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[Business Name] Business Plan[business address, city, state zip]

[today’s date]

By

[your name]

[BUSINESS NAME] BUSINESS PLAN BY [YOUR NAME]

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Non-Disclosure and Confidentiality Agreement

The undersigned (‘Recipient’), hereby agrees that all financial and other information (“Information”) that it has and will receive concerning [Business Name] is confidential and will not be disclosed to any other individual or entity without prior written consent.

The Information shall remain the property of [Business Name] and shall be returned to [Business Name] promptly at its request together with all copies made thereof.

Recipient acknowledges that no remedy of law may be adequate to compensate [Business Name] for a violation of this Agreement and Recipient hereby agrees that in addition to any other legal or other rights that may be available in the event of a breach hereunder, [Business Name] may seek equitable relief to enforce this Agreement in any court of competent jurisdiction.

__________________ __________________________Date Signature of Recipient


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Table of Contents

Executive Summary.......................................................................................................................1Highlights..........................................................1Business Objectives.......................................2Mission Statement..........................................2Guiding Principles..........................................3Keys to Success...............................................3

Company Description....................................................................................................................3Legal....................................................................4Startup Summary............................................4Financial Summary........................................5Location and Facilities..................................6

Products and Services....................................................................................................................7Products/Services Descriptions................7Unique Value Proposition (UVP)..............7Warehousing and Manufacturing.............7Inventory Management................................8Future Products/Services............................8

Market Analysis.............................................................................................................................9Industry Analysis.............................................9

Market Size........................................................9Barriers to Entry...............................................10

Competitive Comparison...........................10Key Customer Segments......................................11Market Tests...................................................12Target Market Segment Strategy..........13

Market Needs...................................................13Market Trends..................................................13Market Growth.................................................14Growth Opportunities......................................15

Marketing Message.....................................15Marketing Strategy......................................................................................................................15

SWOT Analysis...............................................16Strengths...........................................................16Weaknesses......................................................16Opportunities....................................................16Threats..............................................................16

Marketing Strategy and Positioning.....17Pricing Strategy................................................17Website.............................................................18Social/Digital Marketing..................................18Marketing Programs.........................................19

Sales Strategy................................................19Sales Forecast...................................................19

Milestones........................................................20Exit Strategy...................................................21

Organization and Management..................................................................................................21Organizational Structure...........................21Management Team.......................................21


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Management Team Gaps...........................22Personnel Plan...............................................22Strategic Alliances.......................................23

Financial Plan...............................................................................................................................24Important Assumptions..............................25Startup Costs..................................................25Source and Use of Funds...........................26Key Performance Indicators.....................26Business Risks................................................27Break-Even Analysis....................................27

Business Ratios.............................................................................................................................28Statements....................................................................................................................................28

Projected Profit and Loss.................................29Projected Cash Flow........................................30Projected Balance Sheet...................................31Profit and Loss Statement (With Monthly Detail) 32Balance Sheet (With Monthly Detail)..............33Cash Flow (With Monthly Detail)...................34

Miscellaneous Documents...........................................................................................................35


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Executive Summary

INSTRUCTIONS: Provide a concise but positive description of the business, including objectives and accomplishments. For example, if the business is established, consider describing what it originally set out to do, how its accomplished goals to date, and what lies ahead. If new, summarize what the business intends to do, how and when it will be complete, and how it can overcome major obstacles (such as competition).

Additionally, this section should be a summary of the entire business plan. The summary should include: (1) A brief description of products/services; (2) A summary of objectives; (3) A solid description of the market; (4) A high-level justification for viability (including a quick look at the competition and the competitive advantage); (5) A snapshot of the growth potential; and (6) An overview of funding requirements.

QUESTIONS: (1)What is the name of the business?(2)What industry is the business in? (3)What year was/will the business be established?

COMPLETED BY: Business Owner/Market Researcher

Note: Write this last and summarize the main points from the entire business plan.

[Business Name] was established in [year] by [founder name] and operates within the __________ industry, offering [products/services] including __________. The [products/services] will be sold to [consumers/businesses] directly from the [retail/online] location at [address].

[insert: research of industry: how much is the industry worth? What are some opportunities to be better? (should be 2-3 sentences and include reliable sources)]

The products offered by the business will be produced and supplied by [the business/distributor/vendor]. The business will maintain inventory in addition to offering customization to customers. Outside influences that could affect the growth of the business include [lack of office space/warehouse/employees], which could prevent the business from __________.

