markets and sales techniques with a mind towards whether or not those investments will pay dividends when it comes time to exit. Far too many owners place the business up for sale when they choose to sell only to realize at that time a less than maximum return on their investment. Investors and lenders are keenly interested in understanding an owner’s exit strategy as regards to evaluating their own interests. A sound exit strategy can enhance the credibility of the return on investment analysis for all parties involved.
plan. Keep in mind that you do not want to overwhelm your reader with extraneous paperwork. So, make sure that the information included in the section is relevant and easy-toread. Supporting documentation may include: tax returns (existing business); your resume; industry data; articles or studies relating to your industry; patents; detailed market studies; photo of your products; professional references; photo or rendering of location; employment contracts; leases; commitment letters from customers; and pertinent legal documents such as your articles of incorporation, assumed name certificate or partnership agreement.
Partnerships
In the event the business is expected to be the joining of two or more individuals the relationship should be identified in the business plan. It is strongly recommended that a Partnership Agreement be reached between the parties identifying many important terms and conditions including but not limited to roles of responsibilities as well as the manner in which to deal with separation of the partnership including the formula to determine the business value and process of buy/sell of each partner’s shares. This should be accomplished at the same time the partnership is formed under guidance of outside counsel. A copy of the agreement should be made a part of the business plan.
STILL HAVE QUESTIONS? For more detailed information on business plans, call or visit the Lone Star College Small Business Development Center (SBDC). The SBDC’s experienced business consultants will assist in developing a sound plan for your new or existing business.
Supporting Documentation
For additional information and resources or to schedule a meeting, contact the SBDC at 832.813.6674 or visit our website at www.LoneStar.edu/SBDC
In this section of the business plan, you should include any supporting information that will strengthen the business
Acknowledgments: This guide could not have been prepared without: The legal assistance and guidance of the law firm of: COUNTS & BONACCI, L.L.P. The Great Jones Building 708 Main Street, Suite 200 Houston, Texas 77002 713.222.7100 gbonacci@cbllp.com The tax and financial assistance and guidance of: Karlins & Ramey, LLC 1610 Woodstead Court Suite 245 The Woodlands, Texas 77380 gramey@karlinsramey.com 17