IVD Business Plan

e-book series 36 pages Copyright 2009…Industry View Daily. All Rights Reserved.
Unauthorized duplication a violation of applicable laws.

[Company]
[1234 State Street] [Yourcity, USA 55555] [[800] 555-5555]

[Month & Year Prepared] Copy ##
Prepared by [Name]
CONFIDENTIAL

This is a business plan. It does not imply an offering of securities.
[Substitute your Business Name, Company Information, etc. on this page to create the appropriate Cover Sheet for your business plan.]

TIP: Use CTRL-H and replace [Company] with the name of your company to quickly update the company name throughout the business plan © 2001 - 2009 – IVD The contents of this template may not be resold in any form, in part or in whole, without the express written permission of IVD.

Information Regarding [Company]’s Business Plan This Business Plan [the “BP”] contains certain information regarding the current and planned operations and business of [Company], (“[Company]” or the “Company”), including information regarding the projected financial performance of the Company. This Business Plan has been provided to the recipient solely for the purpose of assisting the recipient in deciding whether to proceed with an in-depth investigation of the Company in accordance with procedures established by the Company. By accepting a copy of this Business Plan, the recipient hereby agrees, among other things, to keep the information contained herein and the existence of this Business Plan confidential and to restrict the use of any information contained herein to those people within the recipient’s organization or its designated representatives who have been informed of the confidential nature of such information and who need to have such information in connection with the organization’s evaluation of the Company. This Business Plan has been prepared by [Company] on the basis of internally prepared information, as well as information from public and private sources, including trade and statistical sources commonly used in the industry. The Business Plan does not purport to contain all of the information that may be required to evaluate all of the factors that would be relevant to a recipient in considering a transaction with the Company. The Company makes no warranty or representation, express or implied, as to the accuracy or completeness of either the material contained herein or any other written or oral information provided by the Company to the recipient, and no liability shall attach thereto. Nothing contained in this Business Plan is, or should be relied on as, a promise or representation as to the future. The projected financial information contained herein was prepared expressly for use herein and is based upon the stated assumptions and the Company’s analysis of information available at the time that this Business Plan was prepared. There is no representation, warranty, or other assurance that any of the projections set forth herein will be realized. This Business Plan does not purport to contain all of the information that may be required to evaluate the Company and any recipient hereof should conduct its own independent investigation and analysis of the business described herein. Any questions regarding the Company should be directed to the following representatives named below. [Name] CEO and President [(888) 555-1212] [Name] Managing Director [(888) 555-1212] [Name] CFO [(888) 555-1212]

[Company]
[Address] [City, State, Zip Code] Telephone: Facsimile: [(888) 555-1212] [(888) 555-1212]

Executive Summary
Note: Do not write the executive summary until you have completed your business plan! It is a summary and reflects the contents of the finished plan. The Company [Company] is a [business type (corporation, llc, partnership, etc)] based in [State]. It was founded in [Year]. The Company is a [please mention briefly the company’s main products and/or services and the market that it is targeting or plans on targeting]. [Company] has differentiated itself by [please mention competitive advantages, what makes it unique]. Currently [Company] has ## employees, and over ## locations throughout [region], providing local support and/or distribution to over ## cities. [If your company is a startup, briefly summarize the company’s growth plans] For the past three months ending [date], the Company had revenues of $## and net earnings of $##. For the full fiscal year ending [month], [Company] is expecting revenues of $## and net earnings of $##, which represents ##% top line growth versus the previous year. [If applies, mention how much money has been invested into the company since its foundation.] [Company] is a [subsidiary, partner, client, supplier] of [any organization that makes a difference in positioning the company’s future]. The Market and Industry The Company participates in the rapidly growing worldwide [name of the sector or market] industry, which is expected to grow from nearly $## today to approximately $## in the next ## years. [Company] estimates that [please mention the company’s view and projections on the performance of the sector it is participating in]. In the United States alone, the Company estimates approximately [mention number of competitors in the country and their competitive advantage]. The Company believes that within its specific niche, it currently holds an approximate ##% market share. Products and services are distributed to this market primarily [explain the key marketing and distribution procedures within the industry and/or how competitors have been marketing themselves. Then elaborate on the way your company will operate, and which are their competitive advantages within the industry]. Business Model/ Strategy

[Please comment on the company’s revenue model, including pricing, clients and how will this be translated into a sustainable revenue stream. Elaborate on the key issues that allow the company to achieve low costs and better profit margins]. Because of a long history of execution and favorable pricing under this model, the Company has positioned itself as one of the core [suppliers, installers, clients, partners] for companies such [mention name of key clients, suppliers or partners]. In addition, [Company] is currently in the process of becoming a [mention any certification and/or major milestone that the company is currently pursuing and the impact that this might have on revenues and/or profits]. Regarding new markets, [Company] has recently penetrated the [market name] market, a market niche with significant potential in the short-term [provide recent and projected growth data if possible]. Product and Services [Please briefly describe the products and/or services that the company provides. Only mention the ones that have or will have an important contribution to total revenues]. Core Clients [Include a list of current clients and/or target clients]. Facilities and Employees [Company] has ## full time employees and ## offices in ## cities. The office space is [rented -or- leased -or- owned]. Websites The company has acquired these website properties: • [www.website.com] • [www.website.com] • [www.website.com] Financing Requirements The Company is in the process of raising $## through a [loan facility, private equity fund, IPO, the sale of a stake in the company, or any other financing alternative] which will be used to [mention main uses of funds. [e.g., acquire machinery, launch an advertising campaign, pay down debt, reduce costs, acquire a competitor, finance inventory, etc]. Management The core management team of [Company] includes several executives with successful backgrounds in the [industry name] industry and experience with startup operations:

