hi I’m Evan Carmichael welcome to another edition of ask Evan today I’m
another edition of ask Evan today I’m
another edition of ask Evan today I’m answering a question from one of my
answering a question from one of my
answering a question from one of my readers Ari
readers Ari
readers Ari is asking for help in writing a business
is asking for help in writing a business
is asking for help in writing a business plan for a furniture store for the
plan for a furniture store for the
plan for a furniture store for the business and as well for raising capital
business and as well for raising capital
business and as well for raising capital so thanks for the question
so thanks for the question
so thanks for the question a very common question about how to
a very common question about how to
a very common question about how to write a business plan and we got to
write a business plan and we got to
write a business plan and we got to created an entire guide on how to do it
created an entire guide on how to do it
created an entire guide on how to do it but in terms of being able to quickly
but in terms of being able to quickly
but in terms of being able to quickly answer your question in the video I’ll
answer your question in the video I’ll
answer your question in the video I’ll do my best quickly if especially going
do my best quickly if especially going
do my best quickly if especially going for investors the most important thing
for investors the most important thing
for investors the most important thing they’re gonna look at is your executive
they’re gonna look at is your executive
they’re gonna look at is your executive summary so after you’ve written your
summary so after you’ve written your
summary so after you’ve written your entire business plan you go back and you
entire business plan you go back and you
entire business plan you go back and you write an executive summary that is we
write an executive summary that is we
write an executive summary that is we owned one to two pages that quickly
owned one to two pages that quickly
owned one to two pages that quickly explains what it is that your business
explains what it is that your business
explains what it is that your business does because if an investor looks at it
does because if an investor looks at it
does because if an investor looks at it and they don’t understand what you do
and they don’t understand what you do
and they don’t understand what you do your entire business plan is going into
your entire business plan is going into
your entire business plan is going into the garbage so coming from the venture
the garbage so coming from the venture
the garbage so coming from the venture capital world that’s the only thing to
capital world that’s the only thing to
capital world that’s the only thing to look at the beginning and that’s your
look at the beginning and that’s your
look at the beginning and that’s your entryway in if you do well in the
entryway in if you do well in the
entryway in if you do well in the executive summary then they’ll read the
executive summary then they’ll read the
executive summary then they’ll read the rest of your plan if you don’t do well
rest of your plan if you don’t do well
rest of your plan if you don’t do well then they’re going to you know not
then they’re going to you know not
then they’re going to you know not respond to you or throw your business
respond to you or throw your business
respond to you or throw your business plan away so make sure you spend a lot
plan away so make sure you spend a lot
plan away so make sure you spend a lot of time on that executive summary and
of time on that executive summary and
of time on that executive summary and you write it after you’ve written your
you write it after you’ve written your
you write it after you’ve written your entire business plan and that it’s in
entire business plan and that it’s in
entire business plan and that it’s in plain English so should be something
plain English so should be something
plain English so should be something that anybody can understand that
that anybody can understand that
that anybody can understand that somebody can quickly pick it up they’re
somebody can quickly pick it up they’re
somebody can quickly pick it up they’re not in your business and they can say
not in your business and they can say
not in your business and they can say hey this is a good idea this is
hey this is a good idea this is
hey this is a good idea this is something that I’m going to put money
something that I’m going to put money
something that I’m going to put money into I believe in it so it’s got to be
into I believe in it so it’s got to be
into I believe in it so it’s got to be something that’s in plain English and
something that’s in plain English and
something that’s in plain English and your grandmother can understand it’s
your grandmother can understand it’s
your grandmother can understand it’s called out to the grandmother test in
called out to the grandmother test in
called out to the grandmother test in the venture capital world and so have a
the venture capital world and so have a
the venture capital world and so have a second set of eyes look at it who’s not
second set of eyes look at it who’s not
second set of eyes look at it who’s not in your business who can quickly tell
in your business who can quickly tell
in your business who can quickly tell you hey this makes sense or I’m not sure
you hey this makes sense or I’m not sure
you hey this makes sense or I’m not sure what this part means so first part the
what this part means so first part the
what this part means so first part the executive summary the next thing that an
executive summary the next thing that an
executive summary the next thing that an investor is going to look at is your
investor is going to look at is your
investor is going to look at is your financials so how much money can you
financials so how much money can you
financials so how much money can you make from this right if I give you I
make from this right if I give you I
make from this right if I give you I don’t know how much you try to raise if
don’t know how much you try to raise if
don’t know how much you try to raise if I give you $10,000 or $100,000 what’s my
I give you $10,000 or $100,000 what’s my
I give you $10,000 or $100,000 what’s my return going to be right so you want to
return going to be right so you want to
