Business Plans

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					                           BUSINESS PLANS
Score offers a variety of Business Plan Outlines and Notes.

There are also several Business Plan Outlines available in computer form that can be
purchased at various computer shops. Two are called BizPlan Builder (by JIAN) and
Business Plan (by SUCCESS Inc.).


                        BUSINESS PLAN OUTLINE
This outline is just that- an outline. This was designed to assist you only At no time
should this material be considered complete. Each lending source requires different
information and quite often ypu should plan further ahead than requested in order to be
certain that you have a firm idea of what to expect from your business and where you
want to see your business go.

The major difficulty in preparing business plans is in properly preparing them. Do not
just randomly select information for your plan. Carefully research each sector of the
market which you are about to become involved in. It will not only make a difference to
your success at financing, It should also make a difference in your success in business.

Wrapping your plan.

Do not underestimate the power of presentation. We recommend that you use a color
photo of your product, your office or if this is a real estate related project, the property in
question. Use a acetate cover to cover this photograph. You will then see your plans
ability to stand out in front when faced with a stack of plenty . Remember to place your
company name on the cover and use GVC Binding. It is the easiest to handle.

When necessary include a disclaimer that is from the legal counsel of your choice. This
statement should be used especially if you have obtained material from your plan from
outside sources.


You should always have a signed non-disclosure agreement with anyone receiving your
plan. Include a signed copy in your plan. Also, any fees that you have agreed to pay to
brokers or other referrals should have agreements and be included in this part of your

The index portion of your plan should be as complete and thorough as possible. Be
certain that your subtitles are listed here. Remember that most lenders/investors receive
hundreds of plans a week for reviews. Most only look at a portion of the plans they
receive. A well thought out and divided index could make the difference between your
plan being read or not.


This need only be one page. This should basically be considered a "Use of Proceeds"
statement. This page will include the amount of your loan, the cost of equipment, cost of
financing, first years operating expenses, as well as any other costs you intend to pay
from the proceeds of your financing. This page should also contain what you project
your interest rate to be (remember, the lenders do set these rates and you may not get
the rate you request). This will allow you to set your Debt Service Coverage Ratios. (see
explanation) Also, this page should contain Loan to Value and Return on Investment


Remember, you are more familiar with your subject matter than the reader will be. Any
terms that are not considered public knowledge should be included in a "glossary" in
this section of your plan. Explain any theories or special terminology directly related to
your specific industry as clearly and concisely as possible. Explanations should be done
in as basic terms as possible.

It is preferable to set this up so that your definition is set apart by tabs from the word. I
strongly recommend underlining your word here and if you feel it is appropriate, make
note on the pages that these words appear which will designate GLOSSARY. This is a
helpful feature for people who are not familiar with your industry.


The executive summary should be a short (approximately 3 -5 page) summary
describing pertinent information about your company. The summary should explain why
you feel it is time to expand (if this is purpose of loan) or why you feel this is a good time
to enter this particular business (if new). Other pertinent information should be included,
such as when and why you started your company, your goals and a thorough
explanation of your business.

It is important that during this summary you do your best to be as thorough as possible.
Remember, that this may be the only chance you have to

attract attention. Quite often these summaries are pulled from your package and sent to
the lender/investor via file, fax, modem or other means and this will be the factor that
determines if more material will be requested.

Resumes are perhaps one of the most important features of a good business plan. Let
the lender/investor know your background in relationship to the business you plan to

The resumes of all key personnel should be included in this section. Also, include a list
of the "proposed" or "existing" board of directors. A "COMPANY" resume is also a good
idea to include in this section. For start up companies explain the concept and what
brought you to the stage where you are now pursuing financing.


A 1 - 3 page section that should include statistics about your chosen industry. This
information can be from any source you deem reliable. Always include as many
statistics about your industry as possible.


INDUSTRY:.... Loan Brokerage

NUMBER OF PEOPLE:.... 156,000

FEES IN 1991:.... $445,900,000

This information was received from Dun & Bradstreet on April 16, 1992.

When available documentation should be included in your plan under


This section of your business plan should include as much information about the area
which you intend to locate your business in as you are able to compile. Statistics are
usually available at the town hall or the state house. These statistics should include
average age and household income for your area, as well as the Business description
of the area (i.e. professional, factories etc). Also, include in this section why you feel
that the demographics of the are will support a business in the field you have chosen.

Remember, any substantiation documentation that can be supplied should be included
in your plan under "SUBSTANTIATION DOCUMENTS".


This 1 - 3 page section of your business plan should include all pertinent information
about your competition, including the length of time they have been in business, where
they are located in comparison to your chosen location and what their average annual
sales are. In addition, you should explain your company strengths and weaknesses are
in comparison to the strengths and weaknesses of your competition.

