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Write a business plan as a first step to small business success, securing loans
By Ted Albenesius
Contributing Writer
It seems simple: Decide where you want to go; then follow the map to get there. This simple concept is the cornerstone of small business success. For the entrepreneur, that map to success is the business plan.
The business plan is the entrepreneur’s idea stated in clear terms in writing. It details the purpose of the business, both for the entrepreneur and for potential investors or lenders.
The business plan addresses how the entrepreneur plans to do business and exactly how money will be used to finance and operate the business, provide an owner’s salary and define the net profit resulting from the enterprise.
Anyone with the dream of owning a small business should have a business plan ready in order to obtain a bank loan or a Small Business Administration guaranteed loan to help start the business.
Banks generally require the business plan and information about start-up capital the entrepreneur is bringing to the business.
The more clear and thorough the business plan, the better an entrepreneur’s chances for obtaining credit.
Local experience
Julian Buxton III, a Charleston native, parlayed his history degree from Princeton University into the backbone of his small business.
Buxton published a book entitled The Ghosts of Charleston, a tourist-oriented publication that sold 40,000 copies. He also founded Tour Charleston LLC, which offers a variety of walking tours detailing Charleston’s ghosts, pirates and the city’s history.
In August 2004, while writing his second book, Buxton began planning to open Buxton’s East Bay Theatre in downtown Charleston.
Looking for advice about employee compensation and other human resources questions, he contacted the Service Corps of Retired Executives where he met Ram Dachepalli.
Dachepalli encouraged Buxton to write a business plan to facilitate his theater idea. After preparing his business plan, Buxton succeeded in applying for and receiving a SBA participation bank loan to fund his endeavor.
Currently, Buxton is planning to diversify his business again, this time by opening a retail shop adjacent to his theater where he will offer Charleston mementoes and merchandise. For more information, visit www.tourcharleston.com.
Buxton continues to call on his SCORE counselor occasionally with business questions and for advice.
In addition to counseling, SCORE offers low-cost workshops and seminars on a variety of business topics ranging from how to start a business to developing a succession plan.
If you are thinking about starting your own new business or if you have recently started a small business, visit the local SCORE office at 2750 Speissegger Drive in North Charleston. Hours are 10 a.m. to 2 p.m. weekdays or visit the Web site at www.score285.org.
If you would you like to become a SCORE counselor, call 805-3068.
Ted Albenesius is a retired Charleston businessman and past chairman of the local SCORE chapter.
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