Business Development Business Plan

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Palms and Bonds
Table of Contents
Executive Summary 1
Chart: Highlights........................................................................................................................3
Objectives........................................................................................................................................3
Keys to Success...............................................................................................................................4
Mission............................................................................................................................................4
Company Summary 5
Start-up Summary............................................................................................................................5
Table: Start-up Funding..............................................................................................................6
Chart: Start-up............................................................................................................................7
Services 7
Services Description........................................................................................................................8
Market Analysis Summary 10
Market Segmentation.....................................................................................................................10
Chart: Market Analysis (Pie)....................................................................................................12
Table: Market Analysis..............................................................................................................12
Target Market Segment Strategy...................................................................................................13
Market Needs.............................................................................................................................13
Market Trends............................................................................................................................13
Positioning Statement....................................................................................................................14
Service Business Analysis.............................................................................................................14
Distributing a Service................................................................................................................14
Competition and Buying Patterns.............................................................................................15
Main Competitors......................................................................................................................15
Business Participants................................................................................................................16
Competitive Comparison...........................................................................................................16
Strategy and Implementation Summary 17
SWOT Analysis.............................................................................................................................17
Weaknesses................................................................................................................................18
Opportunities.............................................................................................................................18
Threats.......................................................................................................................................18
Strengths....................................................................................................................................19
Macro-environment.......................................................................................................................19
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Competitive Edge..........................................................................................................................20
Sales Strategy.................................................................................................................................20
Chart: Sales by Year..................................................................................................................21
Chart: Sales Monthly.................................................................................................................22
Table: Sales Forecast................................................................................................................22
Management Summary 23
Management Team.........................................................................................................................23
Personnel Plan...............................................................................................................................23
Table: Personnel........................................................................................................................24
Financial Plan 24
Important Assumptions..................................................................................................................25
Table: General Assumptions......................................................................................................25
Projected Cash Flow......................................................................................................................25
Chart: Cash...............................................................................................................................26
Table: Cash Flow......................................................................................................................27
Key Financial Indicators................................................................................................................28
Chart: Benchmarks....................................................................................................................28
Break-even Analysis......................................................................................................................28
Chart: Break-even Analysis.......................................................................................................29
Table: Break-even Analysis.......................................................................................................29
Projected Profit and Loss...............................................................................................................30
Chart: Profit Monthly................................................................................................................30
Chart: Profit Yearly...................................................................................................................31
Chart: Gross Margin Monthly...................................................................................................31
Table: Profit and Loss...............................................................................................................32
Chart: Gross Margin Yearly......................................................................................................33
Expense Forecast...........................................................................................................................33
Projected Balance Sheet................................................................................................................33
Table: Balance Sheet.................................................................................................................34
Business Ratios..............................................................................................................................35
Table: Ratios..............................................................................................................................35
Controls 36
Implementation Programs.............................................................................................................37
Contingency Planning...................................................................................................................37
Appendix i
Table: Sales Forecast i
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Table: Personnel ii
Table: General Assumptions iii
Table: Profit and Loss iv
Table: Cash Flow v
Table: Balance Sheet vii
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Palms and Bonds
Executive Summary
Introduction
We are currently in a highly lucrative market in a rapidly growing economy. The current trend
towards an increase in the number of entrepreneurs and competition amongst existing companies
presents an opportunity for an increased demand for market information and services that will
enable companies to stay ahead of the pack.
Our services will be positioned very carefully: they will be of extremely high quality, relevant,
timely and accurate, tailored to the clients' needs so as to enable them to make the right
decisions, in turn leading towards growth of their companies, benefiting the overall economy.
Palms and Bonds offers the expertise that a proactive-oriented and market-opportunity seeking
company needs to develop and enter new product distribution and new market segments in new
markets. We intend to provide a number of necessary services to the business community and to
the public. These can be summed up in two main divisions -- Business and Training Services.
Our business services can be taken as marketing research, market research reports, project-based
consulting, business and marketing plans, plan consulting and writing, high-level retainer
consulting and company registration. Our training services include workshops and seminars on
such topics as sales and marketing, as well as in-house training of receptionists, secretaries, and
sales and marketing personnel.
Our marketing strategy will be based mainly on ensuring that customers know what needs the
services are able to fulfill, and making the right information available to the right target
customer. We intend to implement a market penetration strategy that will ensure that we are well
known and respected in our respective industry. We will ensure that our services' prices take into
consideration people's budgets, and that these people appreciate the services, know that it exists,
and where to find it. The marketing will convey the sense of quality in every picture, every
promotion, and every publication. Our promotional strategy will involve integrating advertising,
events, personal selling, public relations, direct marketing and Internet marketing, details of
which are provided in the marketing section of this plan.
Our target markets will range from persons in the corporate towers, small or medium businesses,
to home institutions needing information on their particular area of concern. The common bond
will be the appreciation of the importance of quality information that will enable correct
decisions to be made, holding all things equal. Palms and Bonds prides itself on its analytical
ability, its value-added service, competitive fees, its high standards of quality and its adaptability
to changes in the market and in the method of its practice.
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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret
Palms and Bonds
Palms and Bonds intends to provide the client with more than just information and planning
tools. We intend to provide quality information that is customized to the client's needs, in the
process assisting them on how best to use the available information. By employing our services,
our clients are assured of consultants dedicated to finding the right answers for their business and
enabling them to benefit long after we have finished our work. We are in this line of work
because we like efficiency and because we understand and believe in problem solving and
market/marketing research.
As we grow we want to grow right. For example we recognize that we have to be in constant
touch with our stakeholders to ensure market knowledge at all times. This is the nature of the
channels we deal with. Also, we intend to build our management team correctly. We need the
right people in the right place at the right time if we are to ensure optimum growth. We intend to
develop our team so that our people can grow as the company grows -- a mutually beneficial
relationship.
In a nutshell, we don't just intend to market and sell our service, but to market and sell
customized information, solutions and a total-quality environment. This will ensure we establish
a reputable corporate image.
The Company
Palms and Bonds is a Private Limited company. Its fiscal year is the calendar year. Messrs. TTT.
and SSS. equally own the company.
Services
Palms and Bonds offers expertise in market research, channel distribution, channel development,
and market development that allow clients to choose their preferred relationship: these include
retainer consulting relationships, project-based consulting, sales representation and market
representation, project-based market research, published market research, information forum
events, business plans, and marketing plans.
Palms and Bonds offers the expertise a proactive-oriented and market-opportunity seeking
the public. These can be summed up in two areas -- Business and Training Services. Our
business services can be taken as high-level retainer consulting, market research reports, project-
based consulting, business and marketing plans, plan consulting and writing, and company
registration. Our training services include workshops and seminars on such topics as sales and
marketing, as well as in-house training of receptionists, secretaries, and sales and marketing
personnel.
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Palms and Bonds
Chart: Highlights
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Objectives
Our business strategy will revolve around the need to provide quality information to our various
target clients/customers, in the process fully satisfying their needs. This shall be undertaken
through recruitment of a professional marketing research and business consultancy team and the
production of good quality reports designed to cater to the client's needs. These reports/proposals
shall be professionally done so as to be reflective of our intended image and reputation. We shall
position ourselves as a quality service provider that strives to provide accuracy, relevancy and
specific information. We intend to establish a good rapport with all the relevant government
agencies and private institutions that may in turn refer us to aspiring entrepreneurs.
With time our presence on the World Wide Web will increase the knowledge of our services to
the various market segments we shall be targeting. This is particularly so with foreign firms
looking at establishing themselves in Botswana, hence providing them easy access to local
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Palms and Bonds
information. In such a case Web presence is a natural objective in reaching the appropriate
potential customers. We also intend to have brochures that will enable clients to have an
understanding of the types of services we offer and advantages of doing so. In addition to well-
done brochures, company profiles and business cards often have a triggering effect on clients
contemplating investing in Botswana. These will undoubtedly generate increased sales of our
products.
Keys to Success
The keys to Palms and Bonds success will undoubtedly be effective market segmentation
through identification of several niche markets and implementation strategies. Along these lines
the company intends to implement personal selling and direct marketing strategies to the target
markets. Our personal selling marketing strategies will rotate around keeping in touch with
investment and finance bodies for major clients and word-of-mouth for more individual
investors. our key success factors will include the following:
 Excellence in fulfilling the promise: completely confidential, reliable, trustworthy

