Are you about starting a check cashing company? If YES, here is a complete sample payday loan business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a payday loan business. We also took it further by analyzing and drafting a sample payday loan service marketing plan template backed up by actionable guerrilla marketing ideas for payday loan companies. So let’s proceed to the business planning section.
Why Start a Check Cashing & Payday Loan Business?
Becoming an entrepreneur is just the way to go if indeed you don’t want to place a cap on how much you earn per month or annually. If you live in the united states and you are a qualified accountant or financial consultants, then you should consider starting check cashing and payday Loan Services firm.
You can be rest assured that your services would always be in demand not only by people that cuts across different financial divides within your area of operations but also by businesses.
Just like most industries, the check cashing and payday loan services industry is pretty open for as many people that are interested in the industry as long as you have what it takes to run a check cashing and payday loan services firm.
Even if you don’t have the finance and other requirements for starting a standard check cashing and payday services firm, you can come into the industry by starting – out as a firm servicing individuals and households in your neighborhood.
If you have decided to start a check cashing and payday loan services firm, then you must make sure that you carry out thorough feasibility studies and also market survey. This will enable you properly locate the business in a community or city with the right demography; a location that can readily accept your services.
Business plan is yet another very important business document that you should not take for granted in the bid to launching your own business. Below is a sample check cashing and payday loan services firm business plan template that will help you successfully launch your own business;
A Sample Check Cashing & Payday Loan Business Plan Template
1. Industry Overview
Firms that operate in the Check Cashing and Payday Loan Services industry cashes checks, drafts or money orders for the general public. Firms in this industry may also offer payday loans, installment loans and other related financial services.
It is important to categorically state that banks and firms that operate exclusively online are not part of the Check Cashing and Payday Loan Services industry. The industry has loads of small business operators servicing a wide range of clients.
The Check Cashing and Payday Loan Services industry is indeed in a mature stage of its growth. The industry is characterized by growth in line with the overall outlook of the economy, consolidation from the largest players in the industry and wholehearted market acceptance of industry products and services. The check cashing and payday loan services line of business will continue to be in high demand by the general public in the United States,
It can’t be ruled out that the nature of the Check Cashing and Payday Loan Services industry gives room for it to perform well during the recession. This is so because, as consumers struggled during difficult economic times, they used industry services to advance their paychecks or to get quick cash back.
Though, as the economy continues to recover and consumers start to fatten their wallets, there is likelihood that the demand for the industry’s services will decline. Moreover, industry regulations have been increasing, hampering revenue growth and profit margins for firms in the Check Cashing and Payday Loan Services industry.
The Check Cashing & Payday Loan Services industry is indeed a large industry and pretty much active in most developed countries of the world most especially in the United States of America, United Kingdom, Mexico and Canada et al.
Statistics has it that in the United States of America alone, there are about 14,569registered and licensed (big, medium scale and small) Check Cashing & Payday Loan Services firm scattered all across the United States responsible for employing about 89,794 people and the industry rakes in a whooping sum of $11 billion annually. The industry is projected to enjoy 1.8 percent annual growth within 2011 and 2016. The establishments with the lion share of the available market in this industry are Cash America International and AARC.
A recent report released by IBISWORLD shows that the Check Cashing and Payday Loan Services industry has relatively low barriers to entry, particularly when compared to other financial services industries. According to Cash America, a new retail location can be ready for business within four to eight weeks after the location and appropriate licenses have been secured.
Total start-up costs generally range from $500,000 to $600,000 for the investment in property and equipment. The report further stated that in Mexico and other international markets, start-up costs are generally less expensive, with the initial required investment ranging from $50,000 to $120,000 due to the smaller size of these locations and lower labor and materials costs.
One thing is certain about starting a check cashing and payday loan services business, if you are able to conduct your market research and feasibility studies, you are more likely not going to struggle to secure clients because there are always clients all across the United States who would need your services from to time.
Lastly, with check cashing and payday loan services business, you can afford to partner with other smaller firms that are into financial related services. You can partner with tax consulting firm, you can partner with accounting and auditing firms and you can partner with human resources consulting firms’ et al. The bottom line is that if you have a robust network and you are well positioned, you can indeed maximize profits with your check cashing and payday loan services firm.
