The business plan for lumber sales should address the company's ability to generate steady revenues measured against the expenses that businesses in this sector commonly encounter. If your lumber yard is already in business, you should be able to provide a three year past performance chart (a combination of balance sheet and profit and loss statements) showing your growth since inception. If your business is a start-up, focus on the use of funds table and demonstrate that you know how your capital backing would be applied category-by-category to make the business profitable as early on as possible. In addition to a break-even point and loan payback scenario, your business plan for lumber sales should provide pro forma estimates of revenue, cash flow, balance sheet, P&L, and a sensitivity analysis showing the impact of weaker (or stronger) than expected sales. Also, you should address these topics:
• What are your customer acquisition methods?
• What are the market needs in your area?
• How many competitors do you face?
• Can you define the state of the industry generally?
• Outline your personnel needs for 3-5 years.
• If applicable, do you have an exit strategy?
The business plan should also show what share you would relinquish to an investor at start-up (if you require privately placed capital), complete with a working ROI calculation. Be prepared to negotiate with your funders. In either scenario, your plan will function at its best if it correctly anticipates common questions in the industry and shows a workable roadmap for expansion, even in a shaky economic climate. This could start with something as simple as your product description, so don't cut corners on defining what you offer and the items you'll sell. Need help? MasterPlans is the industry's leading business plan writing company, and we can help you get your plan finished. With more than 8,000 engagements completed to date, we can deliver a funding-ready document to you in record time. Call 877-453-2011 today!
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