When obtaining a business loan for a pawn shop or related pawn brokering business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your pawn shop, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.
When obtaining a business loan for a pawn shop, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:
Pawn Shop, Inc. (“the Company”) is seeking a business loan of $ 100,000 in order to launch the operations of a pawn brokering business that will be based in San Francisco California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.
In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:
The Pawn Shop will provide general pawn brokering services to the general public, which includes providing small collateral loans to individuals based on the value of the property that they bring into the Company’s store. The business will specialize in making loans that are specific to jewelry.
Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:
At this time, Mr. Doe is seeking a conventional business loan in the amount of $ 100,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.
Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Pawn Shop to profitability while ensuring that the business loan’s payments and its covenants are met at all times.
The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance’s of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.
One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:
The Pawn Shop will continue to expand through organic means including increasing the Company’s advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional locations after the third year of operations.
In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:
Pawn Shop Store Establishment – $ 50,000
Inventory – $ 10,000
Working capital – $ 40,000
In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:
Mr. Doe will own 100% of the pawn shop.
When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:
Mr. Doe will be the sole director of Pawn Shop, Inc.
Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell the Pawn Shop to a third party for a significant earnings multiple. Pawn Shops usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.
When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:
The Pawn Shop will specialize in making small collateral loans to individuals that will last two weeks. On each item brought in by the customer, the Company will grant a loan equal to 10% to 20% of the saleable value of the item. The customer, should they return to receive their item back, will be required to pay back the loan amount plus a fee equal to 20% of the loan amount. On every item accepted for pawn brokering by the Company, the business will follow all applicable state laws regarding the acceptance and handling of merchandise. Additionally, the business will generate secondary revenues among people that do not return for their merchandise. In this event, the Pawn Shop will resell the item to the general public or to a used goods wholesaler.
It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today’s environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:
The current economy has remained difficult over the past few years. However, Pawn Shops typically operate with a strong state of economy stability as these lenders are often used as a last resort among borrowers that are in need of quick loans or do not have the ability to sell the merchandise that they can use as collateral. As such, the business should be able to remain profitable and cash flow positive in any economic environment.
In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:
The Pawn Shop industry, despite the current economy climate, has remained strong despite the fact the general economy has suffered. Within the United States, there are 20,000 businesses that operate in a pawn brokering capacity. On a yearly basis, these businesses generate revenues of $ 6 billion and provide jobs to more than 100,000 people. The total payrolls paid by the pawn shop industry has exceeded $ 1.4 billion on an annualized basis over the past five years.
At this time, there is currently no pending legislation or changes to the economy that are expected to change the nature of how the Pawn Shop Industry conducts business.
In this section of the business loan application and business plan analysis, you should focus on the demographics of your localized market (or national market if applicable). This section should discuss how many people live in your area, the anticipated number of people that would require the use of pawn shops, the median household income of people living in the area, poverty line statistics, and any applicable laws that would apply to your operation of a pawn shop.
Many people that are developing new businesses or expanding existing businesses often feel that their business does not have any competition or limited competition at best. However, this is almost never the case. Unless you have re-invented the wheel – you will have competition. When applying for a business loan, you should clearly showcase your competition in your business plan. This is especially important to your banker as they will be able to gauge your ability to be successful in your targeted market. Many business loan underwriters will aggressively confirm that competitive nature of your local market and your local industry.
When drafting this section of the plan you should heavily discuss the competitive advantages that you intend to have over your competition.
In addition to all of the above information that we have covered, your business loan officer is also going to want to know how you intend to market your business to the general public. Most people do not quite understand how to effectively market their business outside of prominent signage or flyer distribution. When applying for a business loan (again in this difficult lending climate), your banker is going to want to see that you have a clear methodology of how you intend to market your services or products to the general public. In this section of the business plan – we will overview how to showcase your services/products to the general public.
The Pawn Shop will place prominent signage on the facility to draw a significant amount of foot traffic.
