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NEWYORK STATESMALL BUSINESS DEVELOPMENT CENTER

“Helping you connect the business pieces”

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WHY DO YOU NEED A BUSINESS PLAN?

If you want to raise money to financea new business, the operation orexpansion of an existing business, orto buy an existing business—youneed a business plan.Sources of capital, investors andlenders, will not even considerproviding money to yourbusiness unless you havea plan—and it must bea plan that showsyou have reallythought aboutand through whatyou are proposing.

If you want to manageand organize your businesseffectively, you need abusiness plan. A good planhelps you to focus onmarkets for your product orservice, anticipate future needs,monitor progress and be aproactive—not reactive—manager. Itis a very valuable management tool.

If you want to know where you are,where you're going, and, how you'regoing to get there, you need abusiness plan. A good business planis a road map for your business.

If you have never prepared abusiness plan before, work with aresource partner like the NYS SBDCto help you get started. An objectivesource can help analyze the

strengths and weaknesses of yourbusiness proposal and can work withyou to complete your plan so thatyou will have a useful tool forrunning your business or raisingcapital.

CHOOSING THE PLAN FOR YOUMany business planners can beginwith a Condensed Business Plan to

get things started. Section 1 willtake you step by step

through a simplifiedplanning processand will enable youto quickly make a

preliminary assessmentof your business idea. If

you need assistance withcompleting your plan,please contact a resourcepartner or read thecomparable information in

Section 2.

Some business planners require amore detailed plan. Section 2provides more detailed questions,requires more extensive research,and will take you step by stepthrough a careful analysis of yourbusiness proposal and provide aclear path for your business.

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SUMMARYThe Summary is a brief – no morethan one page – overview of yourbusiness plan. You should write itafter completing the 9 areasdescribed below and after completingthe financial sections. It shouldhighlight the key ideas in your planand help the reader to make senseof what they will be reading.

1. BUSINESS DESCRIPTIONThe Business Description is anoverview of what your business isand what it does. In a concise anddirect manner describe yourbusiness. For example, New BusinessEnterprises is a partnership set up tomanufacture widgets. It is located ina 2,500 sq. ft. facility in Anytown,NY and sells through a distributornetwork to customers throughout theUnited States. The partnersdeveloped the widgets while workingfrom home and moved to the currentlocation last year. New BusinessEnterprises is seeking to expandmanufacturing with new productionequipment and a larger facility.

2. MARKET ANALYSISIn the Market Analysis describewho your customers are or will be.Are they individuals or businesses?How many customers are out there?If individuals, what are theircharacteristics in terms of age,location or other common traits? Ifbusinesses, how can they beidentified e.g., by industry, by size,

etc.? If your product or service isalready available from other sourceshow big is the market, in otherwords, how much is currently beingspent by all possible customers?What are the past, current and futuremarket trends? Is the marketsegmented; is it a commoditymarket; is it unique; what is thegeographic area of your market?What part of the market will you beselling to?

3. PRODUCT OR SERVICEANALYSIS

Describe specifically what yourproduct or service is and whycustomers will purchase it. What arethe features or benefits of yourproduct or service that are better thanthe competition (e.g., better quality,cheaper, faster, softer)? What needdoes your product meet? How does itsatisfy demand? Is the productprotected, perhaps by a patent or anexclusive contract? What makes yourproduct unique? Is it branded orprivate label? What will your warrantypolicy be?

4. COMPETITIONIdentify the top 3 or 4 companiesthat provide the same or analternative product or service - besure not to overlook foreigncompetition. Briefly describe thesecompetitors in terms of size,location, target market, distributionor other characteristics. You may

ORGANIZING YOUR BUSINESSPLANA common fault of business plans isthat they are not well organized.Without a well thought-out structureeven the most persuasive argumentscan fail to convince the reader. Sothe first step in preparing your planis to organize it. Over the years wehave found the following format to beeffective. Check off each item totrack your progress as it iscompleted.

Table of Contents1. Summary - a brief overview of

the plan2. Business Description - what the

company does3. Market Analysis - who the

customer is, market size, trends4. Competitive Analysis - who else is

out there, local, domestic, foreign5. Product/Service Advantages -

why is yours better6. Objectives - quantifiable targets7. Marketing Strategy - how to reach

those targets

wish to do this section as a chart.Remember—a good place to startthis research is your local yellowpage telephone directory andindustry directories. Describe alsoany identifiable strengths andweaknesses, such as, competitor #1has a large sales force, #2 has nolocal distribution. Don't forget tolearn from the competition—what arethey doing right and what are theydoing wrong? What are yourcompetitor’s strategies in markets,sales and operations?

5. MARKETING STRATEGYThis section describes how youwill reach your customers and yoursales goals. Be sure to thinkspecifically of why customers willbuy from you and not thecompetition. Identify and describehow you will get sales, how you willreach specific markets, how you willprice the product or service, and,how the product or service will bedistributed. For example, will you sellthrough retailers, by direct mail,sales representatives, regionaldistributors, direct sales people, etc.?How will you promote the product orservice—will you develop a brochureor data sheet, where and when willyou advertise and estimate howmuch will this cost? Will you build amarket niche? How will service/otherpolicies interact with marketing?

6. OPERATIONSDescribe how you will make orobtain your product or provide yourservice. Be specific in describinghow much space, or special

electrical service, or specialplumbing may be needed formachinery, for storage, packing andhandling, what type of machinery isrequired, how much warehouse andoffice space you need, and, if thereare any zoning or regulatory [OSHA,EPA, etc.] concerns. How manypeople will you need, and, when willyou need them? Are special skillsrequired?