2. Executive Summary
Cash 24 – 7® Financial Services, LLC is a registered and licensed check cashing and payday loan services firm that will be based in Los Angeles – California.
The company will handle all aspect of check cashing and payday loan services such as providing payday loans for recurring expenses, providing payday loans for unexpected emergencies/expenses, providing check cashing services, providing payday loans for other reasons, loan servicing and administration, cash handling and management services for businesses, money transmission servicing, selling money orders and traveler’s checks and safe deposit box renting.
We are aware that to run an all – round and standard check cashing and payday loan services firm can be demanding which is why we are well trained, certified and equipped to perform excellently well.
Cash 24 – 7® Financial Services, LLC is a client – focused and result driven check cashing and payday loan services firm that provides broad- based services at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will offer standard and professional services to all to our individual clients, and corporate clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they hire our services.
At Cash 24 – 7® Financial Services, LLC, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the check cashing and payday loan services industry
Cash 24 – 7® Financial Services, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.
Our plan is to position the business to become one of the leading brands in the check cashing and payday loan services industry in the whole of Los Angeles – California, and also to be amongst the top 20 check cashing and payday loan services firms in the United States of America within the first 10 years of operations.
This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Los Angeles California is the right place to launch our check cashing and payday loan services business before sourcing for clients from other cities in the United States of America.
Cash 24 – 7® Financial Services, LLC is founded by Michael Larry and Joel Evans, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business.
Michael Larry has well over 10 years of experience working at various capacities within the check cashing and payday loan services industry in the United States of America. He graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MSc.) and he is a chartered account. Joel Evans has ample experience in the area of tax consulting and financial auditing.
3. Our Products and Services
Cash 24 – 7® Financial Services, LLC is going to offer varieties of services within the scope of the check cashing and payday loan services industry in the United States of America. Our intention of starting our check cashing and payday loan services firm is to work with individual clients and corporate clients to handle their financial needs as it relates to the services we offer.
We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offerings are listed below;
- Providing payday loans for recurring expenses
- Providing payday loans for unexpected emergencies/expenses
- Providing check cashing services
- Providing payday loans for other reasons
- Loan servicing and administration
- Cash handling and management services for businesses
- Money transmission servicing
- Safe deposit box renting
- Selling money orders and traveler’s checks
- Providing financial advice to individuals and small businesses
4. Our Mission and Vision Statement
- Our vision is to build a check cashing and payday loan services firm brand that will become the number one choice for both individual and corporate clients in the whole of Los Angeles – California. Our vision reflects our values: integrity, service, excellence and teamwork.
- Our mission is to provide professional, reliable and trusted check cashing and payday loan services that to individual and corporate clients. We will position the business to become one of the leading brands in the check cashing and payday loan services line of business in the whole of Los Angeles – California, and also to be amongst the top 20 check cashing and payday loan services firms in the United States of America within the first 10 years of operations.
Our Business Structure
Normally we would have settled for two or three staff members, but as part of our plan to build a standard check cashing and payday loan services firm in Los Angeles – California, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.
The picture of the kind of check cashing and payday loan services firm we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Los Angeles – California.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Check Cashing and Loan Consultants
- Admin and HR Manager
- Marketing and Sales Executive
- Accountant
- Customer Care Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Office:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Check Cashing and Loan Consultants
- Responsible for providing payday loans for recurring expenses for clients
- Responsible for providing payday loans for unexpected emergencies/expenses
- Responsible for providing check cashing services
- Responsible for providing payday loans for other reasons
- Handles loan servicing and administration
- In charge of cash handling and management services for businesses
- Handles money transmission servicing
- In charge of safe deposit box renting
- Responsible for selling money orders and traveler’s checks
- Responsible for providing financial advice to individuals and small businesses
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily office activities.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
- Writes winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- create reports from the information concerning the financial transactions recorded by the bookkeeper
- Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the firm
- Serves as internal auditor for the firm
Client Service Executive / Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned
6. SWOT Analysis
Cash 24 – 7® Financial Services, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured check cashing and payday loan services firm that can favorably compete in the highly competitive check cashing and payday loan services industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Cash 24 – 7® Financial Services, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Cash 24 – 7® Financial Services, LLC;
- Strength:
Our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent jobs. We are well positioned and we know we will attract loads of clients from the first day we open our door for business.