[CEO name] is President and Chief Executive Officer. His/Her experience includes [# of years] with [Company] where he/she [state several noteworthy achievements: grew sales, cut expenses, launched a new product]. [CFO name] is [Company]’s Chief Financial Officer. [Mr/Ms] [CFO name] has held financial positions with [Company #1] and [Company #2] and has also served as a Public Accountant with [name of CPA firm]. His/Her accomplishments include [state several noteworthy achievements: grew sales, cut expenses, implemented tax-saving measures]. Financials By achieving its sales targets, [Company] will position itself for exceptional profitability and self-funded growth. The table below is a brief summary of the [Company] Profit and Loss Statement for the years [Year - Year]. $000s Sales Gross Profit Operating expenses Pre-tax Income 200# $ ## $ ## $ ## $ ## 200# $ ## $ ## $ ## $ ## 200# $ ## $ ## $ ## $ ##

All figures are expressed in thousands. Sources & Use of Funds Management is seeking an investment of $## in addition to the $## already invested by the founders. Proceeds will be used to finance the Company’s ongoing start-up expenses, the enhancement of its systems and infrastructure, and the cash shortfall until cash flow breakeven is achieved [list all other significant uses of the funds being sought]. Exit Strategy Given the financial results expressed above, management believes it will be in an excellent position to capitalize on its success through a [Leveraged Buyout, Management buyout, Acquisition by Industry leader, Initial Public Offering, Acquisition by other 3rd party]. A reasonable valuation for the Company assuming the sales and profitability outlined above would be $##, which would make the shares included in this offering worth $##, a return on investment of ## %.

Table of Contents
I. Investment Consideration...................................................................9 II. The Company...................................................................................10 Ownership.........................................................................................10 SWOT Analysis..................................................................................11 Products and Services.......................................................................11 Intellectual Property..........................................................................12 Company Location.............................................................................12 IV. Industry Analysis.............................................................................13 Size and Growth Rate of the Industry................................................13 Maturity of Industry...........................................................................13 Trends in the Industry.......................................................................13 Barriers to Entry................................................................................13 V. The Target Market............................................................................14 Target Market....................................................................................14 Market Analysis.................................................................................14 Demographics...................................................................................14 Market Readiness..............................................................................14 Positioning.........................................................................................15 Industry Trends.................................................................................15 Target Market....................................................................................15 Competitive Environment..................................................................15 Company Strengths...........................................................................15 Definition of Strategic Position..........................................................15 VI. The Competition..............................................................................17 Direct Competitors............................................................................17 Market Share Distribution.................................................................17 Competitive Advantages...................................................................17 [Focus only on the competitors who are aiming at the same target market.]............................................................................................18 Competitive Positions........................................................................18 Barriers to Entry................................................................................18 VIII. Marketing Outline & Sales Strategy...............................................19 Company Image/Message.................................................................19 Sales Program...................................................................................19 Marketing Vehicles............................................................................19 Sales Forecast...................................................................................20 Facilities............................................................................................22 Equipment.........................................................................................22 Production.........................................................................................23 Inventory Control..............................................................................23 Supply & Distribution........................................................................23 Customer Service..............................................................................23 Research & Development..................................................................23 Other Operational Issues...................................................................24 X. Technology Outline..........................................................................25 Internet.............................................................................................25 Hardware Needs................................................................................25

Software Needs.................................................................................25 Telecommunications Needs..............................................................25 XI. Management & Organization...........................................................26 Management Team...........................................................................26 Staffing..............................................................................................27 Board of Directors ............................................................................27 Advisory Board..................................................................................27 XII. Milestones, & Exit Strategy............................................................29 Goals ................................................................................................29 Strategies .........................................................................................29 Milestones.........................................................................................29 Risk Evaluation..................................................................................29 Exit Plan............................................................................................30 XIII. Financial Data & Projections .........................................................31 Financial Assumptions.......................................................................31 Capital Requirements........................................................................31 [To Update Table of Contents: Right Click with your mouse and select “Update Table.” If you add any headings, you will need to set them as either ‘Heading 1’ or ‘Heading 2’ using ‘Styles’ for them to be included in this table. Styles is found in the ‘Format’ menu under ‘Styles and Formatting’]

