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Free Cell Phone Store Business Plan
Free Cell Phone Store Business Plan for Loans
Obtaining Business Financing
When obtaining a business loan for a cell phone store business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Cell Phone Store, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.
Executive Summary
Introduction
When obtaining a business loan for a cell phone store, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:
Cell Phone Store, Inc. (“the Company”) is seeking a business loan of $100,000 in order to launch the operations of a cell phone retailing business that will be based in San Francisco, California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.
Products and Services
In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:
Cell Phone Store, Inc. will generate substantial revenues, via its retail location, from the retail sale of cell phones as well as from activation fees, sales of accessories, and other ancillary revenue streams from mobile phone services.
The third section of the business plan will further document the products services offered by the business.
Business Loan Terms
Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:
At this time, Mr. Doe is seeking a conventional business loan in the amount of $100,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.
Management Biography
Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Cell Phone Store to profitability while ensuring that the business loan’s payments and its covenants are met at all times.
Financial Statements
The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance’s of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.
Expansion Plans
One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:
The Cell Phone Store will continue to expand through organic means including increasing the Company’s advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional Cell Phone Store locations after the third year of operations.
The Financing
Use of Business Loan Proceeds
In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:
- Cell Phone Store Retail Location Establishment – $50,000
- Opening Inventory and FF&E – $10,000
- Working capital – $40,000
Management Equity
In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:
Mr. Doe will own 100% of the Cell Phone Store.
Board of Directors
When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:
Mr. Doe will be the sole director of Cell Phone Store, Inc.
Exit Strategy
Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell the Cell Phone Store to a third party for a significant earnings multiple. Cell Phone Stores usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.
Products and Services
When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:
As stated in the executive summary, the Cell Phone Store will specialize in making sales of cell phones to the general public. The Company anticipates that it will generate gross margins of approximately 40% on each cell phone sold. The business will also generate additional revenues from ongoing servicing of mobile phones as well as from initial activation fees when a customer signs up for a new cell phone plan. These service based revenues carry extremely high margins for the Cell Phone Store, Inc.
Industry and Market Analysis
The Current State of the Economy
It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today’s environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:
The current economy has remained difficult over the past few years. However, Cell Phones have become an extremely important part of an individual’s life. In fact, many people now forego the use of a traditional land line and simply use a cell phone. As such, the business will be able to remain profitable not only from the sale of cell phones but also from the ongoing subscription and activation fees rendered to customers.
The Cell Phone Store Industry
In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:
Within the United States, there are more than 100,000 retailers and distributors of cell phones that operate one or more retail facilities. Approximately 75% of Americans now use a cell phone and require regular services for their mobile phone devices. In each of the last five years, the aggregate sales generated through the sales of cell phones has exceeded $100 billion. This demand is not expected to wane although Management does anticipate that cell phone stores will face stiffer pricing competition as more competitors enter the market.
Target Market
In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of Cell Phone Stores, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of Cell Phone Stores.
Competition
Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is almost never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be able to gauge your ability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.
When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.
Marketing Plan
In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite understand how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.
Marketing Overview Example
- The Cell Phone Store will place prominent signage on the facility to draw a significant amount of foot traffic.
- The business will maintain listings in the Yellow Books.
- The Cell Phone Store will also maintain an internet website that showcases the Company’s operations, hours of operation, and relevant contact information.
Marketing Strategies Overview
Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business’s operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:
The Cell Phone Store intends to use a number of strategies that will create instant traffic and customer flow to the Company’s location. These strategies include not only using prominent facility and road signage, but also distributing flyers to people that fall into he Company’s targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company’s hours of operations, cell phone products and services, and specials that are occurring within the store on a regular basis.
The business will also maintain a highly informative website that showcases the Cell Phone Store’s products and services, its hours of operation, cell phone product listing information, and other relevant information in regards to the Company’s services. This website will be listed on major search engines such as Google as many people now use the internet to locate local businesses such as cell phone stores.
