Financial Support Services, Inc.

Frequently Asked Questions

Q. Why do I need a Business Plan?

A Business Plan is often the entry-level requirement to getting government money, investor capital or bank loans. Although you may have a complete picture of the business in your head, investors and bankers need to see that you really have an understanding of the business financially and have thought it through.

Q. Do we really need a Business Plan if we are small company or sole-proprietors?

That depends on whether or not you need to raise any capital. If no capital is required a Business Plan will still help.

Q. I don't have a management team in place, what can I put in this section of my Business Plan?

The management team is critical to a solid business plan. If you don't yet have the funds to attract the talent you need, you can still find your staff with a future promise to come aboard when funding is complete. In this section, put your team as "acting CEO or acting general manager". You can also assemble a board of directors to add further credibility to your business.

Q. Should I use Business Plan Software?

Business-planning software can help you organize your thoughts and guide you through the process. The big cautionary note here is that many bankers and investors will spot a "canned" program which fails to provide all the data required and often lacks originality and creativity.

Q. Should I hire a Business plan consultant or writer?

A Business Plan writer can save you and your company a lot of time and energy in developing your Plan. A Business Plan must not only be technical, it must also be financial. Your company is built on paper before it actually becomes operational.

Q. How many pages is the typical Business Plan?

The length of a typical business plan can vary greatly from 25 pages to 100 pages. It really depends on the intended use of the plan and it's audience. A basic plan for an investor or lender will usually run 50 plus pages including the financials.

Q. Do the readers of my Business Plan need to sign a Non-Disclosure Agreement?

A non-disclosure agreement (NDA) can send up red flags to your intended audience. A seasoned banker or venture capitalist is bound by client confidentiality and may find a NDA insulting. Secondly, if the business needs to protect its ideas and concept at this stage of the game then there may not be reasonable barriers to entry for potential competitors to enter the market. A simple confidentiality clause at the front of the plan should suffice.

Q. What are the most common mistakes made when writing a Business Plan?

Ignoring The Competition: A business does not operate in a vacuum. There are direct and indirect competitors who will fight tooth and nail to retain their customer base and market share.

Incredible Financial Projections: Investors want to see a growing company. Growth patterns should be realistic and attainable. Financial data that is inconsistent with industry norms and overly aggressive can quickly have your plan shelved.

One Billion Consumers: Claiming your market size as huge and customers as everybody will quickly lose all the credibility of your plan and business.

Procrastination: Many business owners under estimate the time and effort required to build a successful business plan. Don't delay. If you need capital in six months, now is the time to put together a plan and raise the money.

 

Financial Support Services, Inc.
11195 NW Fifth Manor
Coral Springs, FL 33071
email: fssiap@bellsouth.net
telephone: (954) 755-3892