|
|
|
|
|
|
|
|
Write a Winning Business Plan
based on
Anatomy of a Business Plan & Automate Your Business Plan
© 2013 Linda Pinson
Printable PDF Business Plan Outline
|
Business Planning Every wholesale, retail, and/or service business can benefit from the preparation of a carefully written business plan. There are two main purposes for writing that plan. There is an additional benefit if you do business internationally. 1.
Your business plan will serve as your guide during
the lifetime of your operation. It is the blueprint of your business and will provide you
with the tools to analyze your operation and implement changes that will
increase your sales and, ultimately, your profitability. 2.
A business plan is a requirement if you are planning
to seek financing. It will provide potential lenders or investors with detailed
information on all aspects of your company's past and current operations and
provide future projections. 3.
If you do business internationally, a business plan provides a
standard means of evaluating your products' business potential in a foreign
marketplace. Business Plan Outline The following pages provide a suggested outline of the material to be included in your business plan. Your final plan may vary according to your specific needs or individual requirements of your lender or investor.
I.
Cover Sheet (Serves as the title page of your business plan) A.
Name, address, and phone number of the company. B.
Name, title, address, phone number of owners/corporate officers. C.
Month and year your plan was prepared. D.
Name of preparer. E.
Copy number of the plan.
II.
Table of Contents (Quick reference to major topics covered in your
plan)
III.
Executive Summary The executive summary is the abstract of your business plan. It summarizes the content and purpose of your finished plan, covering all of the key points. This is a key section if you are seeking funding. A.
Your Company (introductory overview - who, what, where it is and
why it is unique) B.
Market C.
Capital Requirements, Breakdown of Uses of Funds,
Repayment of Loan or Benefits to Investors. (include only if you are seeking
funding) D.
E.
Management (who they are and strengths each one brings to the
company) F.
Competitors (direct and indirect); list their strengths and
weaknesses. G.
Your Company's Competitive Advantages H.
Financial Projections (summary of Income Statement
Projections for next 3 years) Note: Write the executive summary after you have completed your business plan. It is a summary. IV.
Part I: The Organizational Plan What is included? This section should include a "summary description of your business" statement followed by information on the "administrative" end of your company. A.
Summary Description of the Business In a paragraph or two give a broad overview of the nature of your business, telling when and why the company was formed. Then complete the summary by briefly addressing: ·
mission (projecting short- and long-term goals) ·
business model (describe your company's model and why it is unique to
your industry) ·
strategy (give an overview of the strategy, focusing on short- and
long-term objectives) ·
strategic relationships (tell about any existing strategic
relationships) ·
SWOT Analysis (strengths, weaknesses, opportunities, and threats that
your company will face, both internal and external) B.
Products or Services ·
If you are the manufacturer and/or wholesale distributor
of a product:
Describe your products. Tell briefly about your manufacturing process.
Include information on suppliers and availability of materials. ·
If you are a retailer and/or an e-tailer: Describe the products you sell.
Include information about your sources and handling of inventory and
fulfillment. ·
If you provide a service: Describe your services List future
products or services you plan to provide. C.
Administrative Plan ·
Intellectual Property
·
Address
Copyrights, Trademarks, and Patents
·
Back
up in Supporting Documents with registrations, photos, diagrams, etc. ·
Location
·
Describe
your projected or current location.
·
Project
costs associated with the location.
·
Include
legal agreements, utilities forecasts, etc. in Supporting Documents. Note: If location is important to marketing, cover in Part II - The Marketing Plan. ·
Legal Structure
·
Describe
your legal structure and why it is advantageous for your company.
·
List
owners and/or corporate officers describing strengths (include resumes). ·
Management
·
List
the people who are (or will be) running the business.
·
Describe
their responsibilities and abilities.
·
Project
their salaries.
·
(Include
resumes in Supporting Documents) ·
Personnel
·
How
many employees will you have in what positions?
·
What
are the necessary qualifications?
·
How
many hours will they work and at what wage?
·
Project
future needs for adding employees. ·
Accounting & Legal
·
Accounting: What system will you set up for daily accounting? Who
will you use for a tax accountant? Who will be responsible for periodic
financial statement analysis?