return going to be right so you want to have financial statements that are
have financial statements that are
have financial statements that are detailed at the back and you’re making
detailed at the back and you’re making
detailed at the back and you’re making estimates so it has to be reasonable I
estimates so it has to be reasonable I
estimates so it has to be reasonable I try to find out some information from
try to find out some information from
try to find out some information from other furniture stores to do some
other furniture stores to do some
other furniture stores to do some research online to see what is
research online to see what is
research online to see what is using a bowl so that you know you’re
using a bowl so that you know you’re
using a bowl so that you know you’re able to turn a profit and pay your
able to turn a profit and pay your
able to turn a profit and pay your investor back right you have to be able
investor back right you have to be able
investor back right you have to be able to explain every single number on that
to explain every single number on that
to explain every single number on that balance sheet and an income statement
balance sheet and an income statement
balance sheet and an income statement the projections that you make coming
the projections that you make coming
the projections that you make coming forward so that if somebody asks you it
forward so that if somebody asks you it
forward so that if somebody asks you it looks like you know what you’re doing
looks like you know what you’re doing
looks like you know what you’re doing because you actually do know what you’re
because you actually do know what you’re
because you actually do know what you’re doing so financial is a second and then
doing so financial is a second and then
doing so financial is a second and then the third thing is going to be your
the third thing is going to be your
the third thing is going to be your management team so a lot of people come
management team so a lot of people come
management team so a lot of people come to people looking for money and they
to people looking for money and they
to people looking for money and they have no startup experience they’ve never
have no startup experience they’ve never
have no startup experience they’ve never run a business before and so that makes
run a business before and so that makes
run a business before and so that makes it a little more risky right if you’ve
it a little more risky right if you’ve
it a little more risky right if you’ve never done anything on trail before this
never done anything on trail before this
never done anything on trail before this is your first venture and you come to me
is your first venture and you come to me
is your first venture and you come to me asking for money that makes it hard for
asking for money that makes it hard for
asking for money that makes it hard for me to say yes I wanted to somebody who’s
me to say yes I wanted to somebody who’s
me to say yes I wanted to somebody who’s done this before so as much as possible
done this before so as much as possible
done this before so as much as possible you want to show your related experience
you want to show your related experience
you want to show your related experience I don’t know what you’ve done in the
I don’t know what you’ve done in the
I don’t know what you’ve done in the furniture business before if you had
furniture business before if you had
furniture business before if you had other businesses before you want to make
other businesses before you want to make
other businesses before you want to make sure you’re definitely highlighting
sure you’re definitely highlighting
sure you’re definitely highlighting those experiences and then if you are
those experiences and then if you are
those experiences and then if you are weak in certain areas see if you can
weak in certain areas see if you can
weak in certain areas see if you can either bring on a partner or bring on an
either bring on a partner or bring on an
either bring on a partner or bring on an advisor so somebody who is just lending
advisor so somebody who is just lending
advisor so somebody who is just lending their name to your business and giving
their name to your business and giving
their name to your business and giving you some advice they don’t necessarily
you some advice they don’t necessarily
you some advice they don’t necessarily have to have any ownership or equity in
have to have any ownership or equity in
have to have any ownership or equity in the company but that will help short
the company but that will help short
the company but that will help short routine a little bit more so if an
routine a little bit more so if an
routine a little bit more so if an investor looks at it they’ll be able to
investor looks at it they’ll be able to
investor looks at it they’ll be able to say okay well you don’t have all the
say okay well you don’t have all the
say okay well you don’t have all the experience but these experience people
experience but these experience people
experience but these experience people are connected to you those are the three
are connected to you those are the three
are connected to you those are the three most important things in terms of
most important things in terms of
most important things in terms of investor point of view when you’re
investor point of view when you’re
investor point of view when you’re building the business point for yourself
building the business point for yourself
building the business point for yourself that section is not as important it’s
that section is not as important it’s
that section is not as important it’s more about how you’re actually going to
more about how you’re actually going to
more about how you’re actually going to make things happen so you start with
make things happen so you start with
make things happen so you start with your research and you figure out what
your research and you figure out what
your research and you figure out what your niche is going to be how are you
your niche is going to be how are you
your niche is going to be how are you going to send out from your competition
going to send out from your competition
going to send out from your competition and what opportunity do you see in this
and what opportunity do you see in this
and what opportunity do you see in this furniture business so what’s so special
furniture business so what’s so special
