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-Plan’s Business Plan Template starts here. You can add, change or remove text once Free-Plan has been registered - see the front page.

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Business Plan
Table of Contents
Tips: To update this table of contents, place the cursor on a shaded row and press F9. This table of contents will automatically list section all headings and sub-headings created using the “Heading 1”, “Heading 2” and “Heading 3” styles. When planning your plan, it might be useful to set target page lengths for each main section for use as drafting guidelines and to get the right balance between key topics. 1. INTRODUCTION.............................................................................................. 1 2. SUMMARY......................................................................................................2 3. MISSION, STRATEGIES ETC.......................................................................... 3
3.1. Vision......................................................................................................................................3 3.2. Mission....................................................................................................................................3 3.3. Values......................................................................................................................................3 3.4. Objectives...............................................................................................................................3 3.5. SWOTs....................................................................................................................................3 3.6. Strategies................................................................................................................................3 3.7. Goals.......................................................................................................................................3

4. PRESENT STATUS......................................................................................... 4

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4.1. Background ............................................................................................................................4 4.2. Progress to Date....................................................................................................................4 4.2.1. Sales & Marketing.................................................................................................................4 4.2.2. Operations.............................................................................................................................4 4.2.3. Finances................................................................................................................................4

5. PRODUCT/SERVICE DESCRIPTION..............................................................5 6. PROFILE OF TARGET MARKET(S)...............................................................6
6.1. Market Analysis......................................................................................................................6 6.2. Competition............................................................................................................................6 6.3. Customers/Users....................................................................................................................6 6.4. Market Size, Sales & Share Projections...............................................................................6

7. MARKETING STRATEGIES, SALES PLANS & PROJECTIONS....................7
7.1. Marketing Strategies & Sales Plans.....................................................................................7 7.2. Sales Projections...................................................................................................................7

8. TECHNOLOGY AND R&D............................................................................... 8 9. MANUFACTURING/OPERATIONAL PLANS..................................................9 10. MANAGEMENT & ADMINISTRATION........................................................10
10.1. Management.......................................................................................................................10 10.2. Administration....................................................................................................................10

11. FINANCIAL PROJECTIONS....................................................................... 11
11.1. Key Assumptions...............................................................................................................11 11.2. Income Statements............................................................................................................12 11.3. Cash Flow Projections.......................................................................................................12 11.4. Projected Balance Sheets.................................................................................................12 11.5. Sensitivity Analysis ..........................................................................................................12

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11.6. Ratio Analyses...................................................................................................................12

FUNDING REQUIREMENTS & PROPOSALS..................................................13 12. IMPLEMENTATION..................................................................................... 14 13. CONCLUSION.............................................................................................15

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>> Click here to enter your Biz Name here - Free-Plan: Business Plan Guide & Template

List of Appendices
Tips: No major section within the body of your plan should exceed 6-8 pages. Use appendices to present detailed or additional information which is summarized or referenced in the body of the plan. This reduces the length of the plan. It also enhances readability and ensures that the reader does not get sucked into excessive detail.. Suggestions for possible appendices follow. Do not remove this list until you have finished drafting the plan. If the appendices are very lengthy, consider binding them into a separate volume. This should make the plan appear less intimidating and creates the opportunity to circulate the plan with or without appendices. If presenting the appendices as a separate volume, be sure to include a cover page (complementing that of the main plan) and a detailed contents list (number all pages in the appendices). 1. Review of Development of Your Business (200x to 200x) – Consider using a chronological list. Focus on highlights and important events. 2. Summarized Historic Financial Statements (200x to 200x) – Tabulate high-level values (revenues, cost of sales, pre-tax profits, fixed assets, current assets, current liabilities etc.). Summarize highlights and explain any exceptional events. Offer audited accounts as attachments or separate items. 3. Detailed Description (Technical Specifications) of Product/Service (Range) – Assume reader has no prior technical knowledge. Avoid blinding with science and minimize use of technical terms/jargon. Offer technical write-ups as a separate document. If absolutely necessary, include a glossary. 4. Market Review and Results of Market Research – If you cannot compile this appendix, you should seriously reconsider whether you are ready to write a business plan. Include tables explaining size of market, segmentation, growth patterns, distribution channels, price/quality segments, customer categories, future trends, market share/segmentation projections etc. Summarize your main findings in the body of the plan. 5. Assessments of Competitors – Who, what, where, how etc. Explain how your products and services compare. How would you rate your business's strengths, weaknesses, threats and opportunities relative to your main competitors. If you need help here, have a look at the white papers on Devising Venture Strategies and at Developing a Business Strategy and the software package Quick Insight. If you

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>> Click here to enter your Biz Name here - Free-Plan: Business Plan Guide & Template are a substantial business, Business Insight could prove very useful. 6. Market Projections & Sales Forecasts (200x to 200x) – Use tables and charts. Clearly state all key assumptions on market size and shares, volumes and prices. If you plan to serve several markets, you should devote separate sections to each market and then produce a summary of the overall projections. It is important that you build your sales projections from the ground up by assessing numbers of outlets, customers, contracts etc. and their value. Do not base the projections on superficial market share assessments e.g. we will achieve sales of $500,000 based on securing a 2% of the regional market which is projected by researchers at reach $25 million. Explain the marketing strategies and plans in detail – specify resources required, costs etc. Identify any prospective partners and describe sales methods. In simple terms, you need to cover the 4Ps – product, price, place and promotion. You should feed the resultant detailed revenue and marketing cost projections into your financial projections. For further help, have a look at Plan Write Marketing Planner. 7. Details of Manufacturing/Operational Plans & Costs – Describe processes/operations in limited detail. Diagrams or flow charts may help explain complex issues. Indicate capital investment (and timing), describe/justify (briefly) the functions of major items and review any capacity-related issues. Discuss sources of materials/supplies and their costs. Specify projected manning levels/rates, direct/indirect operating costs and productivity levels. Discuss inventories and production cycles as well as related planning and control systems. Even if you are a service business, use this appendix to describe operational issues connected with the provision of these services, support etc. 8. CVs of Senior Managers – If your business is substantial, you must present CV for a balanced and experienced management team. If gaps exist, supply job descriptions and explain how they will be filled. Remember the five factors which venture capitalists look for when making an investment – management, management, management, market and, finally, product !!! Bear in mind that many businesses try to follow this sequence in reverse order !!! 9. Assumptions for Financial Projections (200x to 200x) – The assumptions should be consistent with and derived from the earlier sections/appendices in the plan. Use text bullets to highlight key assumptions and place the details in tables within this appendix. If you need guidance, download a trial copy of Exl-Plan and have a look at its Textual

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cash flow projections and balance sheets by month for the first year. you will be able to change margins and enlarge pages or change their orientation to suit your plan's layout and bindings.htm. About Exl-Plan within the Introduction to Free-Plan above. Financial Projections (200x to 200x) – Use tables showing projections for first year (or longer) in considerable detail. For latest information. A lower tech solution would be to append photocopies of Exl-Plan’s reports to the back of your business plan. quarterly and annual reports generated by Exl-Plan. 10. You could paste or link key tables and charts from Exl-Plan directly into Free-Plan.>> Click here to enter your Biz Name here . see the Appendices section in the Business Plan Guide at http://www. vi . When photocopying.org/gappendices. You should include fully-integrated P&Ls (income statements). see section E.Free-Plan: Business Plan Guide & Template Summary Report and monthly assumption reports. Check out the contents and layouts of the monthly. For more information on how to do this. The opening balance sheet and first year's projections should coincide with the first year covered by your plan.planware. Present less detailed quarterly & annual projections for subsequent years.

