
[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
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.
1.5 History and Current Status
2.1 Products / Services Description
2.2 Unique Features or Proprietary Aspects
2.5 New and Follow-on Products & Services
4.2 Market Segmentation Strategy
4.5 Product / Service Strategy
4.8 Promotion and Advertising Strategy
6.3 Management Structure and Style
6.5 Professional and Advisory Support
6.6 Board of [Advisors OR Directors]
Provide a brief description of your company. The opening paragraphs should introduce what you do and where.
This should include a very brief overview and description of your products and services, with emphasis on distinguishing features.
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.
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 is your product or service! However, if you want to set apart from the competition, your solution must be different and unique.
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 |
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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.
Who's the management team? What's their background and skills?
Explain why you are in business along with the reasons why you will be able to take advantage of this opportunity.
Summarize and explain briefly the key numbers of the business and the assumptions (sales, profit, loss etc.).
Income Statement Summary
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Revenue |
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Cost of Goods Sold |
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Gross Profit |
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Total Expenses |
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Income Before Tax |
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Less: Income Tax |
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Net Income |
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Balance Sheet Summary
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Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Assets |
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Liabilities |
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Equity |
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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 |
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Term Loan |
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New Equity Financing |
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Total |
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Use of Funds:
Category |
Amount |
Percentage |
Sales & Marketing |
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Capital Expenditures |
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G & A Expenses |
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Other |
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Total |
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A mission statement is a brief explanation of your company’s reason for being. Keep your mission statement to one or two sentences.
Write the values that drive your business. Explain the visions of your business.
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.
Describe your business and explain why investors and lenders should be interested in getting involved in your business idea.
Explain the history of your business and what you have accomplished; explain were you are right now.
Explain the goals and objectives that you follow. They must be measurable with a timeframe.
Ex: In order to reach our goals and objectives, we must:
Identify the owners, their number of shares and % of ownership.
Ownership of Company
As of [Date] |
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Name |
Title (if Applicable) |
Number of Shares |
Percentage |
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TOTAL |
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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.
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.
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.
List the critical factors in the production of your product or delivery of the service. Specify and explain capital equipment, material, and labor requirements.
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.
Describe the industry in which you will compete. Potential investors and loan officers should understand the dynamics, problems, and opportunities driving your industry.
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.
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.)
FACTOR |
Company |
Strength |
Weakness |
Comp. A |
Comp. B |
Comp. C |
Importance to Customer |
Products |
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Price |
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Quality |
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Selection |
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Service |
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Reliability |
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Stability |
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Expertise |
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Company Reputation |
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Location |
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Appearance |
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Sales Method |
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Credit Policies |
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Advertising |
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Image |
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Having done the competitive analysis matrix above, write a short paragraph stating your competitive advantages and disadvantages for both you and your competitors.
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.
Explain your strategy for each segment you have described in section 3.2 (Market Segmentation and Target Market).
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.
Describe the strategy you will use to position your product vis-à-vis competitors.
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.
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.
Describe your distribution strategy and explain why it is the best for your marketplace.
Explain how you intend to increase awareness of your product or service among potential customers.
Explain how and where you plan to sell and distribute your product or service.
Prepare a month-by-month sales forecast for a projected twelve-month period.
Explain what factors need to come together to make your concept work.
Explain the length of time of your strategy.
List the potential amount of expenses that will incur.
Describe how your business will be organized legally and physically.
Describe the background (experience, skills etc.) of the principal managers; explain their role, duties or responsibilities.
Name |
Position |
Age |
Shares % |
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President |
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VP Sales & Marketing |
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VP Finance |
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VP Operations |
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VP R & D |
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Controller |
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Corporate Attorney |
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Show the management hierarchy and who is responsible for key functions. Also, explain the management style. Finally insert your organizational chart below.
List the majority owners of the business; the share held in number and percentage.
Name |
# Shares Held |
% Ownership |
[Founder] |
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[Inventor] |
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[Management Team] |
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[Seed Ventures] |
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[Stock Option Pool] |
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List service providers your business may consult or from whom you will obtain additional services (Attorneys, bankers, accountant firm etc.)
List members of your board of advisors/directors, with their respective background.
Name |
Background |
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Explain how you will use operations to add value for customers in your target market.
Explain what you will do in-house and what you will purchase (build vs. buy).
Explain how your company will operate on an ongoing basis.
Describe locations of production, sales, storage areas, and buildings. Explain lease or ownership details.
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.
Explain your methods of production or how you deliver your service (production techniques and cost, quality control and customer service).
Explain your operating costs and assumptions that appear in your financial statement.