The purpose of this business plan is to develop a blueprint for the business's vision and strategy and use this plan as a guide in the development and growth of the business. This business plan will also be used to align the various elements of the company to create a coherent system of sustainable customer satisfaction and profitability.

Highlights

INSTRUCTIONS: Summarize key business highlights. Mainly, focus on the projected financial data for the business, which will be completed later within the plan. You may want to include a chart showing the sales, expenses, and net profit for several years. You can either present only a chart, text explaining the data, or both.

QUESTIONS: (1) What are the business’s expected sales, expenses, and net profits?


Note: To replace the below sample chart data with your own, right-click the chart and click, “Edit Data in Excel.” You can also use the provided Excel workbook and paste the chart into this


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document once you complete the financials.

Figure 1: Business highlights showing sales, expenses, and net profits

Year 1 Year 2 Year 3$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000 Highlights

SALESEXPENSESNET PROFIT

Business Objectives

INSTRUCTIONS: include a list or timeline of the goals the business hopes to achieve. This could include both short-term and long-term goals after the business has launched.

QUESTIONS: (1) What is the goal/purpose of creating this business plan?(2) What are the business’s goals and objectives (be the best in the industry / break-even / hire

employees)?a. What are the goals and timelines for completing the business goals and objectives?

COMPLETED BY: Business Owner

The primary objectives of this business plan are to outline methods to help:

Achieve sales growth targets between month six and the end of year one. Grow the sales team to seven field sales reps by month eight, and 25 reps by year

three. Break-even by the end of year one and generate a profit in year two by containing

costs and meeting sales goals. Begin paying the owner a regular salary starting in year two. Maintain 90-day customer satisfaction survey results at 98% or higher. Be the largest and go-to distributor of [product categories]. [other objectives]

Mission Statement

INSTRUCTIONS: The mission statement should express the business’s purpose in a way that inspires support and ongoing commitment. The statement is the cornerstone on which the business is built. Its strategic plan and its culture are directly tied to the vision the mission statement puts forth. It is important that a mission statement supports the overarching goals and purpose of the company in a way that can be understood internally by the company and externally by consumers.

QUESTIONS: (1) Who will the products/services be sold to (business / consumers / moms / dads / women / men)?(2) What are the opportunities or needs that the company addresses?


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(3) Are there any principles or beliefs that will guide the business and employees?


The mission of the business is to develop and sell [products/services] in the category of [insert: product category], primarily selling to [insert: target customer groups]. The business will offer an exceptional level of customer service and products tailored to the customer. The business intends to attract and maintain customers through unique online and traditional marketing efforts.

Guiding Principles

INSTRUCTIONS: The guiding principles of a business are the driving forces that make it successful. They are the backbone of the organization. Guiding principles can be thought of as a “manual” that details how the business envisions implementing the mission statement.

QUESTIONS: (1) What actions and beliefs are ethically and morally necessary to help grow the company?(2) How will the business leaders adapt and remain motivated and positive during troubling times?


Evolve – Continually communicate and interact with customers to help develop and implement new ideas and strategies for achieving success.

Integrity – Make doing the right thing a daily habit so that our customers and staff will enjoy working and partnering with our business.

Embrace Failure – We like to dream big, and because of it, we're likely to stumble. We should not let failure consume the business but should expect and use those failures as lessons.

Keys to Success

INSTRUCTIONS: Describe unique or distinguishing factors that will help your business plan succeed. List the steps the business must take to achieve success. While similar to the objectives, the keys to success focus on the daily goals, while the objectives concentrate more on the dates and timelines of completing goals.

QUESTIONS: (1) What actions or ideas are necessary to achieve success within the market?


To succeed in the targeted industry, the business must:

Offer a comprehensive line of innovative, top-quality [products/services]. Have close relationships with the key local decision-makers to assist in marketing

and promotions. Do an exceptional job of articulating the value of [products/services] and solutions.

Position the business in a clear, compelling, and memorable way in the marketplace. Have an organization with a unique spirit that makes people eager to join and

conduct business. Create a visible, accessible, and welcoming brand and shopping experience to

position the business as the premier choice for the targeted [products/services].


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Company Description

INSTRUCTIONS: The company description outlines vital details about the business, such as where it is located, how large the company is, what the business does, and what it hopes to accomplish. The company description of the business plan describes the vision and direction of the business so that potential lenders and partners can develop an accurate impression about who the business is.

QUESTIONS: (1) What are the names of the Founders/Owners?(2) Where will the business be located?(3) Is the business new or existing? (4) Does the business use suppliers? Who are the suppliers? (5) What are the hours of operation?


