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...
View Full Document