• Two years of business and personal tax returns;
• Current balance sheet and income statement;
• An accounts receivable report;
• An accounts payable report; and
• The company’s debt schedule.

I also asked the BM what information a business start up had to include in its business plan. Start ups generally need to provide more information than existing businesses including:

• A description of the business;
• A summary of the owner’s business experience;
• The demographics for the business;
• Industry research;
• Three years of projections;
• An opening day balance sheet;
• Two years of tax returns; and
• Two years of personal financial statements.

A start up business may also need to provide collateral for the loan and may need to contribute up to 20% of the amount requested.

I then asked the BM about the most common deficiencies in business plans. The BM identified three:

1. The number one deficiency is unrealistic projections for revenue and net income on an annual basis, due to the fact that the owner didn’t  do the appropriate research and is at a disconnect with where their industry trends are.
2. The second most common deficiency is providing insufficient information about the business and/or lacking a description about what they do as a business. The BM said that existing and prospective owners need to tell their story to the underwriter.
3. A third deficiency, which applies more to start-ups is their lack of experience in the industry and/or having insufficient collateral.  The BM noted that while a business plan needs to include sufficient information he also cautioned against putting too much information into the plan. The BM said the underwriters need to be able to understand the business but putting too much information in the plan could be counterproductive.

Finally the BM said as to business plans that are approved the process takes about two weeks, from the time it receives the application to when it issues a check. The BM noted that if the business is a franchise the process could take an additional ten weeks if the franchise is not already listed with the SBA as an “approved franchise.” And if the loan is over 100k, the process may take up to eight weeks depending on the appraisal of the collateral.

For more information about how our law firm can help you write a business plan as well as help you plan, grow and protect your business, please call me at  804-368-7397.

Contact Info
JC Cancelleri, PC
100 Arbor Oak Drive, Suite 307
Ashland, VA 23005
Phone: 804-368-7397
email JC

A somewhat recent case in Hanover County offers yet another example of a non-compete agreement that was declared to be invalid because it was too broad. The case is Specialty Marketing, Inc. v. Brunson Lawrence.

Lawrence worked as an account representative responsible for sales in North and South Carolina. His non-compete said he could not “own, manage, control, be employed by participate in, or be connected in any manner with the ownership, management, operation, or control, whether directly or indirectly, as an individual on his own account or as a partner, member, joint venture, sole proprietor, officer, director or shareholder of a corporation, firm, association or other entity, of any business competitive with Specialty in areas where Specialty has a market for its business.”

Judge Harris found the non-compete to be ambiguous, overbroad, and unenforceable.

This is another example for employers who use non-competes to draft them using reasonable terms of time, duration and scope. It’s also another example to employees who are asked to sign non-competes about the limitations of signing agreements that are too broad. If you are an employer and you’re contemplating using a non-compete you should ensure that the language in the agreement is consistent with the principles that Virginia’s Supreme Court and various Circuit Courts have established.

Summer Planting

Members of the Retail Merchants Association (RMA) have access to a variety of products and services. These include floral and apparel products and payroll and marketing services just to name a few. This article focuses on the services that RMA members provide and discuses why you should consider using some of them.

As a business adviser and lawyer, life coach and financial mentor I need the services of a variety of businesses to help my firm grow. While it may be counter intuitive this is particularly true during difficult times. Unless you’re planning on retiring or quitting you should be thinking about and planning for the second half of 2009 and the first half of 2010. What are you’re going to do to at least maintain your market share? If you have a bigger vision you may be thinking about how to increase your market share.

I’m determined to increase market share. Consequently and despite the economy I am investing in more education, marketing and search engine optimization programs than ever before. Did I mention I’m doing this despite already being a lawyer, having a PhD and being a certified life coach? Why…..because everyday we’re becoming more of a knowledge based economy. And I simply don’t want to get left behind! In fact I’m determined to become a world class business consultant, life coach and financial mentor.

Consequently during the last month alone I’ve met with several RMA members to learn how they can help me grow my business. I’ve become a client of one member and in the future will likely hire another one that provides administrative services.

I titled this article summer planting. I did so because nothing gets done without having a plan and being intentional. I have to be intentional because being passive will result in a slow but certain death…..on second though it may not be a slow death.

What about my fellow business owners? Do you think web sites, social networks and search engine optimizations service are expenses instead of investments? Or maybe you think they’re fads. You’d likely be wrong on both accounts. I encourage every business owner during the summer to contact at least three professionals to explore how they can help grow your business. If you want to learn more about what I’m doing call me as I’m happy to share ideas.

Author: JC Cancelleri is a business strategist and consultant with John Cancelleri, P.C. JC’s value as a Hanover business professional is augmented by being a lawyer and life coach as well as his educational background; he also has  a PhD in Organizational Leadership.

Contact Info
JC Cancelleri
100 Arbor Oak Drive, Suite 307
Ashland, VA 23005
Phone: 804-368-7397
email JC

Start: July 23, 2009, 5:30 pm

End: July 23, 2009, 7:30 pm

The annual summer picnic includes a casual social hour and barbecue dinner, complete with Hanover tomatoes. The event is hosted at James River Winery, rain or shine, where tents and tall trees provide shade. Take a tour of the winery and gift shop, taste the award-winning wines and buy some to enjoy at home.

Location: 11008 Washington Highway (Route 1), north of Atlee-Elmont interchange.

For more information, call the HABCC office at 804-798-8130.

via Summer Picnic | Hanover Association of Businesses and Chamber of Commerce.

Practice areas:

• Business Law
• Corporate Law
• Employment Law
• Estate Planning and Probate
• Speeding & DUI

JC Cancelleri
John Cancelleri, P.C.
100 Arbor Oaks Drive, Suite 307
Ashland, VA 23005
P: 804.368.7397
F: 866-845-4157