The business is a [newly established/existing] business located at [address]. The business is owned by [insert: owner name]. The business will offer a variety of [products/services] including [list: products/services]. The company also offers [products/services] by major vendors including [insert: list of vendors]. All products are shipped from [warehouse address].

The hours of operation will model the industry standard hours of Monday - Saturday 8:00 am to 5:00 pm for phone sales and support, and a website that is available 24 hours a day.

Legal

INSTRUCTIONS: Indicate whether the business is a sole proprietorship, corporation (type), or partnership. If licenses or permits are required, describe the requirements for acquiring them and where you are in the process.

If it has not already been stated whether this is a new independent business, a takeover, franchise, or an expansion of a former business, include that also.

QUESTIONS: (1) What type of entity is the business?(2) Where will the business taxes be filed?(3) Where will business insurance be purchased?(4) What are the required permits, regulations, etc.?


The business has secured the required licenses and permits in accordance with the statutory requirements. Acquiring the proper licenses and permits required completing [insert: names of forms and documents].

The business is organized as a [LLC / Partnership / Corporation / Sole Proprietary], registered in the state of [insert: state] and owned and founded by [insert: founder].

Sales tax will be filed quarterly with the [insert: place of filing]. Business insurance will be purchased through [insert: name of insurance company].

The business will complete a pre-operational inspection to verify that the establishment is constructed and equipped in agreement with the approved plans and in compliance with


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the state Code. An appropriate insurance policy will also be taken out in accordance with the State Department of Health regulations.

The State Department of Health also requires that each employee possesses a distributor permit. This permit is [$0.00] and is obtained after a simple exam.

Startup Summary

INSTRUCTIONS: Summarize key details concerning the starting or acquisition of the business. In this section of the financial model, it needs to be shown how much capital the business is seeking, and the startup uses for the funds. The startup summary gives an investor or bank officer a quick gloss on how the business will allocate the initial funding and what the ratios are of the loan to investment.

QUESTIONS: (1) What are the startup goals for the business, and what are the steps required to achieve the goals?


The key elements in the startup plan are:

Create the strategic business plan. Establish a corporate identity and positioning strategy. Establish a location and place of doing business. Purchase marketing and sales collateral. [insert: other key elements]

Financial Summary

INSTRUCTIONS: The Financial Summary is a summary of the business plan financials that will be completed later. The financial summary (this) section should be completed after completing the financials for the business. This section should be a detailed outline of how much funds are needed, where the funds will come from, and what the funds will be used for.

QUESTIONS: (1) How much has currently been invested into the business and by whom (personal/bank/investor)? (2) What has already been purchased for the business?

a. Where were the items purchased from?(3) Who will insure the loan? (4) How much net income does the business expect to have at the end of year one? (5) What are the expectations to repay investors? (6) Is the business seeking a new loan/investor? How much?(7) If a building is needed, why was the particular location selected?


The owner has invested [$0.00] of personal savings in the business and is seeking an additional [short-term/long-term] loan in the amount of [$0.00] to help supplement initial cash flows from sales for the first year. The loan will be secured by [insert: Insurer name] on all inventories and accounts receivables. The business anticipates a first-year net profit of [$0.00] and looks to grow substantially by year three. By the end of year three, the business will have a very respectable net worth of [$0.00].

The following is a summary of the required funds to establish the business:


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Property improvement costs have been in the form of [new heating/air conditioning, electrical, plumbing, painting, carpentry, flooring, smoke detectors, etc.].

The owner has already spent [$0.00] for purchases relating to __________. These purchased items were obtained from __________. Additional out of pocket expenses were for __________.

The rental space was formerly a __________, and the layout is perfect for the proposed business needs. The loan will be secured by [insert: Insurer name] on all furniture fixtures and equipment.

Total start-up costs are [$0.00]. The source of repayment for both loans will primarily be cash flow from the company, and a secondary source of repayment will be recourse to the owners. The tertiary form will be the disposal of the assets.

Location and Facilities

INSTRUCTIONS: The location of the business is paramount to some businesses, less so for others.

If the business doesn't require specific location considerations, that could be an advantage, and it should be noted here.

If a location is not selected, describe the key criteria for determining a suitable location for the business.

Consider the following questions:

What is the amount of needed space? Is there a particular area that would be especially desirable from a marketing viewpoint? Does the location need to be easily accessible to public transportation? How is the access/traffic flow? Are parking facilities adequate? Is the street lighting sufficient? Is it close to other businesses or venues that might aid in drawing customers? If it is a storefront, does it attract attention, or what must be done to make it attract attention?

