Where does the Start up or Acquisition summary fit into a business plan for Central Plumbing & Heating Inc.?

The Start up or Acquisition Summary of the business plan is where you get to tell the reader of the business plan just how your business came into existence. In the event you are starting a brand new business, you get the chance to talk about how you got the idea for the business. In the event you are purchasing an existing business you can talk about how you got to know about the business, why you are looking to buy it, and how you went about striking the deal with the seller of the business.

Why should all this information be included in the business plan for a Plumbing and Heating Contractor?

Just as we had advised Felix Gonzalez of Central Plumbing & Heating Inc., we recommend that every business owner take the opportunity to describe just how their business came into existence. The reader of the business plan must be able to read the story of your business and be able to see your business as an extension of your own life. When small business owners like Felix Gonzalez talk about the how they got they got inspired to start or acquire their small businesses like Central Plumbing & Heating Inc., readers of the plan are able to make a personal connection with the business. Think about it for a minute - would you like to do business with someone who is not passionate about his ideas or who seems only mildy interested in his work?

In the case of an acquisition summary - what are the details that need to be included and excluded?

In the event you are buying an existing business, we recommend that you mention how you came about learning about the business you are buying? Banks and potential partners will be interested in finding out why the existing business is being sold? Is the existing owner retiring? Is the business not doing well? Are their other challenges that the existing business is facing and so on? They will also be interested in understanding how you struck the deal with the seller of the business.

In the event you are purchasing a business that involves a process or formulation that may be a trade secret, we recommend that you do not include that in this section of the plan but simply make a mention of it. You can always explain it verbally is a general way when you get around to looking for partners and lenders. Only when the appropriate non-disclosure agreements have been signed should you take the step of sharing a potential trade secret with a lender or partner. Just as we told Felix Gonzalez of Central Plumbing & Heating Inc., it is always better to be open about every aspect of your business but do bear in mind that there are plenty of folks out there who will happily grab your ideas and profit from them.

Quick Links:

1. Go to the Corresponding Business Plan section for this industry.