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 $100,000 for the development of a foreclosure advisory business while showcasing the expected financials and operations over the next three years. Foreclosure Advisory, Inc. (“the Company”) is a New York based corporation that will provide foreclosure proceedings advice, debt negotiation, and credit advisory services to customers in its targeted market. The Company was founded in 2008 by John Doe.

1.1 Products and Services

The primary revenue center for the Company will come from directly assisting homeowners that are entering foreclosure or are about to enter foreclosure by working with creditors and lenders to renegotiate mortgages on behalf of the Company’s clients. Like many credit repair/foreclosure advisory services, the Company will receive payments directly from lenders with whom the Company has renegotiated a loan. Typical fees for this service amount to 5% to 10% of the monthly payments that commence once a loan is renegotiated. The Foreclosure Advisory will also provide general credit counseling and loan renegotiation services to clients that are facing home foreclosure. Many people facing home foreclosure also have substantial financial difficulties with creditors that extend beyond their mortgage issues. Mr. Doe sees a strong opportunity to render these services to the general public. The third section of the business plan will further describe the services offered by Foreclosure Advisory, Inc.

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.

1.3 Mission Statement

Foreclosure Advisory, Inc.’s mission is to assist people with managing the foreclosure advisory process while concurrently assisting some homeowners with saving their homes from entering foreclosure.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the lending 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 that are facing foreclosure within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

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

2.2 Required Funds

At this time, Foreclosure Advisory, Inc. 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 Foreclosure Advisory, 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 Foreclosure Advisory, Inc. Based on historical numbers, the business could fetch a sales premium of up to 3 to 5 times earnings.

3.0 Products and Services

Below is a description of the foreclosure and credit advisory services offered by the Company.

3.1 Foreclosure Advisory Services

As stated in the executive summary, the Company’s primary goal is to provide clients with renegotiation and mortgage debt management services to clients that are heavily saddled with mortgages. In many instances, the Company’s clients will have already entered or are about to enter foreclosure. The business, on behalf of clients, will work with lenders to adjust the terms of these loans to effectively ensure that the client can continue to pay their creditors while concurrently ensuring that the creditors maintain portfolios of serviceable receivables. For this service, the Company will receive fees from lenders in exchange for successfully renegotiating a client’s mortgage debt. Full disclosures regarding fees for these services will be provided to the client to ensure that any conflict of interest is kept to an absolute minimum. It should also be noted that at all times, the Company will maintain the proper licensure to act as a foreclosure advisory firm within each jurisdiction where the Foreclosure Advisory does business.

3.2 General Credit Counseling

As the people that are facing foreclosure will most likely have other debt issues (credit cards, auto loans, etc.), the Company will also provide general credit counseling services that will assist these people with improving their credit and/or working with creditors to reduce monthly payments. In regards to fees, the client will pay directly for these counseling services, which will be offered at a fixed rate and predetermined before the Company develops a plan to improve a client’s credit. The Company will maintain extensive policies on fee disclosures to ensure that client’s clearly understand the costs associated with the Company’s services as well as all other applicable disclaimers and warranties. Fees from loan negotiation will be paid by the creditor (in a similar fashion to the Company’s foreclosure advisory services).

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the credit counseling and foreclosure advisory 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 difficult. The meltdown of the sub prime mortgage market coupled with increasing unemployment has led the economy to enter a recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. However, foreclosure advisory and credit repair businesses typically operate with a great degree of economic immunity as people will continue to require these services on an ongoing basis, especially during deleterious economic climates. As such, Management feels that the current economic climate is actually an excellent time to launch this type of business as millions of people are currently having substantial issues with their home loans and other debts.

4.2 Industry Analysis

The foreclosure advisory and credit management industry represents over 5,000 established businesses that employ more than 15,000 people. Each year, these businesses aggregately generate more than $2 billion dollars a year of revenue and provide gross annual payrolls of $600 million dollars. The growth rate for this industry has been tremendous over the last five years as the growth of financial transaction over the Internet has increased significantly. Over the last five years, the number of agents operating within this market more than doubled, with income received by these firms increasing more than 300%.

4.3 Customer Profile

As of late 2008, almost 2 million homes have entered foreclosure, and many economists anticipate that this number could double over the next 18 months as unemployment increases and the values of homes continued to decrease. As such, there are potentially millions of customers that will be in need of foreclosure advisory services over the next one to two years. Among the Company’s targeted demographics, Foreclosure Advisory expects that the average customer will currently be in foreclosure proceedings or is about 3 months away from entering foreclosure. Mr. Doe also expects that the average income of a customer will be $40,000 to $100,000 per year.

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

Foreclosure Advisory, Inc. 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 Company.

5.1 Marketing Objectives

• • Establish relationships with accountants within the targeted market.

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

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5.2 Marketing Strategies

Mr. Doe intends on using a number of marketing strategies that will allow Foreclosure Advisory, Inc. to easily target homeowners 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. Foreclosure Advisory, Inc. will also use an internet based strategy. This is very important as many people seeking local and regional service providers, such foreclosure advisory companies, now the Internet to conduct their preliminary searches. Mr. Doe will register the Foreclosure Advisory with online portals so that potential customers can easily reach the business. The Company will also develop its own website showcasing the services offered by the business, the Foreclosure Advisory’s team of foreclosure specialists, and relevant contact information. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the foreclosure advisory services that the Company is offering. Mr. Doe will also develop ongoing referral relationships with accountants within the Company’s local market who will refer clients with significant foreclosure or financial issues. In time, this will become an invaluable source of new business for the Foreclosure Advisory, Inc.

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

• • Foreclosure Advisory, Inc. will have an annual revenue growth rate of 13% 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

The Company’s revenues are not sensitive to changes in the general economy. In fact, during deleterious economic conditions (like the current economy), Mr. Doe expects an increase in revenue as more people turn to professional advisors regarding their mortgage delinquency issues. Additionally, the Company generates high margin income from its services, which will allow Foreclosure Advisory, Inc. to thrive in any economic climate

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