If signage is appropriate for your business: Are there local ordinances concerning signs that might adversely affect the business? What type of signage would be best? Has the cost of signage been included in the startup figures?

B-QUESTIONS: (1) How much is/will be your expected rent (2) Business Address?

a. Why did you choose this location? b. How much square feet will your business need? c. What type of rental space will be purchased [retail/warehouse/office]? d. How popular are the location and surrounding area?

M-QUESTIONS: (1) What are the statistics related to the business's local address? (population, median age, household

income, etc.)


The [city, state/online] location was a pivotal component of the business. The owner specifically sought this location as market trends, economics, and consumer demographics aligned with the target location.

The [2,600] sq. foot [office/warehouse/retail] location for the business will be located at [address]. Approximately [10,000] cars pass the site daily. The area surrounding the location include [list: surrounding stores or venues].

The major benefits of this area are __________. This location is ideal for the business because __________.


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The location specifically meets the needs of the business’s targeted customers. Particularly, customers which include individuals between the ages of [30-65] with incomes greater than [$0.00]. The following table briefly summarizes the population in the 3 and 5-mile radius:

Table 1: Location Demographic Summary (https://www.census.gov/quickfacts/arlingtoncitytexas)

3-M Radius 5-M RadiusPostal Count Population 137,665 291,827Median Age 38.6 38.8Est. Average Household Income $55,092 $59,083Est. Median Household Income $45,894 $46,766

Products and Services

Products/Services Descriptions

INSTRUCTIONS: Describe the product/service offering and why it is in demand.

Questions to answer include: What is the potential market? How do the products/services benefit the customers? What about the products/services gives the business a competitive edge?

B-QUESTIONS: (1) What types of products/services will be offered (include details)? (2) What is the category of the products/services?

M-QUESTIONS: (1) What are the market benefits of the products/services? Focus on the category versus the actual

product/service.


Note: If the products/services are more important than the location, move this topic before location and facilities.

The business is a [startup/existing] and has developed this plan with the following specifications: To capitalize off a growing market by offering [products/services] with the unique benefits of __________. The business has a window of opportunity to introduce its brand and gain a significant piece of the market share.

The business will provide a wide selection of [products/services] including [insert products]. The business will offer [products/services] primarily in the categories of:

[insert: bulleted list of categories]

Other benefits include: [insert: 2-3 sentences referencing the benefits of the product/service category.]

Unique Value Proposition (UVP)

INSTRUCTIONS: Give a positive, concise, and fact-based description of the business: what it does, and what makes it unique and competitive. Describe the features that will make the business attractive to potential customers.

QUESTIONS:


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https://www.census.gov/quickfacts/arlingtoncitytexas

(1) What are the unique benefits of this business’s products/services versus the competition? (2) Will the business market its products/services differently from its competitors? How so?


The unique benefits of the [product/service] include __________. The business will also uniquely market the [product/service] to customers by using [social media, catalogs, commercials, etc.], which is rarely used by competitors in the industry.

Warehousing and Manufacturing

INSTRUCTIONS: If information about the suppliers, including the financial arrangements, plays an important role in the business, include the relevant details in this section. Without revealing any proprietary information, describe the manufacturing procedure.

Describe how the business will sell the products/services that are manufactured—Directly to the public, through a wholesaler, distributor, or other?

QUESTIONS: (1) Does your business manufacture any products?

a. Describe the facilities and any special machinery or equipment.(2) Does the business get its products from suppliers?

a. Who are the suppliers? b. Where are the suppliers located? c. Why have these suppliers been selected?d. How will the suppliers ship the products? e. What are the payment terms with the suppliers?


The key suppliers for the business are [insert: suppliers]. The suppliers will help to assure exceptional delivery times, better overall prices, and more product offerings. The suppliers are located at [insert: supplier(s) address].

Payment terms negotiated with the suppliers are __________. This, in turn, provides some flexibility in the cash flow requirements. Orders which are small in size and weight will be air shipped; whereas, larger and heavier orders will be shipped LCL (Less than a Container Load).

Inventory Management

INSTRUCTIONS: Outline how the business will handle and maintain inventory. This can also include how the suppliers will maintain the inventory before drop-shipping or sending to the business’s warehouse.

QUESTIONS: (1) How much is necessary in inventory at all times (in dollars)?

a. Why is it that amount necessary? (2) Where will product inventory be stored? (3) How will inventory be managed?


