There is no one way to organize your business plan, but here is a suggested template that can be used to get started. In addition to the written and financial information, it is suggested that you include photographs (of the business store front, product, people, etc.) judiciously throughout the plan (pictures remove much of the mystery from the mind of the potential investor or lending agency) to help keep the plan concise.
- Cover: Name, address, and phone number of business and list of principal owners. Give your plan a business-like appearance by typing it on high-quality paper and putting it in a vinyl or cardstock binder or a three-ring notebook.Name _________________________________________________________
Address _______________________________________________________
_________________________________________Telephone_____________
Principal Owner(s) ______________________________________________
______________________________________________________________
- Table of Contents: A single page showing major topics and page references.
- Executive Summary: Ideally, it is a one page summary of the entire plan. Usually the last section of the business plan that is written but it is the first section read (sometimes the only section read!). It explains to the busy investor or lender what, who, why, how much, when, where. Immediately followed by tables, figures, and other vital information including the cash flow projections. It must be concise and persuasive. Address the following questions and add additional information that will help you achieve your goals.
-
- What is the purpose of this plan? ___________________________________________________________________________________________________
_______________________________________________________________
Will it be used as:
u an operating guide?
u a financing proposal?
- What business structure have you chosen (i.e., sole proprietorship, partnership, corporation, S corporation)? _________________________________________
- Who are the principals and what are their proportions of ownership?________________________________________________________________
________________________________________________________________
- Why will the venture be successful? ___________________________________________________________________________________________________
For a financing proposal:
- Who is requesting the funds and how much is needed? _____________________________________________________________________________________
- What will the money be needed for? ____________________________________________________________________________________________________
- How will the funds be repaid? ________________________________________
- What is the purpose of this plan? ___________________________________________________________________________________________________
_________________________________________________________________
u impact on local economy
u job creation
u increased tax base
u investment in the future of the community
-
- Industry overview _________________________________________________________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
- What business are you in?u type of business: primarily merchandising, manufacturing, or service?
__________________________________________________________
__________________________________________________________
u what is the nature of the product(s) or service (s)? _____________
________________________________________________________
________________________________________________________
u what will be special about your business? ____________________
________________________________________________________
________________________________________________________
- What market do you intend to serve? ________________________________
- Industry overview _________________________________________________________________________________________________________________
d. What is the total market, and what is your expected share? _______________
______________________________________________________________
-
- How can you serve the market better than your competition? ___________________________________________________________________________
- Present status of business: start-up, expansion of a going concern, or take-over of an existing business? _____________________________________________________________________________________________________________
- If you will be doing any contract work, what are the terms? Reference any firm contract and include it as a supporting document. ________________________________________________________________________________________
- Do you have letters of intent from prospective suppliers? __________________
________________________________________________________________
Taking over an existing business:
-
- What is the history of the business? ___________________________________________________________________________________________________
- Why does the owner wish to sell at this time? ___________________________________________________________________________________________
- If the business is going downhill, why? How can you turn it around? _________
________________________________________________________________
-
- What is your business address and why did you choose that location? ______
______________________________________________________________
______________________________________________________________
-
- What renovations will be needed and at what cost? _____________________
______________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
-
- Is your business name registered with the secretary of state? _______________
- State how you will be affected by local zoning regulations. _________________________________________________________________________________
- What other licenses or permits will you be required to obtain? _____________
________________________________________________________________
_______________________________________________________________
f. List proposed salaries and wages. _____________________________________
________________________________________________________________
-
- What are you anticipated personnel needs?
- What skills must your employees have?
- Can you use part-time help to meet changing business volume?
- Will you have to train people, and at what cost?10. Insurance: Describe your potential business risks and tell what insurance coverage you will purchase to protect yourself. ___________________________________________
______________________________________________________________________
______________________________________________________________________
11. Marketing: The marketing section is generally the “meat” of the business plan – after all, if a business can’t attract customers it’s not much of a business! This section can be organized into the four P’s of marketing and the other key marketing factors. The marketing section usually includes a breakeven analysis.
a. Who exactly is your market? Describe age, sex, occupation, lifestyle, income, etc., of your various market segments. _____________________________________
________________________________________________________________
________________________________________________________________
b. What is the present size and growth potential of the market? _______________
________________________________________________________________
c. What percent of the market will you have now and in the future? _________
______________________________________________________________
d. How will you attract and keep your segment of this market? ______________
_______________________________________________________________
_______________________________________________________________
u product quality
u price
u public relations
u personal selling
e. What features or services will you offer that will justify your price? ________
______________________________________________________________
f. How will you handle credit sales? (extend your own credit, accept major credit cards etc.) _____________________________________________________
_______________________________________________________________
12. Competition: Briefly describe your competition and tell how their operations are similar and dissimilar to yours. What is your unique selling proposition and how will you use it to control your market share? ______________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
13. Finances: The Finance section typically contains the “numbers” of the business and demonstrates the viability of your venture. It can be organized into three sections: historical data, sources and applications of funding and projections. Historical data is appropriate for existing business who are expanding or seeking financing for a number of purposes. The historical data typically includes three years of cash flow statements, income statements and tax returns, balance sheets, and performance against budgets. The Projections section should include at least three years of cash flow projections, two years of which are in a monthly format (to demonstrate seasonality and other trends, plus to demonstrate the ability to budget and forecast). Some investors prefer to see five years of projections, with the first two years in monthly format and the last three in annual format (often an investor is paid within a three to five year period). The projections should also include three to five years of income and balance sheet projections. A list of sources and applications (uses) of funding is also appropriate for the business plan. This list specifically shows all sources of funds, how the funds are used (including a list of capital equipment, if appropriate).
a. Historical data: ___________________________________________________
________________________________________________________________
________________________________________________________________
b. Source and application of funds statement. _____________________________
________________________________________________________________
c. Capital equipment list:
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
d. Current balance sheet and operating statement (less than 90 days old).
e. Break-even analysis.
f. Profit and loss
u detail by month, first year
u detail by quarter, second year
u notes of explanation and assumptions
g. Cash flow projections
u detail by month, first year
u detail by quarter, second year
u notes of explanation and assumptions
h. Projected balance sheet
u notes of explanation and assumptions
i. For an existing business
u profit and loss statements
u balance sheets and/or
u tax returns for past three years
14. Long Range Plans: Briefly describes new products and services in the making, and other long term plans for expanding the business. It is an opportunity to pique the interest of the reader in the future of the business.
_____________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
15. Supporting Documents:
a. Personal resumes for all principals.
b. Personal financial statements for principals.
c. Letters of reference.
d. Letters of intent from prospective suppliers or customers.
e. Copies of all leases, contracts, or agreements, deeds or other legal documents.
- Any other information that might help our cause or answer potential questions.
- Appendices: Includes copies of leases (if appropriate), patent and licensing information, photographs, interesting news articles, resumes, credit reports, letters of intent, references, contracts, legal documents, and other supporting documents.