on a plan that i need to get a loan to start my business, all the resources say that I should provide a key management section where I provide a brief description of the management teams capability to start, run, and manage a business in my industry. How am I supposed to do that when business isnt even started yet and I dont have payroll or anything.
2007-01-25 07:53:03 · 4 answers · asked by Anonymous in Business & Finance ➔ Corporations
Right now, the management team is you! You should provide information on your background, what you did prior to this, your years of experience, key successes that you had, etc. This let's your financiers get a feel for how well you're likely to run your new business and thus for the risk on their investment.
If you have partners, you should include them as well. If you have any outside advisors it's good to note that too. The lender really wants to get a feel for who's going to be running the show and how smart and talented they are in the field.
In addition, it really helps to show that you're putting up a significant part of your own money. It demonstrates that if you're willing to take the risk, you believe it will succeed.
Good luck!
2007-01-25 08:01:06 · answer #1 · answered by rkuder25 2 · 0⤊ 0⤋
Remember that you are writing a plan. What analysts are looking for are a description of the key people you will have on day one. That would be YOU. Talk about what you bring to the business. Then talk about the other key positions you will be looking for and the type of person, their skill sets and what you foresee as their areas of responsibility will be. If you already know people you will be hiring, talk about them. If you have an accountant and a lawyer already, talk about them. If you have a financial adviser helping you or somebody who has run a successful business helping you, talk about them.
The more supporting resources you can show, the more favorably the analysts will look on you business plan.
Example:
I don't the the type of business you plan to open but let's say it's a bakery.
You would tell them what you would be doing. Choosing the recipes, most of the baking, daily accounting, etc. And say why you can do that. Then talk about any other people you plan on hiring (if you know who they are). Then mention any other position you will need to fill and the qualifications those people will need.
Remember, the analysts are looking to see if you have thought out this business and know what you are going to need to do on day one, one year from now and 3-5 years from now.
2007-01-25 16:09:39 · answer #2 · answered by Ooh, Ooh pick me 5 · 0⤊ 0⤋
They are asking to show your company projection over the course of a year. They want to see how your company is expected to do.
Start with how much you think your company will gross then subract all your business expenses and what you would expect to pay if you had emplyees if you need them.
You have to decide what kind of company you want to be, are you going to be a corpation, s-corp or c-corp, limited liability.
My advice would be to go see a business accountant and learn about the different business options out there and if it is a good accountant you should be able to take some classes that will show you how to do cost anylasis and they should also help you with this question.
It sounds to me like you have a plan but nothing else, you need to do a little bit more research first.
Some more information may help me answer you question a little bit better.
2007-01-25 16:08:17 · answer #3 · answered by kubietime 3 · 0⤊ 0⤋
state your plan for the long term, like money youll make in 1 year and dont ask for too much. try getting a few sales of your product first to prove that its profitable to the loan company
2007-01-25 15:58:02 · answer #4 · answered by emo_ghandi 1 · 0⤊ 0⤋