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Business Plan Company Overview Section | Edmonton CPA

You want to tell them exactly who owns the thing. Guess what? They’re going to look it up too. They’re going to run the report at corporate registry.

Yeah, I can see. I can cause it’s mad.

Hi. Thanks for joining us for another episode of ask spurl CPA. Today we’re talking about the business plan company overview section. Um, and I have Paul here with me. So cool. How, you know, you’re looking forward to some of the content that’s coming on youtube. You’re helping us do that yesterday. Yeah. It’s pretty exciting. Yeah, it’s exciting stuff coming up. Yup. So what was your favorite part?


probably throwing the cash down on the county. You’re going to have to watch the youtube channel if you want to find out what he’s talking about. So the quote that we have here today dealing with, you know, business planning company overview section is, you know, Benjamin Franklin, what are the founding fathers of the United States? And it says, if you fail to plan, you are planning to fail. Benjamin Franklin, you know, with an Edmonton CPA, if you fail to plan, you are planning to fail. The statistic that we’re going to throw out out here for you, uh, is Paulo Alto Aalto the software manufacturer, they surveyed business owners regarding business planet. Now what they found is business owners who completed plan, we’re 50% more likely to grow their business. So it’s just by completing a plan, you were 50% more likely to grow your business. And the story that we have here is an Edmonton CPA firm is, you know, business owners who are looking for financing.

You know, they miss pudding, very basic items in their business plan, but the bank would need to know to qualify for them for the law. And the best case scenarios is missing information. It’s just going to delay the process because people are having to go back and forth getting this basic information. But the worst case scenario is they fail to put basic information and they’re going to deny them for financing all together just because they didn’t put the information in. So Co, what are the questions that you think these business owners, you know, need to be asking, you know, with an Edmonton CPA, um, Hampton CPA firm, uh, to put the right information in their company or resection their business plan at a high level. What is the company overview section? So the company overview session overview section at a high level is just who you are, who owns a see who’s involved, who are the advisors.

You’ll really basic information that a lot of business owners we just take for granted because they know who, who, who had the business is what it’s called. Um, you know, who owns this thing. Um, who are the advisors they’re dealing with? But you’ve got to remember this business plan is for an external user who knows nothing about you. So we’re just basically breaking down the really basic who, what wear, with an Edmonton CPA, of the business. Is it important enough to put directly after the executive summary? Yeah, we do. You know, we put that executive summary First. These are the first things that you need to know about the, the second thing is just that basic company overview section. You know, we’re going to put that rate number two, because we know that the bank wants to see those things. We stick it at the end. They didn’t want to read it and they call us. Ask, did you put it in there? So we put it right in there, that company overview section, who, what, where of the business and we put it at number two in our business plans.

Should you put both the legal name and operating name to avoid confusion? Yeah. The, you know, you always have, not always, but sometimes the business has one legal name and one operating name. It might be a number company and they’re operating as something different. Or they have a, with an Edmonton CPA, you know, one operating name, but you look at them online, they’re branded something completely different. Put them both on there. The bank doesn’t know who you are at all and they’re just going to say, this guy doesn’t exist. This company doesn’t exist when it’s brand new, completely different. It’s a really easy to find brand locally. Uh, so put them on there, you know, make it as simple as possible. You know, because you yourself will probably go back and forth and the terminology is the legal name. Sometimes they use the operating and other times and you want to be able to have a clear and concise conversation with a banker and have the people on the backend and the bank who you don’t get to talk to understand what’s going on just as easily.


Well the bank, every lender funds without knowing exactly who owns what percent of the Corp it’s going to be the first question that you know who owns this thing. Um, and you know they’re there. You want to tell them exactly who owns this thing, guess what? They’re going to look it up too. They’re going to run the report at corporate registries and they’ll, they’ll fire back if they say, Hey, who owns the saying isn’t consistent with what’s on that corporate registries. Now keep in mind that corporate registries is going to have voting shares, not the nonvoting shares. So there are reasons of why the information you would supply, with an Edmonton CPA, might be different, but the bank is going to want to know, you know, who owns the corporation that they’re lending the money to. Um, so don’t let that slow down your application and put it right in there.

Does having basic info like the address, phone, email and web address health yeah. And people, you know, sometimes they don’t think about this. I was like, oh, we’re going to put the address for the business. You have to remember that it’s not always the person that you’re familiar with or the bay that is going to check this thing out. Uh, you know, they’re going to search, you know, the address, where is this thing going? Let’s make sure they can get that on the application. Who’s the phone number that they can reach out to or what’s the email that they can reach out to? Let’s make the communication back and forth is as smooth as possible. Let’s just put that in the plan. And then that web address, remember they’re going to do an online search of you on the back end of the bank and it’s going to be from someone who’s not familiar, you know, who’s not your banker. So remember, you’re not just communicating with your banker who’s familiar with you, you’re also communicating with another banker and underwriter who you don’t get to talk to a and you want to put as much information in that report as possible.

Well, the bank wants to know if you have an accountant in place. Yeah, a lot of times the bank will look at having an accountant, having a, with an Edmonton CPA, a CPA or charter professional accountant, uh, as a risk mitigation factor. They’re worried are they going to get paid back, you know, is this, is this business plan realistic or is it just something someone drew up on an APP can cause they want, you know, a couple hundred thousand dollars left to them. Um, so the want to know that there’s a, uh, professionally designated accountant that’s going to increase your chances of, of getting a business mold. So if you have an accountant in place, you’re paying this county will put that in the plan. Um, you know, and better yet have a CPA who is actually helping you assemble that plan. They won’t forget that. So, uh, do you have an accountant?