Explain how you intend to overcome your competition and your expectations of the
impact your company will have on their business. Any available information about your
competitors should be included as "SUBSTANTIATION DOCUMENTATION".


This 5 - 8 page section of your plan should include all information you have obtained in
seeking out a viable marketing plan for your company. In addition it would be useful to
compare your marketing ideas with the methods that are used by your competitors in
this industry. Comprehensive data about pricing strategies, specials to be offered to
clients etc. should be included in this section.

If you have designed a logo, your stationary and / or advertising materials they should
be included in your plan under "SUBSTANTIATION DOCUMENTATION".

EQUIPMENT This section of your plan should describe all equipment that you have (or
intend to use) for your business. As minor as you may feel it is even your office
typewriters and word processors should be included here. An explanation of specialized
equipment should also be included. Obtain a current market price for all equipment as
well as a "fire sale" price for your equipment.

Include cost projections in your "SUBSTANTIATION DOCUMENTATION" section.


This will be the most critical part of your business plan. Explain where you see your
company in one year, in two years and so on up until approximately the fifth year.
Further explain the methods you feel will assist you in obtaining these goals. Included in
this section should be data that will explain what will happen in different economic
environments. That is if we have a strong environment, what will your goals be and if we
have a weak environment how will this affect your goals.


If you have contracts that you have developed with clients they should be included in
this section of your plan. Complete contracts with names, addresses and telephone
numbers as well as expiration dates should be included. Any caveats in your contract
which forbids potential lenders from contacting should also be noted in this section as
an addendum.


If you have signed any employment contracts with projected employees they should be
included in this section of your plan. This material will remain confidential.

This section of your plan should include information about the projected staff for your
company. Include the projected salaries, benefits as well as the minimum requirements
for employment (i.e. experience). Please include all positions you forsee necessary and
what each positions responsibilities are to be.


This section should include all health, life and disability insurance information you intend
to offer employees. It should further include any special insurance you are required to
carry in your geographic location and/or in your industry. Quotes should be included as


This section of your plan should include the last three years income tax returns, both
federal and state for all of the principals in your corporation. It should also include a
financial statement dated within 60 days for each of these principals. If available also
include a current credit report for each principal. We strongly recommend you include
your social security number as well as banking references.


The same information as requested above should be included. In addition you should
include a copy of all outstanding debts within the business.


The proforma section of your business plan will be read and reread. Although the
normally acceptable way to prepare pro forma projections is to prepare them annually
and on a "sideways" printout, we suggest printing them in the same format as the rest of
your plan. It does take more room to do this however it makes your plan much easier to
read. We use regular spreadsheets to do our pro forma projections and print only the
months that can be fit across an 8 1/2 X 11 page. This does make easier reading
without having to tip your volume to the side.

  DESCRIPTION | January | February | March |
 SALES         | 75,000 | 82,000 | 66,000|
       SOFTWARE|  27,000|    32,000 | 12,000|
     EQUIPMENT|   48,000|    50,000 | 54,000|

INTEREST         |    1,200|         895 |    1,400|
            FSNB |      700|         600 |      800|
         NEB |       500|       295 |    600|
  TOTAL INCOME| 76,200 |      82,895| 67,400|

This format makes your projections easy to follow and calculations simple to do.

These projections should be done as follows:

YEAR ONE: by Month

YEAR TWO: by Month

YEAR THREE: by Quarter

YEAR FOUR: by Quarter


This formula should be used by all new businesses.

For existing business you should use the following: Include your cash flow (actuals) for
the previous 2 fiscal years by month. Include the current year monthly actual as well as
the remainder of the year in monthly projections. The first year projected should be
done by months and thereafter use quarterly projections up through year 5.


At several points through the plan you have been advised to obtain information for this
section of your plan. In addition to the materials suggested you should also include an
amortization schedule as well as a depreciation schedule. Any documentation that you
feel would be appropriate for a lender or investor to review would be suitable for this
section of your plan.


Earlier I used the following terms. The calculations are included here for your use and


Annual Net Income / Annual Debt


Total Investment / number of years = ___ [per year]

Annual Net Income / Investment per year

Loan Amount / Value of Business (or property)

I hope that this document assists you in more successfully creating your business plan.
There are many, many more hints and tips that could be supplied to you, however I feel
that the ones contained in this document shall give you a ground to stand on and a
basis for preparing your plan.

Remember, there is no "right" way to prepare a business plan. Also remember that only
you know your business. It is nearly impossible to ask someone to prepare a plan for
you. While we have prepared many plans over many years we first advise the client to
prepare as much as he is capable of doing and simply restructure their plans for them.
Lenders and investors use your plan as a way of judging who you are. They know who
we are. Good luck in preparing your plan. Should you need additional information feel
free to leave me a message.

Doreen Martel -- Reprinted from SBA Computer Bulletin Board, Washington, DC

Description: This is an example of business plans. This document is useful for conducting business plans.