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05/24/2012 at 04:51PM PDT
Important Announcement! A planned system-wide upgrade will take place over the Memorial Day Weekend in the US (From Thurs, May 24, 2012 at 6 pm PDT thru Tues, May 29, 2012 at 5 am PDT). This includes QuickBooks, QuickBooks Payroll, Point of Sale, & Salesforce.com. This is only for US based products. This does not affect QuickBooks Online customers! During this time, you can shop, but can’t place orders online, activate products or update account info. We apologize for the inconvenience & thank you for patience while we improve our infrastructure to better serve you. International versions are unaffected. For more info, see our community discussion.
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09/13/06 12:58am PDT

Help Creating Business Plan Financials

I've taken on a client that is in the process of creating a business plan. She wants me to take care of creating proposed financial statements for that plan, which she can take to banks and other entities for funding. Now normally it wouldn't be that mcuh of a problem. Find a similar business, get some information from them, make some assumptions, a few guesses and create reasonable statements. The problem is that the business is very unique. It'll be a family environment place to do car shows and concerts, with concessions and game arcades. She doesn't have a place for it, doesn't even know what county it will be in, but the facility will have to be built. We've got no way to figure out what kind of income to expect, expenses, etc. Can anyone come up with a suggestion on where I can find this kind of information? A second problem is that she's been told by someone who's helping her do the other parts of the business plan that any accountant that knows what he's doing should be able to come up with these numbers without a problem. Something she mentioned to me today.

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08/09/06 10:22am PDT

hi...

that would not really be a problem. to start off, you must know where to start. if it would be a place or like an aditorium, go to some real estate companies & ask them anything regarding the place to where you would put it up. but make sure it is strategic. or if your just finding someplace that you could rent, it's better to fnd a place that is for lease. for fixing it up, try to ask some engineers on estimatiing how much would it cost you. it's just consulting another professional regarding your problem. just try to match that industry covering what field would be doing this or what industry would be doing this. you'll just have to know that if it takes a lot of carpentry & construction, consult a contractor. if it would involve legalities & registration, consult a lawyer.

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08/10/06 3:02pm PDT
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I do consulting work as well as accounting and bookkeeping and I have done a number of business plans. I never just "came up"? with some numbers. Unless the proper research has been done, any numbers in the plan will be just numbers so they won't mean a thing. The question is, who does the research? In my case, usually the client and I share the research project with each of us working the areas that are most comfortable for us. Jaerille13 has given some good ideas in respect to some of the research that has to be done in respect to construction costs and so on. So far as revenue is concerned, it appears that looking at similar operations may not be easible in this case because you say it is a unique business although it seems to me that it is similar to facilities that host trade shows and so on. In any case, the client must have some idea of the fees that will be charged and also the occupancy rate to be expected. In any case, the client must be prepared to respond to the traditional questions from potential lenders: How did you arrive at these revenue and expense figures? An answer that "my accountant did those for me" will not likely make the grade.
Don't feel daunted with the project but be sure that you have a contract or service agreement that clearly describes the work that you are to do and the deliverables required as well as the time frame. The research required for business plan development is not a normal function of the accounting profession but the development of pro forma financial projections is. I use a spreadsheet to develop Projected Income Statements, Cash Flow Statements, and Balance Sheet Reports for three to five years depending upon the nature of the business and the projected break-even curve.
Good Luck with the project.

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