Free Cell Phone Store Business Plan

Free Cell Phone Store Business Plan for Loans				anticipates that it will generate gross margins of
Obtaining Business Financing				approximately 40% on each cell phone sold. The
				business will also generate additional revenues
When obtaining a business loan for a cell phone				from ongoing servicing of mobile phones as well
store business, it is imperative that you have a				as from initial activation fees when a customer
properly structured business plan that will assist				signs up for a new cell phone plan. These service
you in showcasing how you intend to operate				based revenues carry extremely high margins for
your Cell Phone Store, how the business will				the Cell Phone Store, Inc.
operate, how you intend to market the business,
the anticipated financial results of your company,				Industry and Market Analysis
and how you intend to repay your debt
obligations. This sample loan business plan will				The Current State of the Economy
provide you with the framework that you need in
order to acquire a business loan for starting or				It is important to let your financial institution know
expanding this type of business.				that you are well apprised of the financial situation
				of the general economy when you are applying
Executive Summary				for a business loan. This is especially true in
				today's environment where lending has become
Introduction				more difficult and will remain more difficult in the
				foreseeable future. Specifically, you should gear
When obtaining a business loan for a cell phone				this section of the business plan analysis towards
store, it is imperative that your business plan has				the industry that you are operating within. For
a clear and concise executive summary that				example:
provides an outline of what are seeking to
accomplish, how much capital you are seeking to				The current economy has remained difficult over
raise, the management biography of the business				the past few years. However, Cell Phones have
owner, and an overview of the anticipated profit				become an extremely important part of an
and loss statements of the business. Here is an				individual's life. In fact, many people now forego
example of how the title paragraph should be				the use of a traditional land line and simply use a
written:				cell phone. As such, the business will be able to
				remain profitable not only from the sale of cell
Cell Phone Store, Inc. ("the Company") is seeking				phones but also from the ongoing subscription and
a business loan of $100,000 in order to launch the				activation fees rendered to customers.
operations of a cell phone retailing business that
will be based in San Francisco, California. The				The Cell Phone Store Industry
Company was founded in (Insert Year). The
business was founded by Mr. John Doe.				In addition to providing your business loan officer
				with an understanding of the general economy, it
Products and Services				is important that you showcase that you have an
				equal understanding of the industry in which you
In the next segment of the business loan and				are operating within. As such, you will need to
business planning document, you should showcase				provide you business loan institution of a brief
the products and services that you will be				overview of your industry and any potential
providing to the general public. For instance:				changes that may affect the way that your
				company does business. An example of how an
Cell Phone Store, Inc. will generate substantial				industry overview is as follows:
revenues, via its retail location, from the retail sale
of cell phones as well as from activation fees,				Within the United States, there are more than
sales of accessories, and other ancillary revenue				100,000 retailers and distributors of cell phones
streams from mobile phone services.				that operate one or more retail facilities.
				Approximately 75% of Americans now use a cell
The third section of the business plan will further				phone and require regular services for their mobile
document the products services offered by the				phone devices. In each of the last five years, the
business.				aggregate sales generated through the sales of
				cell phones has exceeded $100 billion. This demand
Business Loan Terms				is not expected to wane although Management
				does anticipate that cell phone stores will face
Now it is time to discuss the anticipated terms of				stiffer pricing competition as more competitors
the business plan that you are seeking. An				enter the market.
example paragraph of how this is stated:
				Target Market
At this time, Mr. Doe is seeking a conventional
business loan in the amount of $100,000. The				In this section of the business loan application and
interest rate, loan terms, and loan covenants are				business plan analysis, you should focus on the
to be determined during negotiation. However, this				demographics of your localized market (or national
business plan assumes that the business will				market if applicable). This section should discuss
receive a seven year business loan with a seven				how many people live in your area, the anticipated
percent interest rate due on the outstanding				number of people that would require the use of
principal balance.				Cell Phone Stores, the median household income
Management Biography				of people living in the area, poverty line statistics,
				and any applicable laws that would apply to your
Now that the summary of the business has been				operation of Cell Phone Stores.
provided, it is time to provide a brief overview of
the owner of the business. An example paragraph				Competition
summing up the owner is as follows:
				Many people that are developing new businesses
Mr. Doe is a highly experienced business person				or expanding existing businesses often feel that
that has years of experience regarding the direct				their business does not have any competition or
ownership and management of business. He will be				limited competition at best. However, this is
able to effectively bring the operations of the Cell				almost never the case. Unless you have
Phone Store to profitability while ensuring that the				re-invented the wheel – you will have
business loan's payments and its covenants are				competition. When applying for a business loan,
met at all times.				you should clearly showcase your competition in
Financial Statements				your business plan. This is especially important to
				your banker as they will be able to gauge your
The most important thing to your lender when				ability to be successful in your targeted market.
applying for a business loan is how you intend to				Many business loan underwriters will aggressively
repay the bank. In this section of the business				confirm that competitive nature of your local
plan, you should provide an overview of the				market and your local industry.
finance's of the business discussing the anticipated
revenues, expenses, and profits/losses. You can				When drafting this section of the plan you should
also discuss the applicable collateral within the				heavily discuss the competitive advantages that
business plan that will be used to secure your				you intend to have over your competition.
business financing.
				Marketing Plan
Expansion Plans
				In addition to all of the above information that we
One of the most important aspects of your				have covered, your business loan officer is also
business plan is how you intend to expand the				going to want to know how you intend to market
business over a three to five year period. Banks				your business to the general public. Most people
and finance companies always want to see that				do not quite understand how to effectively
the business will experience a moderate to strong				market their business outside of prominent
level of growth. This is especially true in business				signage or flyer distribution. When applying for a
lending because as your business grows the cash				business loan (again in this difficult lending climate),
flow that secures your business loan will decrease				your banker is going to want to see that you
proportionality against your monthly credit				have a clear methodology of how you intend to
obligations. An example of how this is stated is as				market your services or products to the general
follows:				public. In this section of the business plan – we
				will overview how to showcase your services
The Cell Phone Store will continue to expand				products to the general public.
through organic means including increasing the
Company's advertising budget via the				Marketing Overview Example
reinvestment into the after tax cash flows of the
business. Additionally, if the business is highly				- The Cell Phone Store will place prominent
successful then the Company may seek to				signage on the facility to draw a significant
establish additional Cell Phone Store locations after				amount of foot traffic.
the third year of operations.				- The business will maintain listings in the Yellow
				Books.
				- The Cell Phone Store will also maintain an
The Financing				internet website that showcases the Company's
				operations, hours of operation, and relevant
Use of Business Loan Proceeds				contact information.