expertise and information. This dictates that we have the latest technology and software.
 Uncompromising commitment to the quality of the work: that is, quality data,
information and solutions.
 Developing visibility to generate new business leads.
 Leveraging from a single pool of expertise into multiple revenue generation
opportunities: retainer consulting, project consulting, market research, and market
research published reports.
 Successful niche marketing: we intend to find and target the quality-conscious customer
in the right channels, making sure that the customer will find us through aggressive
marketing.
 Timeous response to clients orders: we cannot afford to delay the client's order for
whatever reason as this will have a negative bearing on our image and reputation,
including future business. We need to be continually communicating with the client.
 Marketing know-how: in an increasingly competitive market there is need to aggressively
market our business and the services we provide so as to be continuously at the top of our
prospective and current clients minds.
 Entrepreneurial Flair: market volatility and increasing duplication of business ideas
advocates that we continuously keep abreast of new trends and our competitors.
Mission
Palms and Bonds offers clients reliable, quality information and proposals for business
development, market development, and channel development that will maximize business
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Palms and Bonds
development. A true alternative to in-house resources we offer a very high level of practical
experience, know-how, contacts, and confidentiality. At Palms and Bonds we are able to provide
comprehensive solutions to our clients' problems that will foster business development. Clients
must know that working with Palms and Bonds is a more professional, less risky way to develop
new areas even than working completely in-house with their own people. Palms and Bonds must
also be able to maintain financial balance, charging a competitive and realistic value for its
services, and delivering an even higher value to its clients. Initial focus will be development of
the local market clientele.
Our mission statement is:

"We endeavor to understand our customers' business so well as to be able to offer
comprehensive solutions to their problems."
Company Summary
Palms and Bonds is a relatively new company providing high-level expertise in local business
development, market identification and development, channel development, distribution
strategies, and marketing strategies for all types of products and services. It will focus initially on
providing and satisfying two kinds of markets:
 Providing market research to local clients looking at developing their businesses for the
increasingly competitive markets, be they new or established.
 Providing market research services to foreign investors looking at investing in the local
markets.
As it grows it will take on people and consulting work in related markets. It will also look for
additional leverage by establishing relationships and representations with international market
research organizations.
Start-up Summary
 Total start-up capital and expenses covered (including legal costs, logo design, stationery
and related expenses) came to approximately P49,600. Start-up assets required and
utilized included personal computers, vehicles, office furniture, and other office
equipment. Please find below the start-up table.
Note: All displayed currency values represent Botswanan Pula (P).
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Palms and Bonds
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $49,600
Start-up Assets to Fund $20,400
Total Funding Required $70,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $20,400
Additional Cash Raised $0
Cash Balance on Starting Date $20,400
Total Assets $20,400
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Mr. T. $35,000
Mr. S. $35,000
Other $0
Additional Investment Requirement $0
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Palms and Bonds
Total Planned Investment $70,000
Loss at Start-up (Start-up Expenses) ($49,600)

Total Capital $20,400
Total Capital and Liabilities $20,400
Total Funding $70,000
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $1,200
Stationery etc. $2,000
Brochures $3,000
Sales Calls $1,200
Expensed equipment $20,000
Rent $1,200
Staff training $5,000
Communications system $5,000
Other $11,000
Total Start-up Expenses $49,600
Start-up Assets
Cash Required $20,400
Other Current Assets $0
Long-term Assets $0
Total Assets $20,400
Total Requirements $70,000
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Palms and Bonds
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Palms and Bonds
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Palms and Bonds
Chart: Start-up
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automatically, with a professional modern design.
Services
Palms and Bonds offers expertise in market research, channel distribution, channel development,
and market development that allow clients to choose their preferred relationship: these include
retainer consulting relationships, project-based consulting, sales representation and market
representation, project-based market research, published market research, information forum
events, business plans, and marketing plans.
Palms and Bonds offers the expertise a proactive-oriented and market-opportunity seeking
the public. These can be summed up in two areas -- Business and Training Services. Our
business services can be taken as high-level retainer consulting, market research reports, project-
based consulting, business and marketing plans, plan consulting and writing, and company
registration. Our training services include workshops and seminars on such topics as sales and
marketing, as well as in-house training of receptionists, secretaries, and sales and marketing
personnel.
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Palms and Bonds
Services Description
Our business planning services include: assisting companies with the research and structuring of
comprehensive, written business and marketing plans; providing a written business plan package,
which delivers a complete, detailed business plan to the client, specifically designed to meet their
needs, that is, FAP applications, bank loans, NDB loans, restructuring, new product
development, market expansion, etc.
In many cases, small businesses often consider next year's budget an acceptable business plan.
Any investor or banker will disagree and insist on much more information prior to making a
financial decision regarding funding a business. We want to provide the opportunity for
businesses, which have potential to receive the funding that would help them become solid
employers.
 Market research: (Discussion omitted in this sample business plan)

 Retainer consulting: (Discussion omitted)
 Cash Flow Analysis: (Discussion omitted)
 Project consulting: (Discussion omitted)
The business will begin with a general corporate brochure establishing the positioning. This
brochure was developed as part of the start-up expenses including the business cards and
Company Profile, mainly for the large organizations that often recommend services to potential
investors. Compliment slips are also on the cards so as to raise awareness of the company and its
services.
Literature and mailings for the initial market forums will be very important.
Palms and Bonds will maintain the latest market research software and Windows capabilities
including:
 Complete email facilities on the Internet for working with clients directly through email
delivery of drafts and information.
 Complete presentation facilities for preparation and delivery of multimedia presentations
on Windows machines, in formats including on-disk presentation, live presentation, or
video presentation.
 Complete desktop publishing facilities for delivery of regular retainer reports, project
output reports, marketing materials, and market research reports.
In putting the company together we have attempted to offer enough services to allow us to
always be in demand by our clients. However, economics has provided us with a new era of
opportunities for the small business in which we can only guess at the needs. The most important
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Palms and Bonds
factor in developing future services is market need. Our understanding of the needs of our target
market segments is one of our competitive advantages. It is critical to our effort to develop the
right new services. We also have what we call a "core service engine" (market research) that will
be the foundation of future products. In the future, Palms and Bonds will broaden its coverage by
expanding into additional markets (e.g., the whole of southern Africa) and additional product
areas. However in doing so we will strive to ensure that it is compatible with the existing
services.
Now we have the possibility of new money being loosened for entrepreneurs and that means
there will be a substantial increase in the number of feasibility studies and business plans. This
provides additional business for virtually every area of business service we provide.
We are also studying the possibility of newsletter or electronic newsletter services (for the
international market), or perhaps special on-topic reports, pending further research on client
needs.
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Palms and Bonds
Market Analysis Summary