I. Investment Consideration
Investors should consider these points when evaluating [Company] for investment purposes. • Significant growth achieved in the past. [Please elaborate on the growth that the company has been able to achieve, mention key drivers, and the annual growth rate]. Moreover, the Company expects revenues going forward to maintain a sustainable growth rate of ##% per year given the potential business that [mention the specific driver of growth for the future]. Valuable relationships with major XXX. The Company’s relationships with XXX and XXX will translated into a significant source of revenues and new clients. This results from the confidence major manufacturers and distributors have in [Company], given its proven reliability and quality standards. Strong and scalable business model. [Elaborate on the company’s competitive advantage and the main reason why the corporation will be successful in the specific market niche where it operates]. Profitable. The company has been profitable for ## years, achieving average gross margins of ##%, and net margins of ##%. [If the company is not profitable yet, please mention when is management expecting to turn profitable, and what is it needed to become profitable]. Extremely lean organization. With only ##employees, the Company has one of the highest returns in the industry given its lean structure. Revenue per employee is expected to be around $## in FY ##. Clean balance sheet. The Company has [elaborate on the company’s leverage, interest coverage and account receivables – before or after the financing takes place]. Affected by economic cycles. [Talk about the company’s cyclical nature, and its dependence on [or isolation from] the overall economic activity of the country. Indicate the major macroeconomic scenarios that may affect it and/or benefit it, if any].

II. The Company
[Company] is a [legal form of business i.e. Corporation] founded in [Year] and based in [City, State]. The Company’s founder is [founder] who identified the need in the market for [describe the market opportunity that the company seeks to fulfill] and developed [product, strategy or vision that fulfills the need in the market]. The company was initially financed with $## by [source of initial funding]. [Briefly elaborate briefly on any relevant company history, mention how the company emerged and the main achievements and/or problems that made it what it is today. If your company is a new startup, mention plans for launching the business.] The company’s management developed a mission statement that addresses both the short- and long-term goals of the company. This mission is to [state your company's mission statement]. The Company [provides/manufactures - or - sells] [mention briefly the company’s main products and/or services] to [target market]. [Company] is a [subsidiary -orpartner -or- client -or- supplier] of [list any companies that make a difference in positioning the company’s future]. Most of [Company]’s [current and/or future] revenues come from the following sources [please elaborate briefly on the main sources of revenue - by client, product and/or region]. Ownership Chose one business type for your business plan & delete the others from your business plan. Sole Proprietorship [Company] is a sole proprietorship owned and managed by [name of owner]. Partnership (General or Limited) [Company] is a [general/limited] partnership with the following general partners: • [General Partner 1] • [General Partner 2] The Company also has the following limited partners who have made investments into the Company: • [Limited Partner 1] - [Amount of Investment] • [Limited Partner 2] - [Amount of Investment] Corporation & LLC [Company] is registered as a [business type] and has issued ## shares that are distributed as follows: Shareholder Number of shares

[Shareholder #1] [Shareholder #2] [Shareholder #3] For future distribution

## ## ## ## SWOT Analysis

The following SWOT analysis compares the internal strengths and weaknesses of our organization with external opportunities and threats.
Overcome weaknesses to pursue opportunities Pursue opportunities that fit with strengths

Strengths • • • • • [item] [item] [item] [item] [item] Opportunities • • • • • [item] [item] [item] [item] [item] • • • • • • • • • •

Weaknesses
Establish a defensive plan to minimize threats

[item] [item] [item] [item] [item] Threats [item] [item] [item] [item] [item]

Minimize vulnerability to threats using strengths

Products and Services [Product/Service] [Product/Service 1] is our primary source of revenue. It is sold for $##.## and is distributed primarily through [primary distribution method]. It has the following features: • [Feature] • [Feature] • [Feature] • [Feature] [Product/Service 1] offers customers the following benefits: • [Benefit] • [Benefit] • [Benefit] • [Benefit]

[Company] also offers its customers the following products and services: • [Product/Service 2] – [Briefly describe this product and its benefits] • [Product/Service 3] – [Briefly describe this product and its benefits] • [Product/Service 4] – [Briefly describe this product and its benefits] • [Product/Service 5] – [Briefly describe this product and its benefits] [Company] has identified additional [products/services] that it believes will effectively complement its current product mix in the future. These future opportunities are listed below. • [Future Product/Service 1] – [description of product/service] • [Future Product/Service 2] – [description of product/service] • [Future Product/Service 3] – [description of product/service] Intellectual Property [Company] has secured the following patents for [product/service]. These patents are registered with the Office of Trademarks and Patents. • [Patent number] - [Briefly describe this patent] • [Patent number] - [Briefly describe this patent] • [Patent number] - [Briefly describe this patent] • [Patent number] - [Briefly describe this patent] [Trademark #1], [Trademark #2], and [Trademark #3] are all registered trademarks of [Company]. Management has taken the following steps to protect these trademarks: • [Step 1] • [Step 2] • [Step 3] Company Location [Company] currently has ## office(s) located in [location(s)]. In addition, the company has a [warehouse, distribution center, other facilities] located in [location(s)]. The company’s manufacturing facilities are located in [location(s)]. [Company] also has retail locations at [location(s)]. Future locations for the Company are planned for [location(s)].

