Example of Business Plan

smber January 27, 2023

Table of Contents

1. Executive Summary
2. Industry Analysis
3. Business Description
4. Marketing Plan
5. Operations Plan
6. Organization Plan
7. Financial Plan

Executive Summary

(Refer to the executive summary in example #1)

Industry Analysis

1. Size/Scope of Industry
2. Labor/Capital Intensive/Technology
3. Major Players/Market Share
4. Competitive Analysis
5. Entry Barriers

Business Description

1. Mission
2. Goals
3. Objectives

Marketing Plan

1. The Product –
   1. What is it?
   2. Benefits – What problem does it solve? For whom?
   3. The Market – Geographical boundaries
2. The Competition
   1. Direct competitors in your territory
   2. Indirect Competitors (Those who sell another product or service that solves or partialy solves the same problem)
3. Target Market (market niche) – Who has a percieved need for the benfits of your product?)
   1. Demographics – who are they? (define and decribe them). Where are they? (cities, suburbs, etc.) What do they read? Where do they work, drive, congregate? (anything you know about them that would help you to advertise to them on a cost/effective basis)
   2. Psychographics – Why/where do they buy this product? Quality, price, convenience, good selection, credit terms, service, reliability, etc.
4. USP (Unique Selling Proposition) – Why should they buy it from you rather than your competitors?
5. Sales
   1. Current Sales (existing company) – ____________
   2. Goal – Achieve gross revenues of $_____ by ____________
   3. Objective – Increase sales of _____ from ____ to ___________ in three quarters.
   4. Strategies:
      1. Advertising: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
         1. Cost: ______________
         2. Time frame: ______________
      2. Calling on Customers: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
         1. Cost: ______________
         2. Time frame: ______________
      3. Telemarketing: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
         1. Cost: ______________
         2. Time frame: ______________

Operations Plan

1. Operational Priorities (set priorities according to USP):
   1. Quality (or price)
   2. Reliability (or price)
2. Facilities
   1. Description
   2. Estimated cost
3. Equipment
   1. Description
   2. Estimated cost
      1. Initial Cost/down payment
      2. Monthly payments
      3. Depreciation
4. Personnel
   1. Supervisory
      1. Salary range
      2. Benfits/Taxes
      3. Incentive
   2. Hourly
      1. Wage range
      2. Benefits/Taxes
   3. Total Personnel Cost
5. Systems
   1. Customer interface (how do we receive orders from customer; communicate with customer; what telephone/computer system is needed, who does it?)
   2. Work scheduling (after receiving an order/contract who schedules the work? how? how do we keep track of progress? cost? do we need a computer program to do any of this? a person?)
   3. Other (how do we order materials? keep track of invoices? invoice customers when job is completed?
   4. Total systems cost

Organization Plan

1. Board of Directors
   1. Function
   2. Authority
   3. Responsibility
2. President
   1. Function
   2. Authority
   3. Responsibility
3. Sales/Marketing Manager
   1. Function
   2. Authority
   3. Responsibility
4. Operations Manager
   1. Function
   2. Authority
   3. Responsibility
5. Office Manager
   1. Function
   2. Authority
   3. Responsibility
6. Salaries/Estimated Personnel Costs – $__________

(see Appendix A for Resumes of key personnel)

Financial Plan

1. Proforma P/L (see XL spreadsheet, Appendix B)
2. Proforma Cash Flow (see XL spreadsheet, Appendix B)
3. Proforma Balance Sheet (see XL spreadsheet, Appendix B)
4. Sources and Uses of Cash (see XL spreadsheet, Appendix B)
   1. Equity capital needed $ ___________
   2. Collateral loans $ ______________
      1. Terms
   3. Non-Collateralized Loans $ ____________
      1. Terms
   4. Acquisition Cost
   5. Leasehold improvements
   6. Equipment Refurbishing
   7. Equipment purchases (cash down payment, if loan. Include office equipment)
   8. Working capital (payroll + rent x ?months)
   9. Initial marketing/advertising campaign?