The Financial Plan
Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:
Assumptions
- Cell Phone Store, Inc. will have an average annual growth rate of 10% per year.
- Mr. Doe will acquire $100,000 through a business loan in order to launch the operations of the business.
Proforma Financials for a Business Loan
Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan.com has developed an easy to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:
- Profit and Loss Statement for your Cell Phone Store
- Cash Flow Analysis for the Cell Phone Store
- Balance Sheet for the Cell Phone Store
- Business Loan Amortization Tables
About the Author
BusinessPlansForLoan.com is a specialty website that provides content that focuses on the needs of people seeking business loans for new and existing businesses. We encourage you to visit our website if you are seeking a Business Plan for a Loan .
Store Business Questions
Want to open a grocery store business. Where to start?
I’d like to open my own business – a small grocery store. My degree is in math, not business, and I don’t know where to start. Does anybody have some ideas for where I can get a basic education on how to open/run a small business?
At the very lease, you should either take classes, or read up on retail merchandising books. You didn’t say what city you’re in. I’m in the Los Angeles area, and most of the small mom-n-pop grocery stores get their inventory from Certified Grocers. Look at the small mom-n-pop groceries in your region, and ask the manager where he gets his inventory. Tell him/her upfront you’re way across town, so you’re not opening a store to compete against him/her and steal customers away.
In my area, I’ve noticed all the small mom-n-pop groceries operate in blue-collar areas, where the larger grocery supermarket chain stores keep away from, due to higher shrinkage (theft). One issue with opening a retail store in a blue collar area, is security. You not only have shoplifters, but your insurance is higher because the likelihood of armed robbery is much higher. You’d want to invest in a CCTV system. Sometimes, the sight of CCTV cameras and signs that say “Smile, you’re being recorded on camera” is enough to discourage some thieves, but armed robbers will just put on a ski mask.
Don’t open a retail store that’s close to a freeway on ramp. Statistically, retail stores and convenience stores are more likely to get robbed because freeways increases their chances of escape. Once an armed robber makes it to a freeway on ramp, he can easily blend with the other speeding traffic.
Edit ► To elaborate further on what Edwards8 had posted;
look under “used furniture” or “used equipment and display” in the yellowpages to find retailers of used equipment from businesses that had gone broke. You’ll likely apply for a “small business loan” from a bank or government agency. This is where taking classes in retail merchandising works to your favor. The application form will ask what formal training had you completed to prepare you for your business. With your degree in math, you may qualify for a position as an assistant manager. Work in a retail grocery environment for at least 6 months, just to observe how they operate, and use them as a model to mimic in operating your retail grocery store.
what are the best stores to buy professional and fashionable business clothes for women?
What are the best stores to get fashioable professional business clothes? I am a law student and need to start dressing for work and building a work wardrobe…what are the best stores?
Express and H&M have great professional attire that will allow you to still look young and fashionable :] good luck!
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Putumayo Presents: French Cafe $6.99 Although far from definitive (no Edith Piaf in sight!), this enchanting compilation delivers a perfect aural snapshot of what spending a late summer afternoon in a French cafe actually feels like. The supreme elegance and understated approach that lie at the core of these 13 tracks will delight fans of sophisticated pop. As is the case with previous Putumayo releases, the sequencing is seamless,… |
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Lady Sings the Blues $8.85 Diana Ross stars as legendary blues singer Billie Holiday in this biopic that chronicles her rise and fall. It begins with her late childhood, a stint as a prostitute, those early days as a blues singer, her marriages, and her drug addiction. Overly glossy and lacking depth, this is worth seeing only for the performances. Diana Ross was nominated for an Oscar for her acting debut. A dynamo with sp… |
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LEGO Green Building Plate (10 x 10) $4.95 The perfect starting point for LEGO creations! This green base plate measures 10” x 10” (255mm x 255mm), so it’s a great place to start building castles, skyscrapers, or what ever your imagination comes up with. 4 Years +… |