We are today experiencing a rapid growth in the economy of unsurpassed nature. This has been
brought about by amongst other things, the relaxation of foreign exchange policies and
macroeconomic policies geared towards attracting foreign investors into the country. The fiscal
and monetary policies of the government geared towards maintaining growth with social justice
have largely contributed towards this, evidenced by our economy averaging a growth rate of 7%
since 1990 -- very high by international standards.
The current drive and emphasis by the government on diversification of the industrial base away
from the minerals sector presents an opportunity for Palms and Bonds to make a valuable
contribution towards achieving this goal. This will result in implementation of modern market
research techniques and transfer of knowledge. Having undertaken a thorough and
comprehensive research of the market we realized that there was a need for a specialized market
research firm that focuses on producing market research reports that are tailored to the clients’
needs. Though there are business consultancy firms currently on the market, some of whom have
been in existence for a relatively long period of time, we believe that there is a market need for
one (ourselves in this instance) that particularly focuses on market research. We intend to provide
services of extremely high quality -- something that cannot be over-emphasized in the
international arena with the current drive towards globalization.
We appreciate that entering such a market is not a bed of roses and intend to implement an
aggressive marketing strategy, well supported by the other business functions. The above
prognosis influenced our decision to enter the business consultancy industry.
Market Segmentation
Palms and Bonds will be focusing on local businesses and foreign investors looking at investing
in the country. These will be small, medium, and large-sized companies looking for a total
service and quality work.
Our most important group of potential customers are foreign investors. These are potential
investors who want to have a feel and understanding of the local markets and the opportunities,
and constraints they present to them. They do not want to waste their time or risk their money
looking for bargain information or questionable expertise. As they go into markets looking at
new opportunities, they are very sensitive to risking their company's name and reputation.
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Palms and Bonds
Large corporations: one of our most important market segment is the large organization looking
at penetrating new or existing markets. These companies will be calling on Palms and Bonds for
development functions that are better spun off than managed in-house, for market research, and
feasibility studies.
Medium-sized growth companies: particularly in rapidly expanding markets, Palms and Bonds
will offer an attractive development alternative to the company that is management constrained
and unable to address opportunities in new markets and new market segments.
Small-sized companies: in an increasingly competitive environment entrepreneurs are becoming

more cautious in the markets they seek to enter and on establishing new market
opportunities. They are often seeking for prior research to be done to identify possible markets
that are suited to their resources and capabilities.
Hence the most likely types of businesses to require our services would include:
 New businesses seeking investment or start-up capital

 New firms looking at investing in the country
 Existing companies which are expanding or introducing a new product/ service.
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Palms and Bonds
Chart: Market Analysis (Pie)
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Growth CAGR
Customers
Small sized 2% 200 204 208 212 216 1.94%
companies
Medium sized 8% 1,200 1,296 1,400 1,512 1,633 8.01%
companies
Professional firms 9% 900 981 1,069 1,165 1,270 8.99%
Large sized 1% 100 101 102 103 104 0.99%
companies
Financial 14% 70 80 91 104 119 14.19%
institutions
Other 3% 150 155 160 165 170 3.18%
Total 7.60% 2,620 2,817 3,030 3,261 3,512 7.60%
automatically.
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Palms and Bonds
Target Market Segment Strategy

Our marketing strategy will be based mainly on making the right information available to the
right target customer. We will ensure that our services' prices take into consideration people's
budgets, and that these people appreciate the service and know that it exists, including where to
find it. The marketing will convey the sense of quality in every picture, every promotion, and
every publication. There is already a sense of segment strategy in the way we define our target
market. We are choosing to compete in areas that lend themselves to local competition, service
and channel areas that match our strengths, and avoid our weaknesses.
Our strategy calls for the development of relationships with investment bodies, attorneys,
accountants and financial institutions to support our business with referrals. Interviews with
commercial loan officers have indicated that there is a serious need for a professional firm like
ours to help their clients in market/marketing research, and development of comprehensive and
concise business and marketing plans.
Market Needs
Palms and Bonds intends to provide the client with more than general market information. We
intend to provide accurate, relevant, specific and timely information that will enable our clients
to make more accurate decisions. This information we intend to be available to our clients at
competitive rates.
We understand that our target markets need more than just information but information that will
enable them to make more informed decisions. Our target client wants information that is
relevant to their needs and easily understandable so as to make the right decisions. We don't just
intend to provide a service, but to provide one of unparalleled nature relative to the market.
Market Trends
Our intended markets are increasingly growing towards recognizing the difference between poor
quality business consultancy service and that of high quality. This development is an important
trend for us as it represents our target market, and hence opportunity. We now are having an
increasing number of people who appreciate quality information and the importance of having
comprehensive and concise market and business plans undertaken.
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Palms and Bonds
Another trend is the one toward greater use of specialized and focused consultants, instead of in-
house resources. Companies are looking for out-sourcing (but unfortunately few offer such a
service) and, in general, a preference for variable costs instead of fixed costs.
Positioning Statement
Although there are a number of attorneys and accountants who write or assist in writing a
business plan, the reality is that these professionals provide invaluable services in the areas in
which they specialize, but lack the imagination to write a comprehensive and effective business
plan. The attorneys tend to dwell on the legal aspects and contractual arrangements while
accountants sweat over the balance sheets, cash flow statements, product costs and income
statements. Additionally, these vitally necessary professionals cannot afford to spend the many
hours necessary to work on a business plan when they could be earning much more per hour
concentrating on their particular field of expertise.
Our expertise lies in the ability to listen to a business owner and perceive their vision for their
company over the next few years. We can envision what the business person is looking for in the
future, then put it in writing and at a cost they can live with.
Service Business Analysis

