Free
Card
Dealer
School Business Plan
Obtaining Business Financing
When obtaining a business loan
for a Card Dealer School business, it is imperative that you have a properly
structured business plan that will assist you in showcasing how you intend to
operate your Card Dealer School, how the business will operate, how you intend
to market the business, the anticipated financial results of your company, and
how you intend to repay your debt obligations. This sample loan business plan
will provide you with the framework that you need in order to acquire a business
loan for starting or expanding this type of business.
Executive Summary
Introduction
When obtaining a business loan
for a Card Dealer School, it is imperative that your business plan has a clear
and concise executive summary that provides an outline of what are seeking to
accomplish, how much capital you are seeking to raise, the management biography
of the business owner, and an overview of the anticipated profit and loss
statements of the business. Here is an example of how the title paragraph should
be written:
Card Dealer School, Inc. (“the
Company”) is seeking a business loan of $100,000 in order to launch the
operations of a card dealer school business that will be based in
San Francisco,
California. The Company was founded in (Insert Year).
The business was founded by Mr. John Doe.
Products and Services
In the next segment of the
business loan and business planning document, you should showcase the products
and services that you will be providing to the general public. For instance:
Business Loan Terms
Now it is time to discuss the
anticipated terms of the business plan that you are seeking. An example
paragraph of how this is stated:
At this time, Mr. Doe is
seeking a conventional business loan in the amount of $100,000. The interest
rate, loan terms, and loan covenants are to be determined during negotiation.
However, this business plan assumes that the business will receive a seven year
business loan with a seven percent interest rate due on the outstanding
principal balance.
Management Biography
Now that the summary of the
business has been provided, it is time to provide a brief overview of the owner
of the business. An example paragraph summing up the owner is as follows:
Mr. Doe is a highly experienced
business person that has years of experience regarding the direct ownership and
management of business. He will be able to effectively bring the operations of
the
Card
Dealer
School to profitability while ensuring that the
business loan’s payments and its covenants are met at all times.
Financial Statements
The most important thing to
your lender when applying for a business loan is how you intend to repay the
bank. In this section of the business plan, you should provide an overview of
the finance’s of the business discussing the anticipated revenues, expenses, and
profits/losses. You can also discuss the applicable collateral within the
business plan that will be used to secure your business financing.
Expansion Plans
One of the most important
aspects of your business plan is how you intend to expand the business over a
three to five year period. Banks and finance companies always want to see that
the business will experience a moderate to strong level of growth. This is
especially true in business lending because as your business grows the cash flow
that secures your business loan will decrease proportionality against your
monthly credit obligations. An example of how this is stated is as follows:
The Card Dealer School will
continue to expand through organic means including increasing the Company’s
advertising budget via the reinvestment into the after tax cash flows of the
business. Additionally, if the business is highly successful then the Company
may seek to establish additional
Card
Dealer
School locations after the third year of operations.
The Financing
Use of Business Loan Proceeds
In this section of the business
plan you should focus on how the proceeds of the business loan will be used. An
example of this would be as follows:
- Card Dealer
Establishment - $50,000
- FF&E and
Inventory - $10,000
- Working
capital - $40,000
Management Equity
In this section of the business
plan you should discuss the percentage ownership of the business among the
owners of the business. For example:
Mr. Doe will own 100% of the
Card
Dealer
School.
Board of Directors
When applying for business
financing, the bank will also want to know who serves as the board of directors.
For small businesses, usually the owner serves as the director of the business.
An example of how this is worded:
Mr. Doe will be the sole
director of Card Dealer School, Inc.
Exit Strategy
Any bank or financing company
is also going to want to know what you intend to do with the business over a set
period of time. Many business owners will develop and expand a business with the
intent to sell the company to a third party at a later time. When drafting this
part of the business plan you should focus on what you intentions are in regards
to potentially selling the business. This is often worded as:
Mr. Doe would most likely sell
the
Card
Dealer
School to a third party for a significant earnings
multiple. Card Dealer Schools usually sell for approximately one to three times
earnings given the financial strength of the business. In this event, the
business would be sold by a business broker and the business loan sought in this
plan would be repaid according to the covenants of the business loan agreement.
Products and Services
When developing a business plan
that is appropriate for obtaining a business loan or other business credit
facility you need to clearly showcase the services or products that you will be
offering to the general public. An example of how this section is worded goes as
follows:
The primary source of revenue
for the business will be instruction regarding how to properly deal cards in a
casino setting. The school will be licensed to provide these services so that
graduated students can acquire licensure to act as a casino dealer.
Classroom instruction will
include teachings regarding card dealing, how to deal with potential card
counters, and laws applicable to the dealing of cards in a casino setting. The
Company will issue a certificate of completion during its course. Management
expects that each course will last approximately 6 weeks and will provide 40
hours of classroom instruction.
