Owner Name Company Name Company Address Company Phone Number Date
TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................. 2 BUSINESS DESCRIPTION ................................................................................................ 3 OPPORTUNITY ........................................................................................................................................................................................ 3 LEGAL STRUCTURE ................................................................................................................................................................................. 3 PRODUCTS OR SERVICES............................................................................................................................................................................... 3 ORGANIZATIONAL STRUCTURE .............................................................................................................................................................. 4 PROJECTED REVENUE............................................................................................................................................................................. 4
INDUSTRY ANALYSIS ...................................................................................................... 5 INDUSTRY SIZE ....................................................................................................................................................................................... 5 INDUSTRY TRENDS ................................................................................................................................................................................. 5
MARKETING PLAN........................................................................................................... 6 TARGET MARKET ................................................................................................................................................................................... 6 COMPETITION ......................................................................................................................................................................................... 7 POSITIONING STATEMENT ...................................................................................................................................................................... 8 PRICE STRATEGY .................................................................................................................................................................................... 8 PROMOTION STRATEGY .......................................................................................................................................................................... 8 SALES PROCESS ...................................................................................................................................................................................... 8
CORE OPERATIONS ......................................................................................................... 9 EQUIPMENT REQUIREMENTS ................................................................................................................................................................... 9 PRODUCTION AND OPERATING PROCEDURES .......................................................................................................................................... 9 PURCHASING PROCEDURES ..................................................................................................................................................................... 9 DISTRIBUTION CHANNELS ...................................................................................................................................................................... 9 INVENTORY MANAGEMENT AND PROCEDURES ....................................................................................................................................... 9 QUALITY CONTROL PROCEDURES ........................................................................................................................................................... 9 CUSTOMER SERVICE POLICIES AND PROCEDURES ................................................................................................................................... 9 WEB PRESENCE ...................................................................................................................................................................................... 9 SWOT ANALYSIS................................................................................................................................................................................. 10
FINANCIAL PROJECTIONS ........................................................................................... 11 INCOME STATEMENT ............................................................................................................................................................................ 11 CASH FLOW PROJECTIONS.................................................................................................................................................................... 12 BALANCE SHEET .................................................................................................................................................................................. 13 STARTUP BUDGET ................................................................................................................................................................................ 14 BREAK-EVEN ANALYSIS ....................................................................................................................................................................... 15 12 MONTH SALES FORECAST ................................................................................................................................................................. 0 12 MONTH PROFIT AND LOSS STATEMENT ............................................................................................................................................. 0
CONCLUSION .................................................................................................................... 0 APPENDICES ...................................................................................................................... 1
SummerAlexanderResearch.com
1
Executive Summary Introduction Start with a direct statement about your company. This statement should be clear, concise, and impactful. Next provide a brief overview of your company history and success to date. Mission statement 1 – 2 Sentences that summarizes the role your business will play in the market place. Example: To offer high quality widgets to low-income families in major metropolitan cities throughout the United States. Vision statement The vision statement should be 1-2 sentences that address your overall goals for the business. Example: Within 5 years My Company, Inc. will be the largest provider of specialty widgets in Any City, USA. We will be recognized by our clients for providing high quality products and exceptional customer service to our customers. Opportunity Identify the problem your company will solve for potential customers. (2-3 sentences) Identify your solution to the problem. (2-3 sentences) State the opportunity for your solution in the market. (2-3 sentences) Management Identify your key management personnel and their qualifications. Competitive Advantage State your competitive advantage. (2-3 sentences) Financial Overview State how your company will generate revenue – include how much and how soon. State the amount of money you are asking for.
The Executive Summary should be no longer than two pages long. Use simple terms and explanations instead of complex terms and ideas. Prepare your Executive Summary after you have completed the entire business plan.
SummerAlexanderResearch.com
2
Business Description Opportunity Offer a thorough description of the opportunity for your business in the market place. Discuss what’s currently missing in your industry and how your business will fill the gap. (2 – 3 paragraphs) Legal structure Describe the legal structure of your business. (Sole proprietorship, Partnership, Corporation, LLC) Business location Describe your current or future facility needs. Include building size, type, and zoning requirements. Licenses – Permits – Registrations List all required licenses, permits and/or registrations necessary to operate your business. If you do not currently have the licenses required describe the time frame in which you expect to have them. Insurance Describe any required insurance necessary for operation of your company. Company impact Describe the impact your company will have on your industry, customers and in the market. (1 – 3 sentences) Products or Services Product or Service #1 Product or Service #3 Product or Service #5 Product or Service #7 Product or Service #9 Product or Service #11
Product or Service #2 Product or Service #4 Product or Service #6 Product or Service #8 Product or Service #10 Product or Service #12
Describe each product or service in detail including features (what makes the product or service special) and benefits (what makes the product or service an answer to your potential customers biggest problems) of each.