·
Legal: Who will you retain for an attorney? (Keep 'Murphy's Law'
in mind.) ·
Insurance
·
What
kinds of insurance will you carry? (Property & Liability, Life &
Health)
·
What
will it cost and who will you use for a carrier? ·
Security
·
Address
security in terms of inventory control and theft of information (online and
off).
·
Project
related costs.
V.
Part II: The Marketing Plan What is a marketing plan? The Marketing Plan defines all of the components of your marketing strategy. You will address the details of your market analysis, sales, advertising, and public relations campaigns. The Plan should also integrate traditional (offline) programs with new media (online) strategies. A. Overview and
Goals of Your Marketing Strategy B. Market Analysis ·
Target
Market (identify with demographics, psychographics, and niche market
specifics) ·
Competition
(describe major competitors assessing their strengths and weaknesses. ·
Market
Trends (identify industry trends and customer trends) ·
Market
Research (describe methods of research, database analysis, and results
summary) A. Marketing
Strategy ·
General
Description (budget % allocations on- and off-line with expected ROIs) ·
Method
of Sales and Distribution (stores, offices, kiosks, catalogs, d/mail,
website) ·
Packaging
(quality considerations and packaging) ·
Pricing
(price strategy and competitive position ·
Branding ·
Database
Marketing (Personalization) ·
Sales
Strategies (direct sales, direct mail, email, affiliate, reciprocal, and
viral marketing) ·
Sales
Incentives/Promotions (samples, coupons, online promo, add-ons, rebates,
etc.) ·
Advertising
Strategies (traditional, web/new media, long-term sponsorships) ·
Public
Relations (online presence, events, press releases, interviews) ·
Networking
(memberships and leadership positions) B. Customer Service ·
Description
of Customer Service Activities ·
Expected
Outcomes of Achieving Excellence C. Implementation
of Marketing Strategy ·
In-House
Responsibilities ·
Out-Sourced
Functions (advertising, public relations, marketing firms, ad networks, etc.) D. Assessment of
Marketing Effectiveness* * To be used by existing companies after making periodic evaluations
VI.
Part III: Financial Documents The quantitative part of your business plan. This section of the business plan is the quantitative interpretation of everything you stated in the organizational and marketing plans. Do not do this part of your plan until you have finished those two sections. Financial documents are the records used to show past, current, and projected finances. The following are the major documents you will want to include in your Business Plan. The work is much easier if they are done in the order presented because they build on each other, utilizing information from the ones previously developed. A. Summary of
Financial Needs
(needed only if you
are seeking financing) This is an outline giving the following information: 1. Why you are applying for financing 2. How Much capital you need B.
Loan Fund Dispersal Statement (needed only if you are seeking
financing) You should: 1. Tell How you intend to disperse the loan funds. 2. Back Up
your statement with supporting data. C.
Pro Forma Cash Flow Statement (Budget) This document projects what your Business Plan means in terms of dollars. It shows cash inflow and outflow over a period of time and is used for internal planning. It is of prime interest to the lender and shows how you intend to repay your loan. Cash flow statements show both how much and when cash must flow in and out of your business. D.
Three-Year Income Projection A Pro Forma Income P&L (Income) Statement showing projections for your company for the next three years. Use the revenue and expense totals from the Pro Forma Cash Flow Statement for the 1st year's figures and project for the next two years according to expected economic and industry trends. E.
Projected Balance Sheet Projection of Assets, Liabilities, and Net Worth of your company at end of next fiscal year. F.
Break-Even Analysis The break-even point is the point at which a company's expenses exactly match the sales or service volume. It can be expressed in: (1) Total dollars or revenue exactly offset by total expenses -or- (2) Total units of production (cost of which exactly equals the income derived by their sales). This analysis can be done either mathematically or graphically. Revenue and expense figures are drawn from the three-year income projection.
G.
Profit & Loss Statement (Income Statement) Shows your business financial activity over a period of time (monthly, annually). It is a moving picture showing what has happened in your business and is an excellent tool for assessing your business. Your ledger is closed and balanced and the revenue and expense totals transferred to this statement.
H.