IV. Industry Analysis
Size and Growth Rate of the Industry According to [source of information (recommend industry/gov't publication], total [industry] industry sales in the United States were $## Billion in [Year] and $## Billion in [Year]. This includes [products/services included in these figures]. The industry has grown at ##% for the last ## years, and is expected to grow ##% over the next ## years. Maturity of Industry The [industry segment] segment of the industry in which [Company] operates is [new -or- expanding -or- stable -or- declining]. Management believes that there is opportunity in the industry for a company that can [describe traits that will make a new player in the industry successful]. Trends in the Industry The major trend in the [product/service] market is towards [description of trend]. Because of [reason for trend], consumers are more likely to expect [expectation]. [Products/Services] that deliver only [characteristic] will gradually be replaced by those that offer additional features and benefits such as [list of features]. Other trends in the industry include the following: • [Trend] - [Briefly mention the impact that this trend will have on the industry] • [Trend] - [Briefly mention the impact that this trend will have on the industry] Industry Opportunities [Company] is poised to take advantage of the trend towards [trend] through its [product/service]. There is substantial opportunity for growth for a [local, regional, national, international] firm such as [Company] to capture market share and develop a profitable business. Barriers to Entry The costs of [infrastructure, product development, staffing, technology, etc] make it difficult for new companies to establish themselves in the [industry] market. In addition, existing customers have been reluctant to try new [suppliers, providers] because of the time and effort involved in switching allegiances. [Describe industry characteristics that make it difficult for a company to enter the industry.]

V. The Target Market
Fact: this is the most crucial but worst-prepared section of most business plans.

Target Market In today’s competitive [product/service] market, [elaborate on how leading companies in the specific sector are behaving, which strategies they are implementing, what their weaknesses are and how your company is going to compete against them – quality, service, innovative product, etc.] Market Analysis The Company participates in the rapidly growing [product/service] market, which is expected to grow from nearly $## today to approximately $## in [Year]. The Company estimates the revenue of [niche or market segment] is above $##. This is shared by national, regional, and many local competitors. A CAGR of ##% has been registered for the past 5 years on this segment. In the United States alone, the Company estimates approximately ## companies compete in the same market niche as [Company]. The [product/service] market's annual growth rate of roughly ##% is driven by [Describe what type of demand and/or need is driving growth]. Other factors include [Describe other factors driving growth in your industry]. Demographics Most of the Company’s client base will be made up of [segment of target market] located in [primary geographic area]. They will account for ##% of the company’s revenue. According to [source of information], [segment of target market] typically [buying characteristic]. They most often purchase via [distribution method], but also buy from [other distribution method]. [Company] projects that ##% of its customers will be [market segment]. According to the [source of information], [market segment] typically [buying characteristic]. They most often purchase via [distribution method], but also buy from [other distribution method]. Market Readiness [Company] management has conducted its own research into the target customer base in the company’s marketing plan. (For information on developing a marketing plan, visit http://www.marketing-plan-success.com.) Based on this research, management has concluded that there is demand in the market for [Company]’s [products/services]. This research also indicated that the following needs either are not being met or are being met poorly by [products/services] currently available in the market: • [Need not being met by the competition]

• •

[Need not being met by the competition] [Need not being met by the competition]

[Who are your customers? Where are they, and how do you reach them? Are they buying your product / service from someone else? How will you educate customers to buy from you? Why will they care?] [Secondary research can also be used to complete the preceding section if it is recent and reputable.]

Positioning [Company]’s strategy is to position the company as the [premier, leading, major] provider of [product, service] in the [geographic area] market. It will achieve this goal by establishing a market position characterized by the following: Management has established its strategic position after careful evaluation of industry trends, the target market, the competitive environment, the company’s strength, and the inherent risks. Industry Trends The major trend in the [product/service] market is towards [description of trend]. Because of [reason for trend], consumers are more likely to expect [expectation]. [Products/Services] that deliver only [characteristic] will gradually be replaced by those that offer additional features and benefits such as [list of features]. Target Market [Company]’s target market is the [target market]. This market is characterized by [list key characteristics]. Competitive Environment Although direct competitors such as [list competitors] exist, they do not currently provide [unique product or service]. This enables [Company] to distinguish itself in its customers’ eyes and differentiate it from the competition. Company Strengths [Company] management is convinced that its [major strength] puts it in a unique position in the market. In addition, our [other important strength] enables us to [action] better than any other firm can. Definition of Strategic Position

Management’s analysis of the factors just outlined leads us to the conclusion that the biggest threat to our plan is [threat]. It is imperative that we [action] to ensure that the [threat] will not keep us from meeting our objectives. It is the strong belief of [Company] management that [#1 risk], although real, will not keep companies such as ours from succeeding. Our ability to provide [product, service, or attribute thereof] and [other product, service, or attribute thereof] should ensure our competitive position.

VI. The Competition
[Company] has performed extensive analysis of its competitors in the [product/service] market in [geographic area]. The following types of firms offer either direct or indirect competition: • • • • [Firm Type 1] [Firm Type 2] [Firm Type 1] [Firm Type 1]

Management considers only [list firm type(s) from above list] to be in direct competition with our products and services. They offer the only realistic challenge to [Company]’s share of the market. [Other firm types] do not provide [state the difference between their offering and yours]. Direct Competitors [Provide brief but informative descriptions of your main competitors. If possible, classify them by segment.] Segment 1. – Main competitors include: [Names, location, products and market share] Segment 2. – Main competitors include: [Names, location, products and market share] Market Share Distribution A recent survey conducted by [management or reputable third party] indicates that target customers’ purchases of [products/services] are distributed among companies as displayed in the chart below.
Market Share Distribution
Company #1 - 10% Company #5 - 20%

Company #2 - 20% Company #4 - 10%

Company #3 - 40%

Competitive Advantages [Company] enjoys the following advantages over its competition: • • • [Competitive Advantage] [Competitive Advantage] [Competitive Advantage]

[Focus only on the competitors who are aiming at the same target market.]

