Business Plan Template

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[company name]

 

BUSINESS PLAN

 

 

 

 

 

 

[YOUR NAME]

[YOUR TITLE]

 

Phone: [YOUR PHONE NUMBER]

Email: [YOUREMAIL@YOURCOMPANY.COM]

[YOUR WEBSITE ADDRESS]

 

 

[MONTH] [YEAR] // Confidential Information


 

 

 

 

 

 

Statement of Confidentiality

& Non-Disclosure

 

 

 

This document contains proprietary and confidential information. All data submitted to [RECEIVING PARTY] is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with [YOUR COMPANY NAME]. The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature.

 

The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matters are generally known to, and are available for use by, the public. The recipient also agrees not to duplicate or distribute or permit others to duplicate or distribute any material contained herein without [YOUR COMPANY NAME]'s express written consent.

 

[YOUR COMPANY NAME] retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia.

 

BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.

 

Table of Content

Table of Content 3

Executive Summary  6

Business Description   6

Products and Services  6

The Market 6

The Opportunity  6

The Solution   6

Competition   6

Operations  7

Management Team   7

Risks & Opportunity  7

Financial Summary  8

Capital Requirements  9

1. Business Description  10

1.1 Mission Statement 10

1.2 Values and Vision   10

1.3 Industry Overview   10

1.4 Company Description   10

1.5 History and Current Status  10

1.6 Goals and Objectives  10

1.7 Critical Success Factors  11

1.8 Company Ownership  11

2. Products / Services  12

2.1 Products / Services Description   12

2.2 Unique Features or Proprietary Aspects  12

2.3 Research and Development 12

2.4 Production   12

2.5 New and Follow-on Products & Services  12

3. The Market 13

3.1 Industry Analysis  13

3.2 Market Analysis  13

3.3 Competitor Analysis  14

4. Marketing & Sales  15

4.1 Introduction   15

4.2 Market Segmentation Strategy  15

4.3 Targeting Strategy  15

4.4 Positioning Strategy  15

4.5 Product / Service Strategy  15

4.6 Pricing Strategy  16

4.7 Distribution Channels  16

4.8 Promotion and Advertising Strategy  16

4.9 Sales Strategy  16

4.10 Sales Forecasts  16

5. Development 17

5.1 Development Strategy  17

5.2 Development Timeline  17

5.3 Development Expenses  17

6. Management 18

6.1 Company Organization   18

6.2 Management Team   18

6.3 Management Structure and Style  19

6.4 Ownership  19

6.5 Professional and Advisory Support 20

6.6 Board of [Advisors OR Directors] 20

7. Operations  21

7.1 Operations Strategy  21

7.2 Scope of Operations  21

7.3 Ongoing Operations  21

7.4 Location   21

7.5 Personnel 21

7.6 Production   21

7.7 Operations Expenses  22

7.8 Legal Environment 22

7.9 Inventory  22

7.10 Suppliers  22

7.11 Credit Policies  23

8. Financials  24

8.1 Start-up Costs  24

8.2 Income Statement 25

8.3 Balance Sheet 26

8.4 Cash Flow   27

8.5 Break-Even Analysis  28

8.6 Financial History and Analysis  28

9. Offering / Funding Request 30

9.1 Offer 30

9.2 Capital Requirements  30

9.3 Risk/Opportunity  30

9.4 Valuation of Business  30

9.5 Exit Strategy  30

10. Implementation   31

10.1 Year 1  31

10.2 Subsequent years  31

10.3 Contingency plan   31


 

Executive Summary

Business Description

Provide a brief description of your company. The opening paragraphs should introduce what you do and where.

 

Products and Services

This should include a very brief overview and description of your products and services, with emphasis on distinguishing features.

 

The Market

Provide a brief description of the market you will be competing in. Here you will define your market, how large it is, and how much of the market share you expect to capture.

 

The Opportunity

Describe the problem or the pain that the customer feels in order to establish that your business is really offering value to the customer.

 

The Solution

The solution is your product or service! However, if you want to set apart from the competition, your solution must be different and unique.

 

Competition

Identify the direct and indirect competitors, with analysis of their pricing and promotional strategies, as well as an assessment of their competitive advantage.

