QuestionMy name is James Callahan and I am currently trying to get a government grant from SBA. They have contatcted me and said my application was great. Im putting together my own business plan and was wondering could you tell me some of the things I need to include in my business plan. Also, they said if I can get a Letter of Intent from a trucking company, it was almost gurantee that I get the grant I am requesting. How do I go about asking a company for a letter of intent and is this possible?
Answer A simple start-up business plan includes a summary, mission statement, keys to success, market analysis, and break-even analysis. This kind of plan is good for deciding whether or not to proceed with a plan, to tell if there is a business worth pursuing, but it is not enough to run a business with.
Executive Summary: Write this last. It's just a page or two of highlights.
Company Description: Legal establishment, history, start-up plans, etc.
Product or Service: Describe what you're selling. Focus on customer benefits.
Market Analysis: You need to know your market, customer needs, where they are, how to reach them, etc.
Strategy and Implementation: Be specific. Include management responsibilities with dates and budget.
Management Team: Include backgrounds of key members of the team, personnel strategy, and details.
Financial Plan: Include profit and loss, cash flow, balance sheet, break-even analysis, assumptions, business ratios, etc.
Letters of Intent, legally, are the worst of all worlds. Writing a letter of intent is not to be taken lightly. In law, you either have a contract or you don't. LOI's are the legal equivalent of "almost pregnant". Letters of Intent emphatically state that that they are not formal agreements and then often proceed to set forth agreed terms of the proposed transaction. Given this paradox, if the deal goes sour, one party can argue that those agreed-upon points were, in fact, agreed upon - or, in fact, a binding contract and, in some cases, furthermore, that the party relied on the LOI and has monetary damages based on such reliance.
When writing Letters of Intent - be cautious and consult your attorney. Letter of intent samples and letter of intent examples from particular deals can be found on the web. Letter of Intent Free Examples, letter of intent examples, Sample Documents Letter of Intent, Writing A Letter of Intent Form, sample employement letter of intent and Format For Letter Of Intent For Employment, and more are available on the web, but you are taking risk.
Good luck!
Bob Stephens
