Business Plan Guideline

Index for Business Plan Guideline

I. Executive Summary ................................................................................................... 3 II. Company Summary ................................................................................................... 3 III. Products & Service..................................................................................................... 4 IV. Industry Analysis ........................................................................................................ 4 V. Marketing .................................................................................................................. 5 VI. Advertising ................................................................................................................. 6 VII. Management/Key Personnel/Staff ............................................................................ 6 VIII.Risks ............................................................................................................................ 7 IX. Community Benefits .................................................................................................. 7 X. Financial Plan ............................................................................................................. 8

Appendix: Financial Statements:

Sheet for Start-up Funds Cash Flow Projection for Year One Cash Flow Projection for Year Two Income Statement Projection Balance Sheet

Business Plan Guideline

For you to apply for a business loan, you will need a business plan. The following outline is a generic guide for you to use. Some questions asked might not be relevant to your business; Just ignore what you other points important to your business may not be covered in this outline. do not need and add what you need.

I.
The questions to answer are: A.

Executive Summary

This part of your plan goes first but is completed after you have finished the rest of your plan.

What is your objective (other than making money, which should be the objective of all for-profit business entities)?

B.

What is your mission?

C.

What are your keys to success?

II. Company Summary What business are you in? Give a full description of your business. Answer the following questions.
A. Who owns the company? What percentage of your company do they own? (For CEEDbut not for the banks- what percentage are minority or female?) What is the legal form of the company? What type of business (retail, manufacturing, service, etc) do you have? B. If you are not currently in business, when do you plan to open? For each location, state the advantage for the site (ex. Is

Where is the business located? easy to advertise?)

it easily accessible; how much space do you have; is it visible from the street; will it be C. What is the history of this company? If this is a new business, explain what made you

select this business. Paint a verbal picture of your company so the reader will know exactly what you do and how you do it and who you do it for. If this is an existing business, also explain the progress it has made the past two years.

III.
outline below: A.

Products & Service

In this section, give a complete description of the products and/or services you offer. Follow the

Describe any special features and any benefits the customer can expect to gain by purchasing your product or service. (Will it save them time and/or money, is it easy to use or easy to buy, is it doctor approved, etc.)

B.

If you are a product-based business, where will you get your product or your supplies and materials to make your product? How reliable is the supplier (how long have they been in business, how profitable are they, etc.)? Do you have an alternate supplier if you are unable to get what you need from the first supplier?

C.

How will you get your product or service to the customer? in distribution?

What costs will be involved

D.

Do you anticipate having new products or services in the future? What would you expect them to be?

E.

Do you have special patents, copyrights, licenses and/or permits? (provide copies of each)

IV.

Industry Analysis

In this section, you will need to do some research. There are several ways to find industry information. We recommend you call your local Library Reference Desk and ask if they have the Robert Morris Association Industry Reference Book most recent volume. (The reference people will be happy to assist you.) Look up the two pages in the entire volume that apply to the industry you are going into and copy the pages (the paper is thin, so you may need to lighten the copy

setting before you make it.) Once you have this information, we will be happy to assist you with interpreting it if you do not understand the numbers. Then, answer the following questions: A. What geographic location will you cover? small ones? What size is the industry you are going into?

What is the potential growth for the market? Are there a lot of competitors, or a few Is the market local, regional, national, or international?

B.

Who are your competitors? disadvantages.

List their names, main products, advantages and

Competition is the way of life, so it is important to know your

competitors. Start a file on each of your competitors and keep track of what they are doing and how the are succeeding. Who will be your biggest direct competitors (those selling the same thing to your target group)? Who will be your biggest indirect competitors (those selling that can substitute for what you are selling)?

C.

How will your company compare with others in the market? product or service better?

What makes your business

unique? Why would someone buy from you instead of your competitor? How is your

V.

Marketing

How you market your product will determine your success or failure. Marketing Strategy says: No one knows I exist. How can I let them know I am here. Know your customers and your competition. Select a target market (a specific group of people) to direct your sales efforts toward, and target all your efforts to that section of the population (you can expand later as you grow).

A.

Pick a target market.

Who will be most likely to buy your product or service? What age

group, what sex, what economic status, what lifestyle is most likely to buy your product? Where do they live? Where do they work? Is it a growing market? Is your target market large enough for the sales you need to make? and why they would buy from you? B. How will you price your product/service? If you are new in the industry and no one else has Determine who will buy your product/service, when they will buy it (i.e. is this a seasonal product), where they are most likely to look for it,

the same product, you can price high and come down as the competition enters the market. The more likely situation is that you can charge similarly or below the market. price. Make sure you know all the costs you will incur to create or service your customer before you set your

C.

How will your customer know that you exist?

What means will you use to let your

customers know that you are open for business? (Also, in your Appendix include a copy of your business card, website address, letterhead, envelope, and any flyers or brochures you have created).

VI.

Advertising

Having a good product/service and not advertising or promoting it is like not having the business at all. Advertising says: Everyone knows I am here. Now, how do I get them to come into my business. This is the lifeline to your business. Plan a budget to cover advertising cost. The more effort you spend here, the more successful you will be. Answer the following questions: A. How will you attract the customer to your product/service? networking will you do? What methods will you

use? Will you give free samples, offer discounts, give coupons, etc? What kind of

B.

How many people can you reach and how much will it cost?

C.

How many sales do you expect to make and how much profit will these sales generate?

D.

What discounts or special promotions will you offer?

VII.

Management/Key Personnel/Staff
Know your strengths and

Good management requires ability, dedication, and persistence.

weaknesses. Hire people or bring in partners who can cover your weakness. For this section,

answer the following: A. Who will manage specific management tasks in the organization and what are their qualifications to do the job? etc.? B. Who will do what duties? In your Appendix, include resumes and three personal Your management team is your most valuable asset (even if the team is just YOU!). Who will handle the finances, the sales, and the marketing,

references for all key personnel and staff.

Who are your business advisors? your budget?

Who can you call on for advice when things are not going right?

What experts do they have? Are these people on staff or will you need to plan to pay them from

C.

Provide copies of insurance coverage (or quotes for coverage) of business and/or personnel, rental agreements or mortgage contracts business property.

VIII. Risks
Think carefully about this aspect of your business plan. can you handle this situation if it does occur? rate the risk of your company? When you plan for challenges, you can How handle them when they occur. What are the possible problems you see in the business?

How can you minimize this risk? How would you

IX.

Community Benefits

When you are receiving money for your business from an outside source, they want to know how you will affect the community in which you live. The following questions may help you think of ways to give back to your community. A. How many jobs will your company provide for the community; from what target

population will you be hiring? B. Will you be purchasing your supplies from the community? available in the community? What contributions will

you make to the community? Will you be offering products or services not currently

C.

Will you be able to provide products or services to a deprived segment of the community? Will you be doing charitable work within the community? Will you be making financial contributions to worthy causes within the community?

X.

Financial Plan
Learn how to read and use

The only way to stay in business is to properly manage your money. You need to know where you are spending and how much money you expect to have coming in. your financial statements. Your financial plan should consist of the following: Start-up list of Costs (also called a Sources and Uses of Funds sheet) A projected Statement of Cash Flows for the next two years (if an existing business, include cash flows for the past two years) A Two-Year Project Income Statement (showing the revenue flow for each year) A Two-Year Project Balance Sheet (showing the status of the business at the end of each fisical year)