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E-Myth – “Why most small businesses don’t work & what to do about it”

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Include This Info In The Company Overview | Virtual Accountant

Often, an entrepreneur is spending so much time on different parts of their business plan says virtual accountant. That they often overlook some important information that should be included in the company overview section. This section is designed to help the bank have all the information they need. In order to determine if an entrepreneur has all of the requirements to approve the loan.

Therefore, by not including all of this information into the company overview section. Can often make the bank denied the entrepreneur of the loan. Simply because they did not have enough information. And not based on the merits of their business plan at all.

And since banks are not obligated to share the information they have denied alone with the business owner. It may end up with the business owner thinking that their business plan itself was not good. Or that the executive summary was not complete. When it is in fact the company overview section that needed a bit more information.

One mistake that entrepreneurs often make says virtual accountant. Is making the assumption that since they are applying for a loan with a bank that they are familiar with. That the banker will know vital pieces of information.

However, often it is the underwriter who is reviewing the business plan. And making the decision on whether to loan money to the business or not. And the underwriter is typically not familiar with any bank customers. Making it very important to include all information. And leave nothing to assumptions.

Because of this, virtual accountant says that business owners need to put the legal name as well as operating name into the company overview section. Often, a business owner inadvertently uses both names interchangeably. So by including this upfront and the company overview section. Can help the underwriter avoid misunderstandings.

Next, the business owner needs to include the company’s address, phone number, email address, and website if they have one. This information is going to be verified as accurate by the underwriter. Therefore it needs to be complete and truthful.

If an entrepreneur does not have a physical location of their business yet. They can use the information from incorporating their business. Just so that they have an address, for the underwriter to be able to verify.

The next thing that the business owner needs to do is include all of the information for the business owner themselves. This includes name, address, phone number, and email address. But also, what percentage of shares they own in the corporation.

This is particularly important if an entrepreneur has multiple shareholders in the corporation. Because the bank is not going to loan money to a business. Without understanding what percentage of ownership each shareholder has.

Understanding all of the most important pieces of information that can go into the company overview section. Can help the underwriter not only verify the information. But verify it quickly. So that they can get on with looking at the rest of the business plan. In deciding whether to loan money to the business or not.

Included the Virtual Accountant!

It is extremely important that a business owner puts maximum effort into all sections of the business plan says virtual accountant. Even a section that seems very simple such as the company overview section.

While this seems like an easy section to fill out. A business owner should understand why it exists. So that they can include the most important information. And get more likely to be approved on loan.

The company overview section is for the banker and the underwriter says virtual accountant. To know the most vital pieces of information about the business. So that they can decide whether the business qualifies for the loan in the first place.

By having as much information here as possible. Not only can help the underwriter understand that they have the information at hand to be able to award the loan. But also to speed up the process.

Many entrepreneurs have no idea how long the process of approving a loan takes. This is typically because they have very few business underwriters. And they must verify all bits of information given to them in the business plan. And that can take a long time.

By including as much information about the business as possible. The ritual accountant says an underwriter can verify this information much more quickly. Making the process as short as it can be. Since an entrepreneur is often waiting on the approval of the loan in order to proceed with many other aspects of their business. Expediting this process can be very important to an entrepreneur.

One very important piece of information that should be included in the company overview section. Other than the company name and contact information, and business owner name and contact information. Is if the business owner is currently working with an accountant according to virtual accountant.

The reason why putting the accountant’s information is important in the company overview section. Is because it is often seen as a way to lower the risk of loaning money to a business owner. The reason why is because business owners that already have accountants. Typically have a well-thought-out business plan. That has realistic cash flow projections. There are also likely to have a workable financial plan.

A business owner who works with an accountant also will typically have a functioning marketing plan. So that the business owner can start marketing their business as soon as they open the doors to their company. And be more likely to grow their revenue. And be able to pay back the loan.

By understanding how important including the accountant’s information is. Can help a business owner get that loan approval. Even before they start looking at the executive summary of their business plan.

Therefore, a business owner needs to understand that the company overview section is not simply just put the name and contact information of the business. But an important section that can help the bank’s underwriter understand. That the business owner has all of the tools they need to get the approval. And to grow their business.