principal financiers etc.>> Click here to enter your Biz Name here .Patent (IPR) attorneys .Free-Plan: Business Plan Guide & Template >> Enter Your Biz Name Here << Tip: Use the table below to list basic particulars about your business . space out the remaining rows and.Any other key advisers Insert any other key items here Insert any other key items here Give contact names (and positions). if desired. names of advisers. full addresses and other details for each below List and indicate positions. Modify/delete the rows as appropriate. regulatory items.Bankers . Distinguish between exec and no-exec directors. Legal name and status of business: Directors/partners/proprietor Address of main office: Addresses of other offices: Address of registered office: Main telephone: Main fax: Main e-mail Website: Name and address of parent company: Business incorporation/registration date: Business incorporation/registration number: Business tax reference number(s): Insert any other regulatory/license items here Insert any other regulatory/license items here Main shareholders: Stock market & symbol Professional Advisers: . Once the table has been completed.contact details. hide the borders.Legal advisers .Auditors . delete unused rows. vii .Financial/tax advisers .

>> Click here to enter your Biz Name here .Free-Plan: Business Plan Guide & Template >> Enter Your Biz Name Here << Business Plan 1. Keep this section within one page. You can defer writing this section until the main part of the plan has been completed. Use the blank space below to identify key paragraphs. Introduction See the Guide for suggestions. 1 .

Do not write this section until the main part of your plan has been finalized. Use the blank space below to map out a structure for this section and to identify key paragraphs. Add sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. Summary See the Guide for suggestions. Once you have drafted the summary.>> Click here to enter your Biz Name here . Limit this section to two or so pages. Use CTRL+Shift F1 for the “Body Text” style.Free-Plan: Business Plan Guide & Template 2. 2 . remember to update the page numbers in the Table of Contents.

Objectives xxx 3. 3. Strategies etc. Strategies xxx 3.5.2.3. Limit this section to two or so pages.4.7. Mission xxx 3. Values xxx 3. Vision xxx 3. See the Guide for suggestions.6. Use CTRL+Shift F1 for the “Body Text” style. Goals xxx 3 . To insert a new main heading which starts on a new page. You may wish to merge or remove these sub-headings when you have finished drafting.>> Click here to enter your Biz Name here . Mission. SWOTs xxx 3. Spend a lot of time on this section as it is the foundation for the entire plan. use CTRL+Shift F4 for the “Heading 1” style.1. Add more sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style.Free-Plan: Business Plan Guide & Template 3. Use the sub-headings below to guide you on the key issues.

Add more sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. To insert a new main heading which starts on a new page. Consider placing detailed material in an appendix and summarizing it here. Present Status See the Guide for suggestions.2.>> Click here to enter your Biz Name here .2.1.2.2. Background xxx 4. Progress to Date xxx 4. Use CTRL+Shift F1 for the “Body Text” style. use CTRL+Shift F4 for the “Heading 1” style.1. Finances xxx 4 .Free-Plan: Business Plan Guide & Template 4. Operations xxx 4.3. Use the blank space below to map out a structure for this section and to identify key paragraphs. 4. Sales & Marketing xxx 4.2. The suggested sub-headings below may not be fully appropriate for a start up – modify and delete them as appropriate.

Use CTRL+Shift F1 for the “Body Text” style. Consider placing detailed material in an appendix and summarizing it here.>> Click here to enter your Biz Name here . Product/Service Description See the Guide for suggestions. use CTRL+Shift F4 for the “Heading 1” style. 5 .Free-Plan: Business Plan Guide & Template 5. To insert a new main heading which starts on a new page. Add sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. Use the blank space below to map out a structure for this section and to identify key paragraphs.

6. Add more sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. Consider placing detailed material in an appendix and summarizing it here. Use CTRL+Shift F1 for the “Body Text” style. Sales & Share Projections xxx 6 .3. Profile of Target Market(s) See the Guide for suggestions. Market Size.2. To insert a new main heading which starts on a new page.4. Market Analysis xxx 6.Free-Plan: Business Plan Guide & Template 6. Customers/Users xxx 6. Modify or delete sub-headings as appropriate.1. use CTRL+Shift F4 for the “Heading 1” style. Competition xxx 6. Use the blank space below to map out a structure for this section and to identify key paragraphs.>> Click here to enter your Biz Name here .

Use CTRL+Shift F1 for the “Body Text” style. use CTRL+Shift F4 for the “Heading 1” style.1. Sales Projections Xxx 7 . Marketing Strategies. Use the blank space below to map out a structure for this section and to identify key paragraphs. 7. Consider placing detailed material in an appendix and summarizing it here. Modify or delete sub-headings as appropriate. Marketing Strategies & Sales Plans xxx 7.>> Click here to enter your Biz Name here . Sales Plans & Projections See the Guide for suggestions.2.Free-Plan: Business Plan Guide & Template 7. To insert a new main heading which starts on a new page. Add more sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style.

Consider placing detailed material in an appendix and summarizing it here. Use CTRL+Shift F1 for the “Body Text” style. use CTRL+Shift F4 for the “Heading 1” style. See the Guide for suggestions. Add sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. 8 . To insert a new main heading which starts on a new page.Free-Plan: Business Plan Guide & Template 8. Technology and R&D Delete this section if not relevant. Use the blank space below to map out a structure for this section and to identify key paragraphs.>> Click here to enter your Biz Name here .

See the Guide for suggestions. To insert a new main heading which starts on a new page. Use CTRL+Shift F1 for the “Body Text” style. Use the blank space below to map out a structure for this section and to identify key paragraphs. Manufacturing/Operational Plans Modify the heading above to reflect your business’s activities e. delete the word Manufacturing. 9 .>> Click here to enter your Biz Name here . Consider placing detailed material in an appendix and summarizing it here. use CTRL+Shift F4 for the “Heading 1” style. Add sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style.Free-Plan: Business Plan Guide & Template 9.g.

Free-Plan: Business Plan Guide & Template 10.>> Click here to enter your Biz Name here . Modify or delete sub-headings as appropriate. use CTRL+Shift F4 for the “Heading 1” style. Administration xxx 10 . 10.1. Add more sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. Use CTRL+Shift F1 for the “Body Text” style. Consider placing detailed material in an appendix and summarizing it here. Management & Administration See the Guide for suggestions.2. Management xxx 10. Use the blank space below to map out a structure for this section and to identify key paragraphs. To insert a new main heading which starts on a new page.