Main Competitors

 

Name

Sales

Market Share

Nature/Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations

Briefly outline how you will implement all of the above and include a brief description of the organizational structure and the expense and capital requirements for operation.

 

Management Team

Who's the management team? What's their background and skills?

 

Risks & Opportunity

Explain why you are in business along with the reasons why you will be able to take advantage of this opportunity.

 

Financial Summary

Summarize and explain briefly the key numbers of the business and the assumptions (sales, profit, loss etc.).

 

Income Statement Summary

 

 

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

 

 

 

 

 

Cost of Goods Sold

 

 

 

 

 

Gross Profit

 

 

 

 

 

Total Expenses

 

 

 

 

 

Income Before Tax

 

 

 

 

 

Less: Income Tax

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

Balance Sheet Summary

 

 

Year 1

Year 2

Year 3

Year 4

Year 5

Assets

 

 

 

 

 

Liabilities

 

 

 

 

 

Equity

 

 

 

 

 


Capital Requirements

Clearly state the capital needed to start or expand your business. Summarize how much money has been invested in the business to date and how it is being used.

 

Source of Funds:

 

Sources

Amount

Percentage

Owner’s Contribution

 

 

Term Loan

 

 

New Equity Financing

 

 

Total

 

 

 

 

Use of Funds:

 

Category

Amount

Percentage

Sales & Marketing

 

 

Capital Expenditures

 

 

G & A Expenses

 

 

Other

 

 

Total

 

 

 

 

               


1. Business Description

1.1 Mission Statement

A mission statement is a brief explanation of your company’s reason for being. Keep your mission statement to one or two sentences.

 

1.2 Values and Vision

Write the values that drive your business. Explain the visions of your business.

 

1.3 Industry Overview

Write the size of your industry, the sectors it includes; key information on industry markets, demographics and niche areas; the major players in your industry (suppliers, distributors); key industry and economic trends affecting your industry.

 

1.4 Company Description

Describe your business and explain why investors and lenders should be interested in getting involved in your business idea.

 

1.5 History and Current Status

Explain the history of your business and what you have accomplished; explain were you are right now.

 

1.6 Goals and Objectives

Explain the goals and objectives that you follow. They must be measurable with a timeframe.

 

1.7 Critical Success Factors

Ex: In order to reach our goals and objectives, we must:

 

1.8 Company Ownership

Identify the owners, their number of shares and % of ownership.

 

Ownership of Company

As of [Date]

Name

Title (if Applicable)

Number of Shares

Percentage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 


2. Products / Services

2.1 Products / Services Description

Provide a list of products and/or services offered. Provide as many details as possible. For each product/service, describe the main features and benefits. State at what stage of growth your product/service is in.

 

2.2 Unique Features or Proprietary Aspects

Explain the unique value-added characteristics of your product line or service and how these value-added characteristics will in turn give your business a competitive advantage.

 

2.3 Research and Development

List what your Research and Development has accomplished in the past such as innovative products or services. If there are any plans for the future, give the percentage of revenue or dollar amount that will be allocated and the duration of the plan.

 

2.4 Production

List the critical factors in the production of your product or delivery of the service. Specify and explain capital equipment, material, and labor requirements.

 

2.5 New and Follow-on Products & Services

If you already have new products in mind, point them out in this section. Your plan should include when and how you will launch the product/service.

 

 

 


3. The Market

3.1 Industry Analysis

Describe the industry in which you will compete. Potential investors and loan officers should understand the dynamics, problems, and opportunities driving your industry.

 

3.2 Market Analysis

Describe the total size of your industry, the trends in the industry (is it growing or shrinking) and the size of your target market, and what share is realistic for you to obtain.

 

3.3 Competitor Analysis

Describe type(s) of competition affecting your business (product/service competition, competition at the level of corporate/marketing strategy or business model, or competition based on specific attributes such as price, quality, features, etc.)