Competitive Positions Management considers its main competitors to be the following (ranked in order of strength in the marketplace): • • • [Competitor] [Competitor] [Competitor]

[Competitor 1] is considered to be the strongest competitor because of [discussion of competitor #1’s advantages and strengths]. The specific advantages that [Company] holds over [Competitor 1] are [list the advantages]. [Competitor #2] [discuss competitive advantages as well as our own competitive strengths]. Barriers to Entry Potential entrants into the [industry] market face obstacles such as [describe barriers]. Companies that are likely to successfully capture market share are those that [describe characteristics of potential new entrants].

VIII. Marketing Outline & Sales Strategy
[Company]’s marketing strategy is to communicate its competitive differences particularly as they relate to the needs of its target customers. Our ability to [competitive advantage] is what sets us apart and all of our marketing efforts and tactics focus on driving this point home. Company Image/Message {Company]’s logo, marketing materials, promotions, and sales approach are all coordinated so as to present a clear and consistent message to its customers and potential customers: [Company]’s [product, service] is the ideal solution to their need for [need #1], [need #2], and [need #3]. The company’s logo, a [describe logo] integrates with its slogan: “[company slogan].” This integration leads to a variety of consistent messages throughout our communications with the target customers. For example, [give example of communication]. Sales Program The nature of [Company]’s [product/service] makes the [direct sales, telemarketing, catalog, internet, or other mechanism] the most effective approach. [Discuss the pertinent details of the appropriate sales mechanism. Be sure to mention the organizational structure and a description of who does what internally.] Marketing Vehicles [Company] has used or will use the following marketing vehicles to express its message to its target market:

Brochures
The company has [developed its own sales literature, or used the services of a marketing/design firm]. These materials are [used by the sales team, sent out as direct mail pieces].

Public Relations
Management recognizes the importance of creating interest in its offerings, and has retained the services of [PR firm] to handle its public relations. The firm has extensive experience in the [industry] industry and has helped [Company] get favorable press coverage in [Publication #1], [Publication #2], and [Publication #3].

Advertising
To support its promotion efforts, [Company] is working with the [Ad Agency name] advertising agency. Management is spending its advertising budget

primarily in [consumer/business/trade] [magazines/newspapers/other publications] that cater to its target customers. Ads will be run strategically to support and maximize the impact of the positive editorial that is garnered in the publications mentioned above.

Customer Loyalty
Management believes that in today’s marketplace the most successful companies are those that provide excellent service to their customers. [Company] is committed to total customer satisfaction and recognizes it has an opportunity to separate itself from its competitors by servicing its customers better than anyone else. Management has already put into place loyalty programs that will reward its customers for their business. The program [describe main features of program]. Management believes that these types of programs serve to not only reward its customers, but also to build the company’s credibility in the marketplace.

Trade Shows
Management has realized significant sales and sales leads through its participation in trade shows. It has attended [list relevant shows] and intends to follow up its success there by establishing booths at [list relevant trade show(s)].

Strategic Partnerships
In [month, year], management agreed to a marketing alliance with [name of firm]. [Name of firm], a leading [producer, provider] of [product, service] has a similar customer target as [Company] albeit for different products. This common customer target has made for an excellent opportunity for joint promotions and activities. Further events are in the planning phase. Sales Forecast Management projects that [Company] will achieve direct sales of ## units and $## of revenue in [Year]. These figures will grow to ## units and $## in [Year] and ## and $## in [Year]. The Table below indicates [Company]’s other sales sources and projected revenues from each. Sales Source Direct Sales Catalog Sales Internet Sales Other #1 Sales Other #2 Sales Total Revenue $ $ $ $ $ 200X . . . . . $ $ $ $ $ 200X . . . . . $ $ $ $ $ 200X . . . . . $ $ $ $ $ 200X . . . . . $ $ $ $ $ 200X . . . . .

$ .

$ .

$ .

$.

$.

All figures are expressed in $##.

IX.

Operations

[Here is where you explain the day-to-day functions of your business. Focus on the aspects of operations that impact the overall success, provide a competitive edge, or show innovation. Delete the sections below that are not relevant to your company’s success.]

A key to the success of [Company] is the [supplier network, production process, order fulfillment system, design lab, consulting organization, or any other operational advantage the Company possesses]. Our ability to effectively manage this aspect of our business enables us to [keep costs down, provide superior service or quality, bring products to market more quickly than competitors, or other competitive advantage]. [Briefly mention any other operations-related items that are important to the success of your business] Facilities [Company] operates its business from ## locations. Its headquarters are located at [address] and comprise ## square feet of office space. The headquarters includes the senior management of the company, and all sales and administrative functions including [use all that apply: Marketing, Advertising, Research and Development, Finance and Accounting, and Customer Service]. The company’s warehouse is located at [address] and includes ## square feet. The facility is leased from [lessor] for a total cost of $## monthly, which is $## per square foot. -or- [The company owns the facility and is paying a $[mortgage] at a rate of [rate] % for a monthly payment of $[amount].] [Company] also operates a manufacturing facility at [address]. The facility is leased from [lessor] for a total cost of $## monthly, which is $## per square foot. -or- [The company owns the facility and is paying a $[mortgage] at a rate of [rate] % for a monthly payment of $[amount].] [Company] produces all of its products here and management believes that it will be able to achieve the sales goals outlined in this plan without any additional manufacturing capabilities. Equipment [Company] currently [owns/leases] the following equipment: General Office • [equipment] • [equipment] • [equipment] Warehouse • • • [equipment] [equipment] [equipment]