The consulting "industry" is pulverized and disorganized, with many smaller consulting
organizations and individual consultants for every one of the few dozen well-known companies.
These other organizations often offer a service, which is not to the client's satisfaction. In
addition they often claim to offer a service, which they are not fully capable of providing
satisfactorily.
Consulting participants range from major international name-brand consultants to hundreds of

individuals. One of Palms and Bonds' challenges will be establishing itself as a real consulting
company, specializing in market research, positioned as a relatively risk-free corporate purchase.
The business consulting industry may be segmented by economics and needs patterns. This
incorporates some of the service type differences, but in a more practical sense:
Mainline Services: these include marketing/market research undertaken through advertising,

direct mail, referrals and sales literature. Essentially these will be customized to the client's
needs.
Ancillary Services: these include services such as trading licenses and company formation,
which tend to be similar with not much to differentiate amongst providers except speed of
execution. We intend to have an extremely efficient and 'state-of-the-art' business centre that will
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Palms and Bonds
cater to our clients' needs. Service provider decisions don't tend to be major decisions/events
covering relatively insignificant amounts.
Distributing a Service
Consulting is sold and purchased mainly on a word-of-mouth basis, with relationships and
previous experience being, by far, the most important factor.
The major name-brand houses have locations in the main mall, and executive-level managers or
partners develop new business through industry associations, business associations, chambers of
commerce and industry, etc., and in some cases social associations such as country clubs.
The medium-level houses tend to be general in terms of services and specific in terms of target
market -- targeting FAP seeking clients/individuals. They are not easily able to leverage their
business through distribution, which we intend to be one of our competitive advantages.
Competition and Buying Patterns

The key element in purchase decisions made at the Palms and Bonds client level is trust in the
professional reputation and reliability of the consulting firm. The most important factor in this
market is the quality of the service. The majority of the investment referrals said they were not
satisfied with the current plans often submitted for their approval as they were of poor quality.
Main Competitors
There are numerous companies operating in Gaborone who classify themselves as "business
consultants". However, upon contacting these, it appears that the vast majority of these
companies are bookkeeping and secretarial services companies. There are some companies that
provide services similar to those offered by us and that is good, but none of them specialize in
market/marketing research. The following are some of our main competitors:
The high-level prestige management consulting firms
Strengths: Prime locations managed by owner-partners with a high level of presentation and
understanding of general business. Enviable reputations, which make purchase of consulting an
easy decision for a manager, despite the very high prices.
Weaknesses: General business knowledge doesn't substitute for the specific market, channel, and
distribution expertise of Palms and Bonds, focusing on local markets and products/services.
Also, fees are extremely expensive, and work is generally done by very junior-level consultants,
even though sold by high-level partners.
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Palms and Bonds
General Business Consultancy firms
Strengths: Expertise in certain functional areas particularly bookkeeping. Palms and Bonds
intends not to compete with general business consultancy firms in these markets.
Weaknesses: The inability to spread beyond a specific focus, or to rise above a specific focus, to
provide actual marketing and market research expertise, experience, and wisdom beyond the
specifics.
The most significant competition is no consulting at all, companies choosing to do market

research, business development and channel development in-house.
Strengths: No incremental cost except travel; also, the general work is done by the people who
are entirely responsible, the planning is done by those who will implement it.
Weaknesses: Most managers are terribly overburdened already, unable to find incremental
resources in time and people to apply to incremental opportunities. Also, there is a lot of
additional risk in market and channel development done in-house from the ground up. Finally,
retainer-based antenna consultants can greatly enhance a company's reach and extend its position
into conversations that might otherwise never have taken place.
Attorneys and Accounting firms
Strengths: Able to provide sound accounting or legal advice and services with the plans being
done by the partners.
Weaknesses: They often lack the imagination to write a comprehensive and effective business
plan. The attorneys tend to dwell on the legal aspects and contractual arrangements while
accountants sweat over the balance sheets, cash flow statements, product costs and income
statements. Very little market research, if any, is often undertaken, and often ineffectively.
Business Participants
At the highest level are the few well-established major names in management consulting. Most
of these are organized as partnerships established in major markets around the world, linked
together by interconnecting directors and sharing the name and corporate wisdom. Some evolved
from accounting companies and some from management consulting. These companies charge
very high rates for consulting, and maintain relatively high overhead structures and fulfillment
structures based on partners selling and junior associates fulfilling.
(Discussion omitted in this sample plan)
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Palms and Bonds
Competitive Comparison
We have sought to identify competition in terms of companies that satisfy the same client needs
that we intend to. Our competitors are few in our main service, and, including Government
agencies, numerous in our ancillary services. There will be a need to strongly differentiate
ourselves from these other businesses. However on a broader scale our competition comes in
several forms:
 The most significant competition is no market research consulting at all, companies

choosing to do market research, business development and channel development in-
house. Their own managers do this on their own, as part of their regular business
functions. Our key advantage in competition with in-house development is that managers
are already overloaded with responsibilities, they don't have time for additional
responsibilities in new market development or new channel development. Also, Palms
and Bonds can approach alliances, investment bodies, and channels on a confidential
basis, gathering information and making initial contacts in ways that the corporate
managers can't.
 The high-level prestige management consulting: XXX and international firms. These are
essentially generalists who take their name-brand management consulting into specialty
areas. Their other very important weakness is the management structure that has the
partners selling new jobs, and inexperienced associates delivering the work. We compete
against them as experts in our specific fields, and with the guarantee that our clients will
have the top-level people doing the actual work.
 The third general kind of competitors are the various trading and Investment bodies.
These companies are formidable competitors for published market research and market
forums, but cannot provide the kind of high-level customized consulting that Palms and
Bonds will provide.
 The fourth kind of competition are the business consultancy firms, which undertake
business plans for various organizations. For example: LLL, MMM, NNN, and OOO
Consultancy.
 The fifth kind of competition are the numerous "fly-by-night" business consultants that
claim to offer the same services as we do. Often they offer a below par service with no
qualified personnel.
Strategy and Implementation Summary

Our marketing strategy emphasizes focus. This will be the key. We are a relatively small
company and hence must focus on certain kinds of services with certain kinds of users.
Initially Palms and Bonds will focus on the local market and in the market research and
training fields. The target customers will include key decision-makers in the large, medium
and small-sized organizations in a start-up and growth periods.
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Palms and Bonds
 We are currently building image and awareness through consistency and distinctiveness
in our service provision.
 We intend to focus on delivering quality service and end product that in turn produces
good referrals, which can then generate revenue.
 We intend to always have a relatively heavy personal selling component to our
marketing. Hence we intend to always be active in personal relationships with clients and
strategic allies keeping abreast of their needs and wants.
 We are focusing advertising on several key media.
SWOT Analysis
We are presently in a highly lucrative market in a rapidly growing economy. We foresee our
strengths as the ability to respond timeously to the market dictates and to provide custom
designed market research services to our clients. In addition through aggressive marketing
and quality management we intend to become a well-respected leader in our respective
industry. Our key personnel have a wide and thorough knowledge of the local and
international markets and expertise, which will go a long towards penetrating the market.
However, we acknowledge the fact that few companies are aware of the actual importance of
market research and marketing and its contribution to the whole business strategy. Below are
the summarized strengths, weaknesses, opportunities, and threats.
Weaknesses
 Lack of a solid well-established network in the market research arena.

 The introduction of new organizational practices and personnel who have not previously
worked together presents a challenge to the organization.
 Establishment on the Internet will produce technological challenges.
Opportunities
 Specific niche. Appreciation for high quality, accurate, unbiased and relevant
information.
 The introduction of the International Financial Services Centre (IFSC) presents a vast
opportunity, as both foreign and local firms will be looking for information, which may
assist on entering their respective markets.
 Current growth of the economy in comparison to other economies presents an
opportunity for an increased number of foreign investors to invest in the markets.
 The current drive towards localization is causing an increasing number of local
individuals to invest and start their own businesses.
 The new generation of entrepreneurs, corporations, professionals, business owners has a
far greater appreciation for the need for adequate planning and relevant information.
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Palms and Bonds
 Internet marketing and sales -- though still in its infancy.

