Statement of Purpose

B-I. Cover Sheet

This may seem like an obvious item for a business plan but you would be surprised how many individuals leave it off.

Example:

                                BUSINESS PLAN

                                    FOR

                           THE SUCCESSFUL COMPANY,

                            YOUR-TOWN, YOUR-STATE





                            YOUR FIRST-LAST NAME
                                 PRESIDENT
                               (000) 000-0000

Statement of Purpose for Business Plan

A business plan should start with a simple statement of purpose. The statement should describe:

• the amount and type of loan required
• the amount of money you are putting in (cash or equity)
• the period for which the loan will be outstanding
• the purpose of the loan
• the impact the loan and purpose will have on the company
• the collateral that will be used to support the loan

For example:

The Successful Company is seeking a loan of $100,000, in the terms of debt financing, for 10 years. This would be used to purchase equipment and inventory, construct a new building, maintain necessary cash reserves, and provide adequate working capital. We want to successfully launch a manufacturing and wholesale operations. This loan, together with an equity cash investment of $25,000 and/or $30,000 worth of collateral in (name it), will be sufficient to finance the business so it can operate as a viable profitable enterprise.

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