 

Competitive Analysis Table

FACTOR

Company

Strength

Weakness

Comp. A

Comp. B

Comp. C

Importance to Customer

Products

 

 

 

 

 

 

 

Price

 

 

 

 

 

 

 

Quality

 

 

 

 

 

 

 

Selection

 

 

 

 

 

 

 

Service

 

 

 

 

 

 

 

Reliability

 

 

 

 

 

 

 

Stability

 

 

 

 

 

 

 

Expertise

 

 

 

 

 

 

 

Company Reputation

 

 

 

 

 

 

 

Location

 

 

 

 

 

 

 

Appearance

 

 

 

 

 

 

 

Sales Method

 

 

 

 

 

 

 

Credit Policies

 

 

 

 

 

 

 

Advertising

 

 

 

 

 

 

 

Image

 

 

 

 

 

 

 

 

Competitive Advantage and Comparative Evaluation

Having done the competitive analysis matrix above, write a short paragraph stating your competitive advantages and disadvantages for both you and your competitors.

 

 

 


4. Marketing & Sales

4.1 Introduction

Begin with the fundamentals of your marketing plan. State target market segments you wish to penetrate, how you plan to achieve this (e.g. through retail, mail order, multi-level marketing, the Internet) and the period for capturing a specific percentage.

 

4.2 Market Segmentation Strategy

Explain your strategy for each segment you have described in section 3.2 (Market Segmentation and Target Market).

 

4.3 Targeting Strategy

Identify your target customer group and create a demographic profile for each group that includes age, gender, income, location, education. Identify the targeting strategy to implement.

 

4.4 Positioning Strategy

Describe the strategy you will use to position your product vis-à-vis competitors.

 

4.5 Product / Service Strategy

Describe how your product/service has been designed and tailored to meet the needs of your target customer and how it will compete in your target market.

 

4.6 Pricing Strategy

How do you plan to set prices? Upon examining the pricing strategy your competition is currently using, explain your pricing strategy and why it will be effective with your target customers.

 

4.7 Distribution Channels

Describe your distribution strategy and explain why it is the best for your marketplace.

 

4.8 Promotion and Advertising Strategy

Explain how you intend to increase awareness of your product or service among potential customers.

 

4.9 Sales Strategy

Explain how and where you plan to sell and distribute your product or service.

 

4.10 Sales Forecasts

Prepare a month-by-month sales forecast for a projected twelve-month period.

 

                                                                

                                                                


5. Development

5.1 Development Strategy

Explain what factors need to come together to make your concept work.

 

5.2 Development Timeline

Explain the length of time of your strategy.

 

5.3 Development Expenses

List the potential amount of expenses that will incur.

 

 

                                           


6. Management

6.1 Company Organization

Describe how your business will be organized legally and physically.

 

6.2 Management Team

Describe the background (experience, skills etc.) of the principal managers; explain their role, duties or responsibilities.

 

Name

Position

Age

Shares %

 

President

 

 

 

VP Sales & Marketing

 

 

 

VP Finance

 

 

 

VP Operations

 

 

 

VP R & D

 

 

 

Controller

 

 

 

Corporate Attorney

 

 

 

6.3 Management Structure and Style

Show the management hierarchy and who is responsible for key functions. Also, explain the management style. Finally insert your organizational chart below.

6.4 Ownership

List the majority owners of the business; the share held in number and percentage.

 

Name

# Shares Held

% Ownership

[Founder]         

 

 

[Inventor]

 

 

[Management Team]

 

 

[Seed Ventures]

 

 

[Stock Option Pool]

 

 

 

6.5 Professional and Advisory Support

List service providers your business may consult or from whom you will obtain additional services (Attorneys, bankers, accountant firm etc.)

 

6.6 Board of [Advisors OR Directors]

List members of your board of advisors/directors, with their respective background.

 

Name

Background

 

 

 

 

 

 

 

 

 

 

 

 

                      


7. Operations

7.1 Operations Strategy

Explain how you will use operations to add value for customers in your target market.

 

7.2 Scope of Operations

Explain what you will do in-house and what you will purchase (build vs. buy).

 

7.3 Ongoing Operations

Explain how your company will operate on an ongoing basis.

 

7.4 Location

Describe locations of production, sales, storage areas, and buildings. Explain lease or ownership details.

 

7.5 Personnel

Describe your labor force. Indicate the number of employees, the type of labor quality of existing staff, training methods and requirements and the pay structure.

 

7.6 Production

Explain your methods of production or how you deliver your service (production techniques and cost, quality control and customer service).

 

7.7 Operations Expenses

Explain your operating costs and assumptions that appear in your financial statement.

 

7.8 Legal Environment

Describe the elements that apply to your business (permits, licensing, trademarks, copyrights, patents etc.).

