I have an upholstery and drapery shop in the area for the last 18 years. With four or five employees at any given time. I had one for 15 years prior to moving back to the area. When arriving here I received a $20,000 small business loan which I got from a local bank based on my own credit and shop inventory. The loan is coming to an end and I'm looking for more money to expand the business. I wrote a business plan for starting the business. Now that it's been an existing business I need to write a different one. I want to know which is the best way to do it. I would like to include a purchase of a building to be able to set up numerous Sewing Mechine's to start teaching the trade and sewing skills possibly too veterans in the area. I already have the machines to use. I would like to know if anybody knows if government funding could be available for such a thing an the best way to write a Business plan to do it. Thanks for your time and any information would be helpful.
Answers
Thank you for your response. I tried the banks with no luck. I'm trying a go fund me page. I started a Facebook page, Upholstery Plus and placed pics of completed jobs I have done. I put a link in hopes something will pan out. All your responses were great but the banks are in for the money not for the little guy. Thanks again and take a look at the page and pass it on.
Your business plan should be for YOU. Yes, the bank would likely need to see it too. But it's a plan to help you get and stay on track. I'm partial to the functionality of the Lean Canvass approach. It's highly useful to you. Then you can tweak it to meet the lender's needs.
You might also look into Street Shares. They work with veteran businesses. Happy to discuss it further if you like. Reach me at tcp@thecompanyproject.com
Brian Richardson
Hi Sam:
You can apply for an SBA loan which is partially-guaranteed by the US government and funded through a bank. There should be several sources of SBA loans in your area. It sounds like you might need a working capital line of credit to help fund the business cycles of your business, and a separate term loan to expand your business.
The banker will want to see the last 3-5 years of actual financial results (balance sheet, income statement and cash statement) and will want to see projections for the next two or three years. I recommend including a narrative describing your planned capital equipment cash outlays and how these expenditures enhance the earning capability of your business.
If you have any additional questions please let me know. Good luck with your expansion!
Dear Sam:
The writing of your business plan is an important component in your being able to get new financing. Your plan must be specific in where you plan to take your business and what you expect to do regarding the training and employment of veterans. With many years of operation under your belt, you must have good financial records. Put together a spreadsheet of your last five years of gross receipts, all expenses of operations and your bottom line. If you are an LLC, you are a disregarded entity for tax purposes and the Schedule C of your business will be, or should be an attachment to your personal 1040.
Make the year performance spreadsheet part of your business plan as a financial pro-forma and be prepared to back it up with your tax returns.
Also, you should include three years of projected financials to illustrate the effect the financing will have on your expectations from expansion.
Depending on your personal credit score and your personal financial statement, you may be a good candidate for an SBA loan. You should speak with your banker about this once the business plan and projections are completed.
Feel free to reach out to me at Mlmillman15@gmail.com
Good luck!
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