In this section of the business plan you should
focus on how the proceeds of the business loan				Marketing Strategies Overview
will be used. An example of this would be as				Additionally, you will be required to further drill
follows:				down (in your business plan) how you intend to
				implement your strategies when you launch or
- Cell Phone Store Retail Location Establishment -				expand your business's operations. In this section
$50,000				of the business loan and business plan documents,
- Opening Inventory and FF&E - $10,000				you should amplify the bullet points from the
- Working capital - $40,000				section above. For instance:

Management Equity				The Cell Phone Store intends to use a number of
In this section of the business plan you should				strategies that will create instant traffic and
discuss the percentage ownership of the business				customer flow to the Company's location. These
among the owners of the business. For example:				strategies include not only using prominent facility
				and road signage, but also distributing flyers to
Mr. Doe will own 100% of the Cell Phone Store.				people that fall into he Company's targeted
				demographics. The business will also regularly take
Board of Directors				out advertisements in localized newspapers that
				showcase the Company's hours of operations, cell
When applying for business financing, the bank will				phone products and services, and specials that
also want to know who serves as the board of				are occurring within the store on a regular basis.
directors. For small businesses, usually the owner
serves as the director of the business. An				The business will also maintain a highly informative
example of how this is worded:				website that showcases the Cell Phone Store's
				products and services, its hours of operation, cell
Mr. Doe will be the sole director of Cell Phone				phone product listing information, and other
Store, Inc.				relevant information in regards to the Company's
				services. This website will be listed on major
Exit Strategy				search engines such as Google as many people
				now use the internet to locate local businesses
Any bank or financing company is also going to				such as cell phone stores.
want to know what you intend to do with the				The Financial Plan
business over a set period of time. Many business
owners will develop and expand a business with				Beyond any other part of your business loan
the intent to sell the company to a third party at				application or business plan, the financials section
a later time. When drafting this part of the				of these documents are what matters most
business plan you should focus on what you				when applying for a business loan or any other
intentions are in regards to potentially selling the				type of credit facility. Ultimately, this section of
business. This is often worded as:				the business plan showcases not only what your
				anticipated profitability will be, but also how you
Mr. Doe would most likely sell the Cell Phone Store				intend to repay the funds that you have
to a third party for a significant earnings multiple.				borrowed through your business financing facility.
Cell Phone Stores usually sell for approximately				An example of how this section is structure is as
one to three times earnings given the financial				follows:
strength of the business. In this event, the
business would be sold by a business broker and				Assumptions
the business loan sought in this plan would be
repaid according to the covenants of the business				- Cell Phone Store, Inc. will have an average
loan agreement.				annual growth rate of 10% per year.
				- Mr. Doe will acquire $100,000 through a business
Products and Services				loan in order to launch the operations of the
				business.
When developing a business plan that is
appropriate for obtaining a business loan or other				Proforma Financials for a Business Loan
business credit facility you need to clearly
showcase the services or products that you will				Now it is time to showcase how you intend to
be offering to the general public. An example of				repay your loan, generate a profit, and increase
how this section is worded goes as follows:				the book value of your business over a three to
				five year period. has developed an easy to use
As stated in the executive summary, the Cell				financial model that you can use when drafting out
Phone Store will specialize in making sales of cell				the financial model for your business plan and
phones to the general public. The Company				business loan application.

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Free Cell Phone Store Business Plan