business plan: pet salon and day care in santa barbara county

Financials:    illustrates  the  financial  needs  and  projections.    It  will  describe  the  type  of  financing   desired  as  we  as  the  amount,  payback  terms,  and  potential  return  on  investments.     Questions  to  Answer—    

1.   What  are  the  financial  projections  for  this  venture  for  the  first  3-­‐5  years?       2.   How  do  these  projections  compare  with  industry  norms?  (Are  the  costs,  revenues,  

profits,  etc.  higher  or  lower  than  for  similar  businesses?)   3.   What  assumptions  are  your  projections  based  on?    Give  best-­‐case  and  worst-­‐case  

scenarios.   4.   What  are  the  venture’s  start-­‐up  and  research/development  costs?  (Provide  itemized  

list)   5.   What  are  the  costs  to  produce  the  product  and  get  it  into  the  market?   6.   What  are  the  venture’s  most  significant  costs?   7.   Do  you  have  a  cost  and  cash  flow  control  system  in  place  (your  procedure  for  

monitoring  and  authorizing  expenses)?   8.   What  are  the  margins  (difference  between  the  cost  to  produce  your  product  and  

expected  sales  projections)?   9.   Have  you  analyzed  your  capitalization  decisions  (lease  purchase,  tax  consequences,  cash  

flow  expenses)?    What  are  they?   10.  Have  you  analyzed  cost  alternatives  (subcontracting,  shared  services,  in-­‐house  vs.  out-­‐

of-­‐house  expenses)?   11.  Have  you  forecasted  the  amount  of  product  you  will  have  to  inventory?   12.  How  much  money  will  you  need?    How  will  it  be  used?    How  much  for  investment  

capital  (property,  equipment,  etc.)?    How  much  for  working  capital  (operating,   inventory,  etc.)?  

13.  What  will  be  the  effect  on  the  business  of  an  injection  of  new  funds?   14.  What  access  to  funding  sources  do  you  have  that  you  may  qualify  for?    State  bonds?    

Government  land  grants?    SBA  (Small  Business  Administration)  programs?    SBIR  (Small   Business  Innovation  Research)  programs.  

15.  What  is  the  potential  return  for  investors?       Common  Mistakes    

1.   Making  unrealistic  sales  and  profits  projections.   2.   Failing  to  make  reasonable  assumptions.   3.   Planning  to  spend  too  much  money  on  “fringes”   4.   Failing  to  project  the  downside  if  sales  don’t  go  as  expected.   5.   Proposing  a  return  lower  than  industry  norms