Manufacturing • [equipment] • [equipment] • [equipment] Production [Company]’s products are [assembled in our own factory, assembled by factories with whom we have contracts]. [Company] [purchases components from third parties, produces components] which are then shipped to [our, the third party] facility for final assembly. Quality control is handled by [Company or contract factory]. Factories are currently working at ##% of capacity. To achieve the sales forecast in this plan will require [additional staffing, a larger facility, no increase in staffing or production space]. [Add additional pertinent information about the supply chain or production process] Inventory Control [Company] management is committed to an efficient supply chain. The current lead time from production order to finished product is ## weeks. This compares favorably with the industry standard of ## weeks. We have implemented the [name of technology] system to manage our supply chain and are always analyzing processes to improve lead times. This enables us to keep our inventories at the lowest possible levels. Supply & Distribution Finished goods are held in inventory at our [distribution center, warehouse]. It is this location that handles order fulfillment and ships products to our customers. Because of our ability to manage the supply chain, we have been able to turn over our inventory an average of ## times per year. [Company] has implemented the [name of system] distribution system, which enables us to ship orders efficiently. Our contract with [UPS, FedEx, other shipping company] provides for reduced shipping fees that we are able to pass on to our customers. Customer Service The [distribution center, warehouse] includes a Customer Service department that receives and processes orders, assists with expediting major orders, and provides support to customers in changing and tracking orders and returns. The department is staffed [24/7, during normal business hours]. Research & Development

Management is committed to the ongoing development of new products and services that will ensure our competitive position and continued growth. To that end, research and development is conducted by [key management, engineering, a dedicated R&D department]. An example of the effectiveness of this process is the [product], which was conceived internally and is now in production. Other Operational Issues Management has experienced difficulties in the past with [operational challenge]. To date it has corrected this problem by [methods used to correct problem]. Other potential problems that we foresee include [state potential problems]. We anticipate that we will be able to work through such difficulties by [describe contingency plans].

X. Technology Outline
Technology and effective systems are crucial to successful modern companies. Management of the company’s information systems is handled [internally, by an outside consulting firm]. This arrangement provides [Company] with the flexibility to continually monitor its systems and upgrade when business requirements dictate. The company presently uses the following systems: • • • • • • [Accounting and finance] [Data warehouse] [Inventory management] [Graphic design] [CAD/CAM] [Point-of-sale] Internet [Company] owns a web site, [website URL], where it [provides information about its products/services, accepts orders, hosts an online catalog, other web site uses]. The hosting of the site is handled [internally, by third party hosting [Company]]. Hardware Needs The company currently [owns, leases] ## desktop PC systems and ## laptop computers. In addition, it [owns, leases] ## network servers used for our internal information processing. [List any other hardware or hardware needs addressed by the
funding from this plan.]

Software Needs In addition to the systems already used by [Company], management foresees the need for [type of system]. Such a system will enhance our ability to [compete, cut costs, manage finances, design products, etc.]. Telecommunications Needs [Company] currently uses a [type of system] phone system. Although adequate for our present needs, our projected growth will spur the need for increased capacity and, in all likelihood, a new system. Management projects that it will upgrade to a larger system in [date]. The company also [has, needs] a [private network, virtual private network] that will [state benefit of network].

XI. Management & Organization
If you are using this plan to help raise money, be aware that many investors will give this section high priority and read it very carefully. It is a common belief that the people [experience, skills, personalities] are more important than the product in determining success.

Management Team [Company] has a capable and experienced management team.
Mr./Mrs. XXX President, CEO and Founder XXX founded [Company] in [year] and has been key in orchestrating growth by building critical relationships with customers and vendors to assure the Company’s continued viability. Before joining [Company], XXX worked for XXX Co. Specific management accomplishments include XXXX and XXX that grew into a $XX million revenue company in just X years. He/She also managed the turnaround of a XXX company from a $XX million a year revenue company that was losing money into a $XX million a year operation. XXX has a MBA in XXX from the University of XXX, State. XXX joined [Company] in [year]. His/Her main role within the corporation is XXXX. Before joining [Company], XXX worked for XXX Co. Specific management accomplishments include XXXX and XXX that grew into a $XX million revenue company in just X years. He/She also managed the turnaround of a XXX company from a $XX million a year revenue company that was losing money into a $XX million a year operation. XXX has a BA in XXX from the University of XXX, State. XXX joined [Company] in [year]. His/Her main role within the corporation is XXXX. Before joining [Company], XXX worked for XXX Co. Specific management accomplishments include XXXX and XXX that grew into a $XX million revenue company in just X years. He/She also managed the turnaround of a XXX company from a $XX million a year revenue company that was losing money into a $XX million a year operation. XXX has a BA in XXX from the University of XXX, State. XXX joined [Company] in [year]. His/Her main roe within the corporation is XXXX. Before joining [Company], XXX worked for XXX Co. Specific management accomplishments include XXXX and XXX that grew into a $XX million revenue company in just X years. He/She also managed the turnaround of a XXX company from a $XX million a year revenue company that was losing money into a $XX million a year operation. XXX has a BS in XXX from

