Anyone ever submit a business plan to SBA

fbm211

Today I was informed its better to go to the SBA for a loan as opposed to personal as I would get tax breaks.However I have no idea as to what I need to submit.Ive never put together a buisnes plan and dont even know where to begin.Please help a guy out.Im trying to turn my life around to improve my standard of living by starting my own C-store buisnes.I figure I need around 10 grand to get started.And being unemployed isnt helping.Irony is....Im going to open in the same place that closed and I even had worked at that place for the last 10 years.It was also a c-store:eek:

Cayuga

The SBA will want a detailed plan as to how your going to make it work when your employer couldn't. You will need to do a proforma and a detailed sales and marketing plan. You will need to show what skills you have that give you a fighting chance of making money in the C store market. I would do a market analysis to show why a C store is need at that location. Are you looking for $10,000 or starting with ten and looking for add'l SDA money? The number one reason companies fail is to little start-up capital. Good luck

BtrSound

I do commercial lending and have a lot of experience with the sba. Pm me and I will send you my private email and phone number. I am happy to answer any questions you may have. You may also want to look into an organization called SCORE. Of they have a chapter by you they can be very helpful. Where are you located? I may have a contact with a local economic council as well. They also often have programs to help.

fbm211

My employer couldnt make it work because they were too concerned with going out drinking and gambling away over a grand a week.The cash flow at the location was over 60,000.00 a month.Close to 80grand the months when there were 3 home football games(Penn State)The location has over 600 college students living in it.

Pm sent

Disc Jockey

I did an SBA loan when I was first getting started. It was a great rate and worked out really well.

If you don't know what you're doing when writing a business plan, I recommend you get some software to walk you through the steps. I used Business Plan Pro and it created a great presentation. This was 15 years ago so I know nothing about their current offering but you need to get something to help you through the process. I was told by a couple of people in the SBA what a great application it was. I really don't think it was anything special other than the fact I put some time and effort in to it and apparently that's more than most are willing to do. It will be maybe a hundred bucks or so but money well spent.

fbm211

Thanks for that info DJ

BtrSound

Moost of the software is overpriced and over rated. It can help with the projections, but the rest is not typically all that good.

I sent you an email with what you should need.

fbm211

I did not get the email.

BtrSound

Sorry, I will resend it when I get home this evening

Malbec

Penn State has resources for small business owners.

http://www.sbdc.psu.edu/consulting.htm

wz2p7j

For those that don't know, the SBA doesn't loan you the money. A bank loans you the money. The SBA exists to guarantee loans a bank might other wise not make. Examples include start ups or business purchases with insufficient collateral to cover the loan in the event of a default.

Chris

wz2p7j

Plus $10k sounds really low to start a convenience store. Here's a blurb from the 7-11 site talking about initial inventory and such (franchise fees are covered in a different paragraph):

"A Franchisee is required to make an initial cash payment to 7-Eleven in an amount equal to the cost of the store's initial inventory, supplies, business licenses, permits, bonds and cash register fund. 7-Eleven will finance the Franchisee's continuing operating expenses. A typical initial cash payment to 7-Eleven for a franchise is about $89,000, but again, that may vary significantly depending upon the area."

That's inventory, supplies, cash register fund, etc. I'm assuming "cash register fund" is working capital? What about FF&E (furniture, fixtures and equipment)? Coolers, coffee machines, etc.

Are you planning on leasing the facility? You'll probably be on the hook for first month's rent plus deposit.

PM me if you want to talk more. Buying businesses (and occasionally brokering a business) is essentially what I do for a living any more.

Chris

dorourke07

My wife and I started with a SBA backed loan 5 years ago. The information that is needed for the loan is information you will want. Be prepared to put up some collateral too. Understanding what the financials are telling you allows you to run your business. Great sales don't matter when you don't cover your costs and cutting costs can kill you when no advertising means no customers. Also, remember foremost that cash is king. Understand your cash flow and what impacts it, positive and negative. I think you might already be underestimating your cash needs. My guess is you need to add a zero to what you are thinking. Being a small business owner is a commitment and not a job. You will live and breathe it 24/7. Sounds very exciting, when you believe in yourself, the skys the limit. Good luck! PM me if you have any questions.

fbm211

I know its a commitment.I also know I am underestimating my cash needs,I will admit I am almost broke and do not have any collateral.My mother is trying to help as best she can to get me started and secure a loan for me to do so.I am not afraid to ask for help even though its somewhat embarrasing.Many people will not take a chance on someone who has little or no capital like myself and I understand that too.
But I know if I just get the chance too get into that space and get up and running,pay very close attention to what Im spending and selling I can build on it and as I build on it also expand on it.
I need this,I want this more than most of you can imagine.I have dreamed of this for years and now an Opportunity presents itself.I only lack the proper funds to do it right.But....Location,location, location,and its one hell of a great location.
One must accept falure in order to succeed and the greatest failure is not to try

dorourke07

We only regret the things that we never try..... It sounds like you have the dedication to work the hours plus to earn the rewards. Secure as much cash as you can and go for it! Make an appointment at your local bank. They have the resources and personnel to get your application complete, your success will make them money.