Free Dry Cleaner Business Plan

Free Dry Cleaner Business Plan for Loans				business tremendous pricing flexibility as the business
Obtaining Business Financing				can effectively control its underlying costs.

When obtaining a business loan for a dry cleaning				Additionally, the business will provide outsourced dry
business, it is imperative that you have a properly				cleaning services to San Francisco area dry cleaners
structured business plan that will assist you in				that only operate in a drop store capacity.
showcasing how you intend to operate your Dry
Cleaner, how the business will operate, how you intend
to market the business, the anticipated financial results				Industry and Market Analysis
of your company, and how you intend to repay your
debt obligations. This sample loan business plan will				The Current State of the Economy
provide you with the framework that you need in
order to acquire a business loan for starting or				It is important to let your financial institution know that
expanding this type of business.				you are well apprised of the financial situation of the
				general economy when you are applying for a
Executive Summary				business loan. This is especially true in today's
				environment where lending has become more difficult
Introduction				and will remain more difficult in the foreseeable future.
				Specifically, you should gear this section of the
When obtaining a business loan for a dry cleaner, it is				business plan analysis towards the industry that you
imperative that your business plan has a clear and				are operating within. For example:
concise executive summary that provides an outline of
what are seeking to accomplish, how much capital you				The current economy has remained difficult over the
are seeking to raise, the management biography of the				past few years. However, people that are employed in
business owner, and an overview of the anticipated				offices will always require dry cleaning services. As
profit and loss statements of the business. Here is an				such, the Dry Cleaner will be able to remain profitable
example of how the title paragraph should be written:				and cash flow positive despite any deleterious
				changes in the economy. Additionally, the business
Dry Cleaner, Inc. ("the Company") is seeking a business				generates substantial gross margins from its services
loan of $100,000 in order to launch the operations of a				and as such – the Dry Cleaner will be able to
dry cleaning business that will be based in San				service its debt obligations in any economic
Francisco, California. The Company was founded in				environment.
(Insert Year). The business was founded by Mr. John
Doe.				The Dry Cleaner Industry

Products and Services				In addition to providing your business loan officer with
				an understanding of the general economy, it is
In the next segment of the business loan and business				important that you showcase that you have an equal
planning document, you should showcase the products				understanding of the industry in which you are
and services that you will be providing to the general				operating within. As such, you will need to provide you
public. For instance:				business loan institution of a brief overview of your
				industry and any potential changes that may affect the
The Dry Cleaner will provide the outsourced cleaning				way that your company does business. An example
of clothes to the general public and to other dry				of how an industry overview is as follows:
cleaners that solely operate in a drop store capacity.
The business will generate substantial revenues from				Within the United States, there are approximately
these services. In regards to maintaining a competitive				13,000 businesses that operate one or more dry
advantage, the business will provide regular drop off				cleaning locations. Each year, these businesses
and delivery of clothes that need to be dry cleaned on				generate more than $4 billion of revenues while
a regular basis to residents within the Company's				providing jobs to more than 50,000 people. In each of
targeted market of San Francisco, California.				the last five years, aggregate payrolls have exceeded
				$800 million.
Business Loan Terms

Now it is time to discuss the anticipated terms of the
business plan that you are seeking. An example				Target Market
paragraph of how this is stated:
				In this section of the business loan application and
At this time, Mr. Doe is seeking a conventional business				business plan analysis, you should focus on the
loan in the amount of $100,000. The interest rate, loan				demographics of your localized market (or national
terms, and loan covenants are to be determined during				market if applicable). This section should discuss how
negotiation. However, this business plan assumes that				many people live in your area, the anticipated number
the business will receive a seven year business loan				of people that would require the use of Dry Cleaners,
with a seven percent interest rate due on the				the median household income of people living in the
outstanding principal balance.				area, poverty line statistics, and any applicable laws
Management Biography				that would apply to your operation of Dry Cleaners.

Now that the summary of the business has been				Competition
provided, it is time to provide a brief overview of the
owner of the business. An example paragraph				Many people that are developing new businesses or
summing up the owner is as follows:				expanding existing businesses often feel that their
				business does not have any competition or limited
Mr. Doe is a highly experienced business person that				competition at best. However, this is almost never the
has years of experience regarding the direct				case. Unless you have re-invented the wheel – you
ownership and management of business. He will be				will have competition. When applying for a business
able to effectively bring the operations of the Dry				loan, you should clearly showcase your competition in
Cleaner to profitability while ensuring that the business				your business plan. This is especially important to your
loan's payments and its covenants are met at all times.				banker as they will be able to gauge your ability to be
Financial Statements				successful in your targeted market. Many business
				loan underwriters will aggressively confirm that
The most important thing to your lender when applying				competitive nature of your local market and your local
for a business loan is how you intend to repay the				industry.
bank. In this section of the business plan, you should
provide an overview of the finance's of the business				When drafting this section of the plan you should
discussing the anticipated revenues, expenses, and				heavily discuss the competitive advantages that you
profits/losses. You can also discuss the applicable				intend to have over your competition.
collateral within the business plan that will be used to
secure your business financing.				Marketing Plan