furniture business so what’s so special about your furniture business against
about your furniture business against
about your furniture business against all the other furniture businesses that
all the other furniture businesses that
all the other furniture businesses that are out there so you have to make sure
are out there so you have to make sure
are out there so you have to make sure you really had that unique value
you really had that unique value
you really had that unique value proposition or unique selling
proposition or unique selling
proposition or unique selling proposition so that when people come to
proposition so that when people come to
proposition so that when people come to your store they want to buy from you
your store they want to buy from you
your store they want to buy from you versus going to everybody else around
versus going to everybody else around
versus going to everybody else around you right so what is it that’s so
you right so what is it that’s so
you right so what is it that’s so special about you then you want to make
special about you then you want to make
special about you then you want to make sure you’re having a clear Operations
sure you’re having a clear Operations
sure you’re having a clear Operations plan together so how are you going to
plan together so how are you going to
plan together so how are you going to make things work right how are you going
make things work right how are you going
make things work right how are you going to source your furniture are you
to source your furniture are you
to source your furniture are you building it yourself are you bringing it
building it yourself are you bringing it
building it yourself are you bringing it in from other suppliers
in from other suppliers
in from other suppliers what’s your markup going to be
what’s your markup going to be
what’s your markup going to be what are all your costs going to be and
what are all your costs going to be and
what are all your costs going to be and you want to make sure that you have a
you want to make sure that you have a
you want to make sure that you have a sound financial plan even if it’s not
sound financial plan even if it’s not
sound financial plan even if it’s not for an investor just for yourself but
for an investor just for yourself but
for an investor just for yourself but you have to know that you can make money
you have to know that you can make money
you have to know that you can make money doing this and put together some
doing this and put together some
doing this and put together some projections for how much you think
projections for how much you think
projections for how much you think things are going to cost and how much
things are going to cost and how much
things are going to cost and how much you think things are going to how much
you think things are going to how much
you think things are going to how much you’re going to make and usually things
you’re going to make and usually things
you’re going to make and usually things cost a lot more than you think they are
cost a lot more than you think they are
cost a lot more than you think they are and you make a lot less than you think
and you make a lot less than you think
and you make a lot less than you think you’re going to especially in the first
you’re going to especially in the first
you’re going to especially in the first couple years so make sure there’s some
couple years so make sure there’s some
couple years so make sure there’s some buffer in there right if you’re you’re
buffer in there right if you’re you’re
buffer in there right if you’re you’re projecting it you’re barely going to
projecting it you’re barely going to
projecting it you’re barely going to make some money especially in the first
make some money especially in the first
make some money especially in the first couple years then you might want to you
couple years then you might want to you
couple years then you might want to you know rethink the business idea or find
know rethink the business idea or find
know rethink the business idea or find other ways that might help generate some
other ways that might help generate some
other ways that might help generate some income for the company because chances
income for the company because chances
income for the company because chances are it’s going to be a lot longer and a
are it’s going to be a lot longer and a
are it’s going to be a lot longer and a lot harder than you think it’s going to
lot harder than you think it’s going to
lot harder than you think it’s going to be at the beginning and that’s that’s
be at the beginning and that’s that’s
be at the beginning and that’s that’s part of the fun and the challenge of
part of the fun and the challenge of
part of the fun and the challenge of being an entrepreneur it’s very common
being an entrepreneur it’s very common
being an entrepreneur it’s very common so the plan if you’re writing for
so the plan if you’re writing for
so the plan if you’re writing for yourself just has to make sense the
yourself just has to make sense the
yourself just has to make sense the asset has to explain what it is that
asset has to explain what it is that
asset has to explain what it is that you’re doing how you’re going to run the
you’re doing how you’re going to run the
you’re doing how you’re going to run the company and the more planning you do up
company and the more planning you do up
company and the more planning you do up front the easier it’s going to be for
front the easier it’s going to be for
front the easier it’s going to be for you once you get into it because when
you once you get into it because when
you once you get into it because when you start your business and you open
you start your business and you open
you start your business and you open your furniture store you have costs that
your furniture store you have costs that
your furniture store you have costs that are coming out every month right you
are coming out every month right you
are coming out every month right you have your location you have you know
have your location you have you know
have your location you have you know staff you have to buy your furniture
staff you have to buy your furniture
staff you have to buy your furniture that’s real cost is coming out of your
that’s real cost is coming out of your
that’s real cost is coming out of your pocket every month so if you just start
pocket every month so if you just start