7. MANAGEMENTIn this section identify who will bein your business. What experienceare you bringing into the business,how does your background relate tothe business? Provide resumes ordetailed descriptions of the peoplethat will be working with you andtheir education and experience. Ifthere are several owners or partners,identify all of them. Identify supportpersons and services, such asaccountants or attorneys, in thissection as well. You may want toinclude job descriptions that identifyspecific tasks and responsibilities.

8. FINANCESIn this section describe howmuch your business proposal willcost. Describe the past, current, andfuture fiscal side of your business. Ifyour business is already operating,provide financial statements or taxreturns for the last three years. Howmuch business are you doing now?Are you making a profit, if so, howmuch?

Estimate how much it will cost to dothe things you propose, for example,

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the new machine that costs $3,000plus $500 for installation. If you dowhat you plan, how much more willyou sell or how much more costeffectively can you produce orprovide the product or service? Willnew machinery or equipment helpyou keep up with the competition,will it give you a competitiveadvantage? Identify the specificcosts of making your product orproviding your service. Can youcharge enough to make a profit?

Estimate the operating costs you willincur by reviewing these cost areas:rent, wages, benefits, insurance,advertising, printing, telephone,utilities, business travel, salesexpenses, etc. See the samplefinancial schedules at the back ofthis booklet to help you prepare

projections for the first three years ofyour business. If you plan to borrowmoney, don’t forget to include theproceeds of the loan and repaymentof principal and interest. As you workon the numbers remember to writedown the assumptions behind thecalculations.

9. SUPPORTING INFORMATIONProvide copies of brochures, photos,news clippings or other relevantinformation that will help the readerto better understand your proposal.For example, a photograph can helpsomeone to understand what yourproduct is. A copy of a competitor'sbrochure can show how attractiveyour product is compared to theirs. Ifyour business is a franchise attach acopy of the contract, etc.

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• Who are, or who will be, theowners

Think carefully about this section. Forexample, many years ago, WesternUnion could have said they were inthe telegraph business. In reality,they were in the communicationsbusiness, hence, today we haveAT&T, MCI etc.

3. MARKET ANALYSISFrequently this is the weakest part ofmany plans and reveals that themarketing homework has not beendone thoroughly. This is the sectionwhere you must present sufficientevidence to prove (and to convincethe reader) that there really isa need for your productor service—and thatthere is sufficientdemand to support thebusiness you haveproposed. It is notenough that you believein the product orservice. This section must firstidentify the need for your product orservice, second, show how yourproduct or service meets that need,and third, show how you can sellyour product or service at a profit.This section can be organized inmany ways to answer thesequestions. The following is onesuggested way.

Market Size - Present figuresand factual information on the size ofthe market for your product orservice. Obtaining reliable numbersmay seem difficult but the effort willbe worth it. We can help you find

sources of information and in somecases conduct some marketresearch. Include detailed informationon the following:

• How much is now being spent onthe product or service (by allcustomers), or, if the product isnew, how much is being spent onalternatives?

• Is the market expanding orcontracting, and at what rate?How is the market changing, anddefine the characteristics that arechanging?

• Where will the market be in fiveyears, how much will customersbe spending, do population or ageprojections show an impact forthe future?

Market Profile - Describeexisting or potential customers foryour product or service, expandingon the information in the BusinessDescription. This expanded detailshould include:

• Who will buy. If your customersare individuals what are theircharacteristics, age, income level,education, family status, etc., in aword your customer'sdemographics. Also, how manycustomers are there? If yourcustomers are businesses, whatkind of businesses, what do theyhave in common, what sizes arethey, are products branded orprivate label, etc.?

• Where are your customers? Arethey located in a particular regionor area? Describe thecharacteristics of the region as itmay relate to your products, e.g.,if your business makes wintercoats your customers areprincipally in cold regions.

8. Operations - how will thecompany produce

9. Organization & Management -who will run it

10. Timing - when will thingshappen

11. Financial Information – historical,actual, projected

12. Exhibits/Appendices - brochures,photos, news clippings, etc.

Whatever your business, all thesesections can be important. Forexample, (without a market analysis)starting a new business is like rollingdice—and providers of capital are notgamblers, they are risk managers.With this in mind, let's take a look ateach section of the plan.

1. SUMMARYInvestors and lenders receive manybusiness plans to read. TheSummary is a screening device tohelp them sort out plans. It enablesyou to convince the reader that youhabe a viable business or idea. YourSummary should present the plan ina way that makes the reader want toread the entire plan.

Though the Summary appears first,you should write it last—after youhave completed the rest of the plan;and, it should not be longer than onepage. It should include:

• A brief description of the business• Estimated market potential and

competitive assessment• Your product's advantages and

market need it will meet• Your objectives for the business• Your market strategies• How you will make the product or

perform the service• Your experience with the product

or service or industry• Projected sales and profits• How much you have or will invest

in the project• How much financing is needed• Where financing is coming from

and what it will be used for• How and when the financing will

be repaid

Obviously, to get all of this onto onepage you must write very concisely—give only the highlights with thesupporting detail in the sections thatfollow.

2. BUSINESS DESCRIPTIONIn this section you describe thebusiness you are, or want to be, in. Itshould include:

• The legal form of the business[e.g., corporation, subchapter S,partnership, etc.]

• Your specific product or service• The present or proposed location

of the business• Your existing or potential

customers and their geographicarea, domestic, international

• A brief history of the business,how did you get here

• How the business was financeduntil now

better, faster, cheaper, softer,neater, etc. If your product orservice has any limitations, specifythem here - to do otherwise isfooling yourself.

