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Business Plan Template

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					This document is a template for a generic business plan. It can be used for all types of
business entities (partnerships, LLCs, corporations, sole proprietorships), in any
industry, for both informative and investment purposes. This form is intended to allow a
company to convey the nature of its business, its present status, its status within its
respective market, and its future prospects in both a written and financial format. This
document can be customized to fit the needs of any company when describing its
business.
Business Plan/Proposal


          Prepared By:

   Insert your name/company


              Of:

  Insert company name and logo


     Insert version and date




                                 Page | 2
                    BUSINESS PLAN NON-DISCLOSURE AGREEMENT

By Possessing or reading this plan you accept the following:

By proceeding within this document (the “Plan”), you, any company, entity or organization that you
are employed by or are otherwise the agent of, and all other employees thereof, (collectively,
“Recipient”) and {Insert Business Name Here} (“The Company”), agree that:

   The plan has been submitted by The Company to Recipient solely for the purpose of evaluating
    a potential investment by Recipient in The Company. The plan is not for use by any other
    person (s) or for any other purpose, and may not be reproduced, disseminated or otherwise
    disclosed to any person (s), other than any employees or agents of Recipient, including, without
    limitation, any legal counsel or accountants, of Recipient, who have a need to know the contents
    of the Plan in connection with the evaluation of a potential investment in The Company
    (collectively, “Representatives”) who agree to the confidentiality provisions herein. Recipient
    shall be responsible for any and all acts of its Representatives.

   Recipient agrees to hold in the strictest confidence, and not use or disclose to anyone other than
    the employees of Recipient, its Representatives and The Company, the information contained
    in the Plan or supplied to the Recipient, orally or in writing, by The Company (the
    “Confidential Information”). Confidential information includes, without limitation, concepts,
    cost data, techniques, design, work in progress, and other technical know-how, the identity of
    customers, suppliers, and subcontractors of The Company, financial, marketing and other
    business information, or any other trade secrets of The Company disclosed by The Company
    to Recipient or its Representatives or any summaries, analyses or other documents bases
    thereon. Confidential information further includes any information The Company has received
    from others, which The Company is obligated to treat as confidential or propriety. If the
    Recipient has any questions as to what comprises Confidential Information, the Recipient agrees
    to consult with an officer of The Company prior to making any disclosure thereof.

   It is further agreed that any violation of this agreement by the Recipient or its Representatives
    will cause irreparable injury to The Company and that The Company shall be entitled to
    extraordinary relief in court, including, but not limited to, temporary restraining orders,
    preliminary injunctions, and permanent injections or other equitable relief. If court proceedings
    are required to enforce any provision or remedy any breach of this agreement, The Company
    shall be entitled to an award of reasonable attorney’s fees incurred in connection therewith.

   This business plan does not constitute an offering. Any offering will be made by a definitive
    offering agreement. This plan has been submitted on a confidential basis solely to determine if
    selected individuals or organizations have an interest in making an equity investment.




                                                                                              Page | 3
Table of Contents


1.0    Executive Summary ................................................................................................................ 5
2.0    The Company .......................................................................................................................... 5
3.0    Products & Services ................................................................................................................ 6
4.0    Industry Analysis .................................................................................................................... 7
5.0    Market Analysis ...................................................................................................................... 8
6.0    Management and Organization ............................................................................................. 9
7.0    Competitive Analysis ............................................................................................................ 10
8.0    Marketing & Sales Strategy ................................................................................................. 11
9.0    SWOT Analysis ..................................................................................................................... 13
10.0   Operations.............................................................................................................................. 14
11.0   Financing Requirements....................................................................................................... 15
12.0   Development & Milestones ................................................................................................... 16
13.0   Risks & Contingencies .......................................................................................................... 17
14.0   Financial Data Assumptions & Highlights ......................................................................... 17
15.0   Exit Strategy .......................................................................................................................... 18




Appendices
  A. Start-up Expenses and Capital Requirements
  B. Monthly Income Statement
  C. Monthly Balance Sheet
  D. Monthly Cash Flow Statement
  E. Monthly Financial Ratios
  F. Five-Year Income Statement
  G. Five-Year Balance Sheet
  H. Five-Year Cash Flow from Operations
  I. Five-Year Financial Ratios
  J. Management Team Resumes
  K. Photos of Location
  L. Other Supporting Documentation




                                                                                                                                      Page | 4
1.0       Executive Summary

         The executive summary is the first written page (s) of your business plan which highlights
          the overall intent of the business and the plan itself.

         The executive summary establishes the tone of the business plan and should capture the
          attention of the reader and or investor.

