The next section is for important documents. These will include a resume, three years of tax returns, and a paragraph on each key employee. In addition include copies of documents like your insurance policies, lease agreements and any other agreements with suppliers.
The financial section comes next. These need to be put on a spreadsheet and you need to show the numbers for the first twelve months. Year two and three you only show figures each quarter of the year. You need to have done your home work and know the start up costs, and the approximate amounts of your fixed and variable expenses. Fixed expenses are the same amount every month like your rent, or car payments. Variable expenses will be different amounts each month. An example is utilities, sales commissions, and cost of goods needed to produce your product.
Estimating the revenue you will earn is harder to determine. There is usually no way to know how much gross sales and net income will be. So put down what you would like them to be. Make these numbers reasonable. When you have all the data on the spreadsheet, send it to your accountant to look it over and make adjustments to make it look professional and realistic.
The market analysis is the next section. This section should show what the national, state, and local economies are like and what changes are expected. You can find that data at home pages of associations of the business category of your business. For example, if you own a restaurant, there will be a national association of restauranteurs. You will find the statistic data and projections for that industry. The state will also have similar data, and there may be a local association of restaurant owners that will have statistics on your businesses.
Remember to include to site where you got the statistics and create some graphs to illustrate the numbers, it will look more professional. This kind of detail research will again impress the potential investor and build his confidence in you as a loan risk.
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