 

7.9 Inventory

Explain how you will manage your inventory (kind of inventory, rate of turnover, seasons buildups, lead time).

 

7.10 Suppliers

Identify the supplies you will use for your products / services. Describe the type and amount of inventory furnished. Explain their credit and delivery policies. Complete the table below.

Name

Terms

Product / Service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.11 Credit Policies

Provide information regarding your credit policies.

 

ACCOUNT RECEIVABLE

 

 

TOTAL

CURRENT

30 DAYS

60 DAYS

90 DAYS

+90 DAYS

ACCOUNT RECEIVABLE AGING

 

 

 

 

 

 

 

 

ACCOUNT PAYABLE

 

 

TOTAL

CURRENT

30 DAYS

60 DAYS

90 DAYS

+90 DAYS

ACCOUNT PAYABLE AGING

 

 

 

 

 

 

 

           


8. Financials

8.1 Start-up Costs

Identify all the costs associated with starting the business.

 

 

 

          © Copyright Biztree Inc. 2010. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.

 

 
START-UP COSTS

ACTUAL

BUDGETED

Accounting Services

 

 

Advertising And Promotion For Opening

 

 

Architectural Design

 

 

Cash

 

 

Decorating

 

 

Deposits For Utilities

 

 

Equipment

 

 

Estimated Taxes

 

 

Headhunting or Other Hiring Costs

 

 

Installation Of Equipment

 

 

Insurance

 

 

Legal Costs

 

 

Licenses And Permits

 

 

Moving

 

 

Office Supplies

 

 

Print Design

 

 

Printing

 

 

Remodeling, Buildout

 

 

Rent Deposits

 

 

Salaries

 

 

Signs

 

 

Software

 

 

Starting Inventory

 

 

Unanticipated expenses

 

 

Vehicles

 

 

Website

 

 

Other

 

 

Total Start-Up Costs

 

 

 

8.2 Income Statement

The Income Statement is a financial statement that reveals whether or not a business has earned a profit or has suffered a loss after a specified period. Complete the Income Statement below.

 

 

Last Year

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

 

 

 

 

 

 

Cost of Goods Sold

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

     Operating Costs

 

 

 

 

 

 

     Finance & Admin

 

 

 

 

 

 

     Sales & Marketing

 

 

 

 

 

 

Total Expenses

 

 

 

 

 

 

Income Before Tax

 

 

 

 

 

 

Less: Income Tax

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 


8.3 Balance Sheet

The balance sheet is a "snapshot" of what you own and what you owe on a specific date. Complete the balance sheet below.

 

 

Last Year

Year 1

Year 2

Year 3

Year 4

Year 5

Assets

Current assets

 

 

 

 

 

 

Long term assets

 

 

 

 

 

 

Other assets

 

 

 

 

 

 

Total Assets

 

 

 

 

 

 

Liabilities

Current liabilities

 

 

 

 

 

 

Long term liabilities

 

 

 

 

 

 

Total Liabilities

 

 

 

 

 

 

Equity

Owner’s capital

 

 

 

 

 

 

Retained earning

 

 

 

 

 

 

(Less: Dividends)

 

 

 

 

 

 

Others

 

 

 

 

 

 

Total Equity

 

 

 

 

 

 

Total Liabilities

& Equity

 

 

 

 

 

 

 

DEBT SCHEDULE TABLE

ORIGINAL AMOUNT

ISSUANCE DATE

PRESENT BALANCE

INTEREST RATE

MATURITY DATE

MONTHLY PAYMENT

SECURITY

CURRENT / PAST DUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.4 Cash Flow

A cash flow statement identifies monthly inflows and outflows of cash. It reveals whether a company will have enough money to meet its needs on a monthly basis. Complete the Cash Flow Statement below.

 

Yearly Cash Flow Forecast

 

Last Year

This Year

Cash inflow/Outflow from Operating activities

 

 

Cash inflow/Outflow from Investing activities

 

 

Cash inflow/Outflow from Financing activities

 

 

Net increase in Cash

 

 

Beginning Cash

 

 

Ending Cash

 

 

 

 


8.5 Break-Even Analysis

Provide a calculation for the break-even point in dollars and units for the business. Include all assumptions upon which your break-even calculation is based.

