppliers. In exchange for a blanket commitment to purchase [more than 80% of our supply of a specific raw material from them], they have agreed to [not make it available to the market at large for six months, or to give us a preferential price].

[Your Company Name] also has strategic Original Equipment Manufacturer relationships with a number of  customers. This allows us to sell a large and steady volume of [in-line skate wheels] to [boot manufacturers, who use them to sell complete skate sets]. This gets many units of our product out in to the marketplace, however, it provides little or no brand awareness for us.

The Business

[Your Company Name] is a [manufacturer, distributor, marketer, service provider] of [describe your product or service].

Our company is at the [seed, start-up, growth] stage of business, having just [developed our first product, hired our first salesman, booked our first national order].

Product or Service

Explain how your product works or how the service is used. What burning marketplace needs are addressed by your product? What value do you add to the product?

The Mentors also have a wealth of experience when it comes to positioning their products. See  http://www.moneyhunter.com/htm/mentor/mentors.htm.

[The company] produces the following products; [list products here, in order of highest sales or significance in product line]. Be sure to refer readers to product pictures, diagrams, patents, and other descriptive material.

Or, Alternatively

[The company] delivers the following services; [list services here briefly, in order of highest sales or significance in product line].

Be sure to refer readers to brochures and material describing your service.

Presently, our [product or service] is in the [introductory, growth, maturity] stage. We first developed our [product or service] in 19[xx] and have made [x] improvements and redesigns since then. Provide a history of product developments, introductions, and improvements leading up to the present day. Table form may be appropriate.

Unique features or proprietary aspects of Product

This is a crucial paragraph. Investors must see something unique, proprietary, or protected about your product or service.

Our products are unique because of [of secret ingredient, our patented process, our proprietary manufacturing process].

Others in the market are able to provide somewhat similar [products or services], but we are able to differentiate ourselves in the market because of [x].

We have [applied, been granted, licensed] a patent for [x], an abstract of which can be found in appendix [x]. We have integrated this into our process which others will not be able to duplicate. Our lead product, [x] addresses the following customer needs [x] and delivers [x] benefits to customers.

Tell us about the unique value-added characteristics your product line or process provides to customers and how these characteristics translate into a competitive advantage for your company.

Getting the Money Needed to Starting a New Small Business. Now that You have computed your initial financing requirements, where
will you get the money? The primary source is the personal savings. Then relatives, friends, or other people may be found who
would like to"enterprise" their savings in your company. Before obtaining too big a share of cash from outside sources, remember
you ought to have private control of enough to guarantee yourself ownership.

After you can show that you have closely exercised your financial Requirements and can demonstrate experience and ethics, a
lending institution might be willing to finance part of your operating requirements. This could possibly be done on a short-term
basis of from 60 days to up to one year. Any institution that has money to give is mainly concerned with security. The security
might be a business advantage, but when you're just starting the ideal security is usually your home or any other personal asset.

The next thing the lender will want to see is Some Kind of Business plan. If you complete a business strategy - which includes a
cash flow forecast - that the lender will observe you have done some serious and realistic thinking about your business and be
more likely to consider your request.

Become acquainted with your banker. In selecting a banker consider Progressiveness, mindset toward your business, credit services
offered, and the size and management policies of the lender. Is the bank progressive? The physical appearance of the lender may
give you some indication. When the workers are reasonably young, considering your issues and active in civic affairs the bank is
very likely to be innovative. The character of the bank's advertisements might also be a clue for its progressiveness.

To be effective the banker Ought to Be interested in Assisting You to Become a better manager, and build a continuing relationship
which will mean profitable business for you and the bank through the years.

Will the bank offer you the kind of credit you want? For example, If seasonal accumulations of inventory become an issue will the
bank create a loan against public or field warehouse receipts? If your funding is tied up in accounts receivable throughout your
heavy selling season, will the bank accept these receivables as security for a loan? Will the bank consider a term loan?

Finally, understand the size and direction policies of the bank. Will Your maximum requirements fall nicely within the
bank's"legal limit"? If you plan to do some export company, does it have a currency department? If you or your traders sell on
installation conditions does the bank have facilities for managing installment paper? How profoundly is the lender concerned with
the growth and prosperity of the local community?

When you handle your banker, sell yourself. Whether or not you Want a bank loan, make it a practice to visit your banker at least
once every year. Openly discuss your plans and difficulties. It is the bank's business not to betray a confidence. If you require
financial aid carefully prepare, in written form, complete information that will present a comprehensive understanding of your
entire proposal. Many business-people or potential business operators ruin their chances of getting financial help by failing to
present their proposition correctly.

Trade creditor or equipment manufacturer, Companies from which you Purchase equipment or merchandise may also provide capital to
you in the kind of extended credit. Manufacturers of store fixtures, cash registers, and industrial machinery frequently have
funding plans under which you may purchase in an installment basis and cover from future earnings. You need not pay for the goods
simultaneously. If products are for resale, then no security other than repossession rights of the unsold goods is involved. But
too long a use of credit may prove expensive. Usually cash discounts are quoted if a bill is paid within 10, 30, or 60 days. By
way of instance, a duration of sale offered because"2-10; net 30 days" means a cash discount of 2 percent will be awarded if the
bill is paid within 10 days. If not paid in 10 days, the whole amount is due in 30 days. If you don't take advantage of the cash
discount, you are paying 2% to use money for 20 days, or 36 percent each year. That is high interest. Prevent it.

Among the principal causes of failures among businesses is Inadequate funding. If you do enter business, remember it's your
obligation to provide, or obtain from others, sufficient money to provide a firm foundation for the enterprise.

Sharing Ownership With Other People. Now that you have decided what Business to start and about how much funds will be required,
you might find it necessary to join with a couple of partners to launch the enterprise.

If you lack specific management or technical skills that are of Major value to your preferred business a partner with these
abilities may prove a most satisfactory way to cover the deficiency. If you're very skilled in your particular area but lack
direction training and skills, you may search for a partner using a background in management. If you may need more startup money,
sharing the ownership of this business is one way to get it. Fantastic care ought to be taken in deciding upon a partner.
Personality and character, as well as ability to render technical or financial aid, affect the achievement of a pa333ship.

A partnership can be a mixed blessing. A spouse who puts in time Or money has got a right to expect a share in running the
business.

In a partnership the liability for the debts of the firm is Infinite, just as it's in one proprietorship. Therefore, the owners
are Personally responsible for the firm's debts, even in excess of the sum that they Have spent in the organization. In a
corporation the accountability of the owner is limited To the amount that they pay for their shares of stock. A partnership, such
as one proprietorship, lacks continuity. This means the business terminates upon the Death of the owner or a partner, or upon the
withdrawal of a spouse.