Key Assumptions xxx 11 . Small Print: (a) Offer only applies to orders routed through the DigiBuy Service. (b) Offer cannot be used in conjunction with any other offers or applied retrospectively to a purchase. Add more sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style.1. go to http://www. 11. To insert a new main heading which starts on a new page. Place all detailed tables and analyses in appendices and confine the text in this section to summarizing the key assumptions and results. Discount Coupon Number: offer-g7h9x (Note that ' . (c) Our normal terms and conditions also apply. use CTRL+Shift F4 for the “Heading 1” style. Financial Projections See the Guide for suggestions.' signifies a dash) To access the DigiBuy Service. Use CTRL+Shift F1 for the “Body Text” style.Free-Plan: Business Plan Guide & Template 11. This service offers immediate electronic delivery once your credit card has been authorized.>> Click here to enter your Biz Name here . tables and charts for each sub-heading.org/exlupgr. You can remove this table by selecting it and deleting it.Save up to US$29 You can save 10% off the list price of any version/edition of Exl-Plan by quoting the following Discount Coupon Number when purchasing it on-line via the DigiBuy Service. Special Offer to Free-Plan Users Get Exl-Plan Now .htm and scroll down to the DigiBuy section in the Registration & Upload Methods.planware. Use the blank space below to identify key paragraphs.

5.Free-Plan: Business Plan Guide & Template 11.2. Sensitivity Analysis xxx 11.4. Projected Balance Sheets xxx 11. Ratio Analyses xxx 12 .>> Click here to enter your Biz Name here .3. Income Statements xxx 11. Cash Flow Projections xxx 11.6.

Use CTRL+Shift F1 for the “Body Text” style. 13 . Add sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. To insert a new main heading which starts on a new page. Use the blank space below to map out a structure for this section and to identify key paragraphs.>> Click here to enter your Biz Name here . use CTRL+Shift F4 for the “Heading 1” style.Free-Plan: Business Plan Guide & Template Funding Requirements & Proposals See the Guide for suggestions.

14 .>> Click here to enter your Biz Name here . Consider placing detailed material in an appendix and summarizing here. Use the blank space below to map out a structure for this section and to identify key paragraphs. Use CTRL+Shift F1 for the “Body Text” style. use CTRL+Shift F4 for the “Heading 1” style.Free-Plan: Business Plan Guide & Template 12. Add sub-headings using CTRL+Shift F5 for the “Heading 2” style and CTRL+Shift F5 for the “Heading 3” style. Implementation See the Guide for suggestions. To insert a new main heading which starts on a new page.

Conclusion See the Guide for suggestions. Use the blank space below to map out a structure for this section and to identify key paragraphs. Refer to the Business Plan Checklist. Go back to the Summary section and only write it when you are fully satisfied with all the plan’s detail. 15 .Free-Plan: Business Plan Guide & Template 13.>> Click here to enter your Biz Name here .

Replace XX with the appendix number. Heading inside an Appendix Use the above “Appendix heading” style to insert sub-headings inside an appendix.>> Click here to enter your Biz Name here . consider binding them into a separate volume. 16 . If the appendices are bulky. See the list of appendices towards the front of the Template for suggestions on possible appendices.Free-Plan: Business Plan Guide & Template Appendix .XX >> Enter Title of Appendix Here << Use the above “Appendix” style for each appendix you include with your plan.

company.. 17 .planware. 1.Free-Plan: Business Plan Guide Free-Plan – Business Plan Guide >>> Free-Plan’s Business Plan Guide starts here. review the Checklist for Preparing a Business Plan.htm. guide management.). sole trader . Introduce (very briefly) the entity .see the front page of the document. It’s section headings coincide with those used in the template near the front of this document. the company is now planning to commence trading in three months. Introduction Before putting “pen to paper”. … and so on. You can remove all this text once Free-Plan has been registered . Having undertaken R&D over the past three years. which has been formed to develop and produce electronic.org/guide. Explain the purpose/reason of the plan (e.g. virtual widgets for sale within home and export markets.to which the plan refers. Note that references to “For latest information …” relate an on-line version of the Business Plan Guide at http://www. raise funds etc. Indicate the scope and general structure of your plan by setting out the sequence and summaries of its main sections as bullet points like:    Sections 2 below contains a summary of the plan Sections 3 and 4 review the background the development of the business and its current product service/offerings respectively. Do not summarize the plan here – write the plan's summary in the next main section once the entire plan has been finalized. Explain who wrote the plan and when. you could say something along the following lines to introduce your business: This business plan relates to Invisible Inc. partnership. For example.

planware. include paragraphs like the following.Free-Plan: Business Plan Guide You may wish to state that the plan is confidential etc. fax and e-mail) for the key person. consider using the Plan Write Business Planner software package – full details and demo at http://www. For example. Prospective investors are advised to verify all material facts and to take advice from a professional adviser before entering into any commitments. This entire section should not exceed two pages.org/gintro. If desired. For latest information. Hit the highlights and key issues. add a 'slot' for numbering copies of the plan on its front page or cover and maintain a distribution register. cross reference the reader to the sections containing detailed text. 18 . If confidentiality is critical.htm. Give contact details (address. For further help. The eventual outcome may be more or less favorable than that portrayed.htm. Projections in the plan have been compiled by the promoters for illustrative purposes and do not constitute profit forecasts. If your business is complex or you need further help. Summary Write this summary when your plan is at its very final draft stage. phone. 2. If necessary. It is highly speculative and potential investors should be aware that no established market exists for the trading of shares in private companies. get professional advise on appropriate wording or other measures to maintain the confidentiality of the plan: This document is confidential and has been made available to the individual to whom it is addressed strictly on the understanding that its contents will not be disclosed or discussed with any third parties except for the individual's own professional advisers. refer to the white paper entitled Writing a Business Plan. see the Introduction section in the Business Plan Guide at http://www.planware. Avoid detail – focus on matters of strategic importance to the business. Investment in new and small businesses carries high risks as well as the possibility of high rewards.org/salepwb. This plan is strictly for information only and does not constitute a prospectus nor an invitation to subscribe for shares.

000 2.000 5. 3. Make use of bullet points instead of continuous flowing text like: ♦ Keep the length of this section below three pages.000 6.planware. For latest information. ♦ Give this section plenty of thought and time as it is the most important part of the entire plan.Sales & Income Sales Gross margin Income from operation s Net income before taxes $ 000 04-05 05-06 06-07 07-08 08-09 09-10 Years commencing Feb Consider allocating one paragraph to summarize the contents of each main section. Strategies etc.000 4. ♦ Give this summary and the draft final plan to an honest. ♦ Do not include any material in this summary which is not also covered in the body of the plan.Free-Plan: Business Plan Guide Address the needs and interest of the reader – what information does the reader want to get orientated or to become interested in the business.htm.000 -2.000 1.000 8.000 Fig. see the Summary section in the Business Plan Guide at http://www.000 0 -1. 15 .000 7. Mission. critical outsider to review. Consider devising slightly different summaries for different categories of reader. Any Corp Inc 9.org/gsummary. 19 .000 3.