SummerAlexanderResearch.com
3
Organizational Structure Describe the organizational structure for your company. Click on any shape to edit text or delete the entire chart and offer a written description.
President
VP of Marketing
VP of Finance
Accounts Receivable Manager
Payroll Manager
Sales Manager
Marketing Manager
Describe your company staff including any special qualifications for each role. John Jones – VP of Sales John has 20 years of sales experience. For the last 3 years John was awarded Salesperson of the year by Top Company, Inc. Describe total personnel required. Include number of employees, type of employees, process to hire and train employees. Projected Revenue According to a recent study of (Industry Name) more than a quarter [businesses in your industry] have a profit of at least $100K/year, and over 35% have a profit of at least $70K/year.
Insert Chart relevant to your industry here
31% 22% 10%
16%
9%
7%
3%
List any other pertinent information regarding your projected revenues. Information such as expected number of units sold, preorders, strategic partnerships etc.
SummerAlexanderResearch.com
4
Industry Analysis Industry size Describe the size of your industry in dollars earned and products or services sold. Industry trends Describe current, historical and future trends in your industry. This can include trends in technology, government relations, the economy, consumer buying habits, etc. Describe operational trends and marketing strategies for your industry.
Growth Potential Describe the potential for growth in your industry.
Barriers to Entry Describe any barriers to entry for your industry. (Anything that would make it difficult for you to enter into this industry such as high production costs or competing with well established brands.) Describe your plan to overcome those barriers.
Industry Changes How will your company handle changes in the: Economy Government Regulations Seasons Industry
SummerAlexanderResearch.com
5
Marketing Plan Target Market Geographic – • • •
Any City, USA All Cities, USA All Countries, Worldwide
Demographics – • • • • •
Demographic characteristic (Age) Demographic characteristic (Gender) Demographic characteristic (Education) Demographic characteristic (Income) Demographic characteristic (Marital Status)
Market Size
Use this chart or delete and insert chart highlighting the size of your market here:
Insert Target Market Size Psychographics – • • • • •
Insert psychographic characteristic. (Example: Values time and considers it their most valuable asset.) Insert psychographic characteristic. (Example: Impulse buyers who frequently shop online.) Insert psychographic characteristic. Insert psychographic characteristic. Insert psychographic characteristic.
SummerAlexanderResearch.com
6
Market Assessment Describe in one paragraph your assessment of the current market. Example: Currently new home sales are on the rise in Any City, USA. With the recent tax cuts and lower interest rates in place home owners are rushing to have homes built before winter. The housing crisis caused a great number of construction companies to file bankruptcy leaving an enormous opportunity for new home builders in Any City, USA. Competition As with any business, competition is always a critical factor. List your top competitors along with a strength and weakness of each one. The goal is to show gaps left in the market by your competition and how your company can fill those gaps. Competitor #1 – ABC Company has been in business for 20 years. They sell three varieties of widgets at a price point of $30 - $50 per widget depending on size. They have a loyal customer base however; sales have started to decline over the past two years. Recently, there has been an onslaught of customer service complaints regarding their return policy for online purchases. My Company, Inc. offers a streamlined online sales process. Should a customer need to return an item we have made the procedure effortless by providing prepaid return labels with every shipment. Competitor #2 - ABC Company has been in business for 20 years. They sell three varieties of widgets at a price point of $30 - $50 per widget depending on size. They have a loyal customer base however; sales have started to decline over the past two years. Recently, there has been an onslaught of customer service complaints regarding their return policy for online purchases. My Company, Inc. offers a streamlined online sales process. Should a customer need to return an item we have made the procedure effortless by providing prepaid return labels with every shipment. Competitor#3 - ABC Company has been in business for 20 years. They sell three varieties of widgets at a price point of $30 - $50 per widget depending on size. They have a loyal customer base however; sales have started to decline over the past two years. Recently, there has been an onslaught of customer service complaints regarding their return policy for online purchases. My Company, Inc. offers a streamlined online sales process. Should a customer need to return an item we have made the procedure effortless by providing prepaid return labels with every shipment.
