Business Plan for Start-Up Car Wash

[bigdaddyvoges]

Before the bank will officially sign off on our loan, we need to produce a business plan so the bank can review it and have it on file. Does anyone have a template out there that they could forward on to me? Or if you have a website I can use, I would greatly appreciate it. Thanks.

Bob

 

[Waxman]

You went for a loan without a business plan!? Yikes. That seems backwards to me. I would think that if you googled 'business plan template' you'd find a myriad of links...

http://www.businessplanpro.com/?9gt...g=1028437662&gclid=CN3jzuHRpp0CFU1M5QodwCxe8w

http://www.biztree.com/?cm_source=g...lan template&gclid=CKeZg-_Rpp0CFeRL5Qod4Vck2A

http://www.growthink.com/products/t...o=111&cpca=Growthink+Template+-+Search2&cpag=[business_plan_template-NEW]&kw=business%20plan%20template&gclid=COr5ov7Rpp0CFU1M5QodwCxe8w

 

[bigleo48]

Yes, that's backwards. To me a BP is an essential part of the due diligence. Putting it on paper forces you to think it out more thoroughly and completely. When we had our first meeting with the bank, that was the first thing they wanted to see...they went directly to the numbers and a review team at head office looked at it.

Big

 

[bigdaddyvoges]

Its a long story as to why we went in without one, but the situation was our father-in-law was going to borrow the funds we needed against the building he currently owns. He thought he could just borrow against the equity, but then the bank wanted a break down of what the $80K was going to be used for, so now we have to give him our car wash plan. Thanks for the help waxman.

 

[bigdaddyvoges]

I already have most of the plan done. I have all financials and projections (good, better, best) complete for this. I just need a few additional pieces to wrap this puppy up and put it together correctly.

 

[pitzerwm]

There is one in our Library, under PPresentations.

 

[Waxman]

I already have most of the plan done. I have all financials and projections (good, better, best) complete for this. I just need a few additional pieces to wrap this puppy up and put it together correctly.

Don't forget 'Worst Case Scenario" in your cash flow projections. The bank wants you to have a contingency plan in case you build and then right after that the economy tanks or some other unforseen issue(s) pop up. That is what happened to me, by the way.

 

[bigdaddyvoges]

Waxman,

Will do, thanks for the input. Now I just have to add a few additional financials and some commentary.

Bob

 

[bigleo48]

One of the most important parts that "make you think" is the "what ifs".

Like what if another wash gets build close by, what if there is a drought, what if they rebuilt the street in front of you (including all the sewer and water lines) and you are under construction for 4 months? It's not the kind of stuff you want to think about, but stepping outside the box and taking a big picture look can help you make small changes that have big effects.

Big

 

[I.B. Washincars]

I had some pretty big "What ifs" happen to me.

Back in 2001 we bought a run down wash and did an extensive rehab. Of course we borrowed a huge sum of money which we knew would be adequate. Just as everyone we went over, and by about 50K. We knew that we could borrow more, but felt we could squeak by without doing so. We got the place all done at the end of August and were prepared for the money to start rolling in. Well, we all know what happened on 9-11-01. The business at all of the washes tanked. It was a looonnnggg lean fall and winter. I went without pay for a few months (I don't have another job), but made it through with everyone else none the wiser.

Fast forward to spring 2005. We did a large expansion at another wash and spent nearly all of our cash on hand in addition to what was borrowed. August 2005 was when hurricane Katrina hit and sent the country into another tizzy. That and bad weather sent the business into the tank again. Once again I did a repeat of the fall of 2001. Once again though, I didn't have to go hang my long face in the window at the bank.

Just be aware, $h!+ happens!

 

[bigdaddyvoges]

I definitely agree Leo and IB. The problem we are coming into now is do we pitch this idea to banks as a new business needing "start-up" funds to "purchase" the building in question, or do we try another lender to do a commercial refinance and cash-out?

Here are the facts of the situation in question.
Building Value = $450,000
Current Money Owed = $140,000
Money Needed = $100,000
Total Owed Against Building = $240,000
53.3% ending LTV ratio
Location = Chicago

Since we don't have a ton of money for a down payment I don't think us buying the building from our father-in-law will work, which is why we are pushing for the refinance and cash out option. What does everyone think? Thanks.

Bob