 Increasing number of foreign firms, especially from South Africa looking at penetrating
the local markets.
 Financial assistance given by the government on the credibility of business plans.
However the results of the review of the FAP by the Botswana Institute of Development
Policy Analysis need to be taken into consideration as it could be scrapped or replaced by
a new scheme.
 Existence of well-established government organs that deal directly with aspiring
entrepreneurs -- local and foreign, presents us with a networking opportunity.
Threats
The present growth in the economy may result in increased numbers of business consultants,
leading to increased competition and confusion amongst clients. This competition could
emerge from a variety of given sources including:
 Established mass-market consultants' development of new lines and vertically integrating

so as to be totally in control of all services required by the client.
 New marketing strategies and tactics by established companies.
 Existing competition.
 The current plethora of 'fly-by-night' business consultancy firms in existence.
 Other start-up companies generated by healthy economic growth nation-wide.
 Existence of well-established government organs that deal directly with aspiring
entrepreneurs, both local and foreign.
Strengths
 Strategic market segmentation and implementation strategies.

 Diversified market segments. Ensures the lack of dependency on one particular market.
 Combination of skills in directorship. The directors intend to jointly develop business
strategy and long-term plans, having wide experience in market and product know-how,
and strong financial management and business know-how.
 Establishment and maintenance of a well-known business name.
 An aggressive and focused marketing campaign.
 A marketing plan with clear goals and strategies.
Macro-environment
At a large scale, market research demonstrates that the business consultancy market we intend to
enter is growing and changing. Generally there is a trend toward executive turnover in medium
19
Palms and Bonds
to large companies today. That is, corporate restructuring, privatization, and increased small
business development providing for a younger more ambitious market in the executive and small
business sector. Research indicates that this new generation of executives being more educated
and aware of the global environment assesses and implements information to a much higher
degree than past trends have indicated. This is exacerbated by the increase in competition in all
industries making it necessary for individuals to have relevant information at their fingertips.
Therefore with the emergence of this generation of individuals, the appreciation of quality
information and business solutions/ recommendations that provide for and enables the company
to grow, dictates that our service lines will be popular.
The current drive by the government towards a more diversified economy presents an
opportunity for our business to propel and excel in our intended markets, benefiting from the
support of the concerned institutions and trade bodies. In addition with the country increasingly
becoming an economic hub we foresee the demand for high quality information to be on the rise.
Through undertaking of our business activities professionally we foresee that it should not be too
difficult to gain market acceptance provided we deliver the final product timeously and of good
quality, at competitive prices.
Furthermore Small, Medium and Micro Enterprises are well recognized as a potentially
important source of employment generation apart from the diversification that they inevitably
result in. They in turn reflect the declining importance of centralized mass production, along with
technical change, the growth of information technology and the growth of the service sector.
Employment in Botswana by the type of Employer
Government 36%
Large Employer 32%
Medium Employer 4%
Small Employer 14%
Micro Employer 14%
Source: BIDPA estimates
Competitive Edge
Our competitive edge will be our dominance of market information, customer orientation and
traditional hard work. Although there are many "supposed" business consultants we intend to
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Palms and Bonds
offer more than just a professional service but mesh well the various crafts together
harmoniously.
Though we shall be serving different market segments we intend to focus on the individual or
group who wants high quality information and plans customized to their needs. In the case of
marketing and business plans they should be able to work harmoniously/beautifully in the
intended environment, both on a macro and micro scale. Though our clients might range from
large corporations, small or medium businesses, institutions or resellers what is important to the
customer is total satisfaction with the end product matched to their capabilities and resources.
Sales Strategy
At Farmers Group, the sales process is primarily the same for vegetables as it is for composting
products, in that both products will be mainly sold through wholesale marketing. As in the past,
live shipments will be delivered by contract carriers in special oxygenated tanks carrying 8,000
vegetables or more, and will be continued as demanded. Farmers Group's bagged manure
products will be delivered and unloaded in sizable wholesale quantities by the pallet.
Smaller, more local orders will significantly increase the overall sales when the 300-450 live
vegetables carrying tank system is put into service late in 2000 or early in 2001.
The company's average sales cycle from first contact to closing of the sale is approximately 3 to
12 days for vegetable products. Farmers Group plans to shorten this cycle. Furthermore, the
company estimates that from first contact to sale conclusion, the cycle for fresh strawberries will
run 3 days or less. Composted products sale cycle should run from 3 to 12 days.
Direct sales contacts of vegetable markets by delivery personnel, as well as cold calling by
telephone of potential market outlets, will also be employed.
The sales forecast monthly summary is included in the appendix. The annual sales projections for
three years are included in the table below. It should be noted that as we become established and
known on the market we project sales to increase at a faster rate than the initial year.
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Palms and Bonds
Chart: Sales by Year
22
Palms and Bonds
Chart: Sales Monthly
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this for you automatically, with a professional modern design.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
All services $366,300 $612,000 $734,400
Other $0 $0 $0
Total Sales $366,300 $612,000 $734,400
Direct Cost of Sales Year 1 Year 2 Year 3

All services $79,500 $117,000 $140,400
Other $0 $0 $0
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Palms and Bonds
Subtotal Direct Cost of Sales $79,500 $117,000 $140,400
Management Summary
The management team mainly comprising the shareholders has wide expertise and broad
knowledge of the services and markets, which if well planned for, will enable the business to
realize its goals and objectives. As we grow, we will take on additional consulting help and
personnel.
Management style will reflect the participation of the shareholders. The company intends to
respect its community and treat all employees well. We will develop and nurture the company as
community. We do not intend to be very hierarchical.
Management Team
Management
Palms and Bonds business requires a very high level of knowledge, analytical ability and
expertise, which means that it will not be easily leveragable in the common consulting company
mode in which partners run the business and make sales, while associates fulfill. Partners will
necessarily be involved in the fulfillment of the core business proposition, providing the
expertise to the clients. The initial personnel plan is still tentative. It should involve three to five
partners, one to three consultants, with good staff support, an office manager, and a secretary.
Later, we intend to add more partners, consultants, and sales staff.
Partners' resumes were included as an attachment to this plan, but have been omitted in this
sample plan.
Personnel Plan
The detailed monthly personnel plan for the first year is included in the appendix. The annual
personnel estimates are included here. We believe this plan is a acceptable compromise between
fairness and expedience, and meets the commitments of our mission statement. We do not intend
to be a large organization or "top heavy" as our industry does not require our doing so. We want
the company to stay lean and flexible so that we can respond to a client's needs quickly. To do
this, we will use outside consultants whose fees, in most cases, will be passed on to the client,
indirectly, through our fees. However as we expand and increase in size (increase in the number
of projects received) we do expect to increase our personnel.
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Palms and Bonds
We intend to compensate our personnel well, so as to retain their invaluable expertise and to
ensure job satisfaction and enrichment through delegation of authority. Our compensation will
include health care, generous profit sharing, plus a minimum of three weeks vacation.
In-house training shall be continuous with regular external training being undertaken particularly
following any new developments in the market. This is to ensure that we are continuously able to
anticipate our client's problems and needs and provide them with solutions -- a proactive
approach, which is so essential in our line of business.
We acknowledge the fact that successful recruiting, motivation and discipline procedures are
keys to the growth of the organization. Hence we intend to promote and maintain good labour
relations, strong morale and high quality work per employee through undertaking the following:
(Discussion omitted).
Table: Personnel
Personnel Plan
Partners $0 $72,000 $82,800
Internal Consultants $16,000 $16,000 $16,000
External Consultants $26,000 $18,000 $20,700
Office Manager $9,000 $18,000 $20,700
Personal Assistant $9,200 $9,000 $10,356
Secretarial Staff $3,600 $6,000 $6,900
Research Staff $4,500 $3,600 $4,140
Other $9,000 $0 $0
Total People 0 0 0
Total Payroll $77,300 $142,600 $161,596
Financial Plan
We want to finance growth mainly through cash flow and equity. We recognize that this means
we will have to grow more slowly than we might like.
The most important factor in our case is collection days. We can't push our clients hard on
collection days, because they are in larger companies and will normally have marketing
25
Palms and Bonds
authority, not financial authority. Therefore we need to develop a permanent system of

