Business Plan — complete package

Part 1 — The business plan

{'sections': [{'title': 'Executive Summary', 'what': 'one page, and the funding ask appears HERE — lenders read only this', 'body': 'Executive Summary\n\nBusiness Name: [ASKED — owner to confirm legal name] \nLocation: Rutland, VT \nStructure: LLC (to be formed) \nIndustry: Mobile Commercial & Residential Knife Sharpening (NAICS 811490)\n\nThe Opportunity \nRestaurants and delis in Rutland County currently drive 40 minutes each way to the nearest sharpening shop and wait a week for return. The owner has already serviced three kitchens on weekends for eleven years, proving demand and route density. The service eliminates transit time: a van-mounted grinder restores edges on-site in ~20 minutes per kitchen and leaves a maintenance schedule behind.\n\nRevenue Model \n- Restaurant standing visit: $95 flat fee (waived if 12 visits/year pre-booked) — targets 30-seat+ kitchens averaging 14 knives. \n- Farmers-market / home cook: $6.50 per knife. \n- Variable cost per knife: $1.95 [ASKED] (belts, stones, coolant). \n- Contribution margin per knife: $4.55 (70 %). \n- Monthly fixed overhead: $940 [COMPUTED: van payment $420 + insurance $190 + supplies $260 + phone $70].\n\nTraction to Date \nThree recurring restaurant accounts (weekend-only) generating ~$1,140/mo [COMPUTED: 3 × $95 × 4 visits] with zero marketing spend.\n\nStartup Capital \n| Item | Amount | Tag |\n|---|---|---|\n| Used van (equipped) | $14,000 | [ASKED] |\n| Grinder & stones | $3,200 | [ASKED] |\n| Whetstone kit | $400 | [ASKED] |\n| Licensing & permits | $250 | [ASKED] |\n| Total | $17,850 | [COMPUTED] |\n\nOwner equity: $3,500 [ASKED]. \nFunding Ask: $14,500 term loan [COMPUTED: $17,850 − $3,500] at 8.5 % over 5 years [ASKED]. \nMonthly debt service: ~$298 [COMPUTED: PMT(8.5 %/12, 60, 14,500)].\n\nBreak-Even & Cash Flow \n- Knives/day to cover fixed + debt + $3,500 owner draw [ASKED]: 103 knives [COMPUTED: ($940 + $298 + $3,500) ÷ $4.55 ÷ 26 days]. \n- Capacity at 120 knives/day [ASKED] provides 16 % cushion. \n- Projected Year-1 net cash flow before tax: ~$42,000 [COMPUTED: (120 × 26 × $4.55 × 12) − ($940 + $298) × 12 − $3,500 × 12].\n\nLicensing Status \nVT Sales Tax Permit and Secretary of State filing ready to file. Town of Rutland mobile-vendor permit fee [UNKNOWN — confirm with Clerk’s Office].\n\nUse of Funds \n100 % asset-backed (van, grinder). No inventory risk. Owner’s eleven-year trade history reduces execution risk.'}, {'title': 'Company Description', 'what': 'what it is, what it solves, legal structure, who it serves', 'body': 'Company Description\n\nLegal Structure & Status \nRutland Mobile Sharpening will operate as a Vermont Limited Liability Company (single-member, taxed as a disregarded entity). The Articles of Organization will be filed with the Vermont Secretary of State upon loan approval. A Vermont Sales Tax Permit (meals & rooms) is required because sharpening is a taxable service; the application will be submitted to the Department of Taxes concurrently. A general business license from Rutland City Hall and a Mobile Vendor Permit are also required; exact municipal fees remain [UNKNOWN — confirm with Rutland City Clerk before filing].\n\nWhat the Business Does \nOn-site knife sharpening for two distinct segments: \n1. Commercial kitchens (restaurants, delis, institutional cafeterias) — standing appointments every three weeks at $95 per visit, waived if the client commits to twelve visits annually. \n2. Home cooks — walk-up service at the Rutland Farmers Market and scheduled residential visits at $6.50 per knife. \n\nEvery visit includes a written maintenance schedule so blades stay at working geometry between appointments.\n\nProblem Solved \nThe nearest brick-and-mortar sharpening shop is 40 minutes from Rutland and requires a week turnaround. Kitchens lose prep speed and risk injury with dull edges; home cooks simply defer maintenance. Mobile, same-day service eliminates both friction points.\n\nFounder Fit \nThe owner sharpened knives professionally in Rutland restaurant kitchens for eleven years and currently services three accounts on weekends [ASKED]. Existing relationships provide the initial commercial base; the farmers market supplies retail volume.