A Christmas lighting business plan isn't as joyful to assemble as the holiday season itself, but you don't have to agonize over the document too much. The most important elements to include are statistics that show the market opportunity and a concise pro forma that makes it look like it can be a profitable venture during the life of your loan and beyond. As with any bank-ready plan subject to SBA requirements, the financial projections need to include a full revenue forecast, estimated cash flow, the profit and loss, break-even, a balance sheet, and a monthly view of Year One post-funding. The market analysis, for a seasonal concept like Christmas lighting, should look at the amount of money the average US household dedicates to decorations each year – this is a great starting point for making the argument that you have an appealing market in front of you. Beyond that, the plan should answer these questions:
• Do you manufacture lights for mass sale, or create special displays on commission?
• What are your target regions for sales?
• Do you sell direct to consumer or wholesale (i.e., B2C or B2B)?
• What staffing levels do you need to maintain?
• What competitive forces do you content with?
• What amount of money will you get, ideally?
The funding request, for investors, should be coupled with a proposition statement showing what the share they'd enjoy might be, even if you only put it out there as a starting point for later negotiations. An exit strategy can also be prudent, depending on your audience. If you only need a bank loan or an expanded line of credit, you can simply show in the pro forma that you will be able to pay off the loan on time. Your plan can also benefit from illustrations/pictures, a description of the market need you meet, the competitive advantages you wield, and the marketing strategies you are most likely to put in place. Need help with the research, or just putting it all together? Call MasterPlans today. Our team of great writers and modelers will make the entire plan for you! (877) 453-2011.