describe the central purposes and activities ("mission") of the planned business. customers.2 Mission In one short paragraph. 3.Free-Plan: Business Plan Guide Limit this section to about two pages by focusing on major and long-term issues.. It expects to have staff of xxx mainly engaged in xxx (activities) and located at xxx. Vision & Mission or Values & Objectives) or even dispense entirely with headings and cover all the relevant matters in a series of short paragraphs. breadth and depth of its operations etc.. start your vision with the following: By 20xx. It intends to expand/develop new/additional products/markets/channels by means of xxx . If the proposed strategies and their rationale are flawed then the whole direction of the business may be wrong.. 3. For example. have a look at the free On-Line Strategic Planner and the Sample Strategic Plan. you may prefer to amalgamate some of them (e.. tone and framework for the detail that follows.3 Values Describe the business's values and the ethical standards it will apply in dealings with stakeholders. develops... 3. The sub-sections below are presented here for general guidance only. Use succinct. For example: Newco designs.4 Objectives 20 . For further guidance. Also. Sales could be xxx and net income could reach xxx. And so on ..g. considerable research needs to have been completed particularly on markets. They could result in some undesirable duplication or overlapping of proposals and ideas.. see the white papers on Devising Venture Strategies and Developing a Business Strategy. competition and sales potential. 3. To compile this section. say. suppliers etc. A few sentences or bullet points should suffice.. five years time. It will be selling xxx (offerings) to a customer base comprising xxx. Indicate its likely size and the nature. xxx will be engaged in xxx (activities).. adjective and verb important. affirmative statements making every noun.1 Vision Envision what will the business look like in. Accordingly. A key feature of xxx will be its emphasis on xxx to maintain its competitive advantage. This is probably the most important section in the entire plan as it sets the direction. manufactures and markets xxx products/services for sale on the basis of xxx features to meet the xxx needs of xxx customer groups via xxx distribution channels in xxx geographic areas.

products/services.7 Goals Summarize the prime goals/targets . build on strengths .markets. exploit opportunities .for sales. 21 . operating methods etc.5 SWOTs What are the business’s real SWOTs (Strengths. 3. Threats and Opportunities)? SWOTs are mentioned here to prompt your strategic thinking on internal and external issues as indicated in the table below. management. It may not be appropriate to set out the SWOTs so explicitly in the final version of your plan. programs. finance.Free-Plan: Business Plan Guide What are the promoters' underlying long-term objectives? Get rich? Build a big business? Support local community? Develop natural resources? Create their pension? 3. Be very honest about any major weaknesses and threats and explain how you will respond to them.. employment. operations etc. Conclusion towards the back of the plan 3. market shares etc. Be sure you are presenting realistic. technology. avoid threats One approach would be add a closing sub-section to this main section to serve as a wrapup statement (or an overall assessment) that describes how the proposed strategies/plans will: • • • • built on the business's key strengths (name them).6 Strategies Use bullets to highlight up to ten (or so) key strategies (actions.. medium-term strategies and not short-term tactics. projects.. profits. Alternatively.. resolve its internal weaknesses (name the areas). Weaknesses. sales. an item along these lines could be included as part of the overall 14. They are mentioned here to highlight the importance of addressing them within the plan. Your plan should: Internal .) in relation to major functional areas . fully exploit its external opportunities (identify them) and avoid major external threats (explain how). resolve weaknesses External .

For latest information. events etc. sales. operational and financial perspectives. technical etc.2 Progress to Date Explain the development of the business to its present status from sales/marketing.Free-Plan: Business Plan Guide For further guidance.1 Background Review the history of the business (or the origins of the idea if a start-up). funding. Present Status Use this section to summarize achievements and performance (financial. 22 . 4. see the Mission. Allow up to five or so pages for an established business and relegate detailed material to appendices. 4. this section could be covered in one-two pages. customer/product segmentation. 4. market shares.htm. in greater detail without disrupting the flow of the main text1.planware.org/gstrategies. Start by introducing the promoters/shareholders in the business and then describe what the business does now. see the white papers about Devising Venture Strategies and Developing a Business Strategy. R&D etc. Also. have a look at the free On-Line Strategic Planner and the Sample Strategic Plan. Here's a simple table showing historic sales: 1 Footnotes can be used to explain or describe specific matters as they arise in the text without distracting from the main flow. management. Use appendices or footnotes to discuss issues. key product volumes.1 Sales & Marketing Use simple tables to help summarize sales growth. prices achieved etc. Explain in broad terms how business evolved in terms of products/services. For a start-up.) to date. Strategies section in the Business Plan Guide at http://www. customers/markets.2. 4.

sales.) 2001 ($000) 200 280 0 480 N/a 2002 ($000) 259 270 89 618 +29% 2003 ($000) 302 290 158 750 +21% 2004 * ($000) 350 300 230 880 +17% * First six months are actuals. distribution.2004 ($000) 900 800 700 600 500 400 300 200 100 0 2001 2002 2003 2004 Product AA Product BB Product CC Total Indicate the current order book in value/volume terms. Make reference to the general economic climate and the performance of competitors during the review period. See any problems? Also. Tip: This shaded table looks very smart but it may not photocopy well. Estimates used for last six months. Describe key events in relation to marketing. Put all details in an appendix.Free-Plan: Business Plan Guide Table X – Sales Analysis (2001-2004) Years to Dec Product AA Product BB Product CC Total Growth rate ( p. Try printing it and then make a photocopy of a photocopy.a. promotion. sales management. 23 . and give an indication of the immediate outlook. agencies/partners and so on. or relative to capacity. charts can be very effective at summarizing data: Sales Analysis – 2001 .

product and capital investments and review developments in management and systems. Include a short discussion and high-level tables covering employment. if practicable.2 Operations Review the operations of the business in terms of activities and investment. Again. output levels. Consider augmenting this section with a good-quality video or computer-based slide presentation. Use an appendix to cover the detail. 4. see the Present Status section in the Business Plan Guide at http://www. Indicate the expected out-turn for the current year and highlight key assumptions. For latest information.2. use very simple tables or charts and present the details in appendices or accompanying audited accounts. capacity growth & utilization etc. Review the budget and year-to-date performance for current year and summarize these in a simple tables.Free-Plan: Business Plan Guide 4.org/gpresent.htm. Indicate advantages/benefits they offer or the needs they meet. Describe key R&D. Two or three pages should suffice for this section. Avoid getting into technical terms and details – put this in appendices.2. 24 . Try to add a few pictures to the text and. Indicate and explain key events. 5. Summarize any product test results and product approvals (secured/needed).3 Finances Present a high-level synopsis of historical financial performance covering income statements. Product/Service Description Keep descriptions of offerings (products and/or services) relatively short and confine them to broad groups. Introduce competing products/services and explain what makes yours' special.planware. Explain briefly what they do and who will use them. Give information about shareholdings and any options outstanding – list shareholders. Append any brochures or price lists to the plan (as an annex). balance sheets etc. include a sample product or mock-up with the plan. dividend policies etc.

htm.planware. vague or superficial.Free-Plan: Business Plan Guide If you need guidance on assessing your product/service offering. segments. Profile of Target Market(s) In this section. Nonetheless. competition and user/customer profiles. Full details and demo at http://www. trends. These difficulties will be compounded. it begs the question as to whether there might be any real. If this section is unclear.org/gofferings. Explain how they has evolved and how they are segmented. this section is critical as it underpins the business plan and demonstrates that the promoters have done their homework and know their marketplaces (at least as well as the incumbent players or other new entrants). indicate market size. Allow about 3-6 pages for this very important section.org/saleqi. For latest information. sustainable demand for the proposed offerings. 25 . see the Product/Service section in the Business Plan Guide at http://www. 6. If research reports are available refer to their detail in appendices or include them as annexes.1 Market Analysis Describe the markets where the business operates and/or plans to enter. This section and needs real research.htm. 6. This is a very difficult section to prepare especially for start-ups or established businesses diversifying in new (to them) markets. It is very possible that detailed market research (field or desk) and analysis might need to be done before this section can be properly prepared.planware. have a look at the Quick Insight software package. due to an absence of any reliable data or evidence of likely demand. for businesses entering completely new markets or launching radically new offerings.