Expansion Plans				In addition to all of the above information that we have
				covered, your business loan officer is also going to
One of the most important aspects of your business				want to know how you intend to market your
plan is how you intend to expand the business over a				business to the general public. Most people do not quite
three to five year period. Banks and finance				understand how to effectively market their business
companies always want to see that the business will				outside of prominent signage or flyer distribution. When
experience a moderate to strong level of growth. This				applying for a business loan (again in this difficult lending
is especially true in business lending because as your				climate), your banker is going to want to see that you
business grows the cash flow that secures your				have a clear methodology of how you intend to
business loan will decrease proportionality against your				market your services or products to the general public.
monthly credit obligations. An example of how this is				In this section of the business plan – we will
stated is as follows:				overview how to showcase your services/products to
				the general public.
The Dry Cleaner will continue to expand through
organic means including increasing the Company's				Marketing Overview Example
advertising budget via the reinvestment into the after
tax cash flows of the business. Additionally, if the				- The Dry Cleaner will place prominent signage on the
business is highly successful then the Company may				facility to draw a significant amount of foot traffic.
seek to establish additional Dry Cleaner locations after				- The business will maintain listings in the Yellow Books.
the third year of operations.				- The Dry Cleaner will also maintain an internet website
				that showcases the Company's operations, hours of
				operation, and relevant contact information.
The Financing
				Marketing Strategies Overview
Use of Business Loan Proceeds				Additionally, you will be required to further drill down (in
				your business plan) how you intend to implement your
In this section of the business plan you should focus on				strategies when you launch or expand your business's
how the proceeds of the business loan will be used.				operations. In this section of the business loan and
An example of this would be as follows:				business plan documents, you should amplify the bullet
				points from the section above. For instance:
- Dry Cleaner Establishment - $50,000
- Dry Cleaning Equipment - $10,000				The Dry Cleaner intends to use a number of
- Working capital - $40,000				strategies that will create instant traffic and customer
				flow to the Company's location. These strategies
Management Equity				include not only using prominent facility and road
In this section of the business plan you should discuss				signage, but also distributing flyers to people that fall
the percentage ownership of the business among the				into he Company's targeted demographics. The
owners of the business. For example:				business will also regularly take out advertisements in
				localized newspapers that showcase the Company's
Mr. Doe will own 100% of the Dry Cleaner.				hours of operations, dry cleaning services, and specials
				that are occurring within the store on a regular basis.
Board of Directors
				The business will also maintain a highly informative
When applying for business financing, the bank will also				website that showcases the Dry Cleaner's services,
want to know who serves as the board of directors.				its hours of operation, service information, and other
For small businesses, usually the owner serves as the				relevant information in regards to the Company's
director of the business. An example of how this is				services. This website will be listed on major search
worded:				engines such as Google as many people now use the
				internet to locate local businesses such as Dry
Mr. Doe will be the sole director of Dry Cleaner, Inc.				Cleaners.

Exit Strategy				The Financial Plan

Any bank or financing company is also going to want				Beyond any other part of your business loan
to know what you intend to do with the business over				application or business plan, the financials section of
a set period of time. Many business owners will				these documents are what matters most when
develop and expand a business with the intent to sell				applying for a business loan or any other type of credit
the company to a third party at a later time. When				facility. Ultimately, this section of the business plan
drafting this part of the business plan you should focus				showcases not only what your anticipated profitability
on what you intentions are in regards to potentially				will be, but also how you intend to repay the funds that
selling the business. This is often worded as:				you have borrowed through your business financing
				facility. An example of how this section is structure is
Mr. Doe would most likely sell the Dry Cleaner to a				as follows:
third party for a significant earnings multiple. Dry
Cleaners usually sell for approximately one to three				Assumptions
times earnings given the financial strength of the
business. In this event, the business would be sold by a				- Dry Cleaner, Inc. will have an average annual growth
business broker and the business loan sought in this				rate of 10% per year.
plan would be repaid according to the covenants of				- Mr. Doe will acquire $100,000 through a business loan
the business loan agreement.				in order to launch the operations of the business.

Products and Services				Proforma Financials for a Business Loan

When developing a business plan that is appropriate				Now it is time to showcase how you intend to repay
for obtaining a business loan or other business credit				your loan, generate a profit, and increase the book
facility you need to clearly showcase the services or				value of your business over a three to five year
products that you will be offering to the general public.				period. has developed an easy to use financial model
An example of how this section is worded goes as				that you can use when drafting out the financial model
follows:				for your business plan and business loan application.
				Through your business loan application, you will be
As stated in the executive summary, the Dry Cleaner				required to have the following:
will primarily generate its revenues from the ongoing
dry cleaning services offered to the general public				- Profit and Loss Statement for your Dry Cleaner.
through its retail location in San Francisco. All clothes				- Cash Flow Analysis for the Dry Cleaner.
will be dry cleaned on site and the business intends to				- Balance Sheet for the Dry Cleaner.
have an onsite dry cleaning plant. This will allow the

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Free Dry Cleaner Business Plan

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