There are many things that go into the process of organizing a business. Before you can receive a loan from the bank, you must have a plan to that describes the key elements that go into your business to show the bank. There should be several sections that describe the basis of your business. Each section should have a heading, and under the heading should be an explanation of what your plan is for that topic.
The first section of the business plan should be titled "Description of Business". Under section one, there should be a detailed summary of what the business is doing to be all about. Section one should explain to the bank:.
1. The Business Form - Proprietorship, partnership or corporation.
2. The Business Type - Merchandizing, manufacturing or service.
3. What the product or service is.
4. If it is an independent business, an expansion or a franchise.
5. When the business will be open.
6. Where the business will be located.
For example, if one were to start a car wash business with their friend, then their business description would include that the business would be owned by a partnership and that it would be independently owned. The business type of the car wash would be service, and the service that they would be providing is a place for people to wash their cars. The car wash could be open twenty-four hours a day and seven days a week. They would need the car wash to be located on an open parking lot that it visible to people who pass by. Customers should have good accessibility to the car wash and there should be adequate lighting for night. .
If the example business is a car wash that is owned by a partnership, the second section should be titled "Legalities". This section should concentrate on the components of being in a partnership and what the buy-sell agreement is between the partners. A partnership is a business with more than one owner that has not filed papers to become a corporation.