It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

• Excecutive Summary
• Company and Financing Summary
• Products and Services Overview
• Strategic Analysis with current research!
• Marketing Plan
• Personnel Plan
• 3 Year Advanced Financial Plan
• Expanded Financial Plan with Monthly Financials
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $300,000 for the development of a “rent-to-own” business while showcasing the expected financials and operations over the next three years. The Rent to Own Business, Inc. (“the Company”) is a New York based corporation that will provide financing solutions for consumer products to customers in its targeted market. The Company was founded in 2008 by John Doe.

1.1 Products and Services

As stated above, the Rent to Own Business intends to develop a large scale retail facility that will act as a showroom for a number of household appliances and other durable goods. The Company will earn substantial gross margins from the financed installment sale of these goods to lower income families. At this time, Mr. Doe has completed the development of the Company’s credit manual. He is currently sourcing inventory wholesalers for when the Company receives its capital infusion. At all times, the Company will comply with all credit and usury laws regarding the extension of credit (via sales installment plans) to lower income people. The third section of the business plan will further describe the services offered by the Rent to Own Business.

1.2 The Financing

Mr. Doe is seeking to raise $300,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

The Company’s mission is to provide customers with an expansive line of furniture, electronics, and appliances that they can acquire with reasonably moderate credit terms. Mr. Doe is dedicated to providing these services to customers while conforming to call consumer financing laws.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the financing industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target lower income individuals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Rent to Own Business, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Rent to Own Business requires $300,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Rent To Own Business, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Rent to Own Business. Based on historical numbers, the business could fetch a sales premium of up to 7 to 9 times the previous year’s earnings.

3.0 Products and Services

Prior to a customer receiving approval, the Rent to Own Business will verify the income, housing, and credit score of each customer. These credit and income verification checks will be completed in the store while the customer is present. At this time, Mr. Doe is completing the developing of the Company’s credit guidelines so that losses related non-payment on receivables are kept to an absolute minimum. This credit manual is available upon request.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the consumer finance and rent to own industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of an economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.

4.2 Industry Analysis

In the United States there are over 60,000 businesses that operate as non-depository credit institutions (this includes sales installment companies like the Rent to Own Business). Among these business, aggregates receipts over each of the last five years has been in excess of $229 billion dollars of interest revenue. These businesses employ over 500,000 people and provide gross annual payrolls in excess of $22 billion dollars. Specifically among rent to own centers, there are 5,500 businesses within the United States that operate within this capacity. Each year, these businesses generate $3.4 billion dollars while employing 33,000 people. In each of the last five years, aggregate payrolls have exceeded $872 million dollars per year. This is a mature industry, and the expected future growth rate is expected to equal that of the general economy.

4.3 Customer Profile

In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Rent to Own Business intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Rent to Own Business.

5.1 Marketing Objectives

• • 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.

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5.2 Marketing Strategies

Retail marketing will be the most difficult part of the Company’s operations. The rent-to-own industry is a commodity in the greater target market, and as such, Management will need to develop and implement marketing campaigns that will produce a substantial amount of interest in the Company’s rent to own services. Below is a description of the marketing campaigns that Management intends to use from the onset of operations. Primarily, the Company intends to use a traditional marketing and advertising campaign in the target market, which will include the use of print advertisements, radio advertisements, and billboards. The target market is a moderate sized city, and it is relatively easy to target specific segments of the market (especially lower income people). Once the Company reaches profitability, Mr. Doe intends to hire a locally based advertising company that will manage the Company’s marketing campaigns.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

• • The Rent to Own Business will have an annual revenue growth rate of 16% per year.

• • The Owner will acquire $300,000 of debt funds to develop the business.

• • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are sensitive to the overall condition of the financial markets. Revenues derived from the rent-to-own portfolio are directly tied to the prevailing prime credit interest rate. As such, the Company must strive to invest in high credit quality investments that have ‘staying power’ during times of economic recession or pullback. Mr. Doe will enact stringent credit control and screening policies to ensure that losses resulting from defaulted rentals are kept below 4% of the Company’s rent-to-own deals.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis