Professional Documents
Culture Documents
COVER SHEET (This highlights how you can be contacted. Ensure that telephone numbersandemailaddresseslistedareoperational.) 1. 2. 3. 4. IdentifytheBusiness Identifylocation,phonenumber,orwheretheprincipalscanbereached. Whotheplanistobesubmittedto. Plansubmittedbywhom.
PURPOSEOFFUNDING(iffundingisrequired) 1. Whoisaskingforthefunds 2. Whatisthebusinessstructure(i.e.)soleproprietorship,partnership,corporation,Limited LiabilityCompany) 3. Howmuchfundisbeingrequested 4. Whatisthemoneyfor 5. Howwill thefundsbenefitthebusiness 6. Whydoestheloanorinvestmentseemright 7. Howwillthefundsberepaid TABLEOFCONTENTS I. TheBusiness i. ExecutiveSummary ii. HistoricalBackground iii. TargetMarket iv. MarketingPlan v. Competition vi. Manufacturing/ProductionPlans vii. ManagementandOrganization FinancialData i. SalesForecast ii. FinancialProjections a. IncomeStatement b. CashFlow c. BalanceSheet iii. FinancingRequirements SupportingDocuments
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PART1THEBUSINESS EXECUTIVESUMMARY(Thissectionshouldbecompletedafterthebusinessplanitis aONEpagesummary.) typeofbusiness location Status(startup,expansion,etc.) formofbusiness(soleproprietorship,partnership,corporation) whatwillthebusinessbeengagedin whowillbenefitandhow presentinvolvement whoareitscustomers managementteam objective mission relevantlicenses
HISTORICALBACKGROUND(Thisisanintroductiontothecompanyandthereaders firstimpression,soitshouldcoverthefollowingbrieflyandinformatively.) 1. Typeofbusiness(manufacturing) 2. Whatwillbemanufactured 3. Location 4. Statusofbusiness(startup,expansion,developmentetc) 5. Formofbusiness(soleproprietorship,partnership,corporation) 6. Whywillthebusinessbeprofitable 7. Whendoyouplantostartthebusiness 8. Howwillthebusinessoperate(workingtime) 9. Whywillthebusinessbesuccessful(competitiveedge) 10. Whatisyourexperienceinthebusiness 11. Wasamarketstudydone(Ifso,whatwerethemajorfindings) 12. Arethereany managerialortechnicaltraining(Ifso,statethefrequencyandnumberof trainings) 13. Whowillbenefitandhow 14. Agreementswithsuppliersanddistributors 2
MARKETRESEARCH(Itisadvisabletodosome market researchbeforeyoubeginthe marketingplan.) No matter how good your product offering, the business venture cannot succeed without effectivemarketing.Andthisbeginswithcareful,logicalresearch.Youneedtodosomemarket researchtomakesureyouareontherightpath.
MARKETINGPLAN(Describetheoverallmarketingandsalesstrategyandhowyouplan to get and retain customers be as specific as possible give statistics, numbers, and sources.) 1. 4PProduct,Price,Promotion,Place 2. Howwillyousatisfyyourmarket(Product) 3. Howwillyouattract,hold,increaseyourmarketshare(TVads,radio,advertising,word ofmouth) 4. Howwillyouexpandyourmarket 5. Whatisyourpricingstrategy (competitive,belowcompetition,abovecompetition) 6. Willyounetworkwithothercompaniesinthesector 7. Howwillyoudifferentiatefromyourcompetition 8. Howwillyoubuildloyalty 9. Providesamplesand/ortestingtoprospectivecustomers
COMPETITION(Thissectionshouldincludearealisticassessmentofyourstrengthsand weaknessescomparedtoyourcompetitors.) 1. 2. 3. 4. Whoareyourfivenearestdirectcompetitors Whoareyourindirectcompetitors Statusoftheirbusiness:steady,increasing,decreasing,andwhy What are their strengths and weaknesses (do a SWOT analysis this should be a grid identifying yourStrengths,Weaknesses,Opportunities,andThreatsdescribe how you will take advantage of the strengths and opportunities and counter the weaknesses and threats) 3
MANUFACTURING/PRODUCTION PLANS (This section should describe the process involvedinproducingyourproduct.) 1. Facility sizeofthefacilityneededandplantlayoutsketch(ifavailable) 2. Production production methods, production process, production capacity, required equipment 3. Staffingnumberofworkersneededandskillsrequired 4. Inventory rawmaterialsneeded,sourcesofsupply,storageoffinishedgoods 5. Delivery distributionchannels 6. Qualitymanagementplansforqualitycontrol,qualityassurance,qualitystandards 7. EnvironmentalConcerns probablefactors,environmentalcompliance,requiredpermits
LOCATION(Thinkcarefullyaboutwhatyouwantandneedinalocation.Doesitbenefit thecustomer?) 1. 2. 3. 4. 5. 6. 7. 8. Businessaddress Physicalfeaturesofbuilding Lease,Own,Rent(termsandconditionsoflease/rent) Identifyrenovationsandcost Whatotherbusinessesareinthearea Whateffectdoesthelocationhaveonoperatingcost Isyourlocationimportanttoyourcustomers?Ifyes,how? Ifcustomerscometoyourplaceofbusiness:Isitconvenient?Parking?Interiorspaces? Notoutoftheway? 9. Isitconsistentwithyourimage? 10. Isitwhatcustomerswantandexpect?
MANAGEMENT ORGANIZATIONALSTRUCTURE 1. 2. 3. 4. 5. Whowillmanagethebusinessonadaytodaybasis? Whatexperiencedoesthatpersonbringtothebusiness? Whatspecialordistinctivecompetenciesdotheypossess? Isthereaplanforcontinuationofthebusinessifthispersonislostor injured? Prepareanorganizationalchartthatshowsthestructureofthebusinessoperation,include jobtitlesofmanagementandJobdescription 6. Whatresourcesareavailabletothebusiness(eg.consultants,legal,accounting)
PERSONNEL (Describe the work experiences, skills, and /or knowledge that would contributetothebusiness.Aretheyavailablenow?Ifnot,whatisrequiredtogetthem?) 1. 2. 3. 4. 5. 6. 7. Whatarethepersonnelneedsatstartup, andoveraperiodofonetothreeyears Whatskillsarerequired Whatskillsareavailable Employment fulltimeorparttime Salaryorwages Fringebenefits(insurance,bonuses,etc.) Overtime
PART11FINANCIALDATA
SALESFORECAST(Yourtargetsshouldberealistic,achievable,andsufficienttomakea profit.) The forecast should be based on the marketing strategies that you described, your marketresearch,and industrydata, ifavailable.Itshould includecostofgoodssold,expenses, andprofitmonthbymonthforoneyear. 1. Whatdoyouthinkyoursaleswillbeoveroneyear(costofgoodssold). 2. Whatisthecostthroughoutthatperiod(expenses) 3. Estimateyourexpectedprofit
FINANCIALPROJECTIONS 1. IncomestatementThisiswhereyouputitalltogetherinnumbersandgetanideaof what it will take to make a profit and be successful. Your sales projections will come fromthesalesforecastandyourprofitprojectionsshouldbeaccompaniedbyanarrative explainingthemajorassumptionsusedtoestimatecompanyincomeandexpenses. 2. Alsoshowestimatedprojectionsforthefirst3to5years. 3. CashFlowStatementThepointofthisworksheetistoplanhowmuchyouneedbefore startup, for preliminary expenses, operating expenses, and reserves. For each item, determinewhenyouactuallyexpecttoreceivecash(forsales)orwhenyouwillactually havetowriteacheck(forexpenseitems). 4. Balance Sheet A balance sheet shows what items of value are held by the company (assets),andwhatitsdebtsare(liabilities).Whenliabilitiesaresubtractedfromassets,the remainderisownersequity.
FINANCINGREQUIREMENTS(Thissectionshouldincludeallthefinances requiredto commencethebusiness.) 1. How will the loan be used (working capital, equipment, inventory, supplies, vehicles, miscellaneous) 2. Whataretheitemstobebought(name,model) 3. Whoisthesupplier(providequotationwherepossible) 4. Whatistheprice 5. Arethereadditionalcharges(installation,freight,servicecharges) 6. Howwilltheloanincreaseyourprofits 7. Giveabreakdownofthetimingoftheinvestments
PART111SUPPORTINGDOCUMENTS
APPENDICES Attachallrelevantdocumentsattheendofthebusinessplan.Examplesof,butnotlimitedtothe following CertificateofIncorporation BusinessNamesRegistration TradeLicense EnvironmentalClearance RelevantPermits,Licenses,andCertificates PurchaseAgreements SupportingDocuments Anyotherdocuments
EVALUATION Remember to review the business plan once all sections have been completed, especially if it will be submitted for funding to an institution. Ensure that the informationisaccurate.