Discuss product and technology trends. 6.High Price Served . and indicate typical promotional expenditure levels. Explain why the proposed target markets are so attractive to your business. Place detailed analyses in an appendix.Low Price Indicate how markets and segments will evolve for at least the life of your plan. Use simple tables and charts to illustrate key points and to drill down into the appropriate detail. Indicate the likely impact of any possible changes in anticipated economic conditions. Explain the channels of distribution and promotional methods used.2 Competition 26 .Free-Plan: Business Plan Guide Segmentation of Markets Excluded Segment Not Served Segment Served . Review any regulatory restrictions on trade. Here is an example of a simple table projecting the size of key segments within an overall market : Year 1 ($m) Year 2 ($m) Year 3 ($m) Year 4 ($m) Key Segments Segment A Segment B Segment C Other segments Total market Highlight the segments you are targeting.

could result in specified market shares. promotional. Instead. amount/purchase. amount/year. scale and activities. Review their buying habits and consider the impact of broad economic issues on the frequency and levels of their purchasing. Profile customers/users and explain how/why they will buy your products/services in preference to those of competitors. Show how their market shares have evolved and indicate their current standing in the market. and how your offerings will be positioned. Place detailed information in appendices.planware.org/saleqi. Sales & Share Projections Use simple tables to show how market sizes. build up your projections from sound analysis and detailed assumptions about sales volumes to be achieved at customer/outlet levels. 27 . see the Target Markets section in the Business Plan Guide at http://www. 6. Assess their SWOTs. By way of a conclusion. For latest information.htm. 6. Discuss price.org/gmarkets.htm. Include high-level sales projections for your business in these tables. Quantify the number of prospective customers/users and assess their likely consumption/ purchase rates (e.Free-Plan: Business Plan Guide Introduce the main competitors (or near-competitors if a new market area) and profile them – highlight their evolution. distribution channel issues etc. you could explain that these projections.3 Customers/Users Segment possible customers/users based on their demographics/needs. if realized. segments and shares are likely to move in the future after your entry/growth. quality. Consider providing alternative projections based on "best" and "worst" case scenarios which might reflect alternative assessments of future economic and competitive conditions. The Quick Insight software package is an expert system for evaluating business proposals and it could help assess your position relative to competition. purchases/year and so on) for your offerings and the competition. Full details and demo at http://www.4 Market Size. Avoid generalized statements like "we aim to achieve xx% of the xxx market within three years".planware.g.

advertising. Devote up to three-six pages for this section. Include details in appendices.Free-Plan: Business Plan Guide 7.product. you need to cover the 4Ps . features etc. promotion. As an example.org/exldesc. Explain pricing policies and credit terms (be realistic !). the following table and chart were copied and pasted directly from Exl-Plan's built-in Textual Summary Report (more information at http://www. Marketing Strategies. set out detailed sales (volumes and prices) projections for your various segments and products/services. How will you deal with the competitors? How will they respond? What are your contingency plans in the event of sales targets not being fully realized? 7. selling. In simple terms. What discounts will apply and to whom? Will there be bad debts or returns.2 Sales Projections Based on the market projections in the previous section and marketing strategies described above. price. These projections should be monthly (for at least one year ahead especially if the business is seasonal) and either quarterly (much better) or annual thereafter.planware. at the level of sales outlets or end-users. physical distribution. 7. Profiles of Target Markets and presents your proposed marketing strategies and detailed sales plans and projections.htm) as a “picture”. quality. and what provisions should be made? What will be the end-user prices? Assess the competitiveness of your business's offerings in terms of price. representation etc.1 Marketing Strategies & Sales Plans How will your business market its products/services and sell them to customers? What are the key market entry/development strategies? Indicate plans and forecast costs for marketing. 28 . place and promotion . How will your products be presented to customers? Discuss packaging. Use simple tables and graphs to present key data. Sales Plans & Projections This section follows on from 6. sales support and product support and forecast the related costs. Financial Projections.and compile detailed revenue and marketing cost projections for inclusion in the 11.

0 160.0 995.htm.320. 29 .7 Any Corp Inc 160 140 120 $ 000 100 80 60 40 20 0 Feb Mar Apr May Jun Fig. If in doubt.2 NA 330.Group3 .org/gsales.0 1.3 114.0 341.320.2 18.3 151. develop and present alternative scenarios.0 1.0 1.3 285.Group2 .Free-Plan: Business Plan Guide Sales Product Group: .9 370.2 513. see the Marketing Plans & Projections section in the Business Plan Guide at http://www.9 345.1 430. have a look at the Plan Write Marketing Planner software package at http://www.htm.435.0 12.Sales Analysis Group 1 Group 2 Group 3 Group 4 Jul Aug Sep Oct Nov Dec Jan 12 months commencing in Feb 2005 Review the marketing and sales plans and ask whether you will realistically achieve the projected sales levels and market shares. 1 . For further help. For latest information.Group4 Total sales % Quarterly changes Quarter Ends in Year to Jan 2006 1 Qtr 2 Qtr 3 Qtr 4 Qtr $000 $000 $000 $000 305.7 168.3 19.0 308.330.0 830.9 79.0 320.org/salepwm.175.3 Annual Total $000 1.5 1.042.3 380.Group1 .planware.planware.0 4.0 231.

service provision. resources and highlight any technological advances or achievements. Analyze and project overhead expenses. For latest information.htm. Depending on the nature and scale of your business. Identify milestones or specific projects to be completed. charts.) where appropriate. Introduce the key technology trends/developments within your industry or product area and explain how are you responding to them? What technical expertise has been acquired by the business or is needed in the future? What are the qualifications/backgrounds of technical staff and external advisers or collaborators? What vacancies/needs will arise in the future and how will they be filled? Summarize existing/planned patents and describe the ownership status of all intellectual property rights (including trademarks. see the Technology and R&D section in the Business Plan Guide at http://www. Where appropriate. Distinguish between mandatory and discretionary expenditure and provide justifications (in terms of ROI. present and future). Put detailed stuff in an appendix. Indicate locations and main facilities. support and/or manufacturing operations within this section. Describe plant/office/facilities capacity & utilization (past. describe progress to date. provide short economic justifications for major projects. Use simple diagrams to illustrate processes or complex relationships.Free-Plan: Business Plan Guide 8. copyrights etc. Include or append maps.). Specify investments to date and future plans. 30 . About two pages might suffice. Keep technical details to the minimum and explain unusual terms as soon as used. Use simple drawings or flow diagrams to help describe any complex issues.planware. sub-sections could be used to handle key topics. Manufacturing/Operational Plans Cover all aspects of distribution. Summarize R&D expenditure to date and specify future expenditure plans. plans. Highlight major elements of operations. payback periods etc. This section may need two-five pages. 9. pictures etc. Technology and R&D If R&D is relevant to your business.org/gtechnology.

Identify key services.8 Inventories Finished goods Materials/goods Total inventory 31 .0 120. specify unit costs for key inputs such as labor. product costings.6 120. customer support etc. Use simple tables to summarize and place detail in appendices.0 285. quality control.0 345.).6 195. power. Discuss likely future price trends. If appropriate. production management.3 244.0 Quarter Ends in Year to Jan 2006 1st 2nd 3rd 4th $000 $000 $000 $000 165. forecast consumption/ utilization rates for key items and use these to project their total costs e. stock-holding policies and credit terms. materials or goods to be purchased. Where relevant. payroll.4 120.g.0 315.Group2 .Group4 Total direct labor Indirect labor Supervisory staff Sales Clerical Management Research & development Total headcount 1st Nos 12 11 5 10 38 10 5 5 10 10 5 83 Briefly describe systems for product costing. Use simple tables to summarize and place any important detail in an appendix. maintenance.Group3 . human resources (head counts. headcount multiplied by labor cost rate equals total labor cost. Quarter Ends in Year to Jan 2006 2nd 3rd 4th Nos Nos Nos 15 13 10 13 51 10 5 5 10 10 5 96 18 14 10 16 58 10 5 5 10 10 5 103 21 16 10 19 66 10 5 5 10 10 5 111 Functions Direct labor: . skills. grades.0 245. customer support etc.0 364. Indicate prices. communications. maintenance. environmental services etc. production systems.4 225. Opening Levels $000 125. and forecast how these might move in the future due to inflation.8 120. quality control. purchasing arrangements.Free-Plan: Business Plan Guide Indicate organization structure. training etc. taxes/duties. currency rates etc.3 120.Group1 .

Group4 Total Total Sales $000 1. Segment costs as variable.3 31.2 42. semi-variable and fixed.3 369.3 31. Indicate costings for key products/services and specify individual gross margins (see table below).794.7 1.5 1.org/goperations.7 Gross Margin $000 593.3 35.Group3 .0 1.7 35. Management & Administration Allow two-three pages for this section.330. 10.2 41. include detailed schedules in an appendix and summarize them here.6 30.5 39.3 39.8 Product Groups Group1 Group2 Group3 Group4 Year to end Jan 2006 Product Group: . Quarterly Averages for Year to Jan 2006 1st 2nd 3rd 4th % Sales % Sales % Sales % Sales 38.042.5 49.3 46.1 Management 32 .2 35.Group1 .Group2 .4 38.3 40. Discuss breakeven points at corporate.4 30.1 Gross Margin % Sales 41.7 Annual Averages % Sales 37. see the Manufacturing / Operations section in the Business Plan Guide at http://www.5 34.htm.Free-Plan: Business Plan Guide Explain transport/distribution arrangements and related costs.0 4.planware.5 35.0 40.320.5 37.5 37.5 For latest information.2 513.435.8 36. 10. For overheads. operating unit and product levels.5 36.3 653.8 177.

present job specs in an appendix. Describe administrative arrangements. 33 . | Create New | MS Organization Chart). Describe development plans and costs. accounting and related management systems. Specify communications and IT systems.Free-Plan: Business Plan Guide Introduce the management team and their roles. Use a simple organization chart to illustrate the structure (if available. 10. N J o C e w h E n O D C o e o F J o h n S m i t h i n a n c i a l D i r Oe S e a n C c p t eo rr a t i o n it i z e n A n n e O t h e r s M D ai r r e k c e t t o i nr g & S a l e s D ( T o b e r e c r u i t e d ) i r e Indicate any gaps and explain measures to recruit.2 Administration Indicate locations and facilities. If necessary. Summarize management remuneration and key clauses in employment contracts. Include short profiles but relegate details to an appendix. Include profiles for non-executive directors (existing/proposed). utilize the Microsoft Organization Charting utility with Word – select Insert | Object…. Explain key operational. Indicate main components of overhead costs and present high-level projections (if not already covered in the previous main section).

9 Materials/packaging/goods Direct labor Other direct Total Cost of sales Overhead expenses: Operational (indirect) Selling & freight Management/admin staff Research & development Administration Occupancy/general Total overhead expenses Total direct costs & expenses Charts can be much easier to follow than tables.9 124.3 1.5 99.3 150.255.5 102.7 571.0 385.5 471.5 461.9 406.3 Quarters in Year to Jan 2006 2nd 3rd $000 $000 333.0 27.5 108.5 466.0 43.873.0 43.0 27.526.3 76.0 1.1 2.0 63.0 27.8 1.Cost/Expense Analysis Operating lease payments Depreciation Bad debts Occupancy/gener al Administration Research & development Management/ad min staff Selling & freight Operational (indirect) exs Cost of sales Apr May Jun Jul Aug Sep Oct Nov Dec Jan 12 months commencing in Feb 2005 34 .1 150.3 4.4 Annual Total $000 1.8 689.5 170.498.161.6 621.037.9 202.0 43.0 63.0 63.3 107.0 108.9 411.2 484.0 252.4 781.0 88.5 89.0 43. 3 .3 945.1 1.9 88.4 97.8 150.6 354. Any Corp Inc 160 140 120 As % sales 100 80 60 40 20 0 Feb Mar Fig.3 150.5 94.0 174.3 600.399.3 4th $000 453.0 63.6 88.0 27.8 140.1 88.Free-Plan: Business Plan Guide Cost Analysis 1st $000 299.5 474.

95. our Excel-based financial planners could prove very useful. optional. 2 The more powerful versions of Exl-Plan make monthly projections for three years.planware.org/exlplan. Under no circumstances should you do the detailed financial projections and then write a plan to suit.org/gmanagement. 97. Otherwise. 2000 and XP). quarterly projections for the next two years and. it generates income statements. see the Management & Administration section in the Business Plan Guide at http://www. Go to http://www. By all means. show monthly projections until the year in which breakeven (for profitability and cashflow) is anticipated. 35 . Keep this section within four-eight pages by ensuring that only high-level financial projections are included in summary tables.monthly for the first year. Exl-Plan. make the projections on a monthly basis for the first year and use quarterly thereafter. Exl-Plan runs with Excel for Windows (5.htm for further information and trial copy downloads for Exl-Plan. Many of the tables and charts in this plan have been copied and pasted directly from Exl-Plan. Sixteen variants are available to cover different sizes of businesses and accounting formats. annual projections for a further two years. Financial projections must not be prepared in isolation from the rest of the plan. cashflows. cash flows. ExlPlan produces fully-integrated 1-3-5-7 year financial projections .planware. Financial Projections Present key financial projections e. 8. balance sheets. Based on a user's assumptions. error-free. It is essential that all the financial statements be fully integrated and linked. 11.Free-Plan: Business Plan Guide For latest information. balance sheets and key ratios. quarterly for second-third. 7. spreadsheet-based financial planner is a very difficult and time-consuming task even for experienced accountants and spreadsheet users. The development of an integrated. quarter & year). the results of market research should flow into your sales projections which should generate your revenue forecasts. Typically.g. do some highlevel financial planning at an early stage to get a feel for the basic figures and sensitivities but don't let the plan to become a financially-driven document without any strong market basis. If breakeven is expected to occur within a year. This is where. P&Ls (income statements). Place all detailed schedules in appendices. You don't want to spend several days developing a computer model when you are really interested in planning a business. and annual for fourth-fifth2. ratios and graphs for each period (month.htm. For example.

org/sample. Small Print: (a) Offer only applies to orders routed through the DigiBuy Service.planware. (c) Our normal terms and conditions also apply. head count etc. to the detailed plans/schedules outlined in preceding sections.xls.org/exlupgr. Discount Coupon Number: offer-g7h9x (Note that ' .planware. This service offers immediate electronic delivery once your credit card has been authorized.Free-Plan: Business Plan Guide For further tips and traps. Alternatively. Special Offer to Free-Plan Users Get Exl-Plan Now . refer to the white paper on Preparing Financial Projections. Relate your assumptions for sales. You can use the Quik-Plan facility within Exl-Plan to generate first-cut three/five year projections within minutes.htm and scroll down to the DigiBuy section in the Registration & Upload Methods. For example.' signifies a dash) To access the DigiBuy Service. costs. external funding and working capital. Also. the following table summarizes the first year's planned capital expenditure: 36 . You can see its sample output in an Excel file at www.Save up to US$29 You can save 10% off the list price of any version/edition of Exl-Plan by quoting the following Discount Coupon Number when purchasing it on-line via the DigiBuy Service. (b) Offer cannot be used in conjunction with any other offers or applied retrospectively to a purchase. specify the assumptions used for capital expenditure. go to http://www. 11. you can try the free On-Line Financial Planner.1 Key Assumptions Use this section to review and pull together the key assumptions to be used in the financial projections.

2 Income Statements Introduce the projected income statements (profit & loss accounts) using a short paragraph (or bullet points) to highlight the key expected outcomes for sales and income.0 150.Free-Plan: Business Plan Guide Capital Expenditure 1st $000 Quarters in Year to Jan 2006 2nd 3rd $000 $000 150. equipment & machinery Automobiles. buildings & improvements Plant.0 50. Total capital expenditure 50.0 350. check out the white paper Managing Working Capital. vehicles etc.0 Land.0 300. cashflows and balance sheets for a business. 11.0 4th $000 Annual Total $000 150. 37 .0 The following table indicates the diversity of assumption variables that may need to be considered in order to produce projected P&Ls.0 50.0 150. Fixed asset values Intangible assets Material costs Accumulated depreciation Prepayments/accruals Material/WIP inventories Capital expenditure Share issues Direct head count levels Capital & revenue grants Dividends Wage rates Fixed asset disposals Corporation tax Other direct costs Finance leases Phasing of opening balances Operational overheads Sales volumes Selling prices Selling & distribution costs Tax rates for inputs Research & development Interest rates Tax rates for sales Management/administration Changes in loans/debt Bad debt provisions General overheads Operating leases & HP Target finished stocks Depreciation rates Current year debtors/creditors Opening balance sheet For further insights into working capital.

interest expense etc.527 1.577 2.049 (254) (18) (272) (272) (272) 06-07 Proj $000 5.216 12 121 133 9 124 124 07-08 Proj $000 6.321 2.743 370 175 545 44 501 150 351 09-10 Proj $000 7.350 Gross margin 550 Total operating expenses 1.794 2.963 4.113 2. Years to end Jan 04-05 Act/Est $000 05-06 Proj $000 4.239 4.Sales & Income Sales Gross margin Income from operations Net income before taxes 01-02 02-03 03-04 Years commencing Feb 11.3 Cash Flow Projections 38 .583 2.200 US$ 000 1.600 1.Free-Plan: Business Plan Guide Use simple tables to summarize the key figures and place all detailed analyses in appendices.126 3.900 Cost of sales 1.242 3.228 2.380 3. (35) Net income before taxes (575) Taxes Net income (575) Dividends declared Transferred to reserves (575) Any Company Inc 1.000 800 600 400 200 0 -200 98-99 99-00 00-01 Fig.014 2.493 225 88 313 25 288 125 163 08-09 Proj $000 7.400 1. As shown below.295 3.718 2. simple tables and charts (pasted from a set of Exl-Plan projections) can show trends and patterns very clearly. 15 .090 Income from operations (540) Other income.999 585 129 714 57 657 140 517 Sales 1.

check the white papers on Making Cashflow Projections and Managing Working Capital. or longer. Any Corp Inc 300 200 100 0 $ 000 (100) (200) (300) (400) (500) Feb Mar Apr May Jun Jul Fig. venture capitalists and other investors – will pay far more attention to your cashflow projections than to the income statements. depending on the importance of cashflow and the time needed for the business to become cashflow positive.Free-Plan: Business Plan Guide It is usual to give monthly cash flow projections for the first year. They will seek to establish that the business will not run out of cash before it reaches profitability – more businesses fail for lack of cash than for want of profit. 5 . For more guidance. Many readers of your plan – bankers.Cashflow Net cashflow Aug Sep Oct Nov Dec Jan Net cash balance (deficit) 12 months commencing in Feb 2005 Less detailed projections (quarterly or annual) may suffice for subsequent years as per the specimen table below. Years to end Jan 05-06 Proj $000 (421) (320) 755 14 06-07 Proj $000 90 (100) 210 200 07-08 Proj $000 269 (155) (40) 74 08-09 Proj $000 565 (375) (75) 115 09-10 Proj $000 831 (325) (150) 356 Net cashflows from: Operations Investing activities Financing activities Increase (decr) cash 39 .

If your business is a pure start-up.4 Projected Balance Sheets When presenting projected balance sheets. 16 . The projected balance sheets must link into the projected income statements and cashflow projections. you will need to include an opening balance sheet which has been based on audited figures (for last year) or estimated data (for current year). 40 . its opening balance sheet may contain no values. See Exl-Plan as to how this can be achieved using an Excel-based financial planning system.Free-Plan: Business Plan Guide Use text and bullets to highlight and explain any key values or summarize the trends shown in tables or charts. Any Corp Inc 700 600 500 400 $ 000 300 200 100 0 (100) (200) 04-05 05-06 06-07 Fig.Cashflow Net cashflow Net cash balance (deficit) 07-08 08-09 09-10 Years commencing Feb 11.