Proprietary Position - Ifyou have a proprietary positiondescribe the patent, copyright, orother contractual or designexclusivity or means of protectingyour product or service ortechnology.

Other Barriers toCompetition - Describe anyother barriers that would discourageothers from entering the market.These include agreements withmanufacturers or distributors, highstartup or research costs, tie-in salesor usage applications, licensing orproprietary process technology, etc.

RegulatoryRequirements - Describe theregulatory environment for yourproduct or service. This includesagencies such as the U.S.Environmental Protection Agency,Food and Drug Administration, locallicenses, etc. Research any pendingor proposed rules or legislation thatmay affect your product or service orthe technological process behind it.

Product Extension - Whereare you going with your product orservice? Describe futureimprovements, developments ordirections to meet the changingneeds of your market. These willusually be extensions of the primaryproduct or service and will relate to

market changes described in yourmarketing section.

6. OBJECTIVESThis section describes and, quantifiesyour marketing objectives - wherewill your product be and when, e.g.,how many will you sell, at whatprice, what will your marketpenetration rate be, and, when willeach target happen?

Target Markets - Based onthe information from your marketanalysis identify the specific targetmarket(s) that you will concentrateon. Be as specific as possible -when you carry out your plan youwant to focus your resources on themarket segment in which you havethe greatest chance for success. Ifpossible carve out your own marketniche.

Estimated Sales andMarket Share - Estimate thesales you think you can achieve overthe next three years, starting withquarterly estimates in years 1 and 2.Calculate the market share thatthese sales represent. Market shareis that percentage of the total marketrepresented by your sales. Forexample, if $100 million is spent byall the customers who might buyyour product or service, and you sell$500,000 you have a 0.5% market

• Why will your product or servicebe purchased? Expand on theneed your product or servicemeets and why the customer willselect yours over a competitivechoice. Will your product meet afeature or benefit need? Forexample, with athletic footwear,Velcro brand closures are afeature but if the sneakers makeyou jump higher and run faster,that is a benefit.

• When will your product or servicebe purchased? Is it seasonal and,if so, what is the seasonalaspect? Does it tie in with otherproducts or events?

• What is the customer'sexpectation for your product orservice in terms of price, quality,service, delivery, packaging, etc.?

4. COMPETITIONDescribe the companies andproducts that are or will be yourcompetition and don’t forget toinclude imports if they are a factor inyour market. Remember, even newproducts have some type ofcompetition. For example, if you willbe selling cash registers, a look atpersonal computers would beappropriate as there is competitionfrom point-of-sale data processingequipment. Include the following andlimit your detailed analysis to the top5 or 6 competitors:

• How many companies will you becompeting against? Where arethey located, how long have theybeen in business?

• How do they distribute theproduct or service? What is theirrespective market share?

• What are their strengths andweaknesses in marketing,

operations and finance, and whatare their strategies?

• How does your product comparein terms of price, quality, service,design, delivery or other features?

• Do you intend to take marketshare away from the competitionor will you be creating a new,niche market?

Again, some of this information mayseem difficult to obtain, but get asmuch as you can so you will knowwho and what you are up against.Start your research with readilyavailable tools like your telephone,the Yellow Pages, catalogs, salesliterature, industrial and commercialdirectories, libraries, tradeassociations, etc. You may wish toset up a chart or table/matrix listingthe same categories for eachcompetitor.

5. PRODUCT OR SERVICEADVANTAGES

Investors or lenders want to knowhow your product or servicecompares to the competition. Theywant to know what is unique aboutyour product or service, and to whatextent you will have a competitiveadvantage over similar or existingproducts, and, how long will thatadvantage last.

Product Description -Describe the key features of yourproduct or service and its benefits topotential customers. Compare thesefeatures with those of competingproducts or services. Emphasize yourcompetitive edge - what '...er' willyour product or service have - that is

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• How will your price compare tocompetitive products or servicesand is the difference worth it?

• How will your price relate to whatthe market is able and willing topay? Products targeted for pricesensitive low end markets cannotcarry a high price.

• How will your pricing strategyenable you to achieve yourobjectives and how does it relateto your distribution methodology?Is multi-tier pricing required?What will the impact ofretailer/distributor markups be?Will these add-ons make yourproduct too expensive?

Distribution - Describe howyour product or service gets fromyou to the customer and how thatrelates to your marketing methods.Consider the following:

• What are the available methodsfor distribution (e.g., direct salesforce, distributors, retailers, mailorder) for similar products orservices?

• What are the methods used byyour competition? Will yours bedifferent? Why, and can this beused to differentiate your productor service?

• If you elect to use a direct salesforce how large will it be, whatwill its growth rate be, how willthey be compensated, and, whatexpenses will they incur beyondsalaries?

• If you use dealers or distributorshow many do you need, wherewill they be, how will youdetermine these factors (e.g.,geographically, demographically,logistically), and how will you findthem?

• Describe, in reasonable detail,

how the distribution methodologywill support your strategy andenable you to reach yourobjectives.

Promotion - Describe how youwill generate awareness of yourproduct or service among potentialcustomers. Include the following:

• What promotional activities areused by the competition (e.g.,advertising, publicity, literature,trade shows, etc.)?

• What activities do you plan touse, how and why will they differfrom the competition? How muchdo you plan to spend on theseactivities as a total dollar amountand as a percentage of sales?