Mr./Mrs. XXX Vice President

Mr./Mrs. XXX CFO

Mr./Mrs. XXX COO

the University of XXX, State. Mr./Mrs. XXX CTO XXX joined [Company] in [year]. His/Her main role within the corporation is XXXX. Before joining [Company], XXX worked for XXX Co. Specific management accomplishments include XXXX and XXX that grew into a $XX million revenue company in just X years. He/She also managed the turnaround of a XXX company from a $XX million a year revenue company that was losing money into a $XX million a year operation. XXX has a BA in XXX from the University of XXX, State.

Staffing [Company] [currently runs/anticipates running] its business with a staff of [number of employees] full time and [number of employees] part-time employees. Each is responsible for a different function, although management has created a system of cross-functional training that will keep its business running smoothly despite illness, attrition, or turnover. The staff is organized along for the following functional framework: • Sales o [List Responsibilities] • Administration o [List Responsibilities] • Operations o [List Responsibilities] • Customer Service o [List Responsibilities] • [Department] o [List Responsibilities] Board of Directors The following individuals make up the [Company] Board of Directors: • • • • • • [Name], [Title] – Chairman of the Board [Name], [Title] – Director [Name], [Title] – Director [Name], [Title] – Director [Name], [Title] – Director [Name], [Title] – Director Advisory Board Management has also assembled an advisory board to compliment the strengths of the management team. The company’s advisers are:

• • • •

[Name], [Title] [Name], [Title] [Name], [Title] [Name], [Title]

XII. Milestones, & Exit Strategy
[What is your ultimate destination? And what will your business look like at different intervals along the way? This section should tell investors how much money they can make and when and how they can get it.]

Goals [Company] management’s vision includes the continued development of [Company]’s concept and the establishment of the company as a [Lifestyle provider, innovator, quality provider, growth company, and/or niche leader] in the [industry] industry. ## years from now, we expect to have [state one or more goals to have accomplished at that time]. Strategies
[Discuss strategies that the company will implement to achieve the goals outlined above. Explain priorities especially in terms of strategies for which significant expenditure is required.]

Milestones Milestone Hire [CEO/CFO/CMO/COO] [Open store/launch web site/begin construction] First dollar revenue [Other Milestone] [Other Milestone] Achieve profitability Cash flow breakeven [Other Milestone] [Other Milestone] [Other Milestone] [Other Milestone] [Other Milestone] [Other Milestone] Status/Date [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date] [Status/Completion Date]

Risk Evaluation Although management is convinced that [Company] will succeed and provide an outstanding return for its investors, there are inherent risks in its plan: • • [Risk] [Risk]

[Risk]

[Include such risk considerations as market acceptance, changing demographics, new competition, new customer tastes, management performance, operating costs, regulatory and licensing issues.]

Exit Plan [Company] management is projecting that it will have a highly profitable business with a relatively small expense and asset base. Its forecast of $## of pretax income in its third year of operation is evidence of this belief. Although [Company]’s books are maintained by an independent, certified public accountant and the company is positioning itself for an initial public offering, its remarkably low overhead and capital needs make early acquisition a more probable scenario. Management believes that large, established companies in the [industry name] industry will find [Company] to be an attractive acquisition target because of its [characteristic #1] and its [characteristic #2].
[Alternatively, discuss another exit option such as sale to individual[s], stockholder or employee buyout, franchise, hand down to family member[s], or close.]

XIII. Financial Data & Projections
[All the decisions you have made in the previous sections have financial outcomes. These numbers must be gathered, sorted and reported so that you can assess your present position, current progress and make new decisions about the future. For startup ventures, a good set of projected financial statements can be a great tool for making many important choices. It is perhaps the best [if not the most realistic] way to “see into the future.”]

Financial Assumptions In assembling the [Company] financial plan, management made a number of important assumptions: • [Assumption] • [Assumption] • [Assumption] [Assumption] Capital Requirements [Company] management has determined that it requires $## of capital to implement its strategy as defined in this plan. The table below indicates the sources and uses of the required capital. Guidelines: Consult your accountant and your attorney. ♦ Be conservative and honest ♦ Use standard industry forms and formats

Forms to include: ♦ Income Statement ♦ Cash Flow ♦ Balance Sheet ♦ Break-Even Analysis ♦ Uses of Funds ♦ Optional: ♦ Sources of Capital & Debt Service ♦ Detail of Expenses Worksheets ♦ Amortization and Depreciation Schedule Note: The Income Statement, Cash Flow, and Balance Sheet below will automatically update when data is entered into the IVD financial template. You can update the link by right-clicking on the table and selecting ‘update link.’ If some of the numbers are showing as ##### you need to go into the spreadsheet and increase the column width by double-clicking on the line to the right of the column letter.