Describe the elements that apply to your business (permits, licensing, trademarks, copyrights, patents etc.).
Explain how you will manage your inventory (kind of inventory, rate of turnover, seasons buildups, lead time).
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 |
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Provide information regarding your credit policies.
ACCOUNT RECEIVABLE
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TOTAL |
CURRENT |
30 DAYS |
60 DAYS |
90 DAYS |
+90 DAYS |
ACCOUNT RECEIVABLE AGING |
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ACCOUNT PAYABLE
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TOTAL |
CURRENT |
30 DAYS |
60 DAYS |
90 DAYS |
+90 DAYS |
ACCOUNT PAYABLE AGING |
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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. |
ACTUAL |
BUDGETED |
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Accounting Services |
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Advertising And Promotion For Opening |
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Architectural Design |
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Cash |
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Decorating |
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Deposits For Utilities |
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Equipment |
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Estimated Taxes |
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Headhunting or Other Hiring Costs |
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Installation Of Equipment |
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Insurance |
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Legal Costs |
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Licenses And Permits |
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Moving |
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Office Supplies |
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Print Design |
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Printing |
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Remodeling, Buildout |
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Rent Deposits |
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Salaries |
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Signs |
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Software |
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Starting Inventory |
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Unanticipated expenses |
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Vehicles |
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Website |
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Other |
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Total Start-Up Costs |
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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.
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Last Year |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Revenue |
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Cost of Goods Sold |
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Gross Profit |
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Operating Costs |
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Finance & Admin |
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Sales & Marketing |
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Total Expenses |
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Income Before Tax |
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Less: Income Tax |
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Net Income |
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The balance sheet is a "snapshot" of what you own and what you owe on a specific date. Complete the balance sheet below.
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Last Year |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Assets |
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Current assets |
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Long term assets |
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Other assets |
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Total Assets |
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Liabilities |
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Current liabilities |
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Long term liabilities |
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Total Liabilities |
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Equity |
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Owner’s capital |
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Retained earning |
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(Less: Dividends) |
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Others |
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Total Equity |
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Total Liabilities & Equity |
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DEBT SCHEDULE TABLE
ORIGINAL AMOUNT |
ISSUANCE DATE |
PRESENT BALANCE |
INTEREST RATE |
MATURITY DATE |
MONTHLY PAYMENT |
SECURITY |
CURRENT / PAST DUE |
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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 |
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Last Year |
This Year |
Cash inflow/Outflow from Operating activities |
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Cash inflow/Outflow from Investing activities |
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Cash inflow/Outflow from Financing activities |
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Net increase in Cash |
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Beginning Cash |
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Ending Cash |
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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 |
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Amount |
Variable Cost per Unit |
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Fixed Cost (Total) |
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Expected Sales (in Units) |
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Price (per Unit) |
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Total Revenue |
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Total Variable Costs |
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Profit |
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Profit by Unit Sold |
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Complete the financial and ratios spreadsheet below.
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PERIOD 1 |
PERIOD 2 |
VARIATION |
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Profitability Ratios |
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Gross profit margin |
Gross Profit |
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0,00% |
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Sales |
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Operating profit margin |
Operating Income |
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0,00% |
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Sales |
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Net profit margin |
Net Income |
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0,00% |
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Sales |
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Liquidity Ratios |
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Current ratio |
Current Assets |
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0,00% |
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Current Liabilities |
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0,00%
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Quick ratio |
Current Assets - Inventory |
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0,00% |
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Liabilities |
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0,00%
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Operating Ratios |
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Inventory turnover ratio |
Cost of Goods Sold |
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0,00% |
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Inventory |
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0,00%
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Sales to receivables ratio |
Net Sales |
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0,00% |
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Net Receivables |
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0,00%
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Times interest earned |
Profit Before Interest and Taxes |
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0,00% |
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Total Interest Charges |
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0,00%
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Return on assets |
Net Income Before Taxes |
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0,00% |
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Total Interest Charges |
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0,00%
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Return on equity |
Net Income |
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0,00% |
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Net Worth at Beginning of Period |
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0,00%
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Solvency Ratios |
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Debt to worth ratio |
Total Liabilities |
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0,00% |
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Net Worth |
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0,00%
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Working capital |
Current Assets - Current Liabilities |
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0,00% |
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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.
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.
Explain how you have taken into consideration the risk involved in starting or expanding your venture.
Indicate the value of the business and how you determine this value.
Indicate the strategy you will follow should investors decide or need to cash out (end their involvement and recoup their investment).
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: |
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: |
Explain the contingency measures in case of the plans going astray for internal or external reasons.
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.
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