Free consult & free copy of book

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

Contact Us


Most 5 star CPA Google reviews in Canada

Read Reviews

Chartered Professional Accountants E Myth

1 Fixed Monthly Fee - Planning | Accounting | Taxes | Consulting

Helping Canadian businesses beat the odds!

Virtual Accountant | Why Entrepreneurs Should Put Type of Financing in Executive Summary

Business owners who might not end up with the financing that they need says virtual accountant. Because they are not asking for specifically what they need. Therefore it’s incredibly important, that business owners get very specific in their executive summary.

The reason why they need to include their financing requirements and their executive summary. Is because this is often the only part of the business plan that financial institutions and thanks. End up reading in order to make their financing decisions.

Therefore, if business owners don’t even have a business plan it all. They needs to get to 1 so that they can be more likely to get financing. But also because business plans are so effective at helping entrepreneurs succeed.

In fact, the software manufacturing company called Palo Alto did a survey. In order to find out exactly how effective business plans were. At helping, entrepreneurs succeed in their business. The survey findings showed that businesses with a plan for 50% more likely to grow their revenue. Then entrepreneurs without a plan at all.

Executive summary of the business plan. Is the most important section. And is only one or two pages out of the entire 40-page document. This is where a summary of the entire plan will be listed. And so it’s important that all of the most important aspect of the business plan. Are well-written in this section.

By being incredibly specific about not just the amount of financing that they need. But exactly what they are planning on buying with all of the money says virtual accountant. As well as each of the financial products they will need the money to come in.

And some business owners also list the terms that they would like to get as well. Virtual accountant says they might not get the terms that they are looking for. But if they list them, then at least there’s a chance the bank will give them what they are asking for.

And if they don’t end up getting the terms that they specify. There was no harm in asking. Virtual accountant says if they end up do getting the terms that’s Bae he want. Then it’s well worth the minimal effort they put into it. And as Wayne Gretzky says, you miss 100% of the shots you don’t take.

Many business owners assume that the lowest interest rate is going to be the best deal. But virtual accountant says they should also take into consideration amortization. The shorter the amortization, the higher the payments are going to be each month, because an entrepreneur will have less time to pay it off.

Therefore, business owners should take into consideration that a slightly higher interest rate with significantly longer amortization. Maybe in their best interest. By giving themselves a longer time to pay off alone. Can significantly help them financially. so that they can relieve some of the financial pressure they experience as new entrepreneurs.

Virtual Accountant | Why Entrepreneurs Should Put Type of Financing in Executive Summary

If business owners are not sure what the executive summary of their business plan is it says virtual accountant. Then they will not understand why they need to put their financing in that section. Therefore, when entrepreneurs can understand not only why their business plan is important. But why their executive summary is the most important section. They will be able to understand how specific they need to be. So that they can get the financing they need.

The executive summary is a synopsis of the entire 40-page business plan. It’s going to contain the most important aspect of the entire planet self. And virtual accountant says it is often the only part of a business plan. That’s a financial institution like a bank or a high-level investor. Is going to read in order to make their decision to finance a business or not.

Therefore, all of the most important parts of the business plan needs to be here. So that it can give that financial institution. All of the information they need not only to award them the financing. But to assure them that their business plan is solid. And will significantly help them succeed.

However, they do need to understand how specific they needs to be in their financial request. Because if they simply puts the amount that they want to receive in the executive summary. Even if they end up getting it. It might not be in the right product. To help entrepreneurs do what they need with the money for their business.

If they are going to buy a building, or buy land and construct a building. Virtual accountant says they needs to have a mortgage specified. And they need to specify everything that they are purchasing with those funds. Because land and construction can both have different terms associated with them.

And while lines of credits are going to be very sauce after by many entrepreneurs says virtual accountant. They are the hardest to get. If they do end up getting them, business owners will be able to take whatever amounts of money they need, whenever they want. And only pay back the interest that is crude on it.

Because of that, lines of credit are often the most financially freeing for new entrepreneurs. And the easiest to pay back. D-Lo Financial commitments. Makes these very attractive for business owners.

Then there are term loans says virtual accountant. Which are for any assets that a business owner May needs to purchase. They should figure out all of the assets that they needs to purchase. And includes the total for each of these Assets in the business plan.

They need to specify each asset as well. So that they will be able to get the financing. Because different assets might have different terms on them. Such as a vehicle would have a very different term than a piece of equipment, or leasehold improvements that may needs to make on their building.

And finally, there is a credit card to apply for. Almost all businesses are going to need a credit card. So by applying for it at the initial financing of their business. Can make them more likely to get the credit card that they need to make purchases in their business.