- Weakness:
As a new check cashing and payday loan services firm, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated check cashing and payday loan services industry; that is perhaps our major weakness. So also, we may not have the required cash to give our business the kind of publicity we would have loved to.
- Opportunities:
The opportunities in the check cashing and payday loan services industry is massive considering the number of individuals and even corporate organizations who can’t afford to do without the services of check cashing and payday loan services firms. As a standard and well – positioned check cashing and payday loan services firm in Los – Angeles – California, we are ready to take advantage of any opportunity that comes our way.
- Threat:
Some of the threats that we are likely going to face as a check cashing and payday loan service firm operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
If you a close watcher of the trends in the Check Cashing and Payday Loan Services industry, you will agree that it can’t be ruled out that the nature of the Check Cashing and Payday Loan Services industry gives room for it to perform well during the recession.
This is so because, as consumers struggled during difficult economic times, they used industry services to advance their paychecks or to get quick cash back. Though, as the economy continues to recover and consumers start to fatten their wallets, there is likelihood that the demand for the industry’s services will decline.
Moreover, industry regulations have been increasing, hampering revenue growth and profit margins for firms in the Check Cashing and Payday Loan Services industry. Although the industry is pretty much open to startups at different levels, but it is innovation, excellent and trusted services that usually support the growths of new players in the Check Cashing and Payday Loan Services industry.
Lastly, it is now becoming trendier to find check cashing and payday loan services firms offering other financial related services just as a means of generating more revenue for the business and as a means of expanding and staying highly competitive in the industry.
8. Our Target Market
The demographic and psychographics composition of those who need the services of check cashing and payday loan services provider cuts across both individuals and corporate organizations especially small businesses.
Cash 24 – 7® Financial Services, LLC will initially serve small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading check cashing and payday loan service firms in the United States.
As a standard and licensed check cashing and payday loan service firm, Cash 24 – 7® Financial Services, LLC offers a wide range of services hence we are well trained and equipped to services a wide range of clientele base.
Our target market cuts across businesses of different sizes and industries. We are coming into the industry with a business concept that will enable us work with the small businesses and bigger corporations in and around Los Angeles – California and other cities in the United States of America.
Below is a list of the businesses and organizations that we have specifically design our products and services for;
- Business men and women
- Mom and Pop Businesses
- NGOs
- Individuals
- Corporate executives
- Religious Organizations (Pilgrimage journeys et al)
- Entrepreneurs and Start – Ups
Our competitive advantage
The level of competitions in the check cashing and payday loan services industry depends largely on the location of the business and of course the niche of your services. If you can successfully create a unique brand identity for your check cashing and payday loan services firm or carve out a unique market, you are likely going to experience less competition.
For instance, if you are one of the few check cashing and payday loan services firms in your locations that also offer tax consulting, accounting and bookkeeping and payroll services you are likely going to have a competitive advantage over your competitors.
Although the competition in the check cashing and payday loan services industry is not just within same service providers but also other financial consulting related service providers in the financial consulting services industry.
We are quite aware that to be highly competitive in the check cashing and payday loan services industry means that we should be able to deliver consistent quality service, our clients should be able to meet their financial needs and we should be able to meet the expectations of clients.
Cash 24 – 7® Financial Services, LLC might be a new entrant into the check cashing and payday loan services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups check cashing and payday loan service firms) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Cash 24 – 7® Financial Services, LLC is established with the aim of maximizing profits in the check cashing and payday loan services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis and sign ‘retainer – ship’ with most of our clients.
