how do you do a proposed business plan for the purchasing of a already well established business?

Answer 1

A business plan and purchasing a business are two very distinct issues and are totally seperate. There are a number of books and online resources in developing a business plan, the key factor will be assumptions you will make for your business plan (you could use actual results trended to the future with a bias for losing or a drop in sale for a change in control, this will always happen even with the best businesses, at least intially). You could hire a firm to help you as well but this will cost you some $$$.

As with purchasing the business, make sure you have representation, a accountant who is very knowledable in these transactions and the type of business your buying and more then likely legal advice.

Answer 2

Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:

* Writing a Convincing Business Plan by Arthur R. DeThomas Ph.D., Lin Grensing-Pophal
* The Definitive Business Plan: The Fast Track to Intelligent Business Planning for Executives and Entrepreneurs (2nd Edition) by Richard Stutely
* The Complete Book of Business Plans: Simple Steps to Writing a Powerful Business Plan (Small Business Sourcebooks) by Joseph A. Covello
* The One Page Business Plan with CD-ROM by James T., Jr. Horan

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 3

You provide an analysis of the existing business with forward-looking revenue projections, then outline how you will grow or change the business to make it more profitable than it is.

Here's the catch---you're going to have to be in the due diligence phase of the purchase before the information you need is disclosed to you. You'll want a professional valuation of the business to present to your lender along with your forward business plan.