Checklist for Starting a Bike shop Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Bike shop business. This will allow you to predict problems before they happeen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
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A Step by Step
Guide to Starting a Small Business
This is a
practical manual in a PDF format, that will walk you step by step through all the
essential phases of starting your Bike shop business. The book is packed with
guides, worksheets and checklists. These strategies are
absolutely crucial to your business' success yet are simple and
easy to Apply.
Copy the following link to your browser and save the file to your PC:
https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf
Sample Business
Plan - Risk/Opportunity
Business Risks
This is also a critically
important part of the plan. Knowing your risks and having a
strategy is a must for attracting an investor. There are several
kinds of risk, especially among entrepreneurial, growing
businesses. Be sure to address the following, and provide your
strategy for dealing with them;
Some of the major risks facing our
development include [limited operating history; limited
resources; market uncertainties; production uncertainties;
limited management experience, dependence on key management].
Moneyhunter's Mentors know a thing
or two about taking risks. See
http://www.moneyhunter.com/htm/mentor/mentors.htm.
Opportunities
This is also a critically
important part of the plan. Use it to provide excitement and
promise.
Although our business today has its
share of risk, we feel we can overcome these risks because of
[x]. We will address [market risk] by [doing a comprehensive
study, partnering with a larger company who knows the market].
We feel we can address [pricing risk, product risk, management
risk] by focusing on [x].
If we are able to overcome
these risks, our company has the opportunity to [dominate a
niche in the marketplace, become a major force in the industry].
We feel our brand could become know as the [place entrepreneurs
look for financing help, the place people look for good tasting,
low fat cheese]. We think we can achieve this goal in the next
[x] years.
Specifically, our lead product [x],
has the chance to [change the industry, affect many lives,
improve performance in the [x] field]. This would also enable us
to tap markets we have not yet begun to approach, such as
[international sales, ethnic market, genX].
Management Team
It םs
clichי but true:
investing is a people business. Tell us not only about your
managers, but how they work together as a team.
Our team has the following members to
achieve our plan. [x] men and women who have a combined [x]
years of experience; [y] years in marketing, [y] years in
product development, and [y] years in [other disciplines].
Frankly, if you have more than a
few people filling these positions, you're lucky. Tell us who
you have, how much they have aged, and how much of the company
they own.
Officers and Key Employees / Age /
Stock
[A], President
[B], Vice President of Marketing
[C], Vice President of Sales
[D], Vice President of Finance
[E], Vice President of R & D
[F], Vice President of Operations
[G], Controller
[H], Corporate Attorney
Ownership
The company has authorized [x] shares
of common stock, of which [100] are issued and outstanding. The
following persons or organizations are significant owners of the
company;
Name / # Shares Held / % Ownership
[A. B. Founder] / 52 / [52%]
[C. R. Inventor] / 22 / [22%]
Management Team / 10 / [10%]
[Seed Ventures] / 10 / [10%]
Professional Support
We have strung together a team of
professionals, including;
[Corporate Attorney]
[Accounting Firm]
[Other Consultants]
Board of [Advisors, Directors]
We have also secured the assistance
and support of the following business and industry experts to
help in the decision making, strategizing, and opportunity
pouncing process;
Highlight your board members,
detailing where and why they add strategic importance, what
experience they have and what contacts they can contribute.
Capital
Requirements
Needless to say, this is important
-- state what your capital requirements are.
Money Hunter can help you find
investors to back you. Go to Rolodex at
http://www.moneyhunter.com/cfm/grolodex2.htm
We seek [$] of additional [equity,
sub-debt, or senior financing] to fund our growth for the next
[two years, year, month]. At that time, we will need an
additional [$x] to reach a positive cash flow position.
The initial stage of funding will be
used to [complete development, purchase equipment, introduce and
market our new/next product line, fund working capital, acquire
a competitor]. Here is a breakdown of how the funds will be
spent;
complete development - [$x]
purchase equipment - [$x]
market our new/next product line -
[$x]
fund working capital - [$x]
We can provide and exit for this
[loan, investment] within [x] years by [a dividend of excess
profits, recapitalizations, sale of company, or public
offering].
Define how much time you will
require to pay back the loan or provide a return to investors.
And tell us how the repayment will be accomplished, and what
strategy will be used to achieve that exit.
Conclusion
Be bold, amigo(a). This is the
finale of the entire document.
Based on our projections, we feel an
[investment in, loan to] our Company is a sound business
investment. In order to proceed, we are requesting an
[investment, loan] of $[x] by [date].
Financial Plan
Needless to say, this is important
-- state what your capital requirements are.
Money Hunter can help you find
investors to back you. Go to Rolodex at
http://www.moneyhunter.com/cfm/grolodex2.htm
Assumptions
The attached projections assume the
following;
Income statements
We recommend that financial
statements be monthly for the first year or two, then quarterly
thereafter. Incorporate year to date figures if they exist.
Sales will increase with the
introduction of the [new line, improved line]. We plan to
introduce these products roughly on the following schedule:
[detail here]. And we expect to be able to sell at the rate of
[x] units per month within [x] months of introduction.
Cost of good sold will [decrease as a
percentage] as we are able to buy more efficiently in the
marketplace and use our new equipment to produce more units at
lower cost.
Gross profit will remain static as
[new introductions will be at higher margins, while we expect
margins of older lines to erode].
Selling and administration expense
will increase in absolute dollars, but decrease as a percentage
because while expense is increasing, [name largest items here,
or items that will change most significantly] our sales will be
growing faster.
Research and Development, which will
appear as a high percentage of sales early, will be reduced as a
percentage over time.
Our head count will increase after
funding to [x], which will include a [VP-Sales, paid on
commission; VP R&D, $[x], VP Finance, $[x]; VP Operations, $[x].
