Business PlanEstablishing a Foundation

Starting a Business

• Narrative Template

• Financial Worksheet

• Research, Think, Plan

• SCORE – Counselors to America’s Small Business

Executive Summary

• Write section last

• Explain business fundamentals

• Accurate, charismatic, concise

General Company Description

• Mission Statement

• Company Goals

• Business Philosophy

• Description

Products and Services• Description

– Technical– Drawing– Photos– Specifications

• Competitive Advantage/Disadvantage– Quality– Pricing Fee

Marketing Plan

• Market Research– Why?

• Effectiveness

– How?• Primary• Secondary

Economics• Facts

– Market Size– Current Demand

• Barriers– High Marketing Costs– Training and Skills

• Impact– Changes (technology, industry)

Product and Services• Features and Benefits

– Major product and feature

• Customers– Targeted Audience

• Competition– Major Competitors

Competitive AnalysisFactors Me Strength Weakness Rival A Rival B Client’s

Preference

Product

Price

Quality

Selection

Image

Location

Good Fit?• Unique Corner

• Strategy

• Promotion

• Promotional Budget

Analysis

• Pricing

• Proposed Location

• Distribution Channels

• Sales Forecast

Sales Forecast

Forecasting sales of your product or service is thestarting point for the financial projections. The salesforecast is the key to the whole financial plan, so it is

important to use realistic estimates. Divide yourprojected monthly sales into "Categories", which arenatural divisions that make sense for your type of

business. Typical categories might be: product lines,departments, branch locations, customer groups,

geographical territories, or contracts.

Operational Plan• Production• Location• Legal Environment• Personnel• Inventory• Suppliers• Credit Policies

Accounts ReceivableTotal Current 30 days 60 days 90 days Over 90

days

Accounts Receivable Aging

Accounts PayableTotal Current 30 days 60 days 90 days Over 90

days

Accounts Payable Aging

Management and Organization• Professional and Advisory Support

– Board of directors– Accountant– Mentors– Management Advisors

• Personal Financial Statement

Startup Expenses and Capitalization

• Estimate

• Research

• Forecast

Financial Plan• Twelve Month Profit Loss and Projection

• Four Year Profit Projection

• Projected Cash Flow

• Opening Day Balance Sheet

Financial Planning

• Break Even Analysis– the sales level that is the dividing line

between operating at a loss and operating at a profit.

Break-Even Sales = Fixed Costs

1- Variable Costs

Appendices• Brochures

• Maps

• Market Research Studies

• Future Potential Support

Refining the Plan

• Raising Capital– For Bankers

• Amount of Loan

– For Investors• Short Term Funds

– For Types of Business• Manufacturing and Service

Refining the Plan

• High Technology Companies– Cutting Edge

• Retail Business– Pricing– Inventory– Customer Service Policy

SUMMARY

• Questions

• Comments

• Concerns