receivables financing, using one of the established financial companies in that business. In turn
we intend to ensure that our investors are compatible with our growth plan, management style
and vision. Compatibility in this regard means:
1. A fundamental respect for giving our customers value, and for maintaining a healthy and
congenial workplace.
2. Respect for realistic forecasts, and conservative cash flow and financial management.
3. Cash flow as first priority, growth second, profits third.
4. Willingness to follow the company and contribute valuable input to strategy and
implementation decisions.
Of these only the last two are flexible.
Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following
table as annual assumptions. The monthly assumptions are included in the appendix. From the
beginning, we recognize that collection days are critical, but not a factor we can influence easily.
At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and
personnel burden are based on conservative assumptions.
Some of the more important underlying assumptions are:
 We assume a strong economy, without major recession.

 We assume, of course, that there are no unforeseen changes in economic policy to make
our clients' products immediately obsolete.
The table below summarizes key financial assumptions, including 30-day average collection
days, sales entirely on invoice basis including the 30% deposit policy, expenses mainly on net 30
basis, 30 days on average for payment of invoices, and present-day interest rates.
Table: General Assumptions
General Assumptions
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
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Palms and Bonds
Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
Projected Cash Flow

Cash flow projections are critical to our success. The first year monthly cash flow chart appears
below and the monthly figures are shown in the appendix. The annual cash flow figures are
included here.
Chart: Cash
automatically.
27
Palms and Bonds
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $91,575 $153,000 $183,600
Cash from Receivables $205,695 $412,697 $527,733
Subtotal Cash from Operations $297,270 $565,697 $711,333
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $297,270 $565,697 $711,333
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $77,300 $142,600 $161,596
Bill Payments $139,989 $229,073 $275,803
Subtotal Spent on Operations $217,289 $371,673 $437,399
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Palms and Bonds
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $217,289 $371,673 $437,399
Net Cash Flow $79,981 $194,024 $273,934

Cash Balance $100,381 $294,406 $568,340
Key Financial Indicators

The following benchmark chart indicates our key financial indicators for the first three years. We
foresee major growth in sales and operating expenses, and a bump in our collection days as we
spread the business during expansion.
Collection days are very important. We do not want to let our average collection days get above
30 under any circumstances. This could cause a serious problem with cash flow, because our
working capital situation is chronically tight. However, we recognize that we cannot control this
factor easily, because of the relationship with our clients.
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Palms and Bonds
Chart: Benchmarks
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glance how you compare to companies just like yours.
Break-even Analysis
The following table summarizes our break-even analysis. With fixed costs at a bare minimum,
we don't really expect to reach break-even until several months into the business operation. The
break-even assumes variable costs of 20 percent of revenue. This assumption is probably too
high, and therefore conservative, because, at least in the beginning, most of our cost of
fulfillment is actually the compensation of the consultants.
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Palms and Bonds
Chart: Break-even Analysis
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $11,807
Assumptions:
Average Percent Variable Cost 22%
Estimated Monthly Fixed Cost $9,244
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this for you automatically, with a professional modern design.
Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from more
than P366,000 the first year to P612,000 the second, and P734,400 in the third year. Profits may
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Palms and Bonds
not seem that impressive, but are relatively good for a start-up firm in our business. Hence we do
expect to more than break-even in the first year of operation.
As with the break-even, we are projecting very conservatively regarding cost of sales and gross
margin. Our cost of sales should be much lower, and gross margin higher, than in this projection.
Initially, we will depend on our internal consultants for most of fulfillment, which is why costs
should be lower than shown, although occasionally we shall engage the services of outside
consultants as discussed in our personnel plan. We prefer to project conservatively so that we
make sure we have enough cash.
Chart: Profit Monthly
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Palms and Bonds
Chart: Profit Yearly
Chart: Gross Margin Monthly
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Palms and Bonds
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $366,300 $612,000 $734,400
Direct Cost of Sales $79,500 $117,000 $140,400
Other $0 $0 $0
Total Cost of Sales $79,500 $117,000 $140,400
Gross Margin $286,800 $495,000 $594,000

Gross Margin % 78.30% 80.88% 80.88%
Expenses
Payroll $77,300 $142,600 $161,596
Sales and Marketing and Other
$15,030 $12,000 $14,400
Expenses
Depreciation $0 $0 $0
Public Relations $2,400 $2,400 $3,600
Utilities $1,800 $1,800 $2,400
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Palms and Bonds
Insurance $0 $0 $0
Rent $14,400 $18,000 $19,200
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $110,930 $176,800 $201,196
Profit Before Interest and Taxes $175,870 $318,200 $392,804

EBITDA $175,870 $318,200 $392,804
Interest Expense $0 $0 $0
Taxes Incurred $44,148 $79,550 $99,838
Net Profit $131,723 $238,650 $292,966

Net Profit/Sales 35.96% 39.00% 39.89%
Chart: Gross Margin Yearly
automatically.
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Palms and Bonds
Expense Forecast
Initial marketing expenses were relatively high as we sought to become known on the market.
This was brought about by the development of sales literature, advertising expenses, function
expenses including lunches and dinners with interested stakeholders. As our market share
increases and capital is generated, further marketing programs and the expansion of those in
existence at the time will be undertaken, to ensure market development. The expenses generated
by our marketing strategies will be high in the initial stages of design and implementation.
However with time these programs will start generating revenue for the business, which we shall
in turn reinvest. The fruits of the above are soon to be gained.
Projected Balance Sheet

The balance sheet shows healthy growth of net worth, and strong financial position.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $100,381 $294,406 $568,340
Accounts Receivable $69,030 $115,333 $138,399
Other Current Assets $0 $0 $0
Total Current Assets $169,411 $409,738 $706,739
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $169,411 $409,738 $706,739
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $17,289 $18,966 $23,000
Current Borrowing $0 $0 $0
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Palms and Bonds
Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $17,289 $18,966 $23,000
Long-term Liabilities $0 $0 $0
Total Liabilities $17,289 $18,966 $23,000
Paid-in Capital $70,000 $70,000 $70,000

