Business Plan Outline
Strategic Business and Marketing Plan
Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com
The information in this document is confidential and is to be only read by authorized parties. Please refer to the confidentiality agreement for further details. This business plan is not an offering for securities.
Visit us at http:///www.TheFinanceResource.com
Confidentiality Agreement
Sample Business, Inc.
The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of or an authorized agent of Sample Business, Inc. It is acknowledged by the reader that information furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, and may cause serious harm or damage to aforementioned parties. This business plan is not to be copied or reproduced by any means without the sole written consent of an authorized agent of Sample Business, Inc. Upon request, this document is to be immediately returned.
__________________________________ Signature
_______________ Date
_______________________________ Name (typed or printed)
Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
2
Visit us at http:///www.TheFinanceResource.com
Table of Contents
Sample Business, Inc.
1.0 Executive Summary ...........................................................................................................4 1.1 The Products and Services .............................................................................................4 1.2 Financing ........................................................................................................................4 1.3 Mission Statement ..........................................................................................................4 1.4 Management Team .........................................................................................................4 1.6 Expansion Plan ...............................................................................................................5 2.0 Company and Financing Summary ...................................................................................6 2.1 Registered Name and Corporate Structure ...................................................................6 2.2 Required Funds ..............................................................................................................6 2.3 Investor Equity ...............................................................................................................6 2.4 Management Equity .......................................................................................................6 2.5 Exit Strategy ...................................................................................................................6 3.0 Products and Services ........................................................................................................7 3.1 Product 1 .........................................................................................................................7 3.2 Product 2 .........................................................................................................................7 4.0 Strategic and Market Analysis...........................................................................................8 4.1 Economic Outlook .........................................................................................................8 4.2 Industry Analysis ...........................................................................................................8 4.3 Customer Profile ............................................................................................................9 4.4 Competition ....................................................................................................................9 5.0 Marketing Plan .................................................................................................................10 5.1 Marketing Objectives ...................................................................................................10 5.2 Marketing Strategies ....................................................................................................10 5.3 Pricing ...........................................................................................................................10 6.0 Organizational Plan ..........................................................................................................11 7.0 Financial Plan ...................................................................................................................12 7.1 Underlying Assumptions .............................................................................................12 7.2 Sensitivity Analysis .....................................................................................................12 7.4 Profit and Loss Statements ..........................................................................................13 7.5 Cash Flow Analysis .....................................................................................................14 7.6 Balance Sheet ...............................................................................................................15 Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com
3
Visit us at http:///www.TheFinanceResource.com
1.0 Executive Summary
Sample Business, Inc.
The first paragraph of your business plan should clearly outline its purpose, how much capital you are looking to raise, how you intend to raise this capital, the name of your company, the state(s) where you will be initially doing business, the name(s) of the founder/owner, and what product/service you will be selling. You can reference the completed business plan as a guide as to how this paragraph should read. 1.1 The Products and Services In this section of the business plan, provide an overview of the products/services you will be selling. This section to be limited to one or two paragraphs as the third section of the business plan will further document the operations of your business and your products and services. You can also briefly discuss the operations of the business in this section of the business plan to exemplify how you intend to market your product, increase inventory turnover (if applicable), and other information regarding the general operations or special nature of the products/services you are providing. Most business plans refrain from listing services or product lines in bullet points for this section. Again, you can refer to the full business plan sample for more information about how this section can be drafted. 1.2 Financing In this section of the executive summary, you should document how much capital you are looking to raise, whether you are seeking a debt of equity investment, the expected terms of this investment (interest rates or portion of business sold), and what you intend to do with these funds. If you are making an equity contribution into the business, you should also discuss that here as well. It is imperative that a bank/investor know that you are heavily committed (both time wise and financially) to making your business profitable. You can use bullet points in this section to outline specific purposes for the capital sought. 1.3 Mission Statement Provide your business’ mission statement here. 1.4 Management Team In this section, provide a one paragraph overview of your (or you and your partners expertise), how many years you have in the industry (or related industries), and discuss why you will be able to successfully manage the business on a day to day basis.
4
Visit us at http:///www.TheFinanceResource.com
1.5 Sales Forecasts Below are the expected financials over the next three years.
Profit and Loss Statem ent
Sample Business, Inc.
$900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2009 2010 Years 2011 Revenue Total Expenses Net Income
Insert the P&L Graph from the MS Excel Model into this section of the business plan. 1.6 Expansion Plan For the expansion plan, discuss how you intend to grow your business operations during its first three years of operations, and what you intend to do with the business after the first three years of operations. This can include launching additional locations, increasing marketing budgets, expanding service/product lines, etc.
