A: Small Business Advisor B: Small Businessperson, Caroline

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A: Hello, Caroline, how are you this morning?

B: I’m fine thanks, and you?

A: I’m good. Let’s have a look at your [?]. Okay, we need to complete a 3-year forecast before you can apply to the bank for [?].

B: Since our last meeting, I’ve re-written my cash flow [?] for my hair salon. I also increased my accounts receivables by 10% for years 2 and 3.

A: Let’s have a look at your cash receipts projections for the first year…Sales of $1,000 per week, or $200 per day, for a 5-day workweek. That all looks good. What’s your [?] operating profit for year 3?

B: Year 1, I plan to break even. I’ve estimated an operating [?] of 20% by the end of year 3.

A: Okay, good. Now, how much money are you applying for at the bank?

B: I’m applying for a $10,000 [?].

A: Do you have any assets to secure the loan?

B: Yes, I do. My [?] and I own and operate 2 Thai restaurants in Chinatown.
I will use one of the properties as [?].

A: Have you [?] applying for a line of credit at the same time?

B: Yes, I will apply for the [?] amount they will give me; I think it’s up to $10,000.

A: Let’s go over your monthly [?]. The bank will want to see your monthly overhead.

B: I’m still researching my [?] costs for shampoo, conditioner, hairdresser supplies and all of the fixtures required to set up my salon.

A: [?] and managing your accounts payable from the start is good planning.

B: I’m attending a beauty and hair trade show this weekend at the Convention Centre. I’ll be looking for good long-term [?] and competitive pricing.

A: Let’s book one more appointment before you go the bank for your loan. They’ll want to see your [?]; which are one-time costs like your salon chairs, mirrors, [?] and so on. That’s a separate document. Then we need to complete your monthly overhead, costs that you will [?] on a monthly basis to operate your business, like hair care products, office supplies, insurance, rent, and hydro. How about next Thursday at 2 p.m.?

B: That’s fine with me. That should give me enough time to finish my business plan and calculate all my [?] after I finish my research at the trade show this weekend.

A: See you next week.

B: Thanks, John. Bye now.