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Business Plan

aedavisaedavis subscriber Posts: 7
edited July 2007 in Business Planning
Hello I need major help, I `m looking to open a Cosmetology School and I have to present a Business Plan by Spet 30 to the Investor`s, builder`s and everyone. I did most of the work I know how much everything is going to cost for the start-up but I think I am having a problem with showing the return for the investors and that is giving me gray hair, can I please get some help from someone that might have done a business plan for a cosmetology school well just done a business plan and can help me


  • robertjrobertj subscriber Posts: 0 Member
    A plan that will  "deliver" the return to your investors is an important part of the total business plan. When asked about this - many entrepreneurs toss in "we`ll be purchased by some big (insert name) company or we have an IPO".
    While these are plausible answers, they may not be the best response. I believe that all planning should be done with the "end" in mind and for investors the "end" is when they receive their reward (return on investment).
    There are several ways you could provide the "return" to your investors  including the aforementioned IPO and sale. The optimum one for you and your investors would depend upon several factors - starting with the amount of capital you will need, for how long and what the financial projections indicate as expected results.
  • aedavisaedavis subscriber Posts: 7
    Thank you so much for getting back to me. I dont want to sound like I just dont understand what you are saying, But are you saying that I need to total up everything to come with what I need and not leave out a thing I was told that I have to add everything from the building to the cotton balls, but am I suppose to add the pay for the employee`s and if so no problem there but I also need to add the monthly expense as well and if so how many months and I am going to open up a school the first months is getting student to pay for it out of pocket because I have not yet been accredited to recieve financial aid unless there is a way that I can do that so that I will be able to accept financial aid right away, I will work on that but I really fill like I am lost I need to talk to someone about what I have so far for the business plan and see where I need to go from there. please help !!!!!
  • robertjrobertj subscriber Posts: 0 Member
    First of all - not to worry about learning. We can all learn more. I like to think of it like being on a path. There are people in front of me that know more about the path and can help me prepare for what`s ahead and there are people who are behind me that I can help prepare for what`s ahead of them.
    Since you asked, I`ll be happy to chat with you. Send me a private message and we`ll arrange a mutually convenient time.
  • DwayneGarrettDwayneGarrett subscriber Posts: 1
    Hi aedavis,
    Bottomline ROI is about how much money is an investor going to make if they invest with you and in what time frame will they make it. (expressed as a percentage)
    What you need to show the investor is what percentage of their money invested in your company will they make back.
    Dwayne Garrett

    DwayneGarrett2007-7-19 13:10:31
  • aedavisaedavis subscriber Posts: 7
    Yes I know that but what I am asking is a different question, I know that the investor is going to get there money and what the bottomline is but what I am trying to put together is how do show them how there going to get there ROI on the paper (business plan) I guess my question is I am doing a business plan I have everything that I need to show how much everything is how I am going to run it what ever but I know that all the investor really cares about is how are they going to get there money back and I dont know how to put that on the paper, now I can say with charging 8,000.00 per student you will get your investment back this way or what I dont know how to put it that is where I am having the problem
  • aedavisaedavis subscriber Posts: 7
    OK Thank You, So that is not what I am trying to do I do not want to lead anyone on I am suppose to turn my Business plan to them in a couple of day`s, I know that they are going to want to see how they will get there ROI so how do I show that with out making any promise that I can`t keep. I know that what ever I do I am going to have to survive for 3 years because it is going to take at least 24 months to even get funded to be able to receive Financial Aid from the Government. I know what I want from the investor`s but I dont know how to show them they will get there money back and how I can tell them all day but they are going to want to see it on paper
  • elisaelisa subscriber Posts: 1
    Of course there is no one formula to writing a good
    business plan although some elements are common to all business plans and
    include cover sheet, statement of purpose and table of contents. The body can
    be divided into four sections description of business, marketing, finances and

    Addenda should include an executive summary, supporting
    documents, and financial projections.

    Check out the sample business plan originally taken from the
    SBA website.

    http://camden-sbc.rutgers.edu/SACourse/ ... essPlan.pd fHope this helps and good luck to you!ELisa2007-8-2 23:6:33
  • aedavisaedavis subscriber Posts: 7
    Thank you Elisa I am going to check this out I hope that it will help me a well thank you. 
  • aedavisaedavis subscriber Posts: 7
    Thank you I will take a look at the web site tonight I am also working with my church and they offer classes to help people like me that is trying to start there on business Thanks & Best Regards April
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