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
5
Visit us at http:///www.TheFinanceResource.com
Sample Business, Inc.
2.0 Company and Financing Summary 2.1 Registered Name and Corporate Structure Provide the registered name of the business, and the type of business entity you are using (C-Corp, S-Corp, LLC, LLP, or Sole Proprietorship are the most common). 2.2 Required Funds Insert the asset purchases table into this section of the business plan from the MS Excel Model.
Asset Purchases FF&E Computers Vehicles Other Assets Total Asset Purchases $25,000 $30,000 $60,000 $35,000 $150,000
2.3 Investor Equity If you are looking for capital from an investor, discuss the tentative terms of how much of the business you are looking to sell, profit payouts, etc. If you are raising capital from a private investor, it is strongly recommended that you speak to a licensed attorney and certified public accountant as you may be subject to state or federal securities laws. Only a licensed professional (within your jurisdiction) can determine whether or not you are subject to these laws. 2.4 Management Equity Discuss how much of the Company will be owned by the Owner or the Management Team. If you are seeking a loan, then you (or you and your business partners) will most likely retain a 100% ownership interest in the business. 2.5 Exit Strategy If the Business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Business . Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings. Discuss potential ways that you can sell or expand the company. A sample paragraph has been provided.
6
Visit us at http:///www.TheFinanceResource.com
3.0 Products and Services
Sample Business, Inc.
Provide a brief introductory paragraph regarding your products and services. You can reference the completed sample to see how this is done. Additionally, please review the INSTRUCTIONS regarding how to add additional products/services to this section and/or how to change the names (ie..Product 1, Product 2) in the headers for the table of contents. 3.1 Product 1 Describe your first product/service sold in this section. 3.2 Product 2 Describe the second product/service sold in this section.
*** You can add an unlimited number of products/services to this section. Please reference the PDF of the instruction regarding how to do this.
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com
Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
7
Visit us at http:///www.TheFinanceResource.com
4.0 Strategic and Market Analysis 4.1 Economic Outlook
Sample Business, Inc.
Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of an economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. For most people drafting their own business plans, this is probably the most difficult section to write. Unless you have a strong understanding of economics, it is hard to determine which external economic factors your business will face, how to determine the direction of the economy, and other factors that are beyond your control – but will affect your business. You can read about the current state of the economy in many newspapers. If you continue to have difficulty with this section you can hire a business planning firm to assist you with this process. The above paragraph has been included to assist you in writing this section of the business plan. 4.2 Industry Analysis Many people often have difficulty with this section. However, there are a number of online resources that you can use to find information specifically about your industry, including the US Bureau of Labor Statistics, the US Economic Census, and a number of privately available reports that you can purchase relatively inexpensively. In this section you should focus on the aggregate revenues of your industry, how many businesses are in the industry, how many people the industry employs, growth trends, negative impacts regarding the economy on the industry, and payrolls within the industry.
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com
Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
8
Visit us at http:///www.TheFinanceResource.com
4.3 Customer Profile
Sample Business, Inc.
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc. You can use bullet points to outline the general demographics of your customer base (for example): Age 25 to 60. Annual income of $50,000+ Lives within 15 miles of the business’s location.
You can find local data about your geographic location by accessing popular websites such as city-data.com or melissadata.com (these sites have no affiliation or relationship with TheFinanceResource.com) 4.4 Competition This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
9
Visit us at http:///www.TheFinanceResource.com
5.0 Marketing Plan
Sample Business, Inc.
Here, you should provide an introductory paragraph regarding your marketing campaign, which should include a brief overview of your marketing objectives, specialized marketing campaigns that you will use, and how much money you will spend on promoting your business during its grand opening and throughout the year. 5.1 Marketing Objectives Provide bullet points that will provide an overview of how you intend to market your product service (for example): Strategy 1 - One Sentence Strategy 2 – One Sentence Strategy 3 – One Sentence
5.2 Marketing Strategies In this section, you should expand on how you intend to implement your marketing. List publications, local newspapers, radio, and other outlets that you will use to promote your business. Discuss how much money you intend to spending on marketing. 5.3 Pricing In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com
Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
10
Visit us at http:///www.TheFinanceResource.com
6.0 Organizational Plan
Sample Business, Inc.
Senior Management
Operations Staff
Administrative Staff
Sales Staff
Accounting
Inventory Management
Sales - Marketing
Store Management
Administrative
In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section. You can also discuss employee payrolls, special employees needed for the Company’s operations, and other important aspects of your organization in this section of the plan.
Need a Complete Business Plan with Full Research and Financials? Visit http://www.bizplandb.com Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
11
Visit us at http:///www.TheFinanceResource.com
7.0 Financial Plan 7.1 Underlying Assumptions
Sample Business, Inc.