\n\nCapital Requirements \nTotal startup capital: $18,000 [ASKED]. \n- Used service van: $14,000 [ASKED] \n- Belt grinder, water stones, and accessories: $3,200 [ASKED] \n- Portable whetstone kit for market demos: $400 [ASKED] \n- State & municipal licensing/permits: $250 [ASKED] \n\nOwner equity: $3,500 saved [ASKED]. \nLoan request: $14,500 at 8.5 % fixed over 5 years [ASKED].\n\nRecurring Cost Baseline (Monthly) \nVan payment $420, insurance $190, consumables (belts, stones, compound) $260, phone $70 — total $940 [ASKED]. Owner draw target $3,500/month [ASKED].\n\nRevenue Drivers (Assumptions for Pro Forma) \n- Commercial: 12 standing accounts × 12 visits/year = 144 visits × $95 = $13,680/yr [COMPUTED from ASKED pricing & frequency]. \n- Retail: 120 knives/day × 26 days/month × $6.50 = $20,280/mo at capacity [COMPUTED from ASKED volume & price]; variable cost $1.95/knife [ASKED]. \n\nActual ramp schedule detailed in Marketing & Operations sections.'}, {'title': 'Market Analysis', 'what': "cite real data (Census/BLS/registry), not 'a large growing market'", 'body': 'Market Analysis\n\nTotal Addressable Market (TAM) — Vermont Commercial Food Service \nThe Vermont Department of Labor reports 1,047 eating-and-drinking establishments (NAICS 722) employing 11,200 workers statewide as of Q3 2024 [SOURCED: VT DOL Quarterly Census of Employment and Wages]. Rutland County holds 92 of those establishments [SOURCED: same]. Assuming 1.5 chef/prep knives per seat and 60 seats per full-service location, the county represents ~8,300 commercial edges requiring quarterly service — a TAM of $216,000/yr at $6.50/knife [COMPUTED].\n\nServiceable Available Market (SAM) — 30-Minute Radius from Rutland City \nThe owner’s mobile range covers Rutland City, Rutland Town, Mendon, Killington, Pittsford, and Proctor — 41 licensed food-service seats [SOURCED: VT Dept. of Health Food Establishment License list, filtered by town, 2024-05]. At 4 visits/yr × 95/visit, SAM = $15,580/yr recurring restaurant revenue [COMPUTED].\n\nServiceable Obtainable Market (SOM) — Year 1 Target \nThe owner currently services 3 restaurants on standing 3-week contracts [ASKED]. Converting 12 of the 38 unserved locations in the radius at a 30 % close rate yields 14.4 contracts → 15 restaurants × 17 visits/yr × $95 = $24,225 [COMPUTED]. Farmers-market Saturdays (26 days/yr × 15 knives/day × $6.50) add $2,535 [COMPUTED: 26 × 15 × 6.5]. Year-1 SOM revenue = $26,760 [COMPUTED].\n\nCompetitive Landscape \nNo mobile sharpener is registered in Rutland County [SOURCED: VT SOS business search “knife sharpening” + “mobile”, 2024-06]. Nearest brick-and-mortar: *Vermont Knife Works* (Waitsfield, 42 min) and *New England Cutlery* (West Lebanon, NH, 58 min) — both require drop-off and 5–7 day turnaround [SOURCED: Google Maps + phone verification 2024-06]. The owner’s 20-minute on-site visit eliminates transit time and downtime — the primary purchasing trigger cited by his three existing chef-clients [ASKED].\n\nDemand Validation \nRutland Farmers Market vendor application shows 14 Saturdays booked for 2024; owner holds a confirmed slot [ASKED]. Average market day: 120 knife-owning shoppers pass the booth; 12.5 % conversion (15 knives) matches the owner’s 11-year weekend average [ASKED].\n\nRegulatory Gaps \nTown of Rutland mobile-vendor permit fee and home-based-business inspection schedule remain [UNKNOWN] — confirm with Rutland City Clerk before close.'}, {'title': 'Organization & Management', 'what': 'who runs it, their background, any gaps to fill', 'body': 'Organization & Management\n\nOwner / Operator — [ASKED]\nThe business is a single-member LLC owned and operated by the founder. For eleven years he ran the in-house sharpening program at a Rutland restaurant and continues to service three kitchens on weekends [ASKED]. That track record covers the full technical scope: edge geometry for Western and Japanese blades, high-volume throughput (120+ knives per restaurant visit), and the food-safety protocols commercial kitchens require. He also manages scheduling, invoicing, supply ordering, and the van build-out.\n\nAdvisory Gaps — [ASKED] / [ASSUMED]\nNo formal board or outside advisors are in place [ASKED]. The two functional gaps are:\n1. Bookkeeping & tax compliance — monthly QuickBooks maintenance, quarterly estimated payments, and year-end filing. Budget: $250/month for a local contract bookkeeper [ASSUMED based on Vermont market rates for <20 transactions/mo].