A Financial Plan for Your Small Business - Research Paper Example

A Financial Plan for Your Small Business A practical financial plan for the new business will take the following outline which will highlight the details of each and very financial information needed or used by the company (Hirst, 2013). Historical Expected tax returns Balance sheet and income statements only if applicable, in the business. Sources and uses of funds an example is whether the intent of the sources or uses are for financing/ start-up or expansion Plan must include estimates for purchases made by the company like equipments A list of inventory or supplies must be included in the plan. Financial projections for the business is also included in the business Goals of sales for the business are also stated in the financial plan Break-even analysis since it is a new business Yearly and monthly projections of cash for the business Projection of the balance sheet or income statement if applied by the business Develop a Guerrilla Marketing Strategy for Your Small Business The business will incorporate Guerrilla marketing strategy as it more cost effective compared to other sources of advertisement methods or channels. In addition, the strategy will allow the business to network with the clients, hence coming up with new ideas and strategies on ways of expanding and increasing sales. The business will apply the use of Graffiti on the walls of their premises to attract audiences to the custom meals being offered in the restaurant or business. However, the business will incorporate reverse Graffiti which will be used to pass an all marking message by the use of a stencil. This will capture audience attention because instead of them looking at the dust on the walls or floors, their attention will be captured at the areas where dirt is removed. In addition,the use of graffiti will be cost effective for the business as designing them are slightly cheaper compared to other advertising sources. Secondly, the business will also incorporate the use of stickers as a marketing strategy to attract the attention of audiences to visit the restaurant and order for a taste of their custom meal. The stickers will be positioned in open areas like walls, poles and billboards to easily attract the attention of prospective customers. The stickers will be used for various purposes by the business with an intent of attracting the audiences and they will include marketing the brand image for the store. Secondly, the stickers will be used to avail information like place, location and products being offered by the business. Lastly, stickers will be used to increase sales in a business as they will create an interest among the audiences, hence eliciting a response from their side which may result in the purchase of the products being offered by the business. Lastly, the business may incorporate publicity stunts by sponsoring said or known artist with different talents to perform major stunts which have the ability of attracting customers attention with a view of making them visit the restaurant. An example is that the business will look for famous individuals look alike of dynamo the greatest magician to perform an eye-catching stunt like swallowing fire or eating metal at the entrance of the business. While doing this he or she after completing the task my advice the audiences to visit the location more if they wish to see other stances he did not perform that particular day. The results are that audiences who form the base for prospective customers will always flock to the store with an intent of witnessing other stunts that might be performed and in the process will be forced to purchase products availed there. Appropriate Location for a Second Store. Explain Your Reasoning In selecting a suitable location for my second store, I will take the following factors into consideration. I will investigate to determine whether the location will really matter to the success of the store. Secondly, I will conduct research to determine the best location for starting up the store as they really affects the sales made by the store on a daily basis. Thirdly, I will look at the financial status I am in opening the second store and check at such factors like my capability of affording the rent. Lastly, I will assess the suitability of my second store to the intended location of starting up the business and weigh the various pros and cons associated with working in the location (Hirst, 2013). The most appropriate location for the second store will be at a shopping because of the convenience and ease of access to the customers. In most shopping malls, there are always a number of activities going on in various shops or corners. Customers who visit the mall for various reasons find it affordable as they save on their cost of traveling since everything they need is always at their disposal. In addition, the mall is also a social place where individuals interact with each other for various purposes like trade or on a personal basis. Therefore, this creates an avenue for the second store as most customers while going around with their daily duties, stands a chance of making an order of a custom made meal while continuing with their task and only coming after a few minutes to have a taste of the delicacies already prepared. The custom meals for the second store which will be offered in the store will entail burger, pizza, salad among other rich cheeses and creamy vegetables crisp. Secondly, the store will take the advantage of the common belief that “shopping malls are a drain on resources”. In one way or the other, the store will find a way of either selling a product to the many customers visiting the mall as it will be offering an assortment of products and services which will not be found on other stores located at the shopping mall (Ries, 2011). Outline a Plan for Securing Sources of Debt Financing For Your Second Store I will use the following plan in securing sources of debt financing for my second store business. Venture capital I will not use it as a source of funding but will apply it exceptionally for my second store startup business. This I will obtain through such forms like the western association of venture capitalist and other avenues which will provide the names and addresses of individuals who will act as a venture capitalist. Moreover, when using venture fundings I will not be pressured to repay as it is not a loan scheme and also i will be able to easily identify fake venture capitals from real ones and to easily locate the firms offering such like to new and growing businesses. Secondly, I will secure sources of debt financing from commercial lenders as I will not be able to receive the same from banks who will not show efforts in supporting my second store as it will be a start-up business. In addition, I might be able to sub-let some of business premises provided that I enter into abiding agreement with the lender. Unlike banks, which may involve you giving up your business ownership, commercial lenders will allow me to retain my new business despite the difficult financial times the business might pass through at the beginning(Ries, 2011). Thirdly, I will also secure sources from small business administrations which is formed for the sole purpose of lending capital to start-up businesses. This will be available through local banks and I will pay a visit to my local bank and show them the proof that I have on third of the total capital they need. In addition, most small business administration usually has numerous services which all cash in profits and revenues hence are in a better position to render financial assistance, especially to a trusted source who wishes to put the money back into business. This will be an advantage as I will use the connections i made while operating my first business to convince small business administration with my new business. Fourthly, I will secure sources from other lenders like neighboring or familiar established small businesses in my area. This will be based on agreements drawn between myself and the owner’s of the businesses clearly stating how and the manner through which the money will be returned. Lastly, I will secure sources from friends and family funding. I will sit them down and explain to them the value of risk faced by new business, but convince them of the rewards when the business turns out to be a success before requesting for their financial assistance depending on the financial status and my financial needs for starting up the new business (Ries, 2011). References Hirst, E. (2013). Step-up, start-up & stay-up in business: A guide to the financial & legal aspects of becoming self-employed or starting a business. Bloomington, IN: AuthorHouse. Ries, E. (2011). The lean startup: How today's entrepreneurs use continuous innovation to create radically successful businesses. New York: Crown Business. Read More