Obtaining the facts for a business plan

What is unique about my product?

Who are my competitors?
How will my customers buy?
What is my share in the market?
What is the market potential?
Who are my customers and where are they located?
Where will I put my business?
How big should be my plant or place of business?
What equipment will I need and what size?
How will I treat customers?
What personnel do I need?
How much capital do I need?
How profitable will the business be?
How financially healthy will I be?
What is my breakeven point?
• Outline of a business plan
From Hisrich and Peter
I. Introductory page
A. Name and address of the business
B. Names and address of the principals
C. Nature of business
D. Statement of Financing needed
E. Statement of confidentiality
II. Executive summary
III. Industry analysis
F. Future outlook and trends
G. Analysis of competitors
H. Market segmentation
I. Industry forecasts
• IV. Description of venture
A. Product(s)
B. Service(s)
C. Size of the business
D. Office equipment and personnel
E. Background of entrepreneurs
V. Production
F. Manufacturing process
G. Physical plant
H. Machinery and equipment
I. Names of suppliers of the raw materials
VI. Marketing plan • VIII. Assessment risk
A. Pricing A. Evaluate weakness of the business
B. Distribution
B. New technologies
C. Promotion
C. Contingency plan
D. Products and forecast
E. Controls
IX. Financial plan
VII. Organizational plan D. Pro forma income statement
F. Form of ownership E. Cash flows projections
G. Identification of partners or stakeholders F. Pro forma balance sheet
H. Authority of principals
G. Breakeven analysis
I. Management-team background
H. Source of application of funds
J. Roles and responsibilities of members of the
organization
• X. Appendix (contains back-up materials) G. Personnel
A. Letters H. Application and expected effect of loan
B. Market research data (if needed)
C. Leases or contracts I. Summary
D. Price list from suppliers Section 2. Financial Data
A. Sources and adaption of funding
Section 1. The business B. Capital equipment list
E. Description of the business C. Balance sheet
F. Product/service D. Breakeven analysis
G. Market E. Income projections
A. Five year summary
H. Location of the business B. Detail by month for first year
I. Competition C. Detail by quarter for second, third, fourth
and fifth years
J. Management
F. Cash flow
a. Detail by month for first year
b. Detail by quarter for second, third,
fourth and fifth years
G. Deviation analysis
H. Historical financial reports for existing
business
a. Balance sheet for past 5 years
b. Income statement for past 5 years
c. Tax returns