XIV. Appendix
The appendix is the place for supporting documents and information. The items in the appendix should only confirm, reinforce or elaborate on the major ideas and facts already stated in the main plan. Many people don’t even read the appendix so include all essential items in the plan itself. Appendix Items Resumes and financial statements of key people ♦ Lease and other location information [pictures] ♦ Marketing information [logo, dummy ads, packaging] ♦ Supporting media information [newspaper articles, etc.] ♦ Budgets & schedules & analysis [equipment lists, project charts, flow chart] ♦ Design or construction information [floor plan, renderings] ♦ Contracts, trademarks ♦ Bank loans, financial statements ♦ Market research studies [bibliography] ♦ Letters of Reference ♦ Corporate Documents [proof of Incorporation

IVD 5.0 Copyright & License Agreement This notice may be removed from copies of this business plan distributed outside your organization under the restrictions contained in the License Agreement. This license must accompany any editable, electronic copies of this file made by the user.
© 2001 – 2009 IVD, All Rights Reserved This template is protected by U.S and International Copyright Law. This template may not be resold or distributed in any form except as outlined in the license agreement.

License Agreement
Effective: December 1, 2009 User Notice This is a contract. By making a purchase or downloading the Business Plan (the “Product”) from IVD or the Marketing Plan you accept all terms and conditions outlined in this agreement. Please read this agreement carefully before using this product. Upon your acceptance of this agreement, we grant you a nonexclusive right to use the data, provided you agree to the following: Use of Product You may download the Business Plan from www.industryviewdaily.com and store it on a hard disk or other storage device. You may store this product on two computers for business or personal use, provided that this agreement accompanies every copy made. The Excel templates may not be distributed outside your business or organization in any form. The User’s Guide may not be distributed outside your business or organization in any form. The Word template (this file) may be distributed outside your organization provided that it is distributed in such a way that it cannot be modified by the recipient (i.e. in a printed hard copy or protected .DOC or .PDF file). The sample business plan may not be distributed outside your organization in any form. Copyright and Trademark Rights The data on this website is owned by IVD. The structure, organization and code related to this data are also owned by this company. This product is protected by United States Copyright Law and International Treaty provisions. You may use trademarks only to comply with this agreement. Use of the trademark does not give you any rights of ownership in that trademark. Except as stated above, this agreement does not grant you any intellectual property rights in the data. Restrictions You are free to modify and/or adapt any data provided for your own use, reproduction, as well as unlimited use within your organization. This data is licensed and distributed by the IVD. Redistribution or reselling is permitted only within the parameters outlined in this license agreement or with the express written permission from IVD. No Warranty This product is being delivered to you ‘as is’ and the Company makes no warranty as to its use or performance. The company does not and can not warrant the performance or results you may obtain by using the data or documentation. The Company makes no warranties, expressed or implied, as to noninfringement of third party rights, merchantability, or fitness for any particular purpose. In no event will the company be liable to you for any consequential, incidental, or special damages, including any lost profits or lost savings, even if a company representative has been advised of the possibility of such damages, or for any claim by any third party. Some states or jurisdictions do not allow the exclusion or limitation or incidental, consequential, or special damages, or the exclusion of the implied warranties or limitations on how long an implied warranty may last, so the above limitations may not apply to you.

Support

The Company will provide reasonable support to assist you with downloading and accessing the product for 30 days after its purchase. Reasonable support will be determined by the Company. Under no circumstances will the Company be under any obligation to provide a hard-copy of the product, upgrades, enhancements, modifications, or other support, including, without limitation, phone support. Software By accepting this agreement, you acknowledge that you are downloading a collection of documents collectively known as the Data. You also acknowledge that your computer has the necessary software to open and view these documents. These requirements are described on our website product page. The Company is under no obligation to support software necessary to view these documents. Limited support may be available upon request. Governing Law and General Provisions This Agreement will be governed by the laws of the State of Georgia, U.S.A., excluding the application of its conflicts of law rules. This Agreement will not be governed by the United Nations Convention on Contracts for the International Sale of Goods, the application of which is expressly excluded. If any part of this Agreement is found void and unenforceable, it will not affect the validity of the balance of the Agreement, which shall remain valid and enforceable according to its terms. You agree that the Software will not be shipped, transferred or exported into any country or used in any manner prohibited by the United States Export Administration Act or any other export laws, restrictions or regulations. This Agreement shall automatically terminate upon failure by you to comply with its terms. This Agreement may only be modified in writing signed by an authorized officer of the Company. Notice to Government End Users The Software and Documentation are "Commercial Items," as that term is defined at 48 C.F.R. ß2.101, consisting of "Commercial Computer Software" and "Commercial Computer Software Documentation," as such terms are used in 48 C.F.R. ß12.212 or 48 C.F.R. ß227.7202, as applicable. Consistent with 48 C.F.R. ß12.212 or 48 C.F.R. ßß227.7202-1 through 227.7202-4, as applicable, the Commercial Computer Software and Commercial Computer Software Documentation are being licensed to U.S. Government end users (A) only as Commercial Items and (B) with only those rights as are granted to all other end users pursuant to the terms and conditions herein. Other Unpublished rights reserved under the copyright laws of the United States.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.