• How will your activities reach thecustomer at a purchase decisionmaking point? How will youmaintain awareness for unevensales decision cycles? How willyou develop brand loyalty?

• How will you schedule theseactivities? Provide an estimatedmedia or production schedule forliterature or advertising.

8. OPERATIONSIn this section you should describehow you will obtain or produce yourproducts or provide your service.Consider the following:

Location & SpaceRequirements - If yourbusiness exists, where is it, ifproposed where are you planning toput it and why? What type of spacedo you need, how much space, whatwill it cost, what may be unique orspecial about it (e.g., a sophisticatedassembly operation may require airconditioned manufacturing space)?

share. In calculating your salesforecast, start with existing sales,commitments to purchase, and,potential sales. Be realistic indeveloping your estimates. Usesupporting data. For example, if youcan sell your product or service to 1of every 20 customers you speak to,and each sales call takes 1 hour, asalesperson can sell two orders perweek, therefore, you will require 2salespeople (to sell 200 orders peryear).

7. MARKETING STRATEGYIn this section describe themarketing strategy that you will useto achieve the objectives. Thestrategy is essentially how to do it.This is the section in which youassess the market, the competition,your capabilities and how you will setyour product or service apart fromthe others. The following areimportant elements to consider whendeveloping your strategy: trends inthe market, competitive strengthsand weaknesses, voids in the market,market niches, technology, lowercosts (production or sale),advertising, public relations,promotions, quality, and service.Also, include the following:

Product Features - Reviewthe features of your product orservice that meet the needs ordemands of the marketplace. Discusshow those needs are met. Describerelated features and design elementssuch as:

• How the product will be packagedin terms of function and

promotion. Does the packageneed to preserve or protect ordisplay the product, or, all three?Is shipping a concern? Are thereenvironmental concerns orconcerns by the retailer or finalseller of the product?

• How will you label your product ordescribe your service? In additionto promotional information arethere regulatory concerns for labelcontent e.g., ingredient lists,nutritional data, warnings,directions, UPC codes, UL listing,ISO 9000, etc?

• How will you register and usetrademarks and identifyingimages? Discuss your plans todevelop, establish and protect theimage. Remember - if it isunprotected and can be used byanybody entering the market,what is your investment worth?

• Warranty terms are sometimes apurchasing decision point. Whatwill your terms be, why, and, whatdoes the market expect?

• Service may be anothersignificant purchasing decisionpoint. What will your servicepolicy be and how will it impactoperations?

Pricing - Price can be the keyelement in many marketingstrategies. It must be carefullythought out. There are several pricedevelopment theories that you maywish to explore and apply. Considerand explain the following:

• How will your price relate to thecost of your product or service?How will it relate to the cost ofmarketing and promotionalefforts? Is couponing ordiscounting required in themarketplace you will serve?

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Management Weakness- Identify any weakness in themanagement team and how you willfix it. Are critical skills missing, canthey be provided by recruitment,training or subcontracting?

Compensation - Describe indetail the compensation plan you willuse and how each manager will bepaid. Will you have a bonus, profitsharing or other incentive plan? If so,describe it in detail. If your plan doesnot provide pay for you, it will affectthe credibility of your plan.

Ownership - Provide a list of allthe owners and their stake in thebusiness. If a corporation, list allshareholders, the number of sharesowned, the total outstanding, thetotal authorized, and, the totals bygroup (e.g., total owned bymanagement, the principal owner'sfamily, etc.).

Board Membership - Identify who sitson your Board of Directors, why theywere selected, how each one helpsyour business and indicate anyinvestment members have made.

10. TIMINGPrepare a schedule that reflectsmajor milestones in your businessplan for the next three to five years.This can be very effectivelypresented by using a chart with briefexplanations. You should addressplanned product introductions,changes in workforce ormanagement, noteworthy salesevents (e.g., trade shows, sellingseasons, tie-in promotions), changes

in facilities, significant changes orevents in your marketing strategy orthe marketplace (e.g., pendingregulatory changes) and significantchanges to your customer base.

11. FINANCIAL INFORMATIONUse the sales and cost informationdeveloped in the preceding sectionsto prepare projected financialstatements. Unless you have afinancial background, you may needprofessional help with this section.Provide certain key information forthe projections. Include some or allof the following statements, and insome cases, additional informationmay be required. Be prepared toprovide supporting documentationranging from prior years tax returnsand your accountant's reports, togeneral industrial financial data aspublished in various referencesources. All plans must include theCash Flow Projection, IncomeStatement and Balance Sheet.Individuals that are seekinginvestment must include the Sourceand Use of Proceeds and Statementof Changes in Working Capital.

Source and Use ofProceeds - If you are seeking alender or investor, to indicate in asummary table how much moneyyou are seeking, where youanticipate it will come from, how itwill be paid back, and, mostimportantly, specifically how it will beused. For example, your businessmight need a $25,000 bank loan inphase one, with a 7 year termcarrying a 12% interest rate to be

What is the breakdown by type (e.g.,20% office, 50% manufacturing,30% warehouse)?

Regulatory - What is theregulatory environment that you needor need to avoid? Is the area youwant to be in zoned for your type ofoperation? Are emissions ordischarge a concern, is parking ortruck traffic count a concern?

Equipment Requirements- What type of equipment do youneed for manufacturing or serviceprovision? How much does it cost, isspecial operator training necessary,are special licenses required, howmuch will the equipment cost tooperate?

Personnel Requirements- Human resources are veryimportant to an organization. Howmany people do you need, and whatskills do they need? What kind ofexperience is needed, and are thepeople available? What are theprevailing wages, is training required,and are unions a factor? Provide aroster of existing operationspersonnel and a schedule of plannedhires by date and expense.

