Note for Users: This project and its content were completed in 1997. At this time, there are no existing plans to update the materials.
4. Table of Contents: A single page showing major topics and page references.
5. Description of the Business:
Answer as many of the following questions as are appropriate: (SBA)
A. What are the specific goals aimed at overall purposes?
- For growth of sales volume?
- For profit before taxes?
- For compensation for your effort and the time you will commit?
- For personal growth and education? (VEM, pg. 19)
B. What business are you in?
- Type of business: primarily merchandising, manufacturing,
or service?
- What is the nature of the product(s) or service(s)?
- What will be special about your business?
C. What market do you intend to serve? What is the total market and what is your expected share?
D. How can you serve the market better than your competition? (SBA)
- What makes your product/service unique?
- Why will customers purchase the products from you? (VEM, pg. 33)
E. Present status of business: start-up, expansion of going concern, or takeover of an existing business?
F. If you will be doing any contract work, what are the terms? Reference any firm contract and include it as a supporting document.
G. Do you have letters of intent from prospective suppliers? Note: If yours will be a seasonal business, make sure the seasonality is reflected in your narrative and financial projections with appropriate footnotes.
H. What is the history of the business? (SBA)
- When was this business founded and by whom?
- What have been key points of business growth?
- What have been the profitability centers and patterns? (VEM, pg. 21)
I. Why does the owner wish to sell at this time?
J. If the business is going downhill, why? How can it turn around?
K. How will your management make the business more profitable?
L. What changes do you plan to make in the business?
M. What is the purchase price formula, i.e., how much are they asking for the business? Give breakdown for building, improvements, inventory, and goodwill. (SBA)
Comments to: crs@uvm.edu Reviewed on xx/xx/97