         The first paragraph should convey a vivid and concise description of the business and its
          main objectives.

         The second paragraph should describe why there is an opportunity and how you plan to
          capitalize on it.

         The third paragraph should contain a brief overview of the management team and how and
          why they are capable of executing the plan.

         The closing paragraph of the executive summary should include brief summary of the
          financing requirements, capitalization of funds and/or the usage of funds.

         The executive summary serves as the first impression to investors/stakeholders and should
          not exceed two (2) pages in length.


2.0       The Company

          2.1    Ownership and Legal Structure

                    List the owners of the company by name and percentage of ownership.
                    Describe how the company will be registered and/or structured in this section
                     (i.e. LLC, S Corporation, C Corporation).

          2.2    Location

                    List the physical address (including city and state) of the business.
                    Include warehouses, distribution centers, call centers and any other locations
                     owned and operated by the company.

          2.3    Business Description and Background

                    Provide a brief description of the business, its history, and how the business idea
                     came to be.
                     Include a brief overview of the products and/or services offered.

          2.4    Mission & Values

                    Include a mission statement for the company.
                    Include at least 4-5 core values that are consistent with the company’s mission.

                 Example:

                                                                                                 Page | 5
               Customer Commitment – Build respectful relationships with customers that
                cultivate trust

               Financial – Commit to financial goals that maximize profits in the support of our
                values and community

               Quality – Provide the highest level of goods and services


               Financial – Commit to financial goals that maximize profits in the support of our
                values and community

      2.5   Building, Layout and Design

               Describe the size of the building in terms of square footage.
               Describe the layout and design of the space.
               Include architectural drawings or images.
               Highlight key features of the building.

            Example:

               Energy Efficient
               Environment Friendly
               State-of-the-art Technology

      2.6   Construction

               Provide a brief description of construction company.
               Include a construction timeline.


3.0   Products & Services

      3.1   Products

               Describe the products offered your company.

               Specify the # of items being offered.

               Include charts and/or graphs that capture your product mix, such as the pie chart
                below.




                                                                                          Page | 6
      3.2   Services

               Describe the services offered by your company.
               Specify the # of services being offered.
               Describe each service in detail.


4.0   Industry Analysis

      4.1   Industry size, structure and growth

               Describe the industry size and growth in detail.
               Include the major market segments.
               Explain the market structure.

            Example:

            The supermarket market industry has grown by 30% over the past decade. Over the
            five year period from 2003 to 2008, sales grew by 16%. In 2009, there were 36,000
            supermarkets in the US, generating total sales of $557 billion. The median
            supermarket size was 46,235 square feet and the annual sales per square foot were
            $612.

            The supermarket industry will see continued annual growth of roughly 5% over the
            next five years, primarily as a result of consumer behavior shifts away from the
            smaller specialty and convenience stores toward the one-stop shopping
            supermarkets.

      4.2   Industry Trends

               Describe the major industry trends.
               Include sales patterns and shifts within market segments.
               Identify broad market consumer trends.

            Example:

                                                                                      Page | 7
            The major trend in the supermarket industry continues to move toward larger and
            more diversified stores, as consumers demand a larger selection of goods and
            services. This shift is not only occurring in the United States, but throughout the
            developing world. Market research analysts project that stores that only offer food
            products will gradually be replaced by those that offer additional products and
            services.

            Supermarkets are the traditional destination for consumers looking to stock up on
            many of the items they use on a daily basis. The need for shoppers to replenish their
            grocery and household items typically results in frequent trips to the supermarket.
            For this reason, supermarket sales tend to be noncyclical and homogenous.

            Pricing for grocery and household items is expected to be stable over the next five
            years. Operating margins will be slightly lower due to increased competition from
            other retail formats, including supercenters and warehouse stores.
            Supermarkets generally grow slowly, but produce sufficient cash flow to make the
            investment worthwhile. Solid cash flow creates flexibility in financing daily
            operations and allows companies to use debt leverage to increase returns. This is
            crucial to managing debt, especially considering the average debt for the industry is
            60% of total capital.

      4.3   Barriers to Entry

               Describe the barriers to entry as it relates to the ability of new competitors to
                enter the market.

            Example:

               Capital Requirements
               Strong Customer Loyalty
               Switching Costs
               Economies of Scale


5.0   Market Analysis

      5.1   Target Market Demographics and Characteristics

               Geographical location
               Population, target customer base
               Income Levels
               Customer Lifestyle
               Household size

      5.2   Market Share

               Describe your anticipated market share in terms of percentage and dollars.
               Explain the strategy that will be executed to achieve this market share.
               Specify the timeframe for capturing this market share.
                                                                                              Page | 8
6.0   Management and Organization

      6.1   Management team

               Describe the core management team.
               Include position descriptions
               Discuss individual qualifications and years of experience.
               Include an organization chart.