Production or ServiceOperations - Describe theprocess of manufacturing orproviding the service and include theadvantages of your process, capacity,quality control systems, potentialsuppliers, secondary sources for rawmaterials or subcontract services,and a breakdown of fixed andvariable operating expenses, both

current and projected. Describe therelationship of cost to sales (e.g., isit linear, does it move in incrementalsteps?).

9. ORGANIZATION ANDMANAGEMENT

How will you organize your businessand who will manage it? Investorsand lenders must be convinced thatyou have people who can managethe business successfully and thatyou can attract needed new people.Describe the following:

Organization - Briefly descripethe role of each manager andprovide an organizational chart or jobdescriptions. Job descriptions shouldinclude the specific tasks,responsibilities, authority andrelationships to other employees ofeach job.

Key Managers - Show howyour management team has thenecessary functional skills inproduction, marketing, finance, andgeneral management. Describe theirexperience with your product orservice or in a related industry.Provide a brief biography of each keymanager, listing past positions,accomplishments and careerhighlights that show they can do thejob. Include resumes in an appendixor an exhibit.

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with quotations, support labor rateswith prevailing wage studies(available in many libraries) or unionsummaries. Additionally, manyassumptions will flow from earliersections on objective, marketingstrategy, operations, organization,management and timing. Specifically,if your plan calls for 10 salespeoplethey must be reflected in the salarycosts you assume. Assumptions areamong the most likely areas forchallenges to your plan. Test theassumptions and be confident in theones you select.

Spread Sheets - Computerspread sheets are sometimes veryuseful for asking “what if” questionsand looking at results under differentconditions or scenarios. Your SBDCAdvisor can run your numbersthrough computer models to give youa better feel for the dynamics andinterrelationships of your business

which will put you in a betterposition to manage your businessand to respond to questions fromlenders or potential investors.

12. EXHIBITS/APPENDICESExhibits and appendices providesupportive details for your plan.Include resumes of all key personneland managers; brochures to furtherexplain products or services; mapsshowing location of business; taxreturns, prior period statements,accountants compilation reports andquotations supporting assumptions inthe financial section; competitivesales literature and demographictables supporting the marketingsection; copies of patents or similardocumentation; flow charts forproduction or operations; and, anyother supporting or explanatoryinformation that can be referencedby readers of your plan.

used for the purchase of two$10,000 punch presses and one$5,000 engineering computer; and, a $30,000 bank loan in phase twowith a 5 year payout at prevailingrates 24 months later, to be used fortwo additional punch presses,improvements to the manufacturingfacility and worker training. Sourceand Use is frequently done as a tableidentifying the major income items,and the major expense items bycategory (e.g., machinery,computers, office equipment, etc.)

If you are seeking an equityinvestment, or some other investmentvehicle, explain in detail how youenvision the money coming in, howthe investor will realize profits, andhow the investor will be paid back.Include a summary equity ownershiptable indicating the number of sharesauthorized, issued, owned, and ownername.

Cash Flow Projection -

This statement identifies sources ofcash in, categories for cash paid outand operating expense categories.This essential statement will help youto plan your cash requirements inboth short and long term views. Aform has been provided to assistyou. Cash flow projections should bemonthly for year one and quarterlyfor subsequent years.

Income Statements andBalance Sheets - Thesestatements are the standard measurefor all businesses. If you are inbusiness, provide statements for thelast three years. All planners shouldprovide quarterly projections for thenext two years, and, annualprojections for years 3 through 5. Ifyou use an accountant to prepareyour information provide audited orreviewed statements. The incomestatement shows revenue, expensesand profit or loss, and, provides anoverview of the operations of yourbusiness. The balance sheetidentifies the assets and liabilities ofyour business showing quantitativelythe state of your business.

Break-even Analysis - This analysis will help you tounderstand the specific relationshipsbetween your costs and sales. Atwhat volume do your profits start? At what volume do profits dip due toincremental expenses such as newmachinery, overtime, etc.? This veryimportant analysis looks at yourbusiness as one entity.

Assumptions - For each andevery line item in your pro-forma[projected] financial statementsindicate the assumption on which itis based, and why. For example, ifyou say you will be spending$10,000 on a new piece ofproduction equipment, have aquotation from the supplier or a copyof a price list. In other words, doyour homework on the numbers.Support raw material price estimates

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As ofCurrent Assets

CashAccounts ReceivableInventoriesPrepaid ExpensesOther Current Assets

Total Current Assets

Fixed AssetsLandLeasehold improvementsEquipmentVehiclesOther fixed assets

Sub-total fixed assets Less Accum. depreciation

Total Fixed Assets

Total Assets

Current LiabilitiesAccounts payableCurrent portion LTDAccrued expensesOther current liabilities

Total Current Liabilities

LTD net of current

Owner’s EquityPaid-in capitalRetained earnings

Total Owner’s Equity

Total Liabilities & Equity

Q1 Q2 Q3 Q4 TotalGross SalesLess returns/allowancesNet Sales

Less Cost of Goods Sold

Gross Profit

Operating ExpensesAdvertisingBad debtsBank chargesCredit card feesDepreciationDues & SubscriptionsInsuranceInterestMaintenance & RepairsPostage & SuppliesRentSalaries & WagesTaxesTelephoneTravel & EntertainmentUtilitiesOther operating costs

Total Expenses

Profit/(Loss) before taxes

Income Tax expense

Net profit/(loss)

