What is a Business Plan? A business plan is a written document that describes your business start-up or expansion.
Why You Need to Write a Business plan? To Raise Capital Lenders Investors To plan company growth: Identify markets Strategize ways to grow Identify opportunities and threats Have a clear vision of what to do
Key Sections of the Business Plan Cover Page Executive Summary Company Description Products & Services Market Analysis Production & Operation Plans Management Financial Statements Appendix
Executive Summary Max 1-2 pages long Why your business idea is feasible? Who will finance your company initial expenses? How will you use this money? Who is in your team? What is your business model? How revenue will be generated?
Company Description What products or services you are planning to sell? Where will your business be located? Is your company: 1) An existing business? 2) Start-up Business? 3) A Franchise? Will your company be a sole proprietorship, partnership, LLC or an S corporation?
Products and Services What is different about your products or services? What is your gross profit margin? How do you know your product or service meet the needs of your target customers? Are there any substantial opportunities for growth? Are your products and services protected? (patents, trademarks, copyrights)
Market Analysis Do you know your customers? ( Age, income, purchasing habits) How are clients reached? Is this a B2C or B2B company? Who is your competition? How would you beat your competition? What are the typical distribution channels? What is the price for your products and services?
Market Analysis Do you know your industry? Is the industry growing or declining? How big is the opportunity? What are the entry barriers? Is the industry labor intensive? Is technology impacting your industry? How?
Production & Operation Plans Is this a brick and mortar operation? Where your firm will be located? Do you need to modify an existing building? How many employees? What is your criteria for hiring? How many hours of operation per day/week?
Management Who will be the key personnel in your company? Will your partner part of the management team? What are your or key personnel management skills or experience? What will your responsibilities? Who will be your professional supporting system? (advisors, accountants, attorneys)
Financial Statements Income statement Cash flow Balance Sheet
Anns Nursery-Projected Income StatementJanFebMar NovDecTotals Income Local Nursery Plant mix 10,000 250,000 Web Gardner Plant Mix - - - 20,000 5,000 57,000 Distant Nursery Plant Mix - - - 20,000 10,000 40,000 Total Income 10,000 50,000 25,000 347,000 Cost of Sales Local Nursery Plant mix 5,500 137,500 Total Cost of Sales 5,500 29,500 14,500 195,700 Gross Margin 4,500 20,500 10,500 151,300 Salaries and Wages Owner's Compensation 4,000 48,000 Salaries 3,000 36,000 Payroll Taxes and Benefits 834 10,010 Total Salary and Wages 7,834 94,010 Fixed Business Expenses Advertising 600 7,200 Legal and Professional Fees 150 1,800 Office Expenses & Supplies 200 2,400 Rent (on business property) 300 3,600 Telephone and Communications 250 3,000 Travel 200 2,400 Utilities 500 6,000 Total Fixed Business Expenses 4,300 51,600 Other Expenses Amortized Start-up Expenses 244 2,933 Depreciation 730 8,757 Interest Commercial Loan 254 251 249 231 229 2,895 Line of Credit - 70 157 261 196 2,548 Taxes - - - - - - Total Other Expenses 1,678 1,743 1,826 1,896 1,826 22,402 Net Income (9,312) (9,378) (9,460) 6,470 (3,461) (16,712)