Your business plan is not only a necessity when seeking financing for your project, it is a recognized management tool that outlines exactly what your company will do and how it plans to succeed. Jennifer O Toole, Senior Partner at accountancy firm Thomas R Dixon, says: Work at the business for a period of time to be sure that the business is right for you and to familiarize yourself with the customers and operations. I could just plug in information without having to do any of the math.
Buying an existing business and its business plan is a viable option for starting your own business, but careful and educated research into all operational reports and financial statements is essential.
Your plan shows how you will get from here to there.
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How to Buy an Existing Business & Business Plan by Matt McKay Carefully research the business plan and financial statements before buying an existing business.
Trying to buy a business plan means you really aren t going to benefit from planning your business.
Use this firsthand experience to back up and verify operations and income claims in the business plan and financial statements.
Obtain and study copies of all financial statements, tax returns and related documents for the past three to five years to verify income, taxes, expenses and other financial claims.
Making a good purchasing decision begins with asking the right questions.
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LivePlan s forecasting tool can answer these type of questions at a glance.
It made it very easy to get the business plan done.
The program gave wonderful examples of what should be in the different sections.
However, shows that 6 in 9 businesses don t have a business plan.
Most LivePlan users are able to breeze through their first business plan.
You start here, today, with certain resources and abilities.
At our Entrepreneur Magazine Roundtable, financial pros offer tough talk about the business plans of first-time entrepreneurs.
Plug in your industry and where you re located, and LivePlan will tell you how you re doing compared to businesses just like yours.
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Buying an existing business is an excellent option that is often overlooked by entrepreneurs. The interface was fresh and lively. When buying the business, the business plan should be included in the purchase price and is not an add-on expense under normal circumstances. As the prospective business buyer, you must carefully analyze the existing business plan and be certain that it includes accurate and realistic information. The current business plan does not necessarily have to stay in place when you buy a business, and you may wish to modify it to meet your own goals and objectives. This section will help you understand some of the issues involved including the challenges of valuing a business and some of the questions you should ask as part of the due diligence. Tim Berry, president of Palo Alto Software Inc. Are you charging enough? 6.