The business will maintain listings in the Yellow Books.
The Pawn Shop will also maintain an internet website that showcases the Company’s operations, hours of operation, and relevant contact information.
Additionally, you will be required to further drill down (in your business plan) how you intend to implement your strategies when you launch or expand your business’s operations. In this section of the business loan and business plan documents, you should amplify the bullet points from the section above. For instance:
The Pawn Shop intends to use a number of strategies that will create instant traffic and customer flow to the Company’s location. These strategies include not only using prominent facility and road signage, but also distributing flyers to people that fall intot he Company’s targeted demographics. The business will also regularly take out advertisements in localized newspapers that showcase the Company’s hours of operations, pawn shop and pawn brokering services, and specials that are occurring within the store on a regular basis.
The business will also maintain a highly informative website that showcases the Pawn Shop’s services, its hours of operation, collateral and lending information, licensure information, and other relevant information in regards to the Company’s services. This website will be listed on major search engines such as Google as many people now use the internet to locate local businesses.
Beyond any other part of your business loan application or business plan, the financials section of these documents are what matters most when applying for a business loan or any other type of credit facility. Ultimately, this section of the business plan showcases not only what your anticipated profitability will be, but also how you intend to repay the funds that you have borrowed through your business financing facility. An example of how this section is structure is as follows:
Pawn Shop, Inc. will have an average annual growth rate of 10% per year.
Mr. Doe will acquire $ 100,000 through a business loan in order to launch the operations of the business.
Now it is time to showcase how you intend to repay your loan, generate a profit, and increase the book value of your business over a three to five year period. BusinessPlansForLoan.com has developed an easy to use financial model that you can use when drafting out the financial model for your business plan and business loan application. Through your business loan application, you will be required to have the following:
Profit and Loss Statement for your Pawn Shop
Cash Flow Analysis for the Pawn Shop
Balance Sheet for the Pawn Shop
Business Loan Amortization Tables
BusinessPlansForLoan.com is a specialty website that provides content that focuses on the needs of people seeking business loans for new and existing businesses. We encourage you to visit our website if you are seeking a Business Plan for a Loan .
Watch the video related to business plan
Business plan Guide can found here www.StartMeUpRyerson.com Writing a business plan can be challenging. In this episode of StartmeUp Videos, Dr. Steven Gedeon talks about the challenges of writing a business plan as well as the best practices for writing different sections of the business plan, how should you write the financial section, executive summery, how to create a marketing plan etc How to start a business ? How to write a business plan for a small business ? How to complete the executive summery ? What is a business model? Where should I start ? is it simple ? How to prepare a business plan proposal visit our website to find out more startmeupryerson.com You can find free tutorials, business plan layouts and guides for writing a business plan on our website.
I love sushi and every time I travel to the Philippines I go out for sushi. One of my favorite places is in Greenbelt in Makati its called "Haiku" and they are good and doing well. You need to find a good location with an upper class and tourists in Makati or Global City area for this business to succeed. Remember, your average sushi customer would have already acquired a taste for fresh and good quality seafood, so you have to buy the freshest and best quality fish available even if you have to import it from another country. Providing a first quality fresh fish is not cheap so you have to work on a pricing structure that you see fit for that area you will be in. Also you should consider going around to other establishments, try the food, check out the prices and see how you can improve on it to come up with something unique and different without compromising.
Respond to this video… a good opinion. However, from another? perspective, it is vital that a thorough yet concise business plan addressing all aspects of a venture be drafted for VC’s. In other words, if you want big money- the more precise the better. An executive summary style plan just might not get you funded.
What are your thoughts?
If you come from a restaurant background, how can you not know what you need?
Second, if you have to ask, you're not ready. Opening a business will end in disaster.
Very nice information shared here, It provided nice insight into business plan.
