Business Plan Outline
No matter what kind or size of business you are starting, it is very important to create a business plan. It will be your road map to success. It communicates your understanding of the business and it makes reasonable assumptions and forecasts of sales, expenses, and cash flow. When writing your business plan, it is important to keep in mind for who you are writing it. If you are writing a business plan for an investor or a bank you should assume that they know nothing about your business and industry. Also, keep your business plan short and to the point. If, on the other hand, you are writing a business plan just for yourself, you should construct it to suit your needs. It should indicate what your goals are and what strategies you will put in place to achieve these goals. If you are writing a business plan for an investor or a bank, the following information and format is recommended.
Contact Information Business Name: Mailing Address: Telephone: Fax: E-mail: Business Location: Date Formed: Owner:
% ownership:
I Summary A one paragraph statement that includes the following: A very short history of the business (if already in business) or the owner’s experience in the industry. The amount of financing required. The amount of equity (money) already invested in the business. The purpose for which the money will be used.
Below are the uses and sources of proceeds for this project. Uses Real Estate & Building Acquisition: New Construction/Expansion Repair: Acquisition/Repair of Equipment: Inventory Purchase: Working Capital: Debt Refinance: Business Acquisition: (Goodwill) Other: Total Uses:
$ $ $ $ $ $ $ $ $
Sources Equity Injection: Already Spent: Private Loan: New Cash: Used Equipment: Commercial Loan: Private Loan:
$ $ $ $ $ $ $
II
Company A. This section expands the information included in the “introduction” above: • The current status of the business (start-up, existing, acquisition). • The business structure (sole-proprietor, partnership, limited liability, corporation). • Products/services your business offers. • Suppliers of your products. • What differentiates your business from your competitors. • Description of the business location and hours of operation. • Short and long term goals.
I
• B The facility needs the following improvements:
.
Description
Cost / Value
Status Currently Own Need
III Product / Services This section describes the products and/or service that your business provides. It should be written so that a lay person can easily understand. Write a short paragraph about your primary products/services including: •A short description of products/services •Price structure of the products/services •Which products or services are the most profitable. •Any changes you foresee in the coming year.
IV Industry & Market A. Industry This section is one of the most important. You must demonstrate that you are knowledgeable about your business environment. The primary components of this section are: •What specific industry are you in? •What are the major trends? •Is the industry in a growth phase? •Who are your customers (individuals, small businesses, etc.)? •What is their demographic makeup (age, gender, profession, etc.)? •What is the market area (for example, how many miles from the business’ site)? •How many potential customers are within your market area?
B. Competition Write a short paragraph describing your primary competitors including: How long they have been in business. Approximately how much business they do. Their strengths and weaknesses. Why customers will go to you instead of your competitor.
V Marketing Having identified your market you should now explain how you will get these customers to purchase your products or services. You should write a short paragraph on how you plan to promote your business and include: A short description of your advertising method (flyers, radio/TV spots, internet, newspaper ads, etc.) The frequency that it will be used. The cost of the method of advertising. How many potential customers will be reached.
VI
Management & Staff
Position
Duties
Person
Experience
Compensation