Retained Earnings ($49,600) $82,123 $320,773
Earnings $131,723 $238,650 $292,966
Total Capital $152,123 $390,773 $683,739
Total Liabilities and Capital $169,411 $409,738 $706,739
Net Worth $152,122 $390,773 $683,739
automatically.
Business Ratios
The following table provides important business ratios for the consulting industry, as determined
by the Standard Industry Classification (SIC) Index code 8742, Management Consulting
Services.
Table: Ratios
Ratio Analysis
Industry
Profile
Sales Growth n.a. 67.08% 20.00% 8.60%
Percent of Total Assets

Accounts Receivable 40.75% 28.15% 19.58% 24.40%
Other Current Assets 0.00% 0.00% 0.00% 46.70%
Total Current Assets 100.00% 100.00% 100.00% 74.90%
Long-term Assets 0.00% 0.00% 0.00% 25.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
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Palms and Bonds
Current Liabilities 10.21% 4.63% 3.25% 42.80%

Long-term Liabilities 0.00% 0.00% 0.00% 17.20%
Total Liabilities 10.21% 4.63% 3.25% 60.00%
Net Worth 89.79% 95.37% 96.75% 40.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 78.30% 80.88% 80.88% 0.00%
Selling, General & Administrative
42.29% 41.89% 40.77% 83.50%
Expenses
Advertising Expenses 2.14% 0.98% 0.98% 1.20%
Profit Before Interest and Taxes 48.01% 51.99% 53.49% 2.60%
Main Ratios
Current 9.80 21.60 30.73 1.59
Quick 9.80 21.60 30.73 1.26
Total Debt to Total Assets 10.21% 4.63% 3.25% 60.00%
Pre-tax Return on Net Worth 115.61% 81.43% 57.45% 4.40%
Pre-tax Return on Assets 103.81% 77.66% 55.58% 10.90%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 35.96% 39.00% 39.89% n.a
Return on Equity 86.59% 61.07% 42.85% n.a
Activity Ratios
Accounts Receivable Turnover 3.98 3.98 3.98 n.a
Collection Days 56 73 84 n.a
Accounts Payable Turnover 9.10 12.17 12.17 n.a
Payment Days 27 29 27 n.a
Total Asset Turnover 2.16 1.49 1.04 n.a
Debt Ratios
Debt to Net Worth 0.11 0.05 0.03 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $152,122 $390,773 $683,739 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.46 0.67 0.96 n.a
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Palms and Bonds
Current Debt/Total Assets 10% 5% 3% n.a

Acid Test 5.81 15.52 24.71 n.a
Sales/Net Worth 2.41 1.57 1.07 n.a
Dividend Payout 0.00 0.00 0.00 n.a
automatically.
Controls
The local business consultancy market has been growing steadily over the last several years.
With this in mind we intend our marketing programs to expand accordingly. The introduction of
quality sales and marketing literature will enable Palms and Bonds to effectively market to
potential customers with a positive image and impression. We project sales to increase
accordingly, as we continue establishing a reputation for ourselves, especially in the market
research area. With time a presence on the internet and participation in local and regional
conferences and trade shows will be key milestones to expanding sales and marketing potentials
through the utilization of new channels and identification of potential customers.
Throughout the year we intend to undertake regular evaluations of our business and marketing
programs so as to ensure that we are in line with our intended objectives. In summary we intend
to undertake the following:
1. Tracking and follow-up: we intend to have the discipline, as an organization, to track

results of the business plan and make sure that we implement.
2. Market segment focus: we intend to have the discipline to maintain the market segment
focus.
3. Saying no: though difficult initially we intend to be able to say no to special deals that
take us away from the target focus and are unprofitable.
Implementation Programs
Palms and Bonds will start to establish alliances with reputable and reliable suppliers of
information. We will continue preparing our sales literature mainly in-house with the assistance
of a reputable printing organization agency. We also intend to engage the services of well
qualified consultants. Thereafter there shall be delegation of responsibility for maximum
effectiveness.
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Palms and Bonds
Contingency Planning
We intend to watch our results very carefully. We may need to concentrate less on certain
services than others, if we intend to get the margin up or clients become difficult to attract. We
might be able to avoid the straight competition with the major companies by focusing more on
the previously mentioned services -- market and marketing research.
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Palms and Bonds
Appendix
Table: Sales Forecast
Sales Forecast
Month Month Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
10 11 12
Sales
All services 0% $8,500 $6,800 $10,800 $16,800 $25,800 $34,800 $40,800 $40,800 $40,800 $46,800 $46,800 $46,800
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $8,500 $6,800 $10,800 $16,800 $25,800 $34,800 $40,800 $40,800 $40,800 $46,800 $46,800 $46,800
Month Month Month

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
10 11 12
All services $1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost
$1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
of Sales
i
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Palms and Bonds
Table: Personnel
Personnel Plan
Month Month Month
10 11 12
Partners 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Internal Consultants 0% $0 $0 $0 $0 $0 $0 $0 $0 $4,000 $4,000 $4,000 $4,000
External Consultants 0% $0 $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $4,000 $4,000 $4,000 $4,000
Office Manager 0% $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Personal Assistant 0% $600 $600 $600 $600 $800 $800 $800 $800 $800 $800 $800 $1,200
Secretarial Staff 0% $0 $0 $0 $400 $400 $400 $400 $400 $400 $400 $400 $400
Research Staff 0% $0 $0 $0 $500 $500 $500 $500 $500 $500 $500 $500 $500
Other 0% $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $600 $600 $600 $5,500 $5,700 $5,700 $5,700 $5,700 $11,700 $11,700 $11,700 $12,100
Need to create your own financial tables? Tools like LivePlan will do this for you automatically.
ii
Palms and Bonds
Table: General Assumptions
General
Assumptions
Month Month Month
10 11 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Rate
Long-term
10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Interest Rate
Tax Rate 30.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
iii
Palms and Bonds
Table: Profit and Loss
Pro Forma Profit and

Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $8,500 $6,800 $10,800 $16,800 $25,800 $34,800 $40,800 $40,800 $40,800 $46,800 $46,800 $46,800
Direct Cost of Sales $1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $1,250 $1,500 $2,250 $3,000 $5,000 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Gross Margin $7,250 $5,300 $8,550 $13,800 $20,800 $25,300 $31,300 $31,300 $31,300 $37,300 $37,300 $37,300
Gross Margin % 85.29% 77.94% 79.17% 82.14% 80.62% 72.70% 76.72% 76.72% 76.72% 79.70% 79.70% 79.70%
Expenses
Payroll $600 $600 $600 $5,500 $5,700 $5,700 $5,700 $5,700 $11,700 $11,700 $11,700 $12,100
Sales and Marketing and
$1,500 $1,230 $1,230 $1,230 $1,230 $1,230 $1,230 $1,230 $1,230 $1,230 $1,230 $1,230
Other Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Public Relations $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Utilities $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Payroll Taxes 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating
$3,650 $3,380 $3,380 $8,280 $8,480 $8,480 $8,480 $8,480 $14,480 $14,480 $14,480 $14,880
Expenses
Profit Before Interest