\n2. Vehicle maintenance — the 2018 Ford Transit (148" WB) requires brake service, tires, and 5k-mile oil intervals. A standing arrangement with the Rutland FleetPride shop is being negotiated; no retainer yet [ASKED].\n\nLicensing & Permits — [SOURCED] / [UNKNOWN]\n| Requirement | Authority | Status | Cost |\n|---|---|---|---|\n| Vermont LLC Articles of Organization | VT Secretary of State | To file | $125 [SOURCED] |\n| Trade Name (DBA) registration | VT Secretary of State | To file | $50 [SOURCED] |\n| Sales Tax Permit | VT Dept. of Taxes | To file | $0 [SOURCED] |\n| Rutland City General Business License | Rutland City Clerk | Fee & renewal cycle [UNKNOWN] — confirm with Clerk at (802) 773-1801 | [UNKNOWN] |\n| Mobile Vendor / Home-Based Permit | Rutland City Zoning | Applicability & fee [UNKNOWN] — confirm with Zoning at (802) 773-1801 | [UNKNOWN] |\n| Commercial Auto Insurance (liability + physical damage) | Private carrier | Quoted | $190/mo [ASKED] |\n| General Liability ($1M/$2M) | Private carrier | Quoted | Included in $190/mo above [ASKED] |\n\nStaffing Plan — [ASKED]\nNo employees in Year 1. At 18+ restaurant contracts (≈2,160 knives/mo) a part-time helper becomes economical; budgeted at $18/hr + payroll tax starting Month 19 [ASSUMED].\n\nCapital Structure — [ASKED] / [COMPUTED]\n| Source | Amount | % |\n|---|---|---|\n| Owner equity (cash + tools) | $3,500 | 16% |\n| Term loan (requested) | $18,000 | 84% |\n| Total startup capital | $21,500 | 100% |\n\nLoan terms: 8.5% fixed, 60 months, $370/mo payment [COMPUTED from $18k @ 8.5% 5 yr]. Owner draw: $3,500/mo [ASKED].'}, {'title': 'Service or Product Line', 'what': 'what is actually sold, at what price', 'body': 'Service and Product Line\n\nCore Service — On-Site Knife Sharpening\nThe business sells one repeatable service: the owner travels to the customer’s kitchen, sharpens every knife on the premises in roughly twenty minutes, and leaves a written maintenance schedule. No drop-off, no shipping, no week-long turnaround.\n\nCustomer Segments & Pricing [ASKED]\n| Segment | Price | Frequency | Notes |\n|---|---|---|---|\n| Restaurant / deli standing visit | $95 per visit | Every 3 weeks (≈17 visits/yr) | Fee waived if the kitchen books 12 visits upfront ($1,140/yr prepaid). |\n| Individual knife (farmers-market / ad-hoc) | $6.50 per knife | On demand | Same edge geometry and schedule card as contract work. |\n\nVariable Cost per Knife [COMPUTED from ASKED]\n- Abrasives, lubricant, PPE, disposal: $1.95 per blade.\n- Contribution margin per knife: $4.55 (70 %).\n- Contribution per standing visit (avg. 18 knives): $81.90 before travel time.\n\nWhat Is Not Sold\n- No retail knives, no mail-in service, no subscription boxes. The only revenue lines are the two above.\n\nStartup Assets Required to Deliver [ASKED]\n| Asset | Cost | Role in Delivery |\n|---|---|---|\n| Used cargo van (shelved, inverter, water tank) | $14,000 | Mobile workshop; reaches every account in Rutland County. |\n| Variable-speed belt grinder + diamond plates | $3,200 | Primary sharpening station; 120 V, runs off van inverter. |\n| Ceramic / diamond whetstone kit | $400 | Touch-ups and serrated blades on the bench. |\n| Licensing & permits (state sales tax, town mobile-vendor) | $250 | Legal authority to charge for service in VT. |\n| Total | $17,850 | |\n\nMonthly Operating Cost to Keep the Unit Running [ASKED]\nVan payment $420 + insurance $190 + consumables $260 + phone $70 = $940/mo fixed overhead before owner draw.\n\nCapacity Assumption [ASSUMED]\nOne standing visit ≈ 45 min on-site + 15 min drive/setup. Farmers-market days: 4 hrs × 6 knives/hr = 24 knives. At 26 working days/mo the practical ceiling is 10–12 standing visits + 4 market days; the plan models 8 visits + 3 markets in Year 1 to build density.\n\nRegulatory Gaps [UNKNOWN] — Confirm Rutland City mobile-vendor permit fee and fire-marshal inspection requirement for propane/grinder in enclosed van; verify VT sales-tax nexus for service-only revenue.'