 

Breakeven Analysis Summary

 

Amount

Variable Cost per Unit

 

Fixed Cost (Total)

 

Expected Sales (in Units)

 

Price (per Unit)

 

Total Revenue

 

Total Variable Costs

 

Profit

 

Profit by Unit Sold

 

 

8.6 Financial History and Analysis

Complete the financial and ratios spreadsheet below.

 

 

 

PERIOD 1

PERIOD 2

VARIATION

Profitability Ratios

 

 

 

 

 

 

 

 

 

 

 

Gross profit margin

Gross Profit

 

 

 

0,00%

 

Sales

 

 

 

 

 

 

 

Operating profit margin

Operating Income

 

 

 

0,00%

 

Sales

 

 

 

 

 

 

 

Net profit margin

Net Income

 

 

 

0,00%

 

Sales

 

Liquidity Ratios

 

 

 

 

 

 

 

 

 

 

 

Current ratio

Current Assets

 

 

 

0,00%

 

Current Liabilities

 

 

 

 

 

0,00%

 

 

 

 

Quick ratio

Current Assets - Inventory

 

 

 

0,00%

 

              Liabilities

 

 

 

 

 

0,00%

 

 

 

 

Operating Ratios

 

 

 

 

 

 

 

 

 

 

 

Inventory turnover ratio

Cost of Goods Sold

 

 

 

0,00%

 

Inventory

 

 

 

 

 

0,00%

 

 

 

 

Sales to receivables ratio

Net Sales

 

 

 

0,00%

 

Net Receivables

 

 

 

 

 

0,00%

 

 

 

 

Times interest earned

Profit Before Interest and Taxes

 

 

 

0,00%

 

Total Interest Charges

 

 

 

 

 

0,00%

 

 

 

 

Return on assets

Net Income Before Taxes

 

 

 

0,00%

 

Total Interest Charges

 

 

 

 

 

0,00%

 

 

 

 

Return on equity

Net Income

 

 

 

0,00%

 

Net Worth at Beginning of Period

 

 

 

 

 

0,00%

 

 

 

 

Solvency Ratios

 

 

 

 

 

 

 

 

 

 

 

 

Debt to worth ratio

  Total Liabilities

 

 

 

0,00%

 

 

Net Worth

 

 

 

 

 

0,00%

 

 

 

 

 

 

Working capital

Current Assets - Current Liabilities

 

 

 

  0,00%

 

 

 

 

 

 

 

 

 


9. Offering / Funding Request

9.1 Offer

Explain your funding request. It should include amount needed, structure of the deal, interest, collateral, anticipated return, ownership willing to give, etc. Sell the advantages of your proposal to the investor.

 

9.2 Capital Requirements

Clearly, state the capital needed to start or expand your business. Describe why you need the funds and how both parties will benefit from the opportunity.

 

9.3 Risk/Opportunity

Explain how you have taken into consideration the risk involved in starting or expanding your venture.

 

9.4 Valuation of Business

Indicate the value of the business and how you determine this value.

 

9.5 Exit Strategy

Indicate the strategy you will follow should investors decide or need to cash out (end their involvement and recoup their investment).

 

 

                                                                                            


10. Implementation

10.1 Year 1

Summarize the key tasks to be completed during the first year of your business plan. Be short and concise.

Goal 1:

Goal 2:

Goal 3:

Goal 4:

Goal 5:

 

10.2 Subsequent years

Explain the implementation of the business plan for the subsequent years. Focus on strategic tasks.

Goal 1:

Goal 2:

Goal 3:

Goal 4:

Goal 5:

 

10.3 Contingency plan

Explain the contingency measures in case of the plans going astray for internal or external reasons.

 

 

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Document Description

A business plan is a statement of goals for a company in any field. Essentially, it is a set of guidelines relating to how you will run your business. A thorough business plan outline should start with an executive summary, followed by an overview of the company and some facts about the products or services you sell. It should also include any marketing strategies, as well as basic facts about the team managing the business. Most business plans also feature a financial section toward the end, detailing income, expenses, and a breakeven analysis. There is no required length for this type of document, but 20 pages is about average.

Document Outline Info

  • 513KB
  • Microsoft Word (.doc)
  • English
  • Business Plans
  • Plans

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