Business plan template 1 by lizzy2008


									                           Business Plan


                   A Business Name
                        123 Business Street
                     Thunder Bay, ON P7B 2A1
                          Phone: 555-1212
                            Fax: 555-1213

                           Prepared by: A. Sample

This Sample developed by
                                    Table of Contents

Executive Summary

Business Description

Mission Statement



Target Market



Marketing Strategy



Start-Up Costs

Equity Investment

Projected Cash Flow Year 1

Projected Cash Flow Year 2

Projected Cash Flow Year 3

Projected Income Statement

Projected Balance Sheet

Appendix A – Resume
Appendix B – Inventory List (example)
Appendix C – Source Info Stats Canada (example)
This is an outline of the business plan. Familiarize yourself with the content in
each section. As you work through the business plan, delete data in each
section, and then add your business information. Good Luck and Happy
Business Planning!


The executive summary is the first part of the business plan, however it should
be written when the business plan is complete. It should be concise and to the
point. The executive summary should capture the outside reader without
repeating the plan. The executive summary should also include a table of uses
and sources of funds. Below is an example.

Business description and who owns it.

Why are you unique

Market you are targeting and how

Projected sales for year 1, 2 and 3

How much money you need for start-up

Where you plan to get it and how much

Uses of Funds                              Sources of Funds
Equipment                   $              X Bank                          $
Other Start-up Costs        $              Thunder Bay Ventures            $

Working Capital            $               PARO Loan                       $
                                           Cash Equity                     $
Total                       $              Total                           $

Business name, legal status (sole proprietorship, partnership or corporation),
name of owner or owners, location, product or service description, why is your
product unique, why will it be successful, why it is unique.

Do not use 1st person such as, "I" or passive language like "I hope that we will be
able to". In third person say, "This business (Name of business or owner)

This section should consist of two or three sentences describing the main aims of
the business.

Name of your business
What your business will do (the product/service you plan to provide)
Its market focus, niche, or particular image (the target market you intend to
Planned location and geographic market served
How growth of the business will be achieved
Your uniqueness or distinguishing characteristics that sets you apart from others


Integrity – dealing honestly with customers, employees, suppliers, and the
community- the utmost in customer service
Responsibility – by taking into account the environment in which we do
business, community views, and the common good
Profitability – by being conscious that an appropriate level of profit is necessary
to sustain the business and allow our values to continue to be observed
Value - by providing quality products that are recognized as delivering value for
Employees - by providing quality, equitable opportunities for development in a
healthy workplace, with appropriate rewards.


Write down specific goals you have to move forward with from your mission
statement and marketplace.
Depending on your specific business, you might also include sketches or other
images to document your ideas.

Jot down the other ideas that don’t feel secure enough to go into the current
year’s projections, but that still excite you when thinking of the future.


The management section of the business plan should include key experience
and education of the owner and key personnel that are assets to the business.
Include personnel’s responsibilities and their qualifications. Include resumes of
the owner and key personnel.

Management – How to make the business perform well with a given set of
resources i.e. employees, materials, experience – and orchestrate and organize
them into an efficient and effective operation.

Make reference in this section as follows:
See Appendix A for Resume(s)


This usually consists of secondary research. What are the most recent trends in
this industry and how will they affect your business? Always source ideas and
quotes either as footnotes. Use numbers or statistics wherever possible.

Ask yourself these questions:

1.   Is there already an industry for your business ?
2.   How big is the industry ?
3.   What are its total sales in dollars? In units ?
4.   What are their particular strengths and weaknesses ?
5.   What changes, if any, have taken place in this industry in the past few years?
6.   How will these changes affect the way you will run your business?
7.   How do you feel you will be able to successfully compete in this industry ?
8.   Industry Trends – How will the industry evolve in the future ? Is it growing or
     stable ? What do you feel industry sales will be in five years ? ten years ?
     What general trends are evident and how is the industry likely to be affected
     by economic, social, technological, environmental and regulatory trends ?

Research: Statistics Canada Small Business Profiles by industry, Angus Reid Surveys, Industry
Canada, Canadian Business and Current Affairs, Small Business in Canada, business specific
publications, trade magazines, other institutional research (i.e. Fraser Institute, University
research, Dun & Bradstreet, Robert Morris and Associates) Canada Business Service Centre;

Who will be your customer? Use secondary and primary research.

Market Profile: This is used to define your target customers in terms of
geography, demographics, or other factors. How many of these target customers
are in your market area ? What are the principal factors these customers
consider in the purchase of a product or service like yours ? Why will they buy
your product rather than your competitors ?

   1.     How big is the market ?
   2.     Where is it located geographically ?
   3.     How fast is it growing ?
   4.     What organizations / individuals buy this kind of product or service ?
   5.     Why do they buy it ?
   6.     Where and how do they buy it ?
   7.     How often do they buy it ?
   8.     What are their principal requirement in selecting a product or service of
          this type ?
   9.     Are there any trends and seasonal patterns ?

   Within the above, are there groups of potential buyers with different
   preferences, requirements, or purchasing practices ? (i.e. teens, business
   people, older adults, etc).

