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Unformatted text preview: ts to sell. This makes your balance correct at the start. • If your loss at start-up is greater than your start-up expenses, this means that you haven’t accounted for all of the money you raised in investments and liabilities. Remember, all the money has to be accounted for as either expenses or assets. • If your loss at start-up is less than your start-up expenses, you haven’t raised enough money to meet your funding requirements. If you don’t like the loss at start-up, there is only one way to reduce it: reduce start-up expenses. Section Overview Now that you’ve written the details, go back to the beginning of the section and create a good summary paragraph that you can use as part of a summary memo or a loan application support document. Include the essential details, such as the name of the company, its legal establishment, how long it has been in existence, and what it sells to what markets. Summarize your start-up requirements and funding, or recent financial history, in a sentence or two. Summary You should include a good company description, especially if you’re developing a plan to be shown to people outside the company. Don’t stop with just legal formation and history; include some strategic topics, such as competitive edge and value proposition. You need one of two tables, either start-up or past performance, to establish a starting balance for your projected cash flow and balance sheet. CHAPTER 7: WHAT YOU SELL For the standard plan, this is where you tell your reader about your products or services, or both.This step in the process is much more important for plans going to external readers — like banks and investors — than for internal plans. In all cases, though, it is a good place to focus thoughts about what you sell and why people buy from you. This part of the plan is mainly description. Sometimes it will include tables that provide more details, such as a bill of materials or detailed price lists. More frequently, however, this section is m...
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