Balance Sheet Shows the condition of the business as of a fixed date. It is a picture of your firm's financial condition at a particular moment and will show you whether your financial position is strong or weak. It is usually done at the close of an accounting period. Contains: (1) Assets, (2) Liabilities and (3) Net Worth.
I.
Financial Statement Analysis In this section you will use your income statements and balance sheets to develop a study of relationships and comparisons of: (1) Items in a single year's financial statement, (2) comparative financial statements for a period of time, or (3) your statements with those of other businesses. Measures are expressed as ratios or percentages that can be used to compare your business with industry standards. If you are seeking a lender or investor, ratio analysis as compared to industry standards will be especially critical in determining whether or not the loan or venture funds are justified.
·
Liquidity
Analysis (net working capital, current ratio, quick ratio)
·
Profitability
Analysis (gross profit margin, operating profit margin, net profit margin)
·
Debt
Ratios (debt to assets, debt to equity)
·
Measures
of Investment (return on investment)
·
Vertical
financial statement analysis (shows relationship of components in a single
financial statement)
·
Horizontal
financial statement analysis (percentage analysis of the increases and
decreases in the items on comparative financial statement)
J.
Business Financial History This is a summary of financial information about your company from its start to the present. The Business Financial History and Loan Application are frequently one and the same. If you have completed the rest of the financial section, you should have all of the information you need to transfer to this document.
VII.
Part IV: Supporting Documents This section of your plan will contain all of the records that back up the statements and decisions made in the three main parts of your business plan. The most common supporting documents are: A.
Personal Resumes Include resumes for owners and management. A resume should a one-page document. Include: work history, educational background, professional affiliations and honors, and a focus on special skills relating to the company position. B.
Owners' Financial Statements A statement of personal assets and liabilities. For a new business owner, this will be part of your financial section. C.
Credit Reports Business and personal from suppliers or wholesalers, credit bureaus, and banks. D.
Copies of Leases, Mortgages, Purchase Agreements,
Etc. All agreements currently in force between your company and a leasing agency, mortgage company or other agency. E.
Letters of Reference Letters recommending you as being a reputable and reliable business person worthy of being considered a good risk. (both business and personal references) F.
Contracts Include all business contracts, both completed and currently in force. G.
Other Legal Documents All legal papers pertaining to your legal structure, proprietary rights, insurance, etc. Limited partnership agreements, shipping contracts, etc. H.
Miscellaneous Documents All other documents which have been referred to, but not included in the main body of the plan. (for example: location plans, demographics, competition analysis, advertising rate sheets, cost analysis, etc.) Putting
Your Plan Together When You Are Finished: Your Business Plan should look professional, but the potential lender or investor needs to know that it was done by you. A business plan will be the best indicator that can be used to judge your potential for success. It should be no more than 30 to 40 pages in length, excluding supporting documents. If you are seeking a lender or investor: Include only the supporting documents that will be of immediate interest to the person examining your plan. Keep the others with your own copy where they will be available on short notice. Make copies for each lender or investor you wish to approach. Keep track of each copy that you give out. If you are turned down for financing, be sure to retrieve your business plan. Keep
Your Business Plan Up-to-Date!!! Your business plan will be beneficial only if you update it frequently to reflect what is happening within your business. Measure your projections against what actually happens in your company. Use the results to analyze the effectiveness of your operation. You can then implement changes that will give you a competitive edge and make your business more profitable. ______________________________________________ Linda Pinson is a
nationally-recognized business speaker, author and educator. She is the owner
of Out of Your Mind...and Into the Marketplace™, publisher of
educational "how-to" books and software for new and established
businesses. Linda has authored nine books, one of which is Anatomy of a
Business Plan, winner of the Ben Franklin Best Business Book of the Year
Award and basis of the U.S. Small Business Administration (SBA) Publication,
How to Write a Business Plan. She is also the developer of Automate Your
Business Plan 2012 for Windows® XP, Vista, and Windows®
7. Her books are in libraries and bookstores throughout the
Copyright © 1996-2013 Linda
Pinson Out of Your Mind...and Into the
Marketplace,
|
|
|
|
|
|
|
|
|