264 | How to Write a business Plan
compared to loans, 61–62 defined, 56 evaluating terms offered by, 178–179 by friends or relatives, 63–64 guaranteeing returns, 57, 175 information resources, 194 legal forms of ownership, 58–60, 175, 178 lenders’ return on, 57–58, 160, 175 repayment strategies, 57–58 See also Investors and lenders; Venture capital/capitalists Excite (search engine), 202 Expenses, fixed (overhead) in capital spending plans, 123–125 defined, 103 in fixed costs forecasts, 41–42 list of common, 118 in profit and loss forecasts, 107
F Factoring companies (factors), accounts receivable, 71 Failing businesses bankruptcy, 188 closing and negotiating with creditors, 187 diagnosing, 184–185 getting out of business, 186–188 going out of business sales, 187–188 locking doors and leaving, 187 selling, 187 Federal financing sources, 75, 175–176 Federal laws bankruptcy, 188 securities laws exemptions, 76 See also Tax entries Financial statements, corporate, 238–239 Financial statements, personal, 85–100
completing, 99 examples, 218–219 net worth, 93 verifying accuracy of, 99–100 See also Annual expenses; Annual income; Assets; Liabilities Financing business plan requirements, 3, 8, 19–20, 53, 66–69 creative cost-cutting, 65 from equipment leasing companies, 70–71 equity in other assets, 65 evaluating terms, 176–177 for existing businesses, 58, 70–72 failure to obtain, 72–73 federal, state, and local programs, 75, 175–176 from friends and relatives, 57, 61, 63–65, 68, 172–173 how much is needed, 14–15, 135–136, 160 information resources, 194, 197–198 living expense deferrals, 62–63 model for ideal loan candidates, 19–21 Overseas Private Investment Corporation, 75 personal savings of owner, 19–20, 57, 61, 62–63 profit and loss forecast tools, 102–120 Small Business Investment Companies, 74 for startups or expansions, 14–15, 53–76, 135–136, 160 stock offerings, 10–11, 59–60, 69, 75–76, 178–179 from supporters, 65–66, 173 through trade credit, 63, 70 USDA Rural Development, 74 See also Banks; Investors and lenders;