YOU ARE LOOKING FOR A BUSINESS PLAN – THAT WORKS –
AT A REASONABLE COST!
BUSINESS PLANNING EXPERTISE YOU CAN COUNT ON
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
DO YOU NEED A BUSINESS PLAN FOR FINANCING OR REFINANCING?
At 7 Park Avenue Financial we get that question a lot. While we can categorically say that certain types of business financing in fact require a solid business plan the Canadian business owner/manager can successfully achieve many types of financing without that document - Let us deliver on successful business planning that you need today!
YOUR BUSINESS PLAN IS A ROADMAP TO FUTURE SUCCESS
Larger more sophisticated financing which might require an equity component certainly almost always require such a plan. Venture capitalists and private equity lenders focus on the plan with significant analysis and emphasis required on growth and exit strategies which is why they are of course considering the investment in the first place. These documents tend to be very detailed oriented and in effect become the company’s road plan to financing.
A number of business financings can in fact be completed without a plan. They might include equipment financing, receivable financing, tax credit monetization, asset-based lines of credit, etc. These types of debt or monetization finance strategies are often simply completed with detailed application forms and accompanying business information such as financial statements, owner’s financials, a cash flow forecast, etc.
The team at 7 Park Avenue Financial has many years of expertise in writing plans in the areas of Canadian business financing, start-ups, acquisitions, and growth strategies. We know who your target audience is and what they need to know. The ability to defend your projects and ideas is key to business financial success. Our business plans meet and exceed the requirements of all commercial lenders, banks, government crown corporations, and private investors. Canadian banks and crown corporations have referred clients to us for many years, knowing we can deliver on client needs in a professional and cost-effective manner.
Our goal is simple - helping you be successful in getting the financing and solutions you require within a timeline that makes sense for your business goals. The ability to get a commercial lender/bank / investor/ buyer ' on side' is job 1 here at 7 Park Avenue Financial.
The real answer to the question ‘do we need a business plan ‘in fact is driven by the nature of financing you need and who is providing it.
In certain other financings, a plan is definitely required. Start-up ventures almost always have a business plan attached to the finance request. We originate a number of Government Small Business Loans for Canadian clients and they almost 100% of the time require a basic business plan.
WHAT IS A GOOD BUSINESS PLAN OUTLINE SUMMARY? HOW DO WE WRITE A BUSINESS PLAN AT 7 PARK AVENUE FINANCIAL
There are certain key elements of a plan that are almost always required and in fact help to guarantee favourable notice by the lender /investor. They typically include-
Executive Summary
Company Overview
Competition/Industry Analysis / Market Research
Product/Service Description/Pricing
Management Overview
Financial Forecasts
We see many plans that in our opinion are either provide so much info that it leads to confusion and questions by the lender/investor. Talk about a self-defeating strategy when the document you in fact intend to generate financing in fact only confuses the issue. So our advice is to stay clean and concise when it comes to both narrative and financials.
Naturally, the lender or investor can well invoke their right to request additional info or clarification, but why confuse things at the outset? Questions of issues raised by the lender or investor can well help you identify how your company is in fact being viewed.
WHO PREPARES THE BUSINESS PLAN?
Business plans are typically prepared by the borrower themselves, a third party, a Canadian business financing advisor, or your accountant. Depending on the type of plan and the relative size of your financing request each of these parties can bring a certain level of expertise to the table.
HOW MUCH DOES A PROFESSIONAL BUSINESS PLAN COST
We see the costs of professionally prepared business plans vary all over the map. The actual cost of the plan will often relate directly back to the type of firm or person that prepared it. At 7 Park Avenue Financial for example typically charges $1000.00-$3000.00 for a document that relates directly to the type of financing we are originating from the client.
We’ve met many clients that that have spent ten times more for a plan that, although properly prepared, simply was so much more than the client required. One ‘war story ‘we can share is of a medical clinic that approached us for financing. They had spent close to $ 5000.00 on a plan that was not yet delivered in completion and had found themselves doing most of the work. So we suppose our advice is that in the world of business plans it’s a case of NOT always getting what you paid for!
We can also add that your business plan preparer must in fact be sensitive to your timelines and more importantly you must impress upon them the nature of the financing or investment you are seeking and make sure your timeline is met.
WHAT ARE COMMON MISTAKES IN BUSINESS PLANS
We have already touched upon some of the key mistakes made in plans – To summarize they are:
- The plan must contain essential finance, company and industry criteria
- You should not overpay for a proper business plan
- The type of financing or investment you need should dictate the size and quality of the plan
- The first page of the plan should be clear and concise and catch the lender/investor interest
- Things that are obvious to the business owner might not be so in the eyes of the investor or lender – put yourself in their shoes
- Sales projections are not realistic
- A business plan is not necessarily for finance or investing – it’s a great tool for the business owner and manager to look back and scorecard themselves
DON'T ' OVER FOCUS ' ON SALES AND MARKETING - CASH FLOW PROJECTIONS ARE ALSO VERY IMPORTANT
We can also add that many plans seeking debt financing are too improperly focused on sales, marketing and the story. A lender is not going to participate in the upside of your business – they do want to see a proper finance and cash flow plan that shows one thing – how they will be repaid.
CONCLUSION
Looking for someone that is familiar with your industry - We'll make suggestions around your plan that will lead to more effective results . The goal - get your project ' funding ready '! We'll deliver on your timing needs , allowing you to move forward with lender discussions and financing success. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your business plan needs at a reasonable cost.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/2020/Rights Reserved