Competitive Advantage Summarize your company’s advantages over the competition. (Patents, quality, price, unique features or benefits etc.)
SummerAlexanderResearch.com
7
Positioning Statement Give a brief statement describing your unique selling proposition.
Price Strategy Describe your pricing strategy. (Premium pricing, promotional pricing, value pricing, penetration pricing, price skimming, product bundle pricing, geographical pricing, cost plus pricing, product bundle pricing, demand pricing.)
Promotion Strategy Describe each promotion strategy you will use. (Advertising, direct marketing, free trials, public relations, personal selling, tradeshows and other events, online marketing, word of mouth, etc.) •
Insert step in the marketing program.
•
Insert step in the marketing program.
•
Insert step in the marketing program.
•
Insert step in the marketing program.
•
Insert step in the marketing program.
Results are measured as follows: (Google Analytics, customer surveys, metered tracking, etc.) • • • • •
List how you will measure the results of your marketing program. List how you will measure the results of your marketing program. List how you will measure the results of your marketing program. List how you will measure the results of your marketing program. List how you will measure the results of your marketing program.
Sales Process The sales process to obtain a sale from a potential customer is as follows: (Introduction, qualification, information, close.) • • • •
Describe 1st step in the sales process Describe 2nd step in the sales process Describe 3rd step in the sales process Describe 4th step in the sales process
SummerAlexanderResearch.com
8
Core operations Equipment requirements Describe the equipment necessary to operate your business. This could be as simple as a laptop and a printer or as complex as commercial grade appliances.
Production and operating procedures Describe the process to produce your product or service.
Purchasing procedures Describe the steps involved in purchasing – your company’s purchases necessary for operating as well as your potential customers steps required for purchasing the completed offering.
Distribution Channels Describe the channel(s) your company will use to distribute your products or services. (In-house sales force, retail location, mail order catalogs, government contracts, independent agents, wholesale distribution etc.)
Inventory management and procedures Describe how you will manage and maintain inventory for your business. Include the type of inventory you will keep, rate of turnover, seasonal build-ups and lead time for ordering. Identify details of key suppliers.
Quality control procedures Describe the steps in your company’s quality control procedures.
Customer service policies and procedures Describe how you will manage customer service inquires, complaints, concerns etc. Describe your return and refund policy.
Web presence Describe how your business will be displayed on the internet. If your company currently has a website list it here, if your company plans to have a website, describe who will create and maintain the site and when you expect the site to be completed.
SummerAlexanderResearch.com
9
SWOT Analysis Double click inside the following chart to edit.
Company Name
Internal
Strengths
Weaknesses
List your strongest business assets in this section. List improvements, areas where competitors have an advantage, lack of capital, etc. here.
External
Opportunities
Threats
List trends in your industry, possible strategic alliances, regulatory info, etc. here.
SummerAlexanderResearch.com
10
List new competitors, economic forces impacting your industry, price wars, etc. here.
Financial Projections Income Statement Double click in chart area to complete
Income Statement Date
REVENUE Service Fees Earned or Products Sold Less: Returns and Allowances Net Sales
Amount $0 $0 $0
OPERATING EXPENSES Insurance Marketing Miscellaneous Office Equipment Office Supplies Utilities Professional Fees Salaries Sales Costs Telecommunications Training Total Operating Expenses
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
NON-OPERATING GAINS Owner Investment Interest Income (Net) Donations
$0 $0 $0
Total Non-Operating Gains
$0
Net income before taxes Taxes on income Net income after taxes
$0 $0 $0
NET INCOME (Loss)
$0
SummerAlexanderResearch.com
11
Cash Flow Projections Double click in chart area to complete. 2012 FY1
FY2
FY3
FY4
FY5
Revenue
$0
$0
$0
$0
$0
Direct Expenses
$0
$0
$0
$0
$0
Gross Profit
$0
$0
$0
$0
$0
Other Expenses
$0
$0
$0
$0
$0
EBITDA
$0
$0
$0
$0
$0
Depreciation
$0
$0
$0
$0
$0
Amortization
$0
$0
$0
$0
$0
Preliminary Exp (Written Off)
$0
$0
$0
$0
$0
Interest Expense
$0
$0
$0
$0
$0
Income Tax Expense
$0
$0
$0
$0
$0
Net Income
$0
$0
$0
$0
$0
EBIDTA: Earnings before Interest, Taxes, Depreciation and Amortization
SummerAlexanderResearch.com
12
Balance Sheet Double click in chart area to complete.