You know, you want to put that in the company over resection. This is the, the corporate account. Will the bank often the particulars of your lawyer to complete the funding? Yeah, so a lot of times there is, uh, you know, documents that are going to have to get drawn up and you can’t use the bank’s lawyer that you’re going to have to get your own, with an Edmonton CPA, your own lawyer, um, to actually sign off and they’re going to be legal documents and there’s going to be security on the property and security on equipment that’s going to have to be registered, uh, personal guarantees that are going to have to be signed on. You’re good. I need a lawyer to actually execute those documents. So if you have a lawyer, you know, putting them on the document and then the bank can get the information flowing out to the right person in a timely fashion.

Cause often when you’re, you’re trying to get financing time is of the essence. You know, we’re trying to get the loan with an Edmonton CPA, yesterday cause the, the property is supposed to close tomorrow or they need a piece of equipment and the old pieces of equipment is broken. They need the new pieces of equipment. Now. Um, so if the, you know, a lot of the transactions that are going to have to go through a lawyer, sometimes the bank will disburse the funds to the lawyer’s trust account and then the lawyers will disburse the funds from the trust account to the person that you’re actually buying it from the contractor or the supplier of the equipment. Um, so oftentimes there’s going to be a lawyer involved. So put the contact information for your mum, your lawyer ran on the business plan and make the thing go, uh, quicker and smoother if you’re using an investments as a security, should you list the advisor?

Yeah. So that’s sometimes, you know, you might have investments in the, not with the bank a or they’re with a different arm of the bank that with the wealth management arm of the bank, don’t make it really easy for the banker to verify those, uh, investments are in place. You know, you got to a name and Info of your advisor and if they need a, an uptodate statement, they can get it straight from the, with an Edmonton CPA, investment advisor themselves. So, you know, oftentimes this security, the vestments that you have or a big portion of the security that the bank’s considering when they decide if you’re a good risk. Um, so, you know, put that advisor on there. I was recommended. Does the bank often verified general liability insurance but we’re funding, um, I would say it’s almost all the time. Uh, so it’s not all the time, but it’s not like this is, you know, 10 or 20% of the time they verify liability.

All lots of times they want to see that certificate of liability insurance. Um, so if you have an insurance advisor or who do you get your insurance from shoulder that, that this is in place right now, you know, or else or you’re going to have that, the loan can, you know, go through that unnecessary discussion. Say, Hey, we’re going to have to, you have this sort of insurance and they’re going to send you a long winded email and that’s your bankers efforts for the day. Just telling you that, what do you already got this thing? And you’ve got this arranged already. You have your 2 million or 5 million of general liability and you’ve got coverage on the commercial vehicles, uh, already and maybe have errors and omissions insurance as well. So we have that commercial business insurance agent, uh, let’s put them on the business plan as well.

Um, and, and do everything we can to move this thing forward as quickly as possible. Is Life and disability often a covenant or requirement of getting along? Yeah, it’s, it’s usually, yeah, covenant requirements, same thing. It’s usually, with an Edmonton CPA, both things. Uh, and it’s usually required. The bank wants to know, if you’re the principal and the business, do you get sick? What are their chances is still getting paid back. And usually their way to mitigate that risk is they’re gonna say you have, have a certain amount of disability coverage. Um, and life coverage for the same reasons. And a lot of people think of insurance, they always think life insurance. Statistically, most people just don’t drop dead. Uh, especially the starting the business type age. Uh, although it can’t happen, the bank will, you know, ask for life insurance. Um, they will also generally asked her disability insurance, but statistically it’s probably more relevant both for the bank and the business owner because, you know, if something does happen to you, how were you going to pay back this loan, which you likely personally guaranteed on.

Um, you don’t want to be no losing your house or losing the savings just because, uh, uh, you didn’t get the disability policy. And not only that, the bank probably won’t even give you the loan in the first place. If you don’t have the disability policy in place, they’ll, they’ll send you a list to covenants. These are the things that you have to do on an ongoing basis as a condition of us giving you the money. And often, you know, having a set, you know, monthly disability balance in the events that you become disabled or a set, you know, lifetime, uh, life insurance pale, uh, in the event that you didn’t pass away is going to be a component of getting that loan. So, you know, let’s do all of the things that we can to maximize our chances of getting loan at maximizing our chances of getting the loan in the, you know, the quickest route possible.

Because as we know, business financing, it’s, it’s slower than personal financing and that’s usually what people are, are, uh, I’m not accustomed to what their first deal is. And I got my mortgage and in a, in a week, why is this going to take four months? And it’s like, well, um, you know, let’s put everything we need to do in the plan to minimize that time. Uh, because it is a, it is a long road. There’s more analysis that’s done on the bank end and there’s only so many, uh, business underwriters who look at these things as opposed to, you know, how many people that they have that can process residential mortgages. Um, they just have a larger capacity to process the deals. So I think that’s what we have here today on the business plan company over you section. As always, do you want to look forward to reading your comments below? We will respond back and use your feedback to create future videos. And as always, please hit the like and subscribe button so we can continue to deliver your tips on how to beat the odds of business.