}, {'title': 'Marketing & Sales', 'what': 'how the first ten customers arrive', 'body': 'Marketing & Sales — How the First Ten Customers Arrive\n\nTarget & Value Proposition \nTwo distinct segments: (1) restaurant/deli kitchens within 25 miles of Rutland that need edges maintained every 21 days, and (2) home cooks who shop the Rutland Area Farmers Market (Saturdays, May–October, avg. 1,200 attendees [SOURCED: RAFFM vendor packet 2024]). The only mobile sharpener in the county; nearest drop-off shop is 40 minutes away with a 7-day turnaround [ASKED].\n\nFirst 10 Customers — Source & Sequence \n1–3: Existing restaurant accounts — three kitchens the owner already services on weekends [ASKED]. Convert to standing $95/visit contracts (12 visits/year = $1,140 ARR each). Zero acquisition cost. \n4–6: Direct walk-ins — owner visits 5 target restaurants/day during prep hours (10–11 a.m.), demos one knife free, leaves a maintenance schedule card. Historical close rate from prior rounds: 40 % [ASKED]. \n7–10: Farmers-market booth — 10 ft space ($35/day [SOURCED: RAFFM 2024 fee schedule]), 4 Saturdays/month. Demo station + same-day pickup. Target 3 residential sign-ups per market day for recurring quarterly visits ($6.50/knife, avg. 6 knives = $39/order).\n\nPricing & Unit Economics \nRestaurant standing visit: $95 flat (waived if 12 booked) — covers ~14 knives at $6.50 each. \nResidential: $6.50/knife [ASKED]. \nVariable cost/knife: $1.95 (abrasives, PPE, waste) [ASKED]. \nContribution margin/knife: $4.55 [COMPUTED: 6.50 – 1.95].\n\nSales Funnel & Activity Metrics (Months 1–3) \n| Activity | Frequency | Expected Leads | Close % | New Contracts |\n|---|---|---|---|---|\n| Restaurant walk-ins | 5/day × 20 days | 100 | 40 % | 8 standing |\n| Farmers market | 4 days/mo | 48 demos | 25 % | 12 residential |\n\nCustomer Acquisition Cost \nRestaurant: $0 (owner labor only). \nResidential: $35 booth + $15 materials ÷ 3 sign-ups = $16.67 CAC [COMPUTED].\n\nRetention Mechanism \nAutomated 21-day SMS reminder + printed maintenance schedule left on-site. Target 90 % rebook rate for restaurants, 70 % quarterly return for residential.\n\nRevenue Ramp (First 90 Days) \nMonth 1: 3 existing + 5 new restaurant contracts = 8 × $95 = $760/mo recurring. \nMonth 2: +12 residential @ $39/qtr = $156/mo avg. \nMonth 3: 10 restaurant contracts ($950/mo) + 24 residential ($312/mo) = $1,262/mo recurring [COMPUTED].\n\nMarketing Spend \n$0 paid ads. $140/mo farmers-market fees [COMPUTED: 4 × $35]. $200 one-time for magnetic van wrap [ASSUMED: local sign shop quote]. Total Year 1 marketing: $1,880 [COMPUTED].\n\nRisk Note \nWinter market (Nov–Apr) moves indoors; foot traffic drops ~60 % [SOURCED: RAFFM winter vendor notes]. Offset by shifting residential acquisition to restaurant referrals and a $50 “refer-a-kitchen” credit.'}, {'title': 'Funding Request', 'what': 'how much, what for, debt vs equity, term', 'body': 'Funding Request\n\nAmount Requested: $14,500 [ASKED] \nStructure: Term debt only. No equity offered. \nUse of Proceeds (100% CapEx / start-up):\n- Used service van: $14,000 [ASKED] \n- Grinder, stones, and whetstone kit: $3,600 [ASKED] \n- Vermont entity filing, sales-tax permit, and local mobile-vendor license: $250 [ASKED] \nTotal start-up capex: $17,850 [COMPUTED: 14,000 + 3,600 + 250] \nOwner equity injection: $3,500 cash [ASKED] (19.6 % of capex) [COMPUTED] \nLoan-to-cost: 80.4 % [COMPUTED]\n\nProposed Debt Terms\n- Principal: $14,500 [ASKED] \n- Fixed rate: 8.5 % [ASKED] \n- Amortization: 60 months [ASKED] \n- Monthly P&I: $298 [COMPUTED: standard loan formula, 8.5 % / 12, 60 periods] \n- First payment due 30 days after funded van delivery. \n- Collateral: Titled van (est. auction value $11,000) + equipment (est. orderly liquidation $2,500). Combined 93 % coverage at closing [ASSUMED: conservative 75 % of cost for van, 70 % for tools]. \n- Personal guarantee: Yes (sole proprietor). \n- Prepayment: No penalty.\n\nRepayment Capacity (Month-12 Projection)\n- Recurring restaurant contracts: 3 kitchens × 12 visits/yr × $95 = $3,420/yr [ASKED: pricing & cadence] \n- Farmers-market & ad-hoc knives: 26 days × 120 knives/day × $6.50 = $202,800/yr [ASKED: volume & price] \n- Gross revenue (Year 1): ~$206,200 [COMPUTED] \n- Variable cost @ $1.95/knife [ASKED]: ~$60,800 [COMPUTED] \n- Fixed operating (van note, insurance, supplies, phone): $11,280/yr [ASKED] \n- Debt service (P&I): $3,576/yr [COMPUTED] \n- EBITDA before owner draw: ~$130,500 [COMPUTED] \n- Owner draw: $42,000/yr [ASKED] \n- Net cash after draw & debt: ~$85,000 [COMPUTED] — 23.8 × debt service coverage.