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Q1 Q2 Q3 Q4 TotalCash on hand

Cash ReceiptsSalesCollection of credit acctsLoans or financing

Total cash receipts

Cash Paid OutPurchasesGross wagesPayroll expenseSuppliesRepairs/maintenanceAdvertisingInsuranceInterestDelivery & travelAccounting & legalRentSalaries & WagesTaxesTelephoneCapital purchasesUtilitiesOther expenses

Loan principal payments

Total Cash Paid Out

Cash at end of month

Essential Operating DataSales volume $’sAccounts receivableBad debtsInventoryAccounts payable

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POR QUÉ ES NECESARIO UNPLAN ADMINISTRATIVO? Si quiere organizar y dirigir sunegocio en la manera más eficaz,necesita un plan administrativo. Estele ayudará a concentrarse en sumercado, a anticipar las necesidadesfuturas de su negocio, y a controlarsu progreso.

Si quiere recaudar dinerocon el fin definanciar un nuevonegocio o expandiruno ya existente,necesita un planadministrativo. Losinversionistas yprestamistas no consideraránni la inversión ni el préstamopara el negocio, al menosque exista un plan. Este plandebe mostrar que ha sidodebidamente estudiado, enseñandoclaramente las diferentes propuestasposibles.

COMO ORGANIZAR UN PLANADMINISTRATIVOUno de los fallos más comunes deun plan administrativo es que noestá bien organizado. Sin una buenaorganización incluso los puntos máspersuasivos pueden ser nulos a lahora de convencer al interesado. Porconsiguiente antes de empezar unplan, toda la información debe serrevisada.

A través del tiempo hemosencontrado la manera más eficaz deorganizar un plan.

1. Sumario2. Descripción del negocio3. Análisis del mercado4. Ventajas del producto o servicio5. Objetivos

6. Estrategia comercial7. Operaciones

8.Organización ydirección

9.Coordinación10. Información

financiera11.

Requisitos financieros12. Exposiciones

Cualquiera que sea sunegocio, todos estos puntos

son de gran importancia. Porejemplo, tratar de comenzar afuncionar un negocio sin tener unproyecto es como jugar con fuego.Prestamistas y banqueros no seprestarán a algo así.

Teniendo en cuenta esto,estudiaremos detenidamente laestructura indicada.

1. SUMARIOLos inversionistas y prestamistastienen muchas y diferentespropuestas que estudiar. Por ello y

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Le sugerimos que organice estasección de la siguiente forma:

Descripción de Mercado.Describa la existencia o potencial demercado de su producto o servicio.Esto debería expandir lascaracterísticas de su negocio.Incluya detalles como:

• Quién comprará el producto oservicio.

• Si los clientes son individuos,señale: Edad, sexo, nivel salarial,reo geográfico y demáscaracterísticas.

• Si los clientes son entidades, dédescripciones y área geográfica.

• Motivos por los que estosindividuos y/o entidadescomprarán su producto o servicio.

• Cuando será su producto oservicio adquirido, señalandofactores estacionales, si proceden.

• Expectativa de precio, calidad yservicio.

Tamaño de Mercado.Presente la estadística del tamaño demercado para su producto o servicio.Conseguir una estadística totalmenteprecisa puede ser un tanto difícil,pero cuanto más exacta sea estámejor. Incluya lo siguiente:

• Cuál es la cantidad gastada en elproducto o servicio.

• Si su producto o servicio esnuevo, cuál es la cantidadempleada en el producto oservicio alternativo.

• Como crece el mercado.• Como cambia el mercado.• Cual será la cantidad gastada en

el producto o servicio en cincoaños.

Competencia.Dé una descripción de las compañíasque le harán la competencia.Incluya los siguientes detalles:

• Cuantas compañías hay en lacompetencia.

• Donde están localizadas.• Cuanto tiempo llevan en el

negocio.• Como distribuyen su producto o

servicio.• Sus respectivas acciones en el

mercado.• Sus puntos fuertes y débiles en el

mercado, operaciones y direcciónfinanciera.

• Como su producto o servicio sepuede comparar a los de lacompetencia en precio, calidad,servicio, etc.

Esta información podría ser difícil deconseguir, pero sería recomendabletenerla y ver los aspectos queestarán en su contra.

4. VENTAJAS DEL PRODUCTO OSERVICIO

Inversionistas y prestamistas quierensaber como su producto o servicioes comparable a los de lacompetencia. Ellos quieren conocercomo su producto será ventajosocon los productos o serviciossimilares de la competencia.

Le sugerimos lo siguiente:

Descripción delProducto.Describa los rasgos de su producto oservicio y sus beneficios con losposibles clientes. Enfatice susventajas. Al mismo tiempo, si su

teniendoen cuenta el poco

tiempo que tienen, dependentotalmente en el sumario comoestudio global del plan. Porconsiguiente el sumario representarála llave de los elementos quecompletarán el plan.

Aunque el sumario sea el principiodel plan, este debe ser desarrolladoen el último lugar, y no debe de sermás de una página.

El sumario incluirá:

• Una breve introducción acerca desu negocio.

• Una aproximación del potencial demercado y una evaluación de lacompetencia.

• Ventajas del producto o servicio, ylas necesidades del mercado paraeste.

• Objetivos del negocio.• Estrategia a utilizar en el

mercado.• Fabricación o uso del producto o

servicio.• Su experiencia con el producto o

servicio.• Cual es la cantidad que ha

aportado o aportará de su propiodinero en el negocio.