To run the business successfully, approximately [$0.00] in inventory is required to help with __________. This inventory will be stored at [address]. Final orders of products will be delivered directly to the customer. The business’s website will be instrumental in the business’s success in managing inventory. The website's e-commerce system will


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additionally alert the operations manager when inventory levels are low, and when new inventory is needed.

Future Products/Services

INSTRUCTIONS: Use this section to describe how you will continually adjust your business to the needs of the customers. Explain how the business will monitor and remain current and relevant to customers. This may align with the business goals of expansion.

QUESTIONS: (1) Will the business offer new products/services in the future? Explain.


The business realizes the importance of satisfied customers and will work continually to improve/enhance the customer experience. Feedback request will be sent by email to customers, and management will keenly review these comments, and address and resolve customer concerns.

The business operates in a constantly changing industry. As trends and the needs of customers change from year to year and season to season, it is necessary to keep flexibility in [products/services] lines.

As the business matures, it may add products that complement the advancement of the market and consumers directly. However, the current focus of the [products/services] will remain in the category of __________.

Market Analysis

Industry Analysis

INSTRUCTIONS: How well the business understands its industry can play a major role in its success or failure. Additionally, it is vital to know as much about the potential customer as possible; who they are, what they want (and don't want), and expectations they may have.

In showcasing the industry analysis, include a chart showing statistics and data relating to the industry. Data could include the active markets compared to global markets. Also, include challenges faced in the target market.

QUESTIONS: (1) Is the industry growing or steady?(2) What has helped with the growth of the industry (technology/economics/etc.)?(3) Who are the current leaders in the industry? Why are they considered the leader?(4) What is the monetary value of the industry?

COMPLETED BY: Market Researcher

Note: Conduct market research to find data for this section.

The [product/service] industry of [insert: industry] is a [growing/steady] industry in the marketplace, driven by innovation and new technologies. The last decade has seen an unprecedented growth in innovative and improved technologies, which has led to the development of state-of-the-art [insert: product/service category] [products/services] and catalyzed growth and advancement in the industry.


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Figure 2: Industry Leaders

Industry LeadersUSAWestearn EuropeMiddle East / AfricaEastern EuropeAsia Pacific

[insert: statistics and data relating to the industry. Data could include the local market compared to global markets. Also, include challenges faced within the target market.]

Example: As the [insert: product/service category] industry enters 2021, the United States remains the world leader by market size, with total revenue of around [$0 billion]—around one-third of the [$0 billion global pie]. But the U.S. industry of [insert: industry] also faces multifaceted challenges that are hampering growth (source).

Market SizeINSTRUCTIONS: Provide information based on research that outlines the industry, market leaders, laws, and current and potential revenue within the market.

QUESTIONS: (1) Who are the current leaders in the market?

a. How do they outrank this and other businesses (at what percentage)?


Note: You should conduct market research to find data for this section.

Example: The United States continues to command a leadership role in the global [insert: product/service category] space. As of October 2019, U.S. companies held four of the top five rankings for [industry] companies with the most revenue represented by the top 2% of market leaders. Overall, U.S. companies account for almost two-thirds of the total revenue for the top 40 [industry/product] companies, followed by Germany with 14% and Japan with 7%.

Barriers to EntryINSTRUCTIONS: An important step in assessing the business environment is in understanding obstacles, known as entry barriers, which challenge new contenders in your industry. If the barriers are low, almost anyone can join the fray and compete for business. If the walls are high, entry is harder and fewer competitors make the plunge.

QUESTIONS: (1) How complex is it to enter this market? If a new business wanted to compete, would it be easy or

complex? What would be the barriers preventing them (if any)?


There are barriers to entry in the [insert: industry] industry, and the capital costs of starting a new company are high. However, competition is a barrier due to a large number of loyal consumers to current distributors. When combined with the cost of marketing and customer acquisition, the entry cost can be expensive. Barriers include:


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Brand Loyalty. Some consumers may be loyal to our competitors. A new distributor would have to spend a large sum of money on advertising to create its brand loyalty.

Geographical Barriers. Some Industries are specific to a particular area. New distributors cannot enter unless they have access to an online audience. This would be expensive to develop an optimized website and social presence.

Licenses. This is a legal barrier that prevents other distributors from selling products to consumers or professionals. It can be an effective way to prevent competition.

Competitive Comparison

INSTRUCTIONS: Briefly describe several of the nearest and greatest competitors. What percentage of the market does each reach? What are their strengths and weaknesses? What can this business learn from the way competitors do business; from their pricing, advertising, and general marketing approaches? How does this business expect to compete? How does it hope to do better?

Use the table below to grade this business against its competition. Grade “A” being excellent and “F” being poor.