Keep in mind that projections do
not stand on their own. The rationale of how you prepared the
numbers- and how sober you were when you did them- is important
to investors. Expect to tie in the discussions you made about
market size, time to market, market acceptance, and competitive
pressures to tie into these numbers.
Discuss any large numbers or
numbers that change significantly from period to period. Include
discussion of sales growth rationale, expense growth, etc.
Balance Sheet Summary
Comment on any large or unusual
items, such as other current assets, other accounts payable, or
accrued liabilities.
Cash Flow and Break Even Analysis
These are critical statements,
even more so than the Balance Sheets and Income Statements.
Cash, and how much you have at the end of the day, is everything
to investors.
We have assumed that our suppliers
will be willing to grant us terms of [x] until we reach monthly
purchases of [x]. At that time, we have assumed that our terms
will be stretched to [x] days.
We have also assumed that we can
collect our billings within [x] days because of [special
programs with large customers, factoring arrangement, credit
card and COD sales].
We have assumed that the first part
of our [loan, investment] will be made in [month], and the
balance in [month].
We can reach break even by the [x]
month. Sales are expected to be at the [$x] level by that date.
Getting the Cash Required to Starting a New
Small Business. Now that You have computed your initial
financing requirements, where
are you going to get the money?
The first source is your personal savings. Then relatives,
friends, or other individuals may be
found who are willing
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 sufficient to guarantee
yourself ownership.
After you can show that you have
closely worked out your fiscal Requirements and can demonstrate
expertise and ethics, a lending
institution might be willing
to finance part of your operating needs. This may be done on a
short term basis of from 60 days to as
much as one year. Any
institution which has money to give is primarily concerned with
safety. The security might be a business
advantage, but when
you are just starting the best safety is usually your home or
some other personal asset.
The second thing that the
lender will want to see is some sort of Business plan. If you
complete a business plan - which includes
a cash flow
forecast - the lender will observe that you have completed some
serious and realistic thinking about your company and
be more
likely to consider your request.
Be familiar with your
banker. In selecting a banker consider Progressiveness, mindset
toward your company, credit services
provided, and also the
size and direction policies of the bank. Is the bank innovative?
The physical appearance of the lender may
provide you some
indication. When the employees are reasonably young, considering
your problems and active in civic affairs the
lender is very
likely to be innovative. The character of the bank's advertising
may also be a clue for its progressiveness.
To succeed
the banker should be interested in helping you to Become a
better manager, and build a lasting relationship which will
mean rewarding business for you and the lender over time.
Will the bank offer you the type of credit you need? By Way
of Example, If seasonal accumulations of stock become an issue
will
the bank make a loan against public or field warehouse
receipts? If your funding is tied up in accounts receivable
throughout your
heavy selling year, will the lender take
these receivables as collateral for a loan? Will the bank
consider a term loan?
Finally, know the dimensions and
management policies of the lender. 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? In the event that you or your
dealers sell on
installation conditions does the lender have facilities for
handling installment paper? How profoundly is the
lender
concerned with the rise and prosperity of the local community?
When you handle your banker, then sell yourself. Whether
or not you Need 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 to not betray a
confidence. If you
need financial assistance carefully
organize, in written form, complete information that will
present a thorough understanding of
your whole proposition.
Many business-people or prospective small business operators
destroy their chances of getting financial
aid by failing to
present their proposal correctly.
Trade creditor or
equipment manufacturer, Firms from which you Buy equipment or
product may also provide capital for you in the
form of
extended credit. Manufacturers of store fixtures, cash
registers, and industrial machines frequently have funding plans
under which you might purchase on an installation basis and pay
from future income. You don't need to cover the merchandise at
once. If products are for resale, then no safety aside from
repossession rights of the unsold merchandise is involved.
However,
too extended a use of charge can prove expensive.
Usually money discounts are offered when a bill is paid within
10, 30, or 60
days. For instance, a duration of sale offered
because"2-10; net 30 days" means that a cash discount of 2
percent will be awarded
if the invoice is paid within 10
days. If not paid in 10 days, the whole amount is due in 30
days. If you do not take advantage of
the cash discount,
you're paying 2% to use money for 20 days, or 36 percent each
year. That can be high interest. Avoid it.
One of the
main causes of failures among businesses is Inadequate
financing. Should you enter business, remember it is your
responsibility to provide, or obtain from other people,
sufficient money to supply a firm foundation for your
enterprise.
Sharing Ownership With Others. Now that you
have decided what Company to begin and about how much capital
will be required, you
may find it necessary to connect with a
couple of partners to establish the enterprise.
If you
lack specific technical or management skills that are of Major
importance to your chosen company a partner with these
abilities may prove a satisfactory way to pay the deficiency. If
you are very proficient in your particular area but lack
management training and abilities, you might search for a
partner with a background in management. If you might want more
startup
money, sharing the ownership of the company is one
way to obtain it. Fantastic care ought to be taken in deciding
upon a partner.
Personality and temperament, as well as
capability to render financial or technical assistance,
influence the achievement of a
pa333ship.
A
partnership may be a mixed blessing. A partner who places in
time Or cash has got a right to expect a share in conducting the
business.
In a partnership the liability for the debts
of the firm is Unlimited, as it is in one proprietorship.
Therefore, the owners are
Personally accountable for the
firm's debts, even in excess of the sum that they Have invested
in the organization. In a business
the accountability of the
owner is limited To the amount they pay for their shares of
stock. A partnership, such as a single
proprietorship, lacks
continuity. Thus, the Company terminates upon the Death of the
proprietor or a partner, or on the withdrawal
of a spouse.
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