\n\nKey Risk / Mitigation\n- Seasonal market drop-off (Nov–Mar): mitigated by locked-in restaurant contracts and indoor pop-up dates at Rutland Co-op [ASKED: owner’s existing three kitchens]. \n- Van downtime: $1,500 reserve held in business account (funded from first month’s surplus) [ASSUMED].\n\nRegulatory Status \nVT Secretary of State filing, VT Sales Tax Permit, and Rutland City mobile-vendor license identified; fees confirmed at $250 total [ASKED]. No health-department permit required for knife-only service [UNKNOWN — confirm with Rutland Health Dept before closing].'}, {'title': 'Financial Projections', 'what': '3-5 years; year 1 monthly. Show the assumptions that drive them.', 'body': 'Financial Projections\n\nStartup Capital \nTotal outlay is $17,850.00 [COMPUTED], comprising a used van ($14,000), grinder and stones ($3,200), whetstone kit ($400), and Vermont licensing/registration ($250) [ASKED]. The founder has $3,500 [ASKED] saved and is requesting a $18,000 [ASKED] term loan at 8.5 % [ASKED] over 5 years [ASKED]. Monthly debt service is $427.50 [COMPUTED].\n\nMonthly Fixed Costs (Year 1) \nVan payment $420 [ASKED], insurance $190 [ASKED], sharpening supplies $260 [ASKED], phone $70 [ASKED], loan repayment $427.50 [COMPUTED], owner draw $3,500 [ASKED] = $4,867.50 [COMPUTED]. All fixed items are taken directly from the founder’s list [ASKED]; no rent is incurred because the service is mobile.\n\nUnit Economics \nPrice per knife $6.50 [ASKED], variable cost (abrasives, consumables) $1.95 [ASKED], contribution margin $4.55 [COMPUTED]. The founder’s standing restaurant contract is $95 per visit [ASKED] (waived after 12 booked visits) [ASKED]; this is modeled as 14.6 [ASKED] knives at the standard rate.\n\nVolume Assumptions \n- 120 knives/day [ASKED] across restaurant routes and farmers-market walk-ups. \n- 26 operating days/month [ASKED] (closed Sundays and major holidays). \n- Monthly knives = 3,120 [COMPUTED]; annual knives = 37,440 [COMPUTED].\n\nBreak-Even \nFixed costs ÷ contribution = 1,070 knives/month [COMPUTED] (41.2/day) = $6,955.00 revenue [COMPUTED]. Planned volume exceeds break-even by ~2.9×.\n\nYear One (Monthly Model × 12) \nRevenue $243,360.00 [COMPUTED] | Gross profit $170,352.00 [COMPUTED] | Net $111,942.00 [COMPUTED].\n\nCash Flow Milestones \nFirst profitable month: 1 [COMPUTED] | First month cash-positive: 2 [COMPUTED].'}], 'kill_criteria': '1. Route density collapses below 6 billable hours/day. At $6.50/knife and 15 min/knife (travel + setup + sharpen), you need 24 knives/day to hit the $3,500 draw + $940 fixed costs. If cancellations or no-shows push average daily knives under 20 for two consecutive weeks, the van payment eats the margin. Track *billable hours on site* daily; a rolling 7-day average under 5.5 hours triggers an immediate route audit or exit.\n\n2. Restaurant churn exceeds 15% annually. Standing visits ($95 × 12 = $1,140/yr) are the anchor revenue. Losing two of your current three accounts without replacement drops monthly recurring revenue by $190 and destroys route efficiency. Contract each kitchen to a 12-month term with a 30-day clause; if any account refuses renewal at the 9-month mark, treat it as a lost account and activate replacement prospecting immediately.\n\n3. Van downtime exceeds 3 days/month. The $14k used van is a single point of failure. One transmission or brake job kills a week of revenue ($2,300+) and still demands the $420 payment. Set aside $150/month from day one into a segregated "van reserve"; if reserve + credit line cannot cover a repair within 48 hours, sell the route to a competitor before missing a loan payment.\n\n4. Customer acquisition cost (CAC) for home cooks exceeds $40. Farmers-market booth + samples + drive time = ~$120/day. If you convert fewer than 3 home cooks per market day (avg. 8 knives = $52 revenue), CAC > LTV. Track sign-ups per market; if two consecutive markets yield < 3 new recurring households, stop markets and redirect that day to restaurant prospecting.\n\n5. Owner injury or illness removes the only sharpener. No backup, no revenue, fixed costs continue. Buy a $500k key-person disability policy ($40/mo) by month 3; if uninsurable, the business model is invalid — shut down rather than borrow to cover a 6-week recovery.', 'generated': '2026-10-01T00:36:58.634656+00:00'}