• Cual será la cantidad financiada,su fuente y aplicación.

• Cuando esa cantidad seráreembolsada.

Obviamente, con el fin de almacenartoda la información en una solapágina todo será debidamentereducido a los puntos generales másimportantes. Los detalles seespecificarán en la siguiente sección.

2. DESCRIPCIÓN DEL NEGOCIO En esta sección deberá describir eltipo de negocio en el cual deseaparticipar. Deberá incluir:

• Su producto o servicio.• Presente o futura localización del

negocio.• Clientela actual o potencial,

incluyendo la extensión geográfica.• Historia de su negocio, o los

motivos que le hacen emprenderla creación de un negocio.

• Cual es la procedencia de susrecursos económicos.

• Es una sociedad anónima,limitada, u otro tipo de entidad.

• Quien es o será el propietario delnegocio.

3. ANÁLISIS DEL MERCADOA menudo es la sección más críticadel plan, la cual revela si elempresario ha hecho su trabajocomo debería. Se deben presentarsuficientes evidencias en esteapartado con el fin de convencer alinteresado de que su producto oservicio es necesario en el mercadoy que esta necesidad es importante.

Este apartado del plan deberá (1)esclarecer la necesidad por elproducto o servicio, (2) indicar comoel producto o servicio confronta esanecesidad, (3) mostrar la manera deventa con ganancia del producto oservicio.

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producto puede estar garantizado.• Servicio. Describa si se da el

caso, como su producto puedeser aplicado.

Precio. Este es la llave de laestrategia en el mercado y debe sercuidadosamente estudiado. Deberáexplicar:

• Como su precio será relacionadocon el costo del producto oservicio.

• Comparación de precios enrelación con la competencia.

• Como su precio relata lo que elmercado puede y está dispuesto apagar. Por ejemplo un productodesignado a un bajo costo en elmercado, no debe tener un precioalto.

• Como su estrategia de precio lellevará a cumplir sus objetivos.

Distribución. Describa como va a distribuir suproducto o servicio. Incluya lossiguientes detalles:

• Métodos existentes de ladistribución de productossimilares.

• Métodos de distribución usadospor la competencia.

• Métodos de distribución que haseleccionado. Señale los motivospor los que ha seleccionado losmismos.

• Si utiliza una fuerza directa deventa, señale cuantos vendedoresnecesita. Como seráncompensados. Como losconsigue. Cuales son los gastosque incurren después de estacompensación.

• Si hace uso de un distribuidor ovendedor, cuantos necesita.Como serán gratificados. Como

los encontrará.

Muestre como sus métodos dedistribución le ayudar n a conseguirsus objetivos.

Promoción.Describa como generará atención desu producto o servicio entre losconsumidores. Debe incluir:

• Actividades promocionales usadaspor la competencia (publicidad,literatura promocional, etc.).

• Actividades promocionales queplanea usar y el porque de suelección.

• Cuanto piensa invertir en estasactividades.

• Coordinación de estas actividades.

7. OPERACIONESEn esta sección, describa comoobtener su producto o como proveersu servicio. Incluirá:

Localización. Si existe un negocio, dónde estálocalizado? Si el negocio espropuesto, dónde este seráasentado? Explique los motivos.

Espacio.Qué clase de espacio requiere?Cuánto? Cuál es el costo?

Equipo.Tipo de equipo que necesita. Incluyaequipo manufacturado y de oficina.Cuál es el costo?

Personal.Indique la clase de personalnecesario para sus operaciones.Incluya:

• Tipos de habilidades y experienciarequeridos.

producto tiene limitaciones, señalas.Si no lo hace perderá credibilidad.

Patentes.Describa su patente o propiedadliteraria, y otros rasgos de protecciónde tecnología o del mantenimientode un producto superior.

Barreras en laCompetencia. Describa otros obstáculos (ademásde las patentes) los cuales hagannegarse a la competencia a entrar ensu mercado. Estos incluyen arreglosexclusivos con el fabricante o eldistribuidor.

Requisitos Reguladores.Señale los requisitos reguladores delproducto o servicio (como permisoslocales).

Extensión del Producto.Describa futuros productos oservicios que podría ofrecer paraconfrontar los cambios necesarios desu mercado. Estos seránnormalmente extensionescomplementarias de su producto oservicio inicial.

5. OBJETIVOS En esta sección deberá marcarse susobjetivos mercantiles de la siguienteforma:

Meta en el Mercado.Basándose en la informaciónpresentada en su análisis demercado, identifique su meta. Tendráque ser tan específico como pueda,ya que debe concentrar sus recursosen donde su producto o servicio tienemayor éxito dentro del mercado.

Evaluación de Ventas yDistribución de Mercado.Evalúe sus ventas de los próximostres años, empezando con susoperaciones en el primer año o en elaño corriente. Evalúe el porcentajedel mercado que estas ventasrepresentan. Una vez haya obtenidosu pronóstico, divida el mismo entrelas ventas existentes, ventasobligadas, y ventas en potencia.

6. ESTRATEGIA COMERCIALEn esta sección presentará suestrategia comercial. Esta incluye:

Rasgos del Producto.Revise que las características de suproducto son propias para la ventapropuesta. Describa también:

Como presentará su producto.Señale las funciones de este, comoprotegerlo o preservarlo ypromocionarlo. Deberá tener encuenta todo lo concerniente al medioambiente y también las necesidadesdel vendedor.

Como etiquetar. Etiquetaspromocionan el producto y tambiénpueden cubrir información sobre elmismo.

• Uso de marcas registradas.Como establecer y proteger lasmismas en su producto.

