Business Plan Example for Barn-House Events

A.    Recordkeeping system

Barn-House Events will use the electronic business system since it will improve the efficiency of business operations especially in the management of customer data, suppliers, and data entry of accounting data. Electronic systems will ensure that the information in the company is protected and safe for future use. Some of the software used is spreadsheets, accounting tool, and email. Emails are especially specific to the events industry since there is constant communication between the clients and the business.

B. Types of bank accounts

Barn-House Events will have three types of bank accounts. The first bank account will be for the daily sales and payment of bills, and as such, it will easy to track the number of sales and expenses in the business. The second bank account will be for companys investments for instance purchase of shares, and other assets for the company. To sum up, the third bank account will hold the savings of the company which will be critical in safeguarding the company for future economic constraints.

8.0 Funding Request and Exit Strategy

1. Amount and Type of Funds Requested

A. Total Funds

Barn-House Events is requesting a sum of $600000 as the startup funds for the business. The source of the funds is personal savings, family, and friends. Two partners will each contribute $300000. The funds will go a long way to ensure that the business will grow well into the future.

B. Debt-Financing

Debt-financing is an important source of finance for the business since there are periods where the events are many, and consequently, it would be necessary for the company borrows funds from a financial institution. Therefore, for proper budget planning, the business can utilize debts from a recognized financial institution to streamline some of their operations.

C. Equity-Financing and Exit Plan

With the planned investment as well as other additional funds, the value of the company is roughly $1000000. Therefore, with that as a guide, any investor will have to contribute capital about the initial value of the investment. Equity-financing will also go a long way in helping the business to grow since an additional shareholder will provide funds which would help the business to expand its activities. Alternatively, with its value at $1000000, then the business would be ready in case there is an investor who is willing to take full ownership of the business. For the business owner, the value would be a great exit plan since there will be a substantial profit out of the deal.

2.

A. Merger and Acquisition

The investors payment would depend on which method of financing did they apply in the business. In essence, the business will evaluate how they will be paid; for instance, for investors who provided loans to the business, then the investors will be paid using straight schedule. Alternatively, those investors who have equity in the business, then they will be paid depending on the percentage of ownership in the business using their preferred rate. However, such situation will happen when the business mergers with another business or when it is acquired by a bigger business

B. Time

The merger or acquisition will happen when the business has already acquired a significant amount of market share in the area of operation. At this point, the business would be keen to continue to increase its business by forming partnership with other events companies who will further increase their business network

C. Business Franchise

The business will also franchise its business to other areas in the country. Franchising is important since it will help in strengthening its brand to other consumers while simultaneously providing additional income as result of the commission.

3. Milestones

Timeline of Expectations

Task July Aug Sep Oct Nov

Finalize Planning Loan Application Finalize Suppliers Plan Office and purchase of facilities Marketing of the services offered