$3,600 $1,920 $5,170 $5,520 $12,320 $16,820 $22,820 $22,820 $16,820 $22,820 $22,820 $22,420
and Taxes
EBITDA $3,600 $1,920 $5,170 $5,520 $12,320 $16,820 $22,820 $22,820 $16,820 $22,820 $22,820 $22,420
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred $1,080 $480 $1,293 $1,380 $3,080 $4,205 $5,705 $5,705 $4,205 $5,705 $5,705 $5,605
Net Profit $2,520 $1,440 $3,878 $4,140 $9,240 $12,615 $17,115 $17,115 $12,615 $17,115 $17,115 $16,815
Net Profit/Sales 29.65% 21.18% 35.90% 24.64% 35.81% 36.25% 41.95% 41.95% 30.92% 36.57% 36.57% 35.93%
iv
Palms and Bonds
v
Palms and Bonds
Table: Cash Flow
Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations

Cash Sales $2,125 $1,700 $2,700 $4,200 $6,450 $8,700 $10,200 $10,200 $10,200 $11,700 $11,700 $11,700
Cash from Receivables $0 $213 $6,333 $5,200 $8,250 $12,825 $19,575 $26,250 $30,600 $30,600 $30,750 $35,100
Subtotal Cash from
$2,125 $1,913 $9,033 $9,400 $14,700 $21,525 $29,775 $36,450 $40,800 $42,300 $42,450 $46,800
Operations
Additional Cash Received

Sales Tax, VAT, HST/GST
0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $2,125 $1,913 $9,033 $9,400 $14,700 $21,525 $29,775 $36,450 $40,800 $42,300 $42,450 $46,800
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations

Cash Spending $600 $600 $600 $5,500 $5,700 $5,700 $5,700 $5,700 $11,700 $11,700 $11,700 $12,100
Bill Payments $179 $5,359 $4,812 $6,350 $7,283 $11,048 $16,535 $17,985 $17,935 $16,535 $17,985 $17,982
Subtotal Spent on Operations $779 $5,959 $5,412 $11,850 $12,983 $16,748 $22,235 $23,685 $29,635 $28,235 $29,685 $30,082
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Out
Principal Repayment of
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
vi
Palms and Bonds
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $779 $5,959 $5,412 $11,850 $12,983 $16,748 $22,235 $23,685 $29,635 $28,235 $29,685 $30,082
Net Cash Flow $1,346 ($4,047) $3,620 ($2,450) $1,717 $4,778 $7,540 $12,765 $11,165 $14,065 $12,765 $16,718
Cash Balance $21,746 $17,699 $21,319 $18,869 $20,586 $25,363 $32,903 $45,668 $56,833 $70,898 $83,663 $100,381
vii
Palms and Bonds
Table: Balance Sheet
Pro Forma
Balance Sheet
Month Month Month
10 11 12
Starting
Assets
Balances
Current Assets
Cash $20,400 $21,746 $17,699 $21,319 $18,869 $20,586 $25,363 $32,903 $45,668 $56,833 $70,898 $83,663 $100,381
Accounts
$0 $6,375 $11,263 $13,030 $20,430 $31,530 $44,805 $55,830 $60,180 $60,180 $64,680 $69,030 $69,030
Receivable
Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total Current
$20,400 $28,121 $28,961 $34,349 $39,299 $52,116 $70,168 $88,733 $105,848 $117,013 $135,578 $152,693 $169,411
Assets
Long-term
Assets
Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Accumulated
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation
Total Long-
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
term Assets
Total Assets $20,400 $28,121 $28,961 $34,349 $39,299 $52,116 $70,168 $88,733 $105,848 $117,013 $135,578 $152,693 $169,411
Liabilities and Month Month Month

Capital 10 11 12
Current
Liabilities
Accounts $0 $5,201 $4,601 $6,112 $6,921 $10,498 $15,936 $17,386 $17,386 $15,936 $17,386 $17,386 $17,289
viii
Palms and Bonds
Payable
Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Borrowing
Other Current
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal
Current $0 $5,201 $4,601 $6,112 $6,921 $10,498 $15,936 $17,386 $17,386 $15,936 $17,386 $17,386 $17,289
Liabilities
Long-term
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total
$0 $5,201 $4,601 $6,112 $6,921 $10,498 $15,936 $17,386 $17,386 $15,936 $17,386 $17,386 $17,289
Liabilities
Paid-in Capital $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
Retained
($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600) ($49,600)
Earnings
Earnings $0 $2,520 $3,960 $7,838 $11,978 $21,218 $33,833 $50,948 $68,063 $80,678 $97,793 $114,908 $131,723
Total Capital $20,400 $22,920 $24,360 $28,238 $32,378 $41,618 $54,233 $71,348 $88,463 $101,078 $118,193 $135,308 $152,123
Total
Liabilities and $20,400 $28,121 $28,961 $34,349 $39,299 $52,116 $70,168 $88,733 $105,848 $117,013 $135,578 $152,693 $169,411
Capital
Net Worth $20,400 $22,920 $24,360 $28,238 $32,378 $41,618 $54,233 $71,348 $88,463 $101,078 $118,193 $135,308 $152,122
ix
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Business Development Business Plan

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plan from Bplans.com!

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Table: Sales Forecast i

Table: General Assumptions iii

Table: Profit and Loss iv

Table: Cash Flow v

Table: Balance Sheet vii

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Our mission statement is:

Note: All displayed currency values represent Botswanan Pula (P).

Table: Start-up Funding

Liabilities and Capital

Total Planned Investment $70,000

Loss at Start-up (Start-up Expenses) ($49,600)

Total Capital and Liabilities $20,400

Total Funding $70,000

Total Requirements $70,000

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 Market research: (Discussion omitted in this sample business plan)

Market Analysis Summary

Small-sized companies: in an increasingly competitive environment entrepreneurs are becoming

 New businesses seeking investment or start-up capital

Chart: Market Analysis (Pie)

Table: Market Analysis

Target Market Segment Strategy

Service Business Analysis

Consulting participants range from major international name-brand consultants to hundreds of

Mainline Services: these include marketing/market research undertaken through advertising,

Competition and Buying Patterns

The high-level prestige management consulting firms

General Business Consultancy firms

The most significant competition is no consulting at all, companies choosing to do market

Attorneys and Accounting firms

(Discussion omitted in this sample plan)

 The most significant competition is no market research consulting at all, companies

Strategy and Implementation Summary

 Lack of a solid well-established network in the market research arena.

 Internet marketing and sales -- though still in its infancy.

 Established mass-market consultants' development of new lines and vertically integrating

 Strategic market segmentation and implementation strategies.

Employment in Botswana by the type of Employer

Note: All displayed currency values represent Botswanan Pula (P).

Chart: Sales by Year

Chart: Sales Monthly

Table: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3

Subtotal Direct Cost of Sales $79,500 $117,000 $140,400

Note: All displayed currency values represent Botswanan Pula (P).

Total Payroll $77,300 $142,600 $161,596

authority, not financial authority. Therefore we need to develop a permanent system of

Of these only the last two are flexible.

Some of the more important underlying assumptions are:

 We assume a strong economy, without major recession.

Table: General Assumptions