Balance Sheet Date
ASSETS Current Assets Cash Accounts Receivable (less doubtful accounts) Prepaid Expenses Total Current Assets
Fixed Assets Long-term investments Land Equipment (less accumulated depreciation) Furniture and fixtures (less accumulated depreciation)
Total Net Fixed Assets Total Assets
SummerAlexanderResearch.com
LIABILITIES Current Liabilities Accounts payable Interest payable Taxes payable Short-term liabilities
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0
$0 $0 $0 $0
Total Current Liabilities
$0
Long-term Liabilities Mortgage Other long-term liabilities
$0 $0
Total Long-Term Liabilities Owner's Equity Retained earnings
$0
$0
$0
Total Owner's Equity
$0
$0
Total Liabilities & Equity
$0
13
Startup Budget
Company Name (double click in chart area to complete ) To Date Actual Insert date range GENERAL AND ADMINISTRATIVE Accounting Fees Computer Equipment Conferences and Seminars Subscriptions Insurance Internet Service Legal and Professional Fees Merchant Fees Miscellaneous Office Supplies Postage and Delivery Salaries Telephone Utilities Website
Total Projected Cost Insert date range
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
0
Brochures Business Cards Membership Dues Other Advertising Postage Printing Research Surveys Marketing - Online Marketing - Other Media/Publications
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
Total
0
0
Total
MARKETING
TOTAL OWNER'S EQUITY
0
TOTAL CASH REQUIREMENTS
0
TOTAL STARTUP COST
0
SummerAlexanderResearch.com
14
Break-even Analysis
This section should describe when your business will recover all costs associated with launching or running the business. 1. Determine your fixed costs (costs that are always the same regardless of units sold). a. Rent b. Utilities c. Insurance d. Equipment e. Supplies f. Taxes 2. Determine your variable costs (costs that fluctuate). a. Employee wages b. Shipping charges c. Delivery charges d. Sales commissions Determine your break-even point: Fixed Costs
(Selling price per unit – Variable costs)
Insert break – even analysis chart: (optional)
Break - Even Analysis Sales
Fixed
Total Costs
$25,000 $20,000 $15,000 $10,000 $5,000 $0 0
100
200
300 Units
SummerAlexanderResearch.com
15
400
500
600
12 Month Sales Forecast Double click chart area to edit, totals will be automatically calculated.
Fiscal Year Begins
Jan-12 12-m onth Sales Forecast Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Cat 1 units sold
ua Totals 0
Sale price @ unit Cat 1 TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Cat 2 units sold
0 0
Sale price @ unit Cat 2 TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Cat 3 units sold
0 0
Sale price @ unit Cat 3 TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Cat 4 units sold
0 0
Sale price @ unit Cat 4 TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Cat 5 units sold
0 0
Sale price @ unit Cat 5 TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Cat 6 units sold
0 0
Sale price @ unit Cat 6 TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
Cat 7 units sold
0 0
Sale price @ unit Cat 7 TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
0
Monthly totals: All Categories
0
0
0
0
0
0
0
0
0
0
0
0
0
SummerAlexanderResearch.com
16
12 Month Profit and Loss Statement Double click chart area to complete. Profit & Loss 2012
Jan
Feb
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Total
Sales Cost of Sales Materials Labor Other Total Cost of Sales
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Gross Profit
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Expenses
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Net Profits
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Expenses Salary Payroll Outside Services Supplies Repairs Advertising Auto Accounting/Legal Equipment Rent Telephone Utilities Insurance Taxes Interest Depreciation Amoritization Miscellaneous
SummerAlexanderResearch.com
17
Conclusion In 1 – 2 paragraphs sum up the opportunity the business plan represents for investors/lenders, the market place and for you.
EffortlessBusinessPlan.com
18
Appendices Use this section to list any: o o o o o o o o o o
Brochures and advertising materials Industry studies Blueprints and plans Maps and photos of location Magazine or other articles Detailed lists of equipment owned or to be purchased Copies of leases and contracts Letters of support from future customers Any other materials needed to support the assumptions in this plan Market research studies
SummerAlexanderResearch.com
19