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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Jan. 31


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017
Free Auction House Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.



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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
  • FREE 30 Page Sample Private Placement Memorandum
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $100,000 for the development of an auction house while showcasing the expected financials and operations over the next three years. The Auction House, Inc. (“the Company”) is a New York based corporation that will provide auctioneering and estate management sales to customers in its targeted market. The Company was founded by John Doe.

1.1 Products and Services

The primary revenue center for the Auction House will come from hosting and managing auctions on behalf of clients. The business will receive a fee equal to 30% of all items sold at auction. The business’s secondary revenue center stream will come from the management of estate sales directly from the homes where items are being sold at auction. This is an extremely important part of the Company’s income stream. The third section of the business plan will further describe the services offered by the Auction House.

1.2 The Financing

Mr. Doe is seeking to raise $100,000 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. The financing will be used for the following: • Development of the Company’s Auction House location. • Financing for the first six months of operation. • Capital to develop an online auction portal. Mr. Doe will contribute $10,000 to the venture.

1.3 Mission Statement

The Auction House’s mission is to become the recognized leader in its targeted market for auction and estate sale services.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the auction 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 individuals within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Auction House, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Auction House requires $100,000 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 Auction House, 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 Auction House. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.

3.0 Products and Services

Below is a description of the auction house and estate planning services offered by Auction House, Inc.

3.1 Auction House

The primary revenue center will come from the ongoing management and hosting of estate sales. The business will maintain a classically decorated showroom that will be used for hosting auction events. The business will also develop an online portal so that people can place bids for auctions as they are occurring at the Auction House location.

3.2 Estate Sales

The business’ secondary revenues will come from the direct management of estate sales among individuals that want to divest large amounts of household property. The business will manage all aspects of the marketing of the estate sale. Much like with Auction House services, the business will charge a fee equal to 30% of all items sold.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the auction house 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 a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, Auction Houses tend to thrive during times of economic recession as people seek to raise cash via the divestiture of expensive personal property.

4.2 Industry Analysis

Within the United States, there are approximately 1,100 businesses that operate in an auction and estate sales management capacity. Each year, these businesses generate more than $2 billion of revenues while providing jobs to more than 25,000 people. Annual payrolls in each of the last five years have exceeded $290 million. This is a mature industry, and the future expected growth rate is anticipated to remain on par with that of the general economy.

4.3 Customer Profile

The Auction House’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $150,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $2,000 to $15,000 per auction house event. • Among people selling items, will have an inventory of $100,000+ of merchandise that needs to be divested.

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 Auction House 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 Auction House.

5.1 Marketing Objectives

  • • Establish relationships with estate planners the targeted market.

  • • Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.

5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow Auction House to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Auction House will also use an internet based strategy. This is very important as many people seeking local services, such as auction houses and estate sales managers, now the Internet to conduct their preliminary searches. Mr. Doe will register the Auction House with online portals so that potential customers can easily reach the business. The Company will also develop its own online website as discussed in the third section of the business plan. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the auctioneering and estate sales management that the Company is selling.

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



6.3 Management Biographies

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 Auction House will have an annual revenue growth rate of 16% per year.

  • • The Owner will acquire $100,000 of debt funds to develop the business.

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

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. However, demand for auction house services tends to increase during deleterious economic conditions as individuals/businesses seek to raise capital.

7.3 Source of Funds


7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis

 

7.7 Balance Sheet

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7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis