Business Plans

Funny you should mention "Business Plan" because that topic came up in the shop the other day. The local crew of contractors, scrap metal dealers, crane rental guys, and other undesirables was hanging out and chewing the fat, and I happened to bring the subject up.

Here is how it went,


I was talking to this guy the other day about becoming an agent for his company. The guy isn't the owner but his "operations manager" and I think he had some other flunky title. He doesn't know it but he is losing his agent in this area come the first of the year.

So this flunky starts to talk down to me on the phone about how do I intend to make money. And telling me there isn't enough work in my area to warrant 2 agents. Then he tells me I'll have to make up a "business plan". I think this business plan thing was some kind of college boy thing to try and intimidate me. I laughed at him and told him what I thought of his "business plan request"


So anyway I am hanging around the shop with the boys and I bring up this "Busness plan" BS. Everybody laughs and we get to talking. Not one guy there has ever made up a business plan.

So I ask this one demo contractor (Huey) who's father was known to be a shrewd businessman, what his father (Evan) or my mentor (Ed) would have said if someone had asked them for a "business plan".

So anyway, Huey thinks for a minute and says "I need to talk to your boss"

Everybody breaks up laughing because they know it's true. if someone asks for something like that they are a mid level flunky who has no power to make decisions and you are wasting your valuable time talking to him.


Now my feelings about "Business Plans" aside, Bank of America has a pretty good business plan creator on their website.

Now I do know that if you want to borrow a big chunk of money, and have no track record, the banker's flunkies are not going to let you get anywhere without some BS "business plan".

But as far as some flunky in a suit at some small to mid sized trucking company asking for a "business plan" all they are doing is Zerking you off.

 

http://www.bankofamerica.com/smallb..._startingyourbusiness&context=rc_businessplan

I was on there today and found the link

 

Actually, Joe... Business plans are a very important part of getting financing for those that are trying to get funding from a bank or the SBA (Small Business Administration). The SBA won't even think of backing your loan without a business plan, and most banks won't, either.

Now, of course, most of this depends on the size of the loan. Many people can walk in and get a loan for a new tractor and/or trailer with a sizable down payment, and no need for a biz plan. But, for anyone who intends on starting a "fleet," with several pieces of equipment, chances are they're not going to give you over $100k without it. Banks want to see that you know what you're doing, and that you've put thought into your new business. The business plan can make that happen.

For those interested, here's a link to the SBA site on business plans:

http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/index.html

Another thing about the SBA, your chances are greater of getting a loan with their backing if you're a minority or other "special interest group." They'll give help to anyone, but there are specific programs designed for veterans, Native Americans, and such.

There are also SCORE (Senior Corps of Retired Executives) offices all over the country that will give you help on an individual basis. They also have seminars on a regular basis that provide help with how to write a biz plan.

SCORE:

http://www.score.org/index.html

 

I've had three big loans in my life.

the first required 25% down.

I've written 2 business plans for the bank.

The first business plan was for a loan to buy cattle, $90,000, never did cattle before. Didn't own any ground. Owned a years supply of feed and had a commitment letter from a land owner to rent me 750 acres.

took a month to get approved and got the loan paid off in three years.

The second business plan " more well written " was to buy a farm, $425,000, turned it in on friday and had a check on tuesday. took ten years to pay that one off.

Both of these plans were handed over to flunkies. Flunkies, in my opinion, are like answering machines being used to screen unwanted calls.

You go in and pitch your case, the guy asks for a business plan, and you hand them your outline for how you are going to pay them back no matter what and in the best case scenario make some profit for yourself also.

The point of the business plan is to convey your message to the board of directors. "I want "X" amount of dollars. This is what I am going to do with it and this is how you will be repaid."

This is how you will be repaid even if I get hurt, killed, thrown in jail...

They have limited resources and want to put their money with the guy that is most likely to succeed "SCRATCH RECORD NOISE"eeeeek!!!!!!!!!!!!!!

They want to put their money with the guy that will pay it back plus interest rather he makes a dime or not.

Business plans are pitching the deal, to the man, on paper. It makes sense and the better yours is versus the previous yo-yo's the better the chance you have of getting the money.

It's serious, it's not personal, it's business.

 

Yeah But when you aren't trying to borrow money, it is just some flunky's BS.

It really doesn't matter, I walked into the office of another trucking company and they were more than happy to do business with me. They even increased my cut of the money, no business plan involved.

Now to borrow money, it can be a different story, although not always.

The problem with "Business Plans" is they don't take into consideration things like who you are related to, who you grew up with, and who your close friends are.

Not to mention, there are things you know when you grew up around a place like Philly, and have spent all your life around construction and trucking. Stuff like who the deadbeats are, what work you aren't going to get because it belongs to someone else, who is expecting a favor in return for throwing some business your way, and a million other little "ins and outs" of the business.
.

That is why I think "business plans" are BS. They can't quantify a lot of important factors. There are a lot of things that just wouldn't look good if they were written on a sheet of paper.

 

When I bought my new truck (2007 Columbia) I had planned it several years earlier. I went to my bank (Allegiance Credit Union, OKC) and told them what I wanted to do (buy a truck) and they told me of their requirements. I then leased a truck with Prime and using their business statements (very detailed, cost $15 a week), I was able to show the bank a history of my being able to make 'the business' work (but with a lease truck from Prime). So, all that was left for the bank to see was can I make my house payments etc. from what I made at Prime, and the bottom line is then just the numbers adding up (so long as I leased my new truck on with Prime....same revenue stream for continuity, no time to change carriers). Now, I have my own truck, doing $1,500 a month better than last year and can take the truck to whomever I wish (if so inclined). But the dealmaker was that the bank was loaning me money on a proven, not theoretical business plan. I was doing what they wanted/needed from day one, to purchase day (about 16 months). I am talking to them now about getting my own trailer. The deal with Prime (leasing their truck) not only gave the bank the numbers that they needed, it gave me the confidence that I knew what I was doing. Some don't make it at Prime; it's a walk-a-way lease, and alot do. But better to walk away and go back to company driving than get in over your head and go bankrupt. Anyway, this is how I did it, and you can find a way if you keep trying. Best of luck to you.

 

heres a link to the tread that contains my bp....you will need microsoft word to open it

http://www.thetruckersreport.com/tr...or/23807-wegner-s-trucking-llc-sample-bp.html

this is almost the one i turned into the bank, the only thing that isnt like what i turned into the bank is the leased to company's name...it should be davis not landstar

 

I know this thread is old, but I had to comment on the way Slick50 went about getting his financing secured. That seems to be a smart way of going about it.

R/

Frat

 

Having been self employed for a number of years now, I can tell you first hand a business plan is a good idea. In fact, I believe a business plan shoudl be the starting point for ANY new business venture. WHO will be viewing your business plan will determine how you make editorial changes for any given presentation of your business plan, but the one thing I've consistently found is when my business plan is used and geared toward where I want to go without other WHO's, it helps keep me on track. The point is, we all get sidetracked from time to time, but if you commit your goals to a business plan and use it to remember or remind you where you wanted to go when you started, it can be a very, very valuable tool. Where we ultimately decide to go and what avenues we pursue to get there may change with time as everything does, but revising your plan to adapt to changing environments will prove beneficial.

Now, you may say, I don't need to remind myself. Okay, maybe so, but when you get bogged down for a time in set up, organization, management, and execution of your plan, you may still find it nice to be able to go back and review just why you did this to start with. Just my thoughts. It works for me.