Precision Auto Detailing business plan and implementation

Email to Kyle and Chad: Preparing a Business Plan

Hello Kyle and Chad:

It was nice to see you at the birthday party this weekend. I enjoyed hearing about how Precision Auto Detailing is doing for you two. As promised, this email is regarding your questions about business plans so that you may have the best opportunity to get a loan for your truck bed liner machine.

A business plan includes a formal statement of Precision Auto Detailing goals, why the company is capable of those goals, and how the company intends to reach the goals. A business plan can ultimately determine the success or the failure of a company (SBA.com, 2011). Stating company goals benefits the company by setting goals for it to reach, while providing lenders and investors the opportunity to evaluate their involvement options in the business. When desiring to reach a significant, difficult goal, it is not uncommon or unnecessary for a business to set goals for more than one year (Small Business Administration, n.d.).

As a builder would not rush into the construction of a building without blueprints, business owners must not rush into new goal setting without a sturdy business plan. (SBA.com, 2011). When you two decide to build your business plan, be sure to include a detailed report that demonstrates the company's objectivity, ways in which management will be effective, and communicate vision. There are many portions to a business plan, but of the most effective and significant are the cover page, overview, management, and personnel descriptions. Investors and lenders will also want to see a description of the business, products or services that are provided, the industry market and company competition, and the location of the business. If seeking financial support, the business plan requires the use and effect of financing including financial data, risk analysis, and rationales (Chase.com, 2011).

In the cover page, list the business name and address, as well as both of your names, addresses, and phone numbers. If you have any other major owners, be sure to list their information too. Next, the overview or executive summary is provided. This important section allows readers to understand your business functions and why it functions the way it does. The overview lets the readers receive an idea about what the rest of the business plan will be about, setting the tone for the rest of the presentation (Chase.com, 2011).

An effective business plan note s a description of the company, including the business form, industry, how it was formed or acquired by its current owners, and trends of its industry. It will require outside sources in order to present non-bias information to readers. The products and services that Precision Auto Detail provides will also need to be listed; include the benefits of them and which sell and which may be in need of discontinuation. The description of the business includes the management and personnel information. When explaining the management team, lenders are interested in experience related to the business, such as each members' strengths and weaknesses. For personnel, address the current staff population, skills and needed skills, hiring plans, and where in which you intend on searching for a labor pool. Personnel is a very risky portion of the business plan; ensure that you have addressed all risks and issues and created a back-up plan (Entrepreneur.com, 2011)

Assuming that the lender has decided to consider giving you financial sources, the next step is to provide them with competition information. While competition may but your company at risk, it is not a bad thing (Chase.com, 2011). Having direct or indirect competition allows a business to grow. Provide information about what businesses are succeeding as well or greater than yours, and how you intend on growing stronger in the future. Next, tell the lender how the business intends on using the financing, if provided. When one explains how they intend to use lender money, it may help the lender feel more involved or comfortable with the idea of providing funds. In order to demonstrate the best possible argument in favor of financing, provide resources such as financial data, risk analysis, and rationales about your projections for future business (Chase.com, 2011).

When requesting a loan or investor sources, it is required to have a business plan. The business plan will allow an objective view on company strengths and weaknesses and an opportunity to communicate a company vision. Allowing the investors and lenders the chance to read a written plan on the company vision gives sturdy foundation as to why the company needs the money.