QUESTIONS: (1) What indirect competition will the business face; including from Internet sales, department stores,

or foreign imports? (2) Who are the direct competitors? How are they better/worse than this business?


Note: Conduct market research of the competitors to find data for this section. Be honest with the responses.

Direct Competitors: [list the top three direct competitors and provide 2-3 sentences for each explaining

how they are generating success.]

Indirect Competitor: [list three indirect competitors and provide 2-3 sentences for each explaining how

they are generating success.]

Table 2 showcases how the business ranks next to its competitors.

Table 2: Competitive Analysis

FACTOR [Business Name]

Competitor A

Competitor B

Competitor C

Importance to Customer

Products A B C C 100%

Price B C D C 80%

Quality 95%

Selection 40%

Service 60%

Reliability 100%

Stability 100%


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FACTOR [Business Name]

Competitor A

Competitor B

Competitor C

Importance to Customer

Expertise 65%

Company Reputation 40%

Location 65%

Appearance 60%

Sales Method 30%

Credit Policies 30%

Advertising 10%

Image 40%

Although we have many competitors in this space, we will set ourselves apart by [insert: unique value or marketing].

Key Customer Segments

INSTRUCTIONS: What is the target market? (Who is most likely to use the products/services?) What are the demographics? What is the size of the potential customer base?

If the business is offering a new product/service, how has it been determined if there is a market for it and whether people are willing to pay for the product/service?

Consider the target market: Is it growing, shrinking, or static? How does the business plan to increase its market share?

QUESTIONS: (1) Who are the target customers?

a. Why have they been selected as the target group?


Note: A chart can be used to demonstrate key points about the market potential at-a-glance.


The target customers for the business are [insert: target customer group]. It is estimated that there are [250,000] potential customers in and around the targeted area. The targeted customers are estimated to spend around [$1,000] per month on [insert: product group]. To seek the most profitable market segments in the target markets overall, the business will focus on the following area within the target market:

[list one customer type per bullet point. Then note the demographics of that customer including their income, age, profession, etc.]

The business should focus its marketing efforts on customers within the age range of [30-45]. Additionally, the business should direct its campaigns slightly more toward [female/male] customers.


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[include charts with customer demographics, which may include age, gender, religion, race, etc. This information can be found using local databases.]

Figure 3Customer Age Trend

18-24 25-34 35-44 45-54 55-64 65+0

50

100

150

200

250

300

350

Figure 4

Customer Gender

Male Female

Market Tests

INSTRUCTIONS: Has this business or another in the industry proven that the concept of this business works? If so, tell that story here. The best place to look may be local or national news outlets. Search the internet to find a story about how a similar business started in this industry and achieved success. Include 2-3 paragraphs of that story here. Finalize this section with how your business could produce similar and/or better results considering your unique value proposition.

QUESTIONS: (1) Has this business or another in the industry proven that the concept of this business works?

a. Summarize their success story.



Target Market Segment Strategy

INSTRUCTIONS: A target market segment strategy is an essential plan of action for businesses to adopt. Essentially, the strategy outlines the business's plans for reaching its intended customers. It takes into account consumer demand, the company's response to that demand, and its plan of action for delivering high-quality products coupled with solid customer service.

QUESTIONS: (1) Is the target market segmented?


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(2) Are there different levels within the same type of business, each offering a difference in quality, price, or range of products?

(3) Is this market segmentation governed by geographic area, product lines, pricing, or other criteria?(4) Into which market segment will the primary business fall? (5) What percentage of the total market is this segment? (6) What percentage of this segment will the business reach?


Note: Add a pie chart if better for presentation.

The [product/service] offering is available to all players in this market. We will differentiate ourselves by adding value through our distribution strategy and channels, and our comprehensive product lines and programs that make working with us incredibly easy. We are uniquely positioned to gain market share in this segment due to our corporate relationships, our ability to build a regional (ultimately national) field sales team quickly, and our ability to create compelling marketing programs. The competition is largely smaller, more local distributors and [insert: other] who are not approaching this market in a sophisticated or coordinated way.

Market NeedsINSTRUCTIONS: Explain the interest in which customers are likely to have in this product/service and explain why. The content for this section may be taken from the Unique Value Proposition (UVP) section.

Unlike the UVP section, this section should include data and statistics to backup whether the uniqueness will likely generate sales.

QUESTIONS: (1) What are the market needs?

a. Do customers need this product/service or is it a luxury(want) product/service?


Note: Conduct market research to find data for this section. Research should explain how there is no active business providing this product/service and how there is potential to get customers to purchase from this business.

The [insert: industry or product/service category] market was valued at USD [$0.00 billion] in 2019 and is expected to witness an increase of [20%] over the forecasted period. The [insert: industry] industry and customer interest are on the rise. The demand of [insert: purchasing influences] is anticipated to positively affect the market and influence sales. Additionally, the prevalence of [insert: other purchasing influencers] is rising as per the statistics published by [insert: source] (source).

Market TrendsINSTRUCTIONS: Outline how the business intends to keep abreast of technology and changing trends. Additionally, explain if there have been previous or current trends that have positively influenced the business.

QUESTIONS: (1) Technology- is impacting technology changing (quickly, slowly)?(2) Buying patterns- is this a one-time purchase product/service or many purchases in a lifetime?(3) What new features are clients looking for?




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In this industry, trends are in our favor. [insert: product category] are popular because of their unique benefits. [business name] embraces trends, and we will continue to advance with technology, market growth, and customer needs.

Market Growth INSTRUCTIONS: Using a line chart or text, explain the industry growth over the years and how the business has an opportunity to capitalize on the growth of the market. To best showcase, include percentages and statistics if available. This information can be gathered from the Internet and local archives.

QUESTIONS: (1) What marketing growth trends could influence sales for the product/service? Use a chart if you

can.


Figure 5: Local Market Growth

2016 2018 20200%5%

10%15%20%25%30%35%40%

Local Market Growth

Potential Customers

New Homes

New Businesses

% g

row

th o

ver p

rior p

erio

d

The industry of [insert: industry] grew at a compound annual growth rate (or CAGR) of [4.5%] from 2016 to 2020 and is expected to increase at similar rates in the future, according to [insert: source] (source).

The [insert: industry] industry generates sales of around [$0.00 billion], which represents approximately [45%] of the global market, according to statistics by [insert: source]. In a report by [insert: author], the author stated that the [insert: industry] market is projected to grow at a CAGR of [6.1%] between 2020 and 2023.

Growth OpportunitiesINSTRUCTIONS: The growth opportunities section is about proving to others that the business has a plan for bringing products/services to new customers and new markets. The clear objective in outlining the growth opportunities is to show how these moves will increase sales.

QUESTIONS: (1) Where are areas to grow the business? This could include new offerings and services once the

business has grown.a. Why are these areas promising?



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Our growth will not come entirely from overall market growth, but from taking market share away from our competitors.

Additionally, there is an opportunity to grow the business by offering an additional [product/service] that [insert: potential future product]. Additionally, implementing __________ will help to reduce the cost of __________, which will increase profit margins allowing for new product/service offerings.

There are many growth opportunities for the business. First and foremost, we will launch our [product/service] in a currently unserved geographical area utilizing various marketing strategies. We will build a solid customer base in the first year that we can use to leverage growth in succeeding years.

Marketing Message

INSTRUCTIONS: This is the message that outlines how the business would like to be seen by the public. Most businesses like to be seen as reliable, trustworthy, have quality services/products, etc. Determine what message the business wants to give customers to motivate them to take action.

QUESTIONS: (1) How does the business expect to be viewed by customers? e.g. high quality, ease of use,

comforting?


We will position our brand and products to be of high quality with marketing that inspires growth and conversation. We will be known for not only quality and trendy products, but primarily for our ease of use and customer service. We will be knowledgeable about marketing trends and will offer informational articles to email subscribers and customers. Our customers will feel confident that they can approach us with their product/service related questions and confident that we will offer good resources.

Marketing Strategy

INSTRUCTIONS: Provide a summary of how the business will market. The purpose of a company's marketing plan is to attract customers willing to purchase a particular product/service. Creating a market for the product/service, the company offers begin with the business environment analysis and continues through the development of a marketing strategy. A marketing strategy must be flexible and should be evaluated periodically to determine if it must be revised due to changes in the marketplace.


We will utilize the offering of [insert: marketing strategy] as the means to gain entrance into the market and build our organization. Our marketing strategies will include:

Using relationships with decision-makers to gain unique access to sell and promote our [products/services].

Effectively building a strong national sales team capable of establishing strong relationships with decision-makers.


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Creating marketing strategies and tactics to position ourselves as leaders in the industry.

Gaining distribution relationships with a unique combination of top suppliers to build a comprehensive line of product solutions.

Creating an active channel of distribution that will be indispensable to suppliers as a cost-effective way for them to penetrate the post-acute market.

SWOT Analysis

INSTRUCTIONS: SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis is a method for strategic planning that evaluates these four elements as they relate to the business objectives.

QUESTIONS: (1) What are the strengths (selling points) of this business?(2) What are the weaknesses (sales hindrances) of this business?(3) What are the opportunities for this business to grow and be successful?(4) What are the threats preventing this business from reaching success?


The following information summarizes the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis is a method for strategic planning that evaluates these four elements as they relate to the business objectives.

Strengths Relatively easy entry and low capital outlay. Committed owners with combined 15-years industry experience. The business will offer a unique one of a kind experiences in its online e-commerce

location. Targeted, specific, focus on customers creates a memorable experience for patrons

resulting in repeat business.

Weaknesses Upset customers can potentially harm both business reputations and cause

collateral damage by way of online reviews. Very specific target market – if the target market were broader, the owners could

increase market share in the segment with the strongest potential. High turnover in the sales industry – may need to continually hire a sales team,

which could hinder relationship development.

Opportunities Reach customers geographically not yet catered for. Increase in higher income of the target market. Growth in the age of consumers needing products/services. Marketing directly to consumers.

Threats Another new entrant or current supplier expansion could potentially hurt market

share. Supplier issues – supplier may run out of product, not ship, or have backorders. While we do have a backup, the website could go down for technical reasons. Sales tied to economic growth.


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Marketing Strategy and Positioning

INSTRUCTIONS: Explain how the business will market its product/service and why it will use this form and method of marketing. After conducting research, decide which of the following advertising and promotion options offer the best chances of successfully growing the business: directory services, social networking websites, media (newspaper, magazine, television, radio), direct mail, telephone solicitation, seminars and other events, joint advertising with other companies, sales representatives, word-of-mouth, other?

Determine how the advertising budget will be decided, how advertising and promotional results will be tracked, and how often advertising is needed. Or will the business conduct seasonal campaigns? Other areas to analyze include the packaging of the products/services and if it is optimal for appealing to the desired customers.

QUESTIONS: (1) Based on research, how is it recommended the business markets its products/services?

Explain why the method was selected and back up the suggestion with research.


The business’s primary promotional and advertising strategy will be catalog and magazine ads, email, and word of mouth. The business will open with a grand opening scheduled for [August 2021]. The early opening date will allow the staff to familiarize themselves with operations and customer interfacing.

In addition, the business will participate in select promotions annually. Once the business is up and running, management will determine which months need a boost. Historically, customers make a majority of their purchases around lunch and on weekends. Later months throughout the year are also significant because of end-of-year tax sales. In addition, the business will have promotional deals on holidays such as Thanksgiving and the 4th of July. Management anticipates profit to equate to 3X the cost of advertising the promotion.

[May conduct research for validating why your preferred method of marketing is appropriate.] Pricing Strategy

INSTRUCTIONS: The pricing should be determined after evaluating the competitive position. After the analysis, it should be justified why pricing one way is better than the other. For example, you may want to set prices based on the competitors’ pricing policies and industry averages. Furthermore, prices should be monitored to ensure that the business will operate at a profit.

QUESTIONS: (1) How much will the products/services sell for? (2) What are the expected profit margins/commission? (3) How was the pricing strategy developed? (4) Which of the following pricing strategies might best suit the business; Retail cost and pricing,

competitive position, pricing below the competition, pricing above the competition, multiple pricing options, price lining, pricing based on cost-plus-markup, or other?

(5) What are the competitors' pricing policies, and how does this business compare? a. Are the prices in line with industry averages?

(6) How will the prices and overhead be monitored to ensure that the business will operate at a profit?

(7) How does the business plan to stay abreast of changes in the marketplace, to ensure that profit margins are not adversely affected by innovations or competition?



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The suppliers for the business where products are drop-shipped, offer the products at a price point where the business could charge a [30%-40%] margin increase and remain industry competitive.

Our compensation plan will be a straight [30% commission] paid for products sold to customers. We anticipate immediate payments from customers upon the sale. We plan to coordinate the orders, reimbursement, and other record-keeping processes out of the central office.

The business’s pricing will be similar to the competitor's, and management may consider lowering prices initially to attract customers. However, near term, when the business captures at least [2%] of the market, management plans to price products to be more reflective of [30%] profit costs.

The business will use a dynamic pricing model. All products will be clearly marked with prices. However, the pricing policy will allow for some flexibility. To increase sales revenues, the sales representatives will be authorized to offer a maximum predetermined discount to extend to customers. This incentive will provide the customer with the perception of extra value and a bargain purchase.

Since the business operates from an e-commerce store, we will need to maintain somewhat reasonable