In this section of the business plan, use bullet points to outlined how much capital you are looking to raise, whether it is a debt or equity capital investment, you expected revenue growth rate during the first three years of operation, and any other assumptions that were used in the financial model. You can reference the fully completed example to help you with this section.
7.2 Sensitivity Analysis In this section of the business plan, you should specifically discuss economic factors that may directly impact your revenues or costs. You should also discuss the strengths of your operations, how you can cut costs during a recession, and how you intend to finance any debt obligations of the business if revenues do not meet expectations. 7.3 Source of Funds In this section of the business plan, copy and paste the financing table from the MS Excel workbook.
Financing Equity Financing Owner Contribution Investor Contribution Total Equity Capital Debt Financing Bank Loan Total Debt Capital Total Capital $150,000 $150,000 $200,000 $50,000 $0 $50,000
On the following pages, copy and paste the financial tables from the MS Excel model into the below subchapters. Please review the instructions PDF document for questions regarding how to do this procedure. Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
12
Visit us at http:///www.TheFinanceResource.com
7.4 Profit and Loss Statements
Proforma Profit and Loss Statements Year Revenue Cost of Goods Sold Operating Income Operating Expenses Payrolls Rent Utilities Marketing General and Administrative Professional Fees Licensure Misc. Expenses Payroll Expenses Total Expenses $200,000 $25,000 $5,000 $10,000 $7,500 $3,500 $1,000 $200 $28,000 $280,200 2009 $750,000 $232,500 $517,500 2010
Sample Business, Inc.
2011 $858,675 $266,189 $592,486
$802,500 $248,775 $553,725
$206,000 $25,750 $5,150 $10,500 $7,950 $3,605 $1,010 $204 $28,840 $289,009
$212,180 $26,523 $5,305 $11,025 $8,427 $3,713 $1,020 $208 $29,705 $298,106
EBITDA Federal Taxes State Taxes Interest Expenses Depreciation Net Income Profit Margin (%)
$237,300 $78,309 $11,865 $13,107 $21,429 $112,591 15.01%
$264,716 $87,356 $13,236 $12,197 $21,429 $130,498 16.26%
$294,380 $97,145 $14,719 $11,202 $21,429 $149,885 17.46%
Profit and Loss Statem ent
$900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2009 2010 Years 2011 Revenue Total Expenses Net Income
13
Visit us at http:///www.TheFinanceResource.com
7.5 Cash Flow Analysis
Proforma Cash Flow Analysis Year Cash Inflows Cash Inflow from Operations Depreciation Equity Investment Increased Borrowings Accounts Payable Decreased Accounts Receivables Total Cash Inflows Cash Out Flows Repayment of Principal Decreased Accounts Payable Increased Accounts Receivable Shareholder Payouts Asset Purchases Total Cash Out Flows $9,695 $6,000 $0 $101,041 $150,000 $266,736 $134,019 21428.57143 $50,000 $150,000 $8,000 $0 $363,448 $151,927 21428.57143 2009 2010
Sample Business, Inc.
2011 $171,313 21428.57143 $0 $0 $12,000 $0 $204,742
$0 $0 $10,000 $0 $183,355
$10,605 $8,000 $0 $112,681 $43,339 $174,624
$11,202 $10,000 $0 $125,282 $48,186 $194,670
Net Cash Flow Cash Balance
$96,712 $96,712
$8,731 $105,443
$10,072 $115,515
Cash Flow Analysis
$400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2009 2010 Years 2011 Total Cash Inflow s Total Cash Out Flow s Net Cash Flow
14
Visit us at http:///www.TheFinanceResource.com
7.6 Balance Sheet
Proforma Balance Sheet Year Assets Cash FF&E Computers Vehicles Other Assets Accumulated Depreciation Total Assets Liabilities Accounts Payable Long Term Liabilities Other Liabilities Total Liabilities Equity $2,000 $140,305 $0 $142,305 $82,978 $4,000 $129,700 $0 $133,700 $122,224 $96,712 $25,000 $30,000 $60,000 $35,000 ($21,429) $225,283 $105,443 $31,501 $45,169 $77,336 $39,334 ($42,857) $255,924 2009 2010
Sample Business, Inc.
2011 $115,515 $38,729 $62,034 $96,610 $44,152 ($64,286) $292,753
$6,000 $118,101 $0 $124,101 $168,652
Balance Sheet $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2009 2010 Years 2011 Total Assets Total Liabilities Equity
Want More Free Business Planning Templates? Visit us at http://www.TheFinanceResource.com
15