skycop806 0 #1 May 21, 2005 I don't know where to post this, so I thought I'd go general.. I'm looking for info from DZO's on writing a business plan related to purchasing a DZ. Some of the software I've seen has pre-made templates, although none are skydiving related. Anyone have a business plan already written that they would be willing to share for editing? (I'd negotiate a small fee to offset your time in development) Or, any suggestions on where I could find such an animal? Quote Share this post Link to post Share on other sites
SkiD_PL8 0 #2 May 21, 2005 Why not write your own business plan? It is a great tool when starting or acquiring a business. I know of at least two businesses that run directly off of their business plan. Speak with someone from the SBA in your area they will be able to help you out. Greenie in training. Quote Share this post Link to post Share on other sites
skycop806 0 #3 May 21, 2005 Well, I could write one from scratch...there is software out there that helps... But if I took one written and applied it to my situation, it would cut down on some time Quote Share this post Link to post Share on other sites
SkiD_PL8 0 #4 May 21, 2005 A business plan is very unique to your particular business in your particular area. Plan on it taking at least a month to gather all of the information you need and put it on paper. If you do not have a business degree and have no previous experience starting your own business I can't stress enough how much hell speaking with your local SBA would help. Greenie in training. Quote Share this post Link to post Share on other sites
gemini 0 #5 May 21, 2005 I am not very fond of canned business plans. What I did was start with all the historical financial information that was available and the breakdown of revenues (tandems, students, video, fun jumpers, gear, etc.). Then prepare a page of assumptions including a growth rate based on historicals, discounts for rain days and other bad weather typical in your area, cost of aircraft, rising costs for fuel. Then estimate from the historical actuals through the assumptions to get forecast for this year and projections for next five years. The business financials include a balance sheet (assets shown at cost & liabilities), income statement (revenues & expenses) and a cash flow statement where the actual cash flow ties to the bank balances. You must have all three statements. Include a personal financial statement, your experience in running a business and that of any partners. The personal financials are a combination of a balance sheet containing your personal assets and debts, and a cash flow statement showing your gross income. The assets should be shown at fair market values. Banks lean heavily on financial information and your prior business experience and really do not rely on a lot of verbage that cannot be supported. If you update the plan each year for the actuals and revise the projections accordingly you develop a valuable tool for the business. I use Excel exclusively, but take data from JumpRun. I don't think it is very difficult to do, but I have done them for 30 year so really not a fair assessment! Good luck. Let me know if I can help. Blues, Blue skies, Jim Quote Share this post Link to post Share on other sites
SkiD_PL8 0 #6 May 21, 2005 There is a wealth of information in that post and I am sure he has a lot more to share. Greenie in training. Quote Share this post Link to post Share on other sites
chutem 0 #7 May 21, 2005 That's all good stuff!!!!! We do it very similar to that with our boat rental and repair buiss. How do the "banks" react to the idea of a skydiving buiss.? Do they treat it like other recreation, or do they give you "that look" when they hear skydiving? James Quote Share this post Link to post Share on other sites
tdog 0 #8 May 22, 2005 Well, I have owned a few businesses in my short life. Currently, one business has about 250 employees... So I have been there, done that... And I have never written a business plan, and I have never ever, ever, ever, used software to plug and chug some boilerplate document out… Ok, well that is a lie... My business plans are for me. I research the hell out of stuff. I write down my plans, my vision, my goals for growth, the stuff I will need. I put together budgets both with depreciating assets, and with expensing assets when purchased. Both perspectives give you ideas on what cash flow might look like and what todays on paper profit versus actual in the pocket profit might be.... The documents will look like a mess to someone else, but to me, it is just crunching data. When it is time to deal with the banks, that business plan looks 100% different. I am trying to SELL MYSELF to the bank as a good risk... That is a marketing document, not a business plan. ;-) My internal business plans are much more pessimistic, "how much can I lose if I f*** this up?" "How many customers need to walk thru the door to break even?" "What are my fixed expenses and what are my dynamic per unit sold expenses?" “Who is my competition?” “Do I need to steal customers from my competition, or are their new customers to be had?” If you put something together, PM me for my e-mail address and I can give you my two cents.... I have done this for many friends who have started businesses too. Not to say I am an expert, just someone who has been there before. The first document I have always started with is a cash basis P&L… Can this business make money? Once the answer is yes, then, “How do I find the cash to start it” is document number two. Quote Share this post Link to post Share on other sites
gemini 0 #9 May 22, 2005 QuoteHow do the "banks" react... Do your homework. In our case, I already knew a banker than financed aircraft. So I called him and started talking about aircraft, then worked in the number of "flights" per day, revenues per "slot", etc., etc. Then I showed him the financials and he was on board. It was the presale that really made the deal because he already knew the risks of aircraft ownership, but we were talking about making money doing the flying. Talk to local aircraft owners at the municipal airports in your area and find out who they are using for financing. We split the business into 3 elements. One to own the realty and buildings, one to own the aircraft, and one to teach skydiving. We explained how the waivers work, and had the corporations in place to protect the business and ourselves. Prior to our first loan closing, the bank brought out 20-30 of their staff and about 10 of them did tandems and one loan officer actually took AFF. Again the thing the loan officers will hang their hats on are the financials. You know the back office loan analyst doesn't know squat about skydiving, but he probably doesn't know much about any other business he examines either. The financials are the only ways to get his support. He is looking for your ability to repay the loan period. If he says you have the cashflow to repay, the deal is done. Contact the local CPA chapter office and the SBA. They usually have someone (usually a retiree) who will help at minmal charge if at all. Also don't forget about insurance. Contact an agent who is familiar with skydiving and get a business policy in place for fire, theft, etc. Won't do anything for skydiving, but it shows the bank you are aware of the other risks and are taking the steps to prevent losses. Blue skies, Jim Quote Share this post Link to post Share on other sites
darrenspooner 0 #10 May 23, 2005 I guess you need to talk to your bank first, and work out what info they need from you. This will help you decide how to structure your plan. You can bet your life that your bank has never had to consider funding a DZ, so your plan will be unique no matter how you look at it. Just write in the way you think will impress your bank manager the best. Quote Share this post Link to post Share on other sites
sweep 0 #11 May 23, 2005 The one I've generally heard is fairly simple : Aim ----- Become a millionaire owning a DZ Pre-requisites --------------- Two million pounds I don't know how things work in the states but in the UK the government provides, directly or indirectly, a lot of help with starting new businesses. Small business advisors, enterprise agencies, even the taxman will spend a lot of time sitting down with you helping to prepare your proposals and make sure you have everything covered. Don't see why that should be different for a DZ than anything else. They may also be able to advise on start-up grants and government sponsored loans to encourage new businesses, these applications may be helped by information showing the number of people your DZ will bring to the area and the money they will spend on wet-weather entertainment, accommodation, food etc. As others have said though, in the end with the banks it comes down to the financials. If you can convince them you can repay their loan eventually and make them a rake of interest in the meantime they will go with it. Sweep---- Yay! I'm now a 200 jump wonder.... Still a know-it-all tho.. Quote Share this post Link to post Share on other sites