• Garantías. Describa como su

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prepare sus declaracionesfinancieras y sus proyecciones.Deber incluir:

Declaraciones de ingresos ybalances de los últimos tres años.

Balance pro forma.Indicará los bienes que necesitar(capital, inventario, equipo,) a la horade empezar a expandir su negocio ylas fuentes financieras. El saldodeberá ser proyectado a lospróximos tres años.

Declaración proyectadade ingresos.Indicará sus ingresos y sus gastosen el primer año operativo o en elaño corriente.

Proyecciones de flujo defondos.Indicar sus ingresos y gastosproyectados trimestralmente por lospróximos tres años y anualposteriormente por tres años. Estoindicará la financiación adicional quenecesitará después de haberemprendido o expandido su negocio.

Análisis sin pérdida niganancia.Indicará el volumen de ventas al cualempecé la ganancia.

Por cada línea de artículos, debeindicará las suposiciones en que sebasa. Estas suposiciones debensurgir de la información que presentóen la sección de objetivos, estrategia

comercial, operaciones, organizacióny dirección, y coordinación.

La hoja de cálculos le puede ser degran ayuda en preguntas tipo "Ysi..." y para observar los resultadosen diferentes escenarios. Entoncesestará en una mejor posición paracontestar preguntas de posiblesprestamistas o inversionistas.

11. REQUISITOS FINALESLos análisis en la presente sección leayudarán a determinar la cantidadmonetaria que necesitará y comousar la misma.

Deberá presentar esta informaciónde la siguiente forma:

Cuanto dinero necesitarinicialmente.

Como usará estacantidad.Por ejemplo, reparta la misma en$20,000 para inventario inicial,$5,000 en material de oficina,$3,000 en mobiliario y $25,000 paracubrir pérdidas en los primeros seismeses de operaciones.

Formas de devolución.Estas deben estar acompañadas porsus proyecciones de flujo de fondos.En otras palabras, deber probar quepuede pagar el préstamo dentro delperiodo fijado. Debe haber unamplio margen de error.

Cual es la cantidad quepodrá necesitar en unfuturo.Por ejemplo, su plan podría teneruna segunda fase.

• Cuantía de personal con requisitosmencionados.

• Salarios.• Instrucción y costos.• Si los sindicatos son un factor a

considerar. Indique como.

Producción o ServicioOperacional.Indique el proceso de fabricación delproducto o ejecución del servicio,incluyendo:

• Producción o proceso operatorio.• Ventajas del proceso.• Capacidad.• Calidad del sistema de control.• Potencial de suministradoras y

contratistas.• Análisis de costos ajustados y

variables.

Su plan de operaciones debeinformar del costo del producto oservicio en varios volúmenes.

8. ORGANIZACIÓN Y DIRECCIÓNInversionistas y prestamistas quierensaber como organizará sus negociosy quién los dirigirá. Les debeconvencer de que tiene genteespecializada en dirigir su negociobrillantemente.

Organización.Indique como su compañía estáorganizada, y describa la funciónprincipal de cada ejecutivo. Lepuede ser de gran ayuda el teneruna tabla de orientación.

Ejecutivos. Muestre como los miembros de suequipo de ejecutivos estánespecializados en producción,administración, dirección yfinanciación. Indique la experienciade los mismos con su producto oservicio. Provea una biografía decada ejecutivo, incluyendoresponsabilidades, en que manerasobresalen y objetivoscumplimentados que demuestren sushabilidades. Incluya su currículumvitae.

Debe también incluir los puntosdébiles de su equipo.

Compensación.Incluya como cada ejecutivo serácompensado salario, incentivos,porcentajes.

Propiedad.Haga una lista de accionistas, con elnúmero de acciones que cada unoposee.

Directorio de Socios.Identifique su directorio de socios ydescriba como cada uno de elloscoopera en su negocio. Señale sialguno de sus socios ha invertido ensu compañía.

9. COORDINACIÓN.Prepare un calendario que muestrelos principales eventos en su plan denegocios en los próximos tres años.Muestre esta coordinación usandouna tabla con aclaraciones.

10. INFORMACIÓN FINANCIERAHaciendo uso de las ventas y loscostos de información ya creados,

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Como usará estacantidad adicional.Dé un análisis.

Términos de devolución.

Si usted está subiendo lafinanciación del valor líquido de losinversionistas, debe mostrarles comoellos pueden recobrar lo invertido yconseguir un beneficio. Esto puederealizarse acordando con losinversionistas su compra en el futuro,bajo previo compromiso de venderparte del negocio al público, u otrotipo de acuerdo.

12. EXPOSICIONESExhibiciones o exposiciones proveendetalles adicionales a la hora deapoyar un plan. Puede incluir:

• Mapas indicando la localizacióndel negocio.

• Información demográfica.• Estudios de mercado.• Información sobre la competencia.• Información acerca de la marca

registrada.• Fotografías o dibujos de su

producto.• Tablas de producción u operación.• Planos del suelo.• Currículum vitae de cada

ejecutivo.

Presentación del Plan

Su plan debe se impreso con unaimpresora láser o equivalente enpapel blanco.

Si usa un cuaderno (no esnecesario), use uno de hoja suelta.No use ninguno con el cual las hojas

no puedan ser pasadasindividualmente.

Con una encuadernación suelta,podría usar lengüetas a la hora deidentificar secciones importantes.

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“Helping you connect the business pieces”

For more information, please contact:

New York State Small Business Development CenterState University Plaza, 22 Corporate Woods

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