            Example:

            Organization Chart




      6.2   Staffing

               Describe the staffing levels of the organization.
               Explain how the planned staff is proportionate to the size of the business and its
                projected revenues.
               Include a chart that captures monthly personnel expenses.

            Example:

            Four managers will oversee the operation and report directly to the CEO. Staff
            employees will consist of 40 full-time employees and 15 contractors. All employees
            will be fairly compensated and will receive basic healthcare benefits. Employee
            profit sharing will be offered in the future.

               1 CEO (Full-time, $70K annual salary)
               4 Management employees (3 Part-time, 1 Full-time, $70K annual salary)
               20 cashiers (Full-time, $9/hour)
                                                                                           Page | 9
                20 stock clerks (Full-time, $9/hour)
                15 contractors (Part-time, $8/hour)

             The company will begin operations with 75% of its planned cashiers, stock
             employees, and contractors. The remaining 25% will be hired in month four of
             operation, to accommodate the projected increase in sales growth and customer
             patronage.

              Monthly Personnel Expenses - Year 1




7.0 Competitive Analysis

      7.1    The Competition

                Describe the competition by listing the objectives, strategies, capabilities and
                 overall position of each of your competitors.
                Separate the list into two categories: Direct Competitors and Indirect
                 Competitors.
                Explain how you will respond to competition and your competitive edge.
                Consumers typically have a variety of options to choose from when deciding
                 where to purchase items. Not only do they have a choice between competing
                 neighborhood supermarkets, but they can also shop at alternative retailers,
                 including large national discount chains and warehouse stores.

             Example:

             Our main competitors are ABC Company, DEF Company, GHI Company and JKL
             Company. Both Save-A-Lot and Buy Rite Discount are located in Midlothian, about
             two miles from the center of Robbins. These stores offer a limited selection of goods
             and services. The nearest Wal-Mart is two miles from the center of our target
             location. This Wal-Mart primarily sells general merchandise and their grocery line
             is limited. (See APPENDIX B: COMPETITIVE ANALYSIS)

                                                                                            Page | 10
            Our company’s indirect competition consists of restaurants and fast food outlets. As
            more and more time-pressed people are eating on-the-go and demanding quick and
            convenient meals, less money is being spent on groceries. To compete with these
            indirect competitors, our company will offer in-house prepared food items and baked
            goods, which will be a healthier alternative.

      7.2   Competitive Advantages

               List and explain your company’s competitive advantages.

            Example:

               Variety of products and services unique to the community
               One-stop shopping experience
               Complimentary transportation
               Central location in the Robbins community, a food desert
               Employment opportunities for 60 people in the Robbins community
               Customers can shop in their neighborhood and support their local economy
               High quality at low prices
               Excellent customer service
                “Green” building - energy efficient and environment friendly
               Longer store hours
               Significant community development and improvement
               Strong and scalable business model


8.0   Marketing & Sales Strategy

      8.1   Marketing and Sales Strategy Overview

               Summarize your overall strategy in terms of goals and objectives.
               Include key milestones.

      8.2   Marketing & Sales Tactics

               List and describe the individual strategic marketing and sales efforts and tactics
                that will be implemented.

            Example:

            Trademarks, Logos, Slogans
            Customer Surveys
            Print Advertisements
            Public Relations
            Commercials
            Direct Mailings
            Cold Calling
            Web and Email Marketing

      8.3   Marketing and Sales Budget
                                                                                           Page | 11
         Describe where you will concentrate your efforts in terms of dollars.
         Include a chart to capture the major categories of your sales and marketing
          budget.

      Example:




8.4   Pricing Strategy

         Describe your pricing strategy.
         Describe price sensitivity and elasticity of demand.
         Describe the process you will employ for evaluating and monitoring pricing.

8.5   Sales Forecast

         Prepare a monthly sales forecast for the first year of operation.
         Prepare annual sales forecasts through year 5.
         Include historical sales data, if available.




                                                                                   Page | 12
      Example:




9.0   SWOT Analysis

      9.1   A SWOT Analysis

                              Page | 13
                                                             List and describe your existing or potential strengths, weaknesses, opportunities
                                                              and threats.
                                                             Include a SWOT analysis chart or table.