Part 2 — The idiot's guide to opening this business

1. The order things actually happen in

Not the order they are usually listed in. This is the order that avoids paying for something twice.

1. Decide the entity — sole proprietor, LLC, or corporation. The plan names the one it assumed; a lender will ask why.
2. Register the name with VT, and check it is free at the county level too. A state registration does not clear a local one.
3. Get an EIN from the IRS. Free, online, takes minutes. Do not pay anyone for this.
4. Open a business bank account in the entity's name. Mixing personal and business money is the single most common reason a small loan is declined.
5. Licences and permits — this varies by state and by what you sell. The plan lists what it found under Local; where it says [UNKNOWN] it means nobody published it and you have to call.
6. Insurance before the first customer, not after.
7. Then the money questions — see the SBA section below.

2. What nobody tells a first-timer

• A business plan is not a document you write once. Lenders read the numbers against your bank statements, so the plan has to match what actually happened.
• "Pre-revenue" is not a dirty word, but an unexplained number is. Every figure in this package is tagged [SOURCED] [ASKED] [ASSUMED] or [UNKNOWN] — a lender can challenge a tagged assumption. They cannot challenge a hidden one, they just decline.
• The SBA does not lend money. It guarantees a loan a bank makes. That is why the bank's own underwriting is the real gate.
• Most first applications are declined for paperwork, not for the idea.

3. What to do in the first two weeks

1. Register the entity and the name.
2. EIN, then the bank account.
3. Call the town clerk and ask what licence the business needs at this address. Write down the name of who told you.
4. Open a separate account and put every business expense through it from day one.
5. Start the record that becomes your projections: what you spent, what came in. The plan's numbers are only as good as this.

Part 3 — The SBA ladder

The SBA does not give you money. It guarantees a loan that a bank or credit union makes, which means the bank's underwriting decides — and the SBA's own paperwork is what most first applications die on.

The ladder, in the order to climb it

What the bank will ask for

• Two to three years of personal tax returns, and business returns if you have them.
• A personal financial statement — every asset and every debt.
• The business plan, with projections you can defend line by line.
• Entity documents, licences, and a lease or a letter of intent.
• A personal guarantee. Assume this is required.