The Forestry Forum is sponsored in part by:

iDRY Vacuum Kilns


Forestry Forum
Sponsored by:


TimberKing Sawmills



Toll Free 1-800-582-0470

LogRite Tools



Norwood Industries Inc.




Your source for Portable Sawmills, Edgers, Resaws, Sharpeners, Setters, Bandsaw Blades and Sawmill Parts

EZ Boardwalk Sawmills. More Saw For Less Money!

STIHLDealers.com sponsored by Northeast STIHL


Woodland Sawmills

Peterson Swingmills

 KASCO SharpTech WoodMaxx Blades

Turbosawmill

Sawmill Exchange

Michigan Firewood, your BRUTE FORCE Authorized Dealer

FARMA


Baker Products

ECHO-Bearcat

iDRY Wood Lumber Vacuum Drying for everyon

Nyle Kiln Dry Systems

Tally-I/O




Author Topic: Business Plan--Financial analysis?  (Read 433 times)

0 Members and 1 Guest are viewing this topic.

Offline AllyCat

  • member
  • *
  • Posts: 8
  • Age: 27
  • Location: Wisconsin
  • Gender: Female
  • Wife, mother, backbone of home & budding business
    • Share Post
Business Plan--Financial analysis?
« on: August 24, 2017, 06:03:31 PM »
Hey all! I'm back again looking for advice!

My husband and I are looking into getting a business loan, and I have most of our business plan worked out. However, I have no clue how to do the financial analysis that is required! With a business like a store, it's easier to project estimates like a break even analysis or a best estimate of money needed to operate monthly for the first year and yearly for the second and third. As you all know, weather, market prices, breakdowns, etc all make it harder to estimate cash flow.

Does anyone have any advice on how to proceed with a financial analysis?

Thanks in advance!
~*if you can't sharpen a chain, find a different job*~

Offline Roxie

  • Administrator
  • *****
  • Posts: 6286
  • Age: 66
  • Location: Oxford PA
  • Gender: Female
  • I'm your huckleberry
    • Share Post
Re: Business Plan--Financial analysis?
« Reply #1 on: August 24, 2017, 06:51:19 PM »
First, welcome to the forum.   :)

Sounds like it would be a good idea to invest in a textbook, called "The Portable MBA Finance and Accounting."  It gives you an excellent format for just about any financial report you can imagine, and takes you from a basic chart of accounts through to profit and loss, and balance sheets. 

Are you using Excel for spread sheets or building your financials with an accounting program, like Quickbooks?
Save a farm today or starve tomorrow.

Offline AllyCat

  • member
  • *
  • Posts: 8
  • Age: 27
  • Location: Wisconsin
  • Gender: Female
  • Wife, mother, backbone of home & budding business
    • Share Post
Re: Business Plan--Financial analysis?
« Reply #2 on: August 24, 2017, 08:04:18 PM »
Fantastic! I'll definitely look for the book!

We're still in the start up process, but plan on using quickbooks or similar software.

He has experience in logging and I in small business (billing, marketing, and secretary work), but we're working from the ground up basically. We're filing for Llc soon and a local organization does small business loans at lower rates than the local banks. We're pushing to get a different skidder before starting on our own, as the one he has now is jointly owned by him and his father, who will not be a part of the business and thus it creates complications withtge use of that machine.
~*if you can't sharpen a chain, find a different job*~

Offline Ron Wenrich

  • Forester
  • Administrator
  • *****
  • Posts: 13931
  • Age: 71
  • Location: Jonestown, PA
  • Gender: Male
    • Share Post
Re: Business Plan--Financial analysis?
« Reply #3 on: August 25, 2017, 08:24:33 AM »
There used to be programs that matched a retired person with someone in a startup situation.  They had them at one time in my area, but I can't remember their name.  It might have been RSVP or Senior Corp.  They acted as a mentor.

The problems you'll find is a banker doesn't understand the logging business.  You might have a chance with one that is familiar with the ag sector.  What looks good to one bank will look to risky at another.  You may find a bank that will help you work out your plan.  If they are interested in loaning money, they may want your business. 

Its hard to get hard numbers on things like timber payments.  You'll need that as a starting point unless you'll be paying landowners after the harvest.  If he is in business with his father, do you have access to the books?  That should give you an idea of things like fuel, repair costs, etc that is normal operating costs.  They change on a seasonal basis, due to weather conditions. 
Never under estimate the power of stupid people in large groups.

Offline WV Sawmiller

  • Senior Member x2
  • *****
  • Posts: 6851
  • Age: 66
  • Location: Hinton WV
  • Gender: Male
    • Share Post
    • Green's Sawmill Services
Re: Business Plan--Financial analysis?
« Reply #4 on: August 25, 2017, 08:58:49 AM »
   Welcome to the FF. Good luck and keep us posted.

   Thanks for adding some more class to the site. We need more ladies like you and Tami and Roxie help keep us old hairy legged hardtails in line.
Howard Green
WM LT35HDG25(2015) , 2009 4wd Dodge PU, Kawasaki 650 ATV, Sthil 440 & 441, homemade logging arch (w/custom built rear log dolly), JD 750 w/4' wide Bushhog brand FEL

Dad always said "You can shear a sheep a bunch of times but you can only skin him once"


Share via delicious Share via digg Share via facebook Share via linkedin Share via pinterest Share via reddit Share via stumble Share via tumblr Share via twitter

xx
Business Plan

Started by woodsteach on Sawmills and Milling

10 Replies
2212 Views
Last post June 06, 2005, 10:39:18 PM
by AtLast
xx
My business plan

Started by Darrel on General Board

6 Replies
898 Views
Last post April 01, 2014, 08:54:19 PM
by scsmith42
xx
Business Plan?

Started by 2StateTrigger on General Board

17 Replies
1775 Views
Last post November 25, 2015, 07:58:56 AM
by jdtuttle
xx
business plan

Started by josh on Sawmills and Milling

34 Replies
4389 Views
Last post October 22, 2012, 01:26:12 AM
by OlJarhead
 


Powered by EzPortal