                                                          Example:

                                                      Overcome weaknesses to pursue opportunities
                                                      Strengths                            Weaknesses




                                                                                                                                        Establish a defensive plan to minimize threats
                                                        Central location in community            Location not in heavy traffic area
                                                        Community based employees                Limited marketing resources
                                                        High quality operational                 Poor community reputation
                                                         procedures                               Market vacated by ineffective
                                                       In-house employee training and             management
                                                         cross training program                   Undifferentiated products
                                                       CRM program direction                     Establishing initial product mix
                                                       Numerous kiosks for easy one-
       Pursue opportunities that fit with strengths




                                                         stop shopping
                                                       In-store pharmacy and bank
                                                       Complimentary transportation
                                                      Opportunities                            Threats

                                                         Online marketing and coupons            Wal-Mart 2 miles from community
                                                         Partnerships with community             Economic downturns
                                                         Unmet demand in grocery retail          Inflation
                                                          sector                                  Intolerable supplier/distributor
                                                         Community involvement &                  price increases
                                                          support                                 Regulatory changes
                                                         Economic powerhouse for local           Increased competition
                                                          market



                                 9.2                      SWOT strategies

                                                             Explain how you will use your strengths to overcome your weaknesses and
                                                             Explain how you will capitalize on opportunities to mitigate threats.

10.0                             Operations

                                 10.1                     Business Model

                                                             Describe your business model with respect to the strategy for managing the
                                                              overall operation.
                                                             Focus on the key attributes that will ensure the operation runs as smoothly and
                                                              efficiently.

                                 10.2                     Hours of Operation

                                                             List daily hours of operation.
                                                                                                                                        Page | 14
                 Include holiday or seasonal schedule and special closings.

       10.3   Systems, Equipment and Software

                 List and describe the type of systems, equipment and software required for
                  operations.
                 Include cost estimates or quotes.

       10.4   Employee Training and Development

                 List and describe the employee training and development programs that will be
                  implemented.

       10.5   Facilities

                 Include a description of the facilities and what they will be used for.

       10.6   Manufacturing/Production

                 Describe your manufacturing and production processes.
                 Describe production capabilities.
                 Include a quality control diagram.

       10.7   Inventory Control

                 Describe your policies and procedures for managing inventory.

       10.8   Suppliers and Distribution

                 List major suppliers and distributors.
                 Provide a brief background, including location, services provided, and existing
                  customers of suppliers and distributors.
                 Include letters of commitment from suppliers and distributors.
                 Include cost estimates for supply and distribution.

11.0   Financing Requirements

       11.1   Total Capital Requirements

                 Include the total amount of capital required and how it will be used.
                 Include land purchases, building construction costs, start-up expenses, cash
                  reserves and any other ways the capital will be used.

              Example:

              Our company requires $4.1 million dollars in capital to start-up the new
              supermarket. These funds will be used for land purchases and building construction
              costs ($3M) and start-up expenses ($1.1M), with a cash reserve of $260K to cover
              the first two months of operating expenses. (See APPENDIX A: Start-Up and
              Capital Requirements for a detailed breakdown)
                                                                                            Page | 15
       11.2   Secured Funding

                 Describe sources of funding that have already been secured or obtained to fund
                  the project.
                 Include a detailed breakdown of the sources, amounts, and percentages.
                 Include grants, cash donations, owner’s capital or any other forms of funding
                  already received or secured.

       11.3   Total Financing Requirements

                 Describe the total financing requirements and the proposed structure in terms of
                  interest rate, terms and conditions.
                 Include a chart that captures a breakdown of the financing request.

              Example:

              Total financing requirements are $3.4M. Our company is requesting $2.4M in bank
              loans with a 15 year term at 8% interest and $1M in private funds raised through
              bonds.

              The bond structure and terms are:

                 2,000 bond units issued at $500,
                 Interest rate 12.5%,
                 Interest Payable commences Dec 1 of Year 3




12.0   Development & Milestones

       12.1   Completed Actions

                 Prepare a list of completed action items and significant milestones relevant to the
                  business plan.
                 Include the month and year each item was completed.
                                                                                            Page | 16
       12.2   Actions to Be Completed

                 Prepare a list of actions to be completed.
                 Estimate the month and year each action will be completed.

       12.3   Timeline

                 Include a bulleted chronological timeline of the completed actions, milestones,
                  and actions to be completed.