   1. What is their geographic location ?
   2. What is their demographic description ? (age, sex, marital status, family
      size, race, religion, education, income, occupation)
   3. What is their sociological description ? (lifestyle, user status, usage rate,
      means of purchasing, reasons for buying products or services similar to
   4. What is their psycho graphic description ? (interests, values, leisure
      activities, buying patterns)

   Complete a survey questionnaire (50 to 100 respondents). There are sample
   questions in your binder. Analyze results. Put copy of survey with actual
   results in percentages as Appendix. Speak to the results and how they will
   impact your business in this section. Combine this information with statistics
   from secondary resources such as the Thunder Bay Fact book and relate to
   potential sales.
For example--There are X number of people from the ages of 17 to 39, living in
Thunder Bay Metropolitan Area. The Thunder Bay Fact Book states that the
average person spends X amount of dollars per year on X product/service. This
gives a total potential market of $X.

Results from our survey suggest that the majority of people in this age group
presently shop for your product/service at this place and that place. Your
business hopes to capture X% of potential sales in the first year which is
approximately $X.

Most people (X%) surveyed said that quality service and expertise were more
important decision making factors for purchase than cost. Your business of
business will capture a better share of the market by providing a high end
product, concentrating on friendly and fast service and by keeping up to date on
new technology in our field.


SWOT Analysis- point form in a table is quick and easy. How will you capitalize
on the weaknesses of your competitors? From survey, where are your potential
customers shopping now? What are the strengths of your competitors that you
want most to duplicate?

   1.  How does the competitor’s product or service differ ?
   2.  Do they offer a broad or narrow product line ?
   3.  Do they emphasize quality ?
   4.  What is their average selling price ?
   5.  Do they do a lot of advertising / promotion ?
   6.  How well are they known ?
   7.  Where are they located, i.e is the location important to this industry ?
   8.  Do they cater to any particular segment of the market ?
   9.  Do they offer some unique product or service that sets them apart from
       other competitors ?
   10. Do they offer a particularly low price ? why ?
   11. How successful are they ? Are they growing, stable, declining ?
   12. What are their major strengths ? weaknesses ?
Name of         Strengths        Weaknesses       Opportunities Threats
Sear’s             -In mall        -No personal
Cosmetics          -Many           service
                   products        -No privacy
                   -Well known

Analysis: What is your competitive advantage over other businesses –
something that sets you apart from the rest?

Often you may think you can purchase a product, but when you inquire you may
be surprised. The minimum order in one particular colour, for example, may be
quite expensive.

Who are your supplies, address terms of minimum order requirements, payment
methods, freight costs?

This section of the business plan allows an individual to explore specific areas of
marketing tools at specific times of the year and their costs.

 Factor in what types of marketing will be most effective in capturing the
customers you are trying to reach. Will you be doing any personal sales

The marketing strategy should be for 1 year. For example:

Date              Activity                                Cost
May               Business Cards                          $20
                  Trade Show Booth                        $300
June              Ad in The Post                          $100
July              Ad in The Chronicle Journal             $150
August            Ad Bag                                  $250
Total                                                     $820


Material cost, Labour cost, Overhead costs, Plus Profit. Adjust to market. Fee
for service-Hourly rate includes overhead and profit margin, plus you add direct

Discuss the prices you plan to charge for your product. How do they compare
with your major competitors’ ? Is your gross margin sufficient to cover your
transportation costs, selling costs, advertising and promotion costs, rent,
depreciation, ect and still proved some margin of profit ?
Detail the markups your product will provide to the various members of the
distribution network.

Indicate terms of sale – do you plan to offer cash, quantity or other discounts ?

Indicate service arrangements, warranty terms and method of handling service

How will you handle customer complaints and other problems ?

What are your merchandise return policies ?

Markup = A percentage of the selling price

Cost + Markup = Selling Price

i.e. product selling for $2.50 and selling for $5.00 has a 50% markup

$2.50    price at which you buy
$5.00    price at which you sell          =   50%

Sales Plan Estimate

Average price of items                                           (1)    $      22.25

Number of customers will you serve in a day ?                    (2)          50

Amount of business you will do in a day
     (multiply (1) by (2)                                        (3)    $   1,112.50

Number of days store is open in a year                           (4)         360

Amount of business in a year
(multiply (3) x (4)                                              (5)    $400,500.00
Staff: (Who will work, will you hire, and when ?)
Hours of Operations: (When will you be open - seasonal, summer hours etc?)
Licenses: (Which ones will be needed?)
Insurance: (Where will you buy it from, how much will you need, what kind)
Methods of Payment: (Cash only, cheque, Visa, MasterCard, PayPal)
Guarantees: (Will you offer any)
Return Policy: (Will there be one)
Bookkeeping: (Who will be responsible and when)

Capital Costs- detailed description of items – and give the cost for each

Fixtures and equipment
Decorating and remodeling
Installation of fixtures and equipment
Starting Inventory

Other start-up costs-
Deposits and/or hook up fees with utilities, phone, etc.
Building lease deposits
Legal and other professional fees
Office supplies
Business registration fees

Things you bring to the business, not cash, for example a computer already
purchased, office equipment, retail equipment
What is the fair market value?


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