Industry and Market Analysis
The
Current
State of the Economy
It is important to let your
financial institution know that you are well apprised of the financial situation
of the general economy when you are applying for a business loan. This is
especially true in today’s environment where lending has become more difficult
and will remain more difficult in the foreseeable future. Specifically, you
should gear this section of the business plan analysis towards the industry that
you are operating within. For example:
The current economy has
remained difficult over the past few years.
However, specialized trade schools operate with a strong degree of economic
stability as people will seek to expand their educations to acquire new jobs in
deleterious economic conditions.
The
Card
Dealer
School Industry
In addition to providing your
business loan officer with an understanding of the general economy, it is
important that you showcase that you have an equal understanding of the industry
in which you are operating within. As such, you will need to provide you
business loan institution of a brief overview of your industry and any potential
changes that may affect the way that your company does business. An example of
how an industry overview is as follows:
Within the
United States, there are approximately 3,500
schools that train and teach card dealers. Each year, these businesses aggregate
generate approximately $4 billion per year while concurrently providing jobs to
more than 51,000 people. Each year, aggregate payrolls have exceeded $1.4
billion.
This is a mature industry, and
expected revenues are expected to remain flat over the next twelve to eighteen
months as the economy completes its correction. However, Management also
anticipates strong enrollment given that many people are looking for new jobs in
light of the major number of layoffs in the recent months.
Target Market
In this section of the business
loan application and business plan analysis, you should focus on the
demographics of your localized market (or national market if applicable). This
section should discuss how many people live in your area, the anticipated number
of people that would require the use of
Card
Dealer
School, the median household income of people living in the
area, poverty line statistics, and any applicable laws that would apply to your
operation of
Card
Dealer
School.
Competition
Many people that are developing
new businesses or expanding existing businesses often feel that their business
does not have any competition or limited competition at best. However, this is
almost never the case. Unless you have re-invented the wheel – you will have
competition. When applying for a business loan, you should clearly showcase your
competition in your business plan. This is especially important to your banker
as they will be able to gauge your ability to be successful in your targeted
market. Many business loan underwriters will aggressively confirm that
competitive nature of your local market and your local industry.
When drafting this section of
the plan you should heavily discuss the competitive advantages that you intend
to have over your competition.
Marketing Plan
In addition to all of the above
information that we have covered, your business loan officer is also going to
want to know how you intend to market your business to the general public. Most
people do not quite understand how to effectively market their business outside
of prominent signage or flyer distribution. When applying for a business loan
(again in this difficult lending climate), your banker is going to want to see
that you have a clear methodology of how you intend to market your services or
products to the general public. In this section of the business plan – we will
overview how to showcase your services/products to the general public.
Marketing Overview Example
- Develop an
online presence by developing a website and placing the Company’s name and
contact information with online directories.
- Implement a
local campaign with the Company’s targeted market via the use of flyers, local
newspaper advertisements, and word of mouth advertising.
- Establish
relationships with casinos, job agencies, and community colleges throughout the
target market.
Marketing Strategies Overview
Additionally, you will be
required to further drill down (in your business plan) how you intend to
implement your strategies when you launch or expand your business’s operations.
In this section of the business loan and business plan documents, you should
amplify the bullet points from the section above. For instance:
Mr. Doe intends on using a
number of marketing strategies that will allow the
Card
Dealer
School to easily target men and women within the
target market. These strategies include traditional print advertisements and ads
placed on search engines on the Internet. Below is a description of how the
business intends to market its services to the general public.
Card Dealer School, Inc. will
also use an internet based strategy. This is very important as many people
seeking local services, such as card dealing instruction, now the Internet to
conduct their preliminary searches. Mr. Doe will register the
Card
Dealer
School with online portals so that potential
customers can easily reach the business. The Company will also develop its own
online website showcasing the services offered by the school, cost of tuition,
and how to enroll in the Company’s programs.
The Company will maintain
strong connections with area casinos, job development agencies, and community
colleges (for referrals) in regards to their needs for having trained card
dealers. In time, this will provide to be an invaluable source of business for
the Company.
The Financial Plan
Beyond any other part of your
business loan application or business plan, the financials section of these
documents are what matters most when applying for a business loan or any other
type of credit facility. Ultimately, this section of the business plan showcases
not only what your anticipated profitability will be, but also how you intend to
repay the funds that you have borrowed through your business financing facility.
An example of how this section is structure is as follows:
Assumptions
- Card Dealer
School, Inc. will have an average annual growth rate of 10% per year.
- Mr. Doe will
acquire $100,000 through a business loan in order to launch the operations of
the business.
Proforma Financials for a
Business Loan
Now it is time to showcase how
you intend to repay your loan, generate a profit, and increase the book value of
your business over a three to five year period. BusinessPlansForLoan.com has
developed an easy to use financial model that you can use when drafting out the
financial model for your business plan and business loan application. Through
your business loan application, you will be required to have the following:
- Profit and
Loss Statement for your Card Dealer School
- Cash Flow
Analysis for the Card Dealer School
- Balance Sheet
for the Card Dealer School
- Business Loan
Amortization Tables
Please see images below