If only it were this simple! I work from home and actually do make good money but I work hard. If anyone is interested in a REAL opportunity to make good money by working hard then join my team! Just email me: foster_236@hotmail.com or skype me for a chat on: anthony62155.
This man talks to much… get to the meat and potatos, Mr one size fits all.. I bet all dont fit you..
to move on
I wish you luck in your search, but you should know that you have given enough personal information to have someone steal your identity! For your own protection, I would suggest you delete the question and provide it only to seriously interested parties.
A lot of information here and all very good but I didn’t have time to watch it all – I’ll be back when I have some free time. I completely agree with your leap of faith – although I think it’s easier to set short-term goals rather than writing a massive business plan. I feel the need to do everything in my company although I realise that it will have detrimental effects on what I actually ‘enjoy’ doing. What would be your view on that?
love it! got to do a speech about The Business Plan tomorrow, I wish it come out this good..
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I feel like they underemphasize the number of people who have a ridiculous amount of potential. For example, they won’t even look at the people who don’t have college degrees. Sure, most people will agree that they should take college grads over high school dropouts. They also don’t realize that there really is no down side to giving them a shot. If they succeed, the people that invested faith in them get a huge amount of credit- if not, they’re high school dropouts. Take a risk that’s worth it.
The sentence structure is good but there are some grammar mistakes. I put quotation marks around the changes I made:
Over the past five years, working as a chef at "a" fine dining restaurant in New York and "as" a manager "of a" restaurant company in Korea, I have built a conceptual understanding of the restaurant industry "through" practical and multinational experience. However"," I realized the narrow range of restaurant business, particularly as compared with international restaurant group"s" such as XXXX"," which is "a" Japanese restaurant brand that offer"s" all kind"s" of food service"," from sushi restaurants on world-cruise ships to fine dining restaurants at their luxurious hotels all over the world. "Though the Korean" government tried to duplicate the success in the food industry during the past few years under the stewardship of government, there remains a long way to go for "any" Korean cuisine or Korean restaurant brand to take a firm root abroad "in the way that" food from Japan, China "and" Mexico "has."
This realization has prompted me to pursue a career in "the" restaurant industry, with the ultimate goal of establishing a globalized Korean restaurant company competing alongside XXXX "and" XXXX. I believe that the two years in XXXX education will provide me "with" more professional knowledge "of the" managerial scope needed to steer my future firm than working "in" the restaurant industry"." "The" teamwork in classes and feedback from peers who come from diverse cultur"al" and professional background"s," "along with the" innovative MBA curriculum which focuses "on" "learning to" analyze and solve the world’s current issue"s." <– I didn't understand the last few sentences of this paragraph, so you might want to clarify it in the final draft. I'm not sure if my editing is accurate since I didn't understand the original meaning.
After completing my MBA, I will work in "a" consulting firm or investment compan"y" as hospitality consultant. I plan to set up my own specialization by combining my previous restaurant experience and study of MBA. Once "I gain" enough experience as an employee, "I plan to" set up my own consulting company and exercise my study at XXXX, and "then" it’s time to test my ability as a professional manager to launch the globalized Korean cuisine restaurant group.
You can’t convince them. It is their decision not yours. When you’re old enough to move out and take care of yourself then you make the decisions. I did it when I was 17.
Juliet the culinarian
Juliet the epicure
there is a co by name Datasisar. google datasisar to get thier website, they seems to have a good solution offerings for start up companies for most basic IT needs such as website, e-mail, business apps all working in the cloud.
I am a restaurant broker in Atlanta GA. First off, let me say that Asian restaurants, well run, can be very profitable! There may be many of them, but usually Asian and Mexican are restaurants that a group of people can agree on, they are universally popular in most areas.
We work with people who want to buy or sell a restaurant, but even if you only want to lease a space, we would be glad to help you.
Here are some things to think about:
Q: Why should I buy an existing restaurant instead of opening a new one?