433 1.Free-Plan: Business Plan Guide Years to end Jan 04-05 Act/Est $000 05-06 Proj $000 06-07 Proj $000 07-08 Proj $000 08-09 Proj $000 09-10 Proj $000 ASSETS Current assets: Cash Other Total Current Assets Fixed & intang assets Total assets LIABILITIES Current liabilities: Short-term loans/credit Other Total Current Liabilities Total longterm liabilities Total owners' equity Total liabilities 10 605 615 720 1.604 650 1.547 1.254 1.899 4.604 1.335 96 651 748 681 598 2.341 1. For example.440 1.841 1.346 1. sales volume shortfalls. take account of possible project start-up delays.551 3.185 2.245 11.335 984 984 1.070 1.085 3.070 293 1.027 104 1.245 120 545 665 125 545 1.547 621 1.519 1.027 954 954 564 922 2. When planning scenarios. As a general guide.603 1. what would be the financial outcome (or additional funding requirement) if sales volumes and prices are both 90% of targets but direct and overhead costs are each 110% of planned? SENSITIVITY ANALYSIS FACTORS REPORT Months for First Year: % Incr(+) or decr (-) sales volumes % Incr(+) or decr (-) selling prices % Incr(+) or decr (-) matl/goods costs % Incr(+) or decr (-) overhead exs Quarters for Three/Five* Years: % Incr(+) or decr (-) sales volumes % Incr(+) or decr (-) selling prices % Incr(+) or decr (-) matl/goods costs % Incr(+) or decr (-) overhead exs Feb ->> ->> ->> ->> 1 Qtr ->> ->> ->> ->> 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 41 .548 1.150 1.603 689 1.5 Sensitivity Analysis Present the key results of a 'what-if' analysis based on "best" and "worst" case scenarios.763 3.042 2.696 2.436 3. lower price levels and higher costs. be conservative even when presenting the "best" case.440 178 1.433 552 1.953 4.

Compare projected financial ratios with industry norms and justify any significant deviations.Free-Plan: Business Plan Guide Indicate breakeven points and explore the consequences of incrementing volumes. by 10%. 20% etc. 15%. prices and costs (e. Its more powerful versions contain several unique tools for sensitivity analysis including a global analyzer.g. simple-to-use facility for doing this type of analysis.). Exl-Plan has a powerful. automatically-generated what-if tables and a DuPont-type profitability planner (see diagram below).6 Ratio Analyses Highlight the key ratios and trends over time. 11. 42 . Only present high-level summaries – relegate the detailed calculations to appendices or retain them as working papers.

5 2.94 0.19 07-08 Proj 43.9 18 2.49 The foregoing is only a brief glimpse of the range of output reports and analyses automatically generated by our financial planner Exl-Plan.21 Gross margin (% sales) Net income before taxes (% sales) Sales as % breakeven Net income before taxes/total assets (%) Sales/total assets (times) Net debt as percent owners' equity (Max=200%) Net assets per share ($) Earnings per share ($) Dividend per share ($) 2. review the white papers dealing with the following: Preparing Financial Projections Making Cashflow Forecasts Managing Working Capital.2 2. consider purchasing a copy to save you time and effort and to contribute financial and planning expertise to your plan.1 67 1.8 1.1 2.5 101 5.0 109 10.3 88 06-07 Proj 42.htm for details and downloads.97 -0.1 81 1.0 120 16. Also.23 09-10 Proj 45.0 7.planware. 43 . have a look at a trial copy of Exl-Plan for ideas on the range of assumptions to be considered and the layout and contents of financial projections. For latest information.htm.org/gfinancials.5 -6.19 08-09 Proj 43.39 0. At a minimum.2 5.planware.16 0.75 0. Refer to http://www. see the Financial Projections section in the Business Plan Guide at http://www.org/exldesc.63 0.1 150 0.5 2.99 0. you can use either the Quik-Plan facility within Exl-Plan or our free On-Line Financial Planner to produce 'first-cut' five-year projections for the business to test out key issues relating to your plan and its finances.5 113 15. Check the Benefits of Exl-Plan.43 0. Finally.0 46 2. For additional help.Free-Plan: Business Plan Guide Years to end Jan 05-06 Proj 41.0 9.

org/gfunding.) and likely terms. time scales.g. 13. Funding Requirements & Proposals Look to fund the "most likely" case. be realistic and base it on more than one method of valuation e. Take account of market conditions and "going rates".planware. If presenting funding proposals. see the Funding section in the Business Plan Guide at http://www. grants. realistic and implementable plans. Summarize and tabulate funding requirements. bear in mind the golden rule – He who has the gold makes all the rules. Highlight the major decision points. or even "worst" case. possible sources and forms (equity. indicate possible exit routes (IPO. you may wish to specify the likely range of equity stake. If valuing the business. To guide investors.).Free-Plan: Business Plan Guide 12. buy-back etc. Summarize the key elements in a Gantt chart or table. trade sale. milestones and actions required by management and others to progress the plan. and make a stab at the projected returns on their investment. capitalization/revenue ratio. price/earnings ratios.htm. Month Task 1 44 1 2 3 4 5 6 7 8 9 . industry yardsticks and so on. Be realistic about the likely rate of progress and make provision for slippages. This section need not exceed a page or so. Explain contingency plans to cover shortfalls. possible board representation. rather than for the "best" case as revealed by sensitivity analysis. loans. Specify and document any funding commitments secured. You may wish to withhold detailed funding proposals and terms until you have met possible investors or lenders face-to-face and have heard their initial reactions. Implementation This is a critically important section – use it to translate all your proposals into clear. net asset values. credit etc. For latest information. Indicate planned uses.

If your plan is lengthy or important. reads well and is clear. Be very positive and confident to encourage favorable reactions. anticipate several drafts. Hopefully. Indicate why it will succeed and why it should be supported by investors etc. Ideally. independent person involved in business with experience of your industry and/or business planning. 14.org/gimplementation. Conclusion Use this section to wrap up your plan and to leave the reader with a warm and positive view of the business and its plans. Don't be resentful of any criticism . see the Implementation section in the Business Plan Guide at http://www. 45 .Free-Plan: Business Plan Guide Task 2 Task 3 Task 4 Task 5 Task 6 …… …… …… …… Use a maximum of three pages for this section.planware. Confine this section to a few carefully-drafted paragraphs and write it once the plan is almost complete. Tip: Get someone to read a near-final draft plan to check that it makes good business sense.htm. they will be able to see "wood from the trees" better than you can. that "someone" should be a detached. Review what the business expects to achieve. For latest information.use it to improve the next draft.

consider if purchasing the Plan Write Business Planner software package could be of assistance.htm. see the Conclusion section in the Business Plan Guide at http://www. review the Checklist for Preparing a Business Plan. Also. you are free to modify Free-Plan for the purpose of developing a business plan. For further information.org/gconclusion. Microsoft. browse through our compilations of business-related Quotations or Bad Advice.org. please e-mail feedback@planware. see LICENSE. To help finalize your plan. Once your plan has been drafted. PlanWare and Exl-Plan are trademarks of Invest-Tech Limited. suggestions or success stories relating to use of Free-Plan. the resultant document and/or file can be freely circulated or distributed as your own work. Windows. Once you have registered and secured a password. © Copyright Invest-Tech Limited 1999-2003. Free-Plan. All rights reserved 46 .Free-Plan: Business Plan Guide If you need moral support or a boost to your spirits at this stage. Word and Excel are either registered trademarks or trademarks of Microsoft Corporation. You may also wish to refer to the white papers entitled Writing a Business Plan or Insights into Business Planning. For latest information.TXT.planware. If you would like to offer feedback.

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