pocket every month so if you just start it up your chances of success are going
it up your chances of success are going
it up your chances of success are going to be a lot lower than if you take the
to be a lot lower than if you take the
to be a lot lower than if you take the time to really plan it out as much as
time to really plan it out as much as
time to really plan it out as much as you can you can’t planned everything
you can you can’t planned everything
you can you can’t planned everything without getting you know started but as
without getting you know started but as
without getting you know started but as much as you can you plan for it so that
much as you can you plan for it so that
much as you can you plan for it so that when you get started you’ve given
when you get started you’ve given
when you get started you’ve given yourself the best shot of success the
yourself the best shot of success the
yourself the best shot of success the other thing I really try to do on top of
other thing I really try to do on top of
other thing I really try to do on top of your business plan is going try to find
your business plan is going try to find
your business plan is going try to find somebody who has some experience in the
somebody who has some experience in the
somebody who has some experience in the furniture business and that’s some if
furniture business and that’s some if
furniture business and that’s some if your plan makes sense where I get their
your plan makes sense where I get their
your plan makes sense where I get their perspective on and ask them what they
perspective on and ask them what they
perspective on and ask them what they would do you can find somebody who’s
would do you can find somebody who’s
would do you can find somebody who’s retired you’re obviously not going to go
retired you’re obviously not going to go
retired you’re obviously not going to go up to your direct competition say hey is
up to your direct competition say hey is
up to your direct competition say hey is this a good idea or not but find
this a good idea or not but find
this a good idea or not but find somebody who has some experience in this
somebody who has some experience in this
somebody who has some experience in this business and just get their their
business and just get their their
business and just get their their thoughts their experience their wisdom
thoughts their experience their wisdom
thoughts their experience their wisdom on it and they’ll probably poke a few
on it and they’ll probably poke a few
on it and they’ll probably poke a few holes and give you some things that you
holes and give you some things that you
holes and give you some things that you hadn’t thought about before and a lot of
hadn’t thought about before and a lot of
hadn’t thought about before and a lot of entrepreneurs like helping other
entrepreneurs like helping other
entrepreneurs like helping other entrepreneurs if they really feel like
entrepreneurs if they really feel like
entrepreneurs if they really feel like you’re eager and keen and you’re going
you’re eager and keen and you’re going
you’re eager and keen and you’re going to take their advice people are often
to take their advice people are often
to take their advice people are often open to having
open to having
open to having a half an hour coffee with you to
a half an hour coffee with you to
a half an hour coffee with you to discuss and I give you some free advice
discuss and I give you some free advice
discuss and I give you some free advice so don’t don’t fear reaching out to
so don’t don’t fear reaching out to
so don’t don’t fear reaching out to people and getting their opinions so
people and getting their opinions so
people and getting their opinions so you’d write your plan make sure it makes
you’d write your plan make sure it makes
you’d write your plan make sure it makes sense if you’re going to be doing it for
sense if you’re going to be doing it for
sense if you’re going to be doing it for investors make sure you have that really
investors make sure you have that really
investors make sure you have that really strong executive summary management team
strong executive summary management team
strong executive summary management team and finances but then after it’s all
and finances but then after it’s all
and finances but then after it’s all done and before you launch go and try to
done and before you launch go and try to
done and before you launch go and try to find somebody who has a little bit more
find somebody who has a little bit more
find somebody who has a little bit more experience in the field and get their
experience in the field and get their
experience in the field and get their perspective on it just a quick read over
perspective on it just a quick read over
perspective on it just a quick read over the plan and see what advice they might
the plan and see what advice they might
the plan and see what advice they might have for you before you actually start
have for you before you actually start
have for you before you actually start and start spending a lot of money to
and start spending a lot of money to
and start spending a lot of money to build this thing up so hopefully that
build this thing up so hopefully that
build this thing up so hopefully that helps for those of you watching if you
helps for those of you watching if you
helps for those of you watching if you like the video please give it a thumbs
like the video please give it a thumbs
like the video please give it a thumbs up below
up below
up below makes want to do more for you and if you
makes want to do more for you and if you
makes want to do more for you and if you have a question about this video or you
have a question about this video or you
have a question about this video or you have a question about your own company
have a question about your own company
have a question about your own company or business I’d love to hear from you
or business I’d love to hear from you
or business I’d love to hear from you one of the comment under the video I
one of the comment under the video I
one of the comment under the video I always read those and I try to respond
always read those and I try to respond
always read those and I try to respond to everybody so thank you and we’ll see
to everybody so thank you and we’ll see
to everybody so thank you and we’ll see you on the next episode
”
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