A: Existing restaurants have track records; you can verify the need for the product or service in that particular location. Fiancial records and other information about the business are available. Most sellers will agree to train a new owner and many will provide financing. These last two considerations are important because finding someone to teach you the intricacies of running a restaurant – and is willing to finance the sale – can make the difference between success and failure.
Q: What is the real reason people go into business for themselves?
A: Surveys report consistent answers to that question, and the answers are often in identical order. Results of a typical survey, in order of importance, are listed below:
Live my dream
Be my own boss
Use my management skills and my education
Grow a business from concept to reality
Create wealth
Interestingly, money is seldom the prime motivator.
Q: How are restaurants priced?
A: Prospective sellers often ask a broker to suggest a selling price, even though they may already have an asking price in mind. There's no answer to this question. A restaurant broker will first determine the fair market value before attempting to suggest a selling price. And, that involves a thorough review of all financial information, reviewing the lease, inspecting the premises, and factoring in market conditions and the seller's estimate. Once these steps are completed, the broker will suggest a recommended price range – from low to high. Higher cash demands usually bring a lower selling price; smaller cash requirements generally command a higher price. Seller financing and terms of sale are often more important in closing a sale than the actual selling price.
Q: What should I look for?
A: Look for a business you feel comfortable in and would be proud to own and operate. More importantly, look for one you can afford. The business should give you adequate income to pay your bills – and provide a comfortable living.
You should also look for a restaurant that can be improved and made more productive and profitable. Brokers can cite many examples of restaurants that were improved and thrived under a new owner.
Q: What does it take to be successful?
A: You must have adequate capital to buy the restaurant and to make necessary improvements. Maintaining sufficient reserves to offset a slow start is critical, as is willing-ness to work hard and put in long hours. A restarant owner must have – or develop – strong managerial skills. Owners of any small business must be doers, especially if that small business is a restarant.
There are many people who can give you advice as well.
Our website is http://www.atlantarex.com , we are Atlanta Restaurant Exchange located in Midtown Atlanta. There are links on our website to local authorities where you can find information on what it takes to open a restaurant (most of the regulations are nationwide, so Atlanta or other cities, this info is helpful)
I can assure you that taking over an existing restaurant is much easier than creating one from the ground up.
I actually sold my restaurant in Charlotte North Carolina (THE WORST CITY TO OPEN A RESTAURANT) and when I returned to the restaurant brokerage business, I fell in love with Atlanta, especially the Buckhead area.
I hope I have provided you with some good information. I have been in the restaurant business for more than 30 years, and I have a love and passion for the business. I would be happy to give you any tips, and guidance when you are ready to open your place (even if you don't use me as a broker, I love to talk about the business)
The small business administration http://www.sba.gov/ is a great place to search for answers on starting your own business.
Thanks
Doug
http://www.atlantarex.com
You are on the right track. Everything you have looks very impressive. I was admitted with a 3.9 GPA.
Some advice for you:
SATs (or ACTs. I took those) count a lot. You must excel on those. SAT 2s are equally as important. If you can, take Math 2 and a language.
Wharton stress three things: leadership, international experience/language, and business experience. At the orientation, the dean speaks to all the admitted students. In an effort to show off the abilities of the new class, she asks the students to raise thier hands if they know a second language. Then she asks the students to raise their hands if they have ever started their own business venture. Lastly, she asks the students to raise their hands if they have ever led or organized something. Every student is expected to and the majority of students do raise their hands. These are the wharton standards.
When writing your resume, make it all about leadership. Stress the National Young Leadership Conference. That's great to have. When you actually write your resume focus on using words that show leadership, like head, led, ran, organized. Those will jump out. For example, instead of writing treasurer, write head of the treasury. It makes all the difference. Try to make your job as a cashier a learning experience about how to manage money and run the restuarant.
Upenn admissions pays close attention to SAT scores, essays, and resume, so make sure to pay them all equal attention.
You are definitely on the right track. You have the tools to make your application look very impressive. Good luck!