              Example:

                 Awarded $X by Company XYZ for building demolition and construction
                     Dec 2009
                 Secured buying rights for a structure from ABC
                     Feb 2010
                 Secured 1st $50K from investor                                    Jul 2010
                 Purchased the first major parcel of land for development
                     Sep 2010
                 Town Hall/Investors Meeting                                       Apr 2011
                 Secure private Investor funding                                   May 2011

                 Obtain letter of commitment for bank financing                          Jun 2011
                 Apply for licensing and permits                                         Jun 2011
                 Purchase final pieces of land for development                           Jul 2011
                 Finalize store floor plan, design and architectural drawings            Jul 2011
                 Construction begins                                                     Sep 2011
                 Sales & Marketing efforts begin                                         Sep 2011
                 Signing of Lease agreements        (Bank, Pharmacy, Transportation)
                                                                                          Jan 2012
                 Signing of distributor/supplier contracts                               Jan 2012
                 Construction complete                                                   Apr 2012
                 Initial Inventory purchase                                              Apr 2012
                 Hire Save-More staff                                                    Apr 2012
                 LEED Certification                                                      Jun 2012
                 Store opening                                                           Jul 2012
                 Achievement of break-even point                                         Mar 2013
                 Achieve first year sales of $8.5M                                       Jul 2013

13.0   Risks & Contingencies

       13.1   Risks

                 List and describe the know risks or potential risks associated with your business.
                 Describe the process or the manner in which these risks will be addressed or
                  mitigated.

              Example:

                                                                                            Page | 17
              Fierce competition
              Loss of a key employee
              Supplier/distributor delays due to natural disasters

       13.2   Contingency Planning

                 Include a contingency plan (back-up plan) based on conservative estimates or
                  worst case scenarios for budgeting and forecasting revenue and expenses.

14.0   Financial Data Assumptions & Highlights

       14.1   Financial data assumptions

                 Include only the main assumptions driving the business, financial budgets and
                  forecasts:

              Example:

              Income Statement
               Sales, $384 per square foot in Year 1, 37% below the national average of $612,
                 adjusted for local income levels and spending traits of the target market.
               Cost of goods and services, 73.4%, based on the national average
               Federal Tax Rate, 35%, State Tax Rate, 7.3%
               Fully burdened labor rate, 12% of sales on average
               Employee benefits 20%, taxes 10%
               Cost of overhead, 22% of sales
               Average sales growth rate, 21% in year 2, 7% years 3-5
               Average pre-tax profit, 7%

              Balance Sheet
               Straight-line depreciation, 30 years- building, 10 years - furniture/refrigeration,
                 5 years- kiosks/computers/registers

              Cash Flow
               Cost of debt: bank loan, 15 years at 5%, convertible bond 5 years at 8%

              Financial Ratios
              See APPENDIX: MONTHLY FINANCIAL RATIOS and APPENDIX J: FIVE YEAR
              FINANCIAL RATIOS

          Customers
              Avg. Sale per customer/per week, $51.31
              # of customers, 3,464 in Year 1
              Avg. customer growth rate = Avg. sales growth rate
              Avg. disposable income, $38,923

       14.2   Financial Highlights

                 Highlight the key financial performance measures, including sales, gross profit,
                  operating profit and net profit. Detailed financial statements should be included
                  in the appendices.
                                                                                           Page | 18
          Example:

              FIVE YEAR FINANCIAL HIGHLIGHTS            Year 1       Year 2       Year 3       Year 4      Year 5
              Sales                               $ 8,529,880 $ 10,321,155 $ 11,198,453 $ 11,982,345 $12,701,286
              Gross Profit                        $ 2,268,948 $ 2,745,427 $ 2,978,789 $ 3,187,304 $ 3,378,542
              Gross Profit %                              27%          27%          27%          27%         27%

              Operating Profit                    $   343,233 $     772,836 $    953,241 $   1,108,109 $ 1,244,755
              Operating Profit %                           4%            7%           9%            9%         10%

              Profit Before Tax                   $   279,969 $     717,755 $    906,758 $   1,070,661 $ 1,216,800
              Profit Before Tax %                          3%            7%           8%            9%         10%
              Net Profit                          $   199,656 $     421,322 $    532,267 $     628,478 $ 714,262
              Net Profit %                                 2%            4%           5%            5%          6%


15.0   Exit Strategy

       15.1       Exit strategy

                        Describe your plan for exiting the business.
                        Include at least two different options for exiting the business.

                  Example:

                  Liquidation in times of unrecoverable financial losses.
                  The sale and/or transfer of business for cash or future dividends.




                                                                                                                     Page | 19

				
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Description: This document is a template for a generic business plan. It can be used for all types of business entities (partnerships, LLCs, corporations, sole proprietorships), in any industry, for both informative and investment purposes. This form is intended to allow a company to convey the nature of its business, its present status, its status within its respective market, and its future prospects in both a written and financial format. This document can be customized to fit the needs of any company when describing its business.
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