Cash 24 – 7® Financial Services, LLC will generate income by offering the following services to individuals, households, start – ups, NGOs and for corporate organizations;
- Providing payday loans for recurring expenses
- Providing payday loans for unexpected emergencies/expenses
- Providing check cashing services
- Providing payday loans for other reasons
- Loan servicing and administration
- Cash handling and management services for businesses
- Money transmission servicing
- Safe deposit box renting
- Selling money orders and traveler’s checks
- Providing financial advice to individuals and small businesses
10. Sales Forecast
One thing is certain, there would always be households, individuals, start – ups, NGOs and corporate organizations who would need the services of check cashing and payday loan services firms.
We are well positioned to take on the available market in Los Angeles – California and other key cities in the United States of America and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Los Angeles to other cities all across the United States of America
We have been able to critically examine the check cashing and payday loan services market space and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – California.
Below are the sales projections for Cash 24 – 7® Financial Services, LLC, it is based on the location of our business and the wide range of check cashing and payday loan services that we will be offering;
- First Fiscal Year-: $250,000
- Second Fiscal Year-; $450,000
- Third Fiscal Year-: $950,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales strategy
We are mindful of the fact that there are stiffer competitions amongst check cashing and payday loan service firms and other related financial consulting service providers in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard check cashing and payday loan service firm that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).
Our goal is to grow our check cashing and payday loan services firm to become one of the top 20 check cashing and payday loan services firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Los Angeles – California but also in other cities in the United States of America.
Cash 24 – 7® Financial Services, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to corporate organizations, households, schools, Businesses, Non-Profit Organizations and key stake holders in New York City and other cities in New York.
- Advertise our business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages’ ads (local directories)
- Attend relevant international and local finance and business expos, seminars, and business fairs et al
- Create different packages for different category of clients (individuals, start – ups and established corporate organizations) in order to work with their budgets and still deliver quality services to them
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry with the aim of networking and marketing our services.
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the check cashing and payday loan services industry by storm which is why we have made provisions for effective publicity and advertisement of our check cashing and payday loan services firm.
Below are the platforms we intend to leverage on to promote and advertise Cash 24 – 7® Financial Services, LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Los Angeles – California
- Engage in road show from time to time to create awareness of our business
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
12. Our Pricing Strategy
Fixed prices and commissions for services rendered is a long – time tradition in the industry. However, for some types of check cashing and payday loan services, flat fees make more sense because they allow clients to better predict service charge.
As a result of this, Cash 24 – 7® Financial Services, LLC will charge our clients a flat fee for many basic services such as providing payday loans for recurring expenses, providing payday loans for unexpected emergencies/expenses, providing check cashing services, providing payday loans for other reasons, loan servicing and administration, cash handling and management services for businesses, money transmission servicing, selling money orders and traveler’s checks and safe deposit box renting et al.
At Cash 24 – 7® Financial Services, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to individuals, start – ups, nonprofits, cooperatives, and small social enterprises.
We are aware that there are some clients that would need regular access to check cashing and payday services, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.
- Payment Options
The payment policy adopted by Cash 24 – 7® Financial Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Cash 24 – 7® Financial Services, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.
13. Startup Expenditure (Budget)
Starting a check cashing and payday loan services firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment. Basically, what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount to purchase the required software applications, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.
This is the financial projection and costing for starting Cash 24 – 7® Financial Services, LLC;
- The total fee for incorporating the business in the United States of America – $750.
- The budget for basic insurance policy covers, permits and business license – $2,500
- The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $100,000.
- The cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
- The cost for purchase of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
- The Cost of Launching our official Website – $600
- Budget for paying at least three employees for 3 months plus utility bills – $10,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
- Miscellaneous: $1,000
Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand (150,000) U.S. dollars to successfully set – up a small scale but standard check cashing and payday loan services firm in the United States of America. Please note that the salaries of employees are included in the budget.
Generating Funds / Startup Capital for Cash 24 – 7® Financial Services, LLC
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Cash 24 – 7® Financial Services, LLC is a business that will be owned and managed by Michael Larry and his business partner Joel Evans. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Cash 24 – 7® Financial Services, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our check cashing and payday loan services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Cash 24 – 7® Financial Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Applications for loan from our Bankers: In Progress
- Securing a standard office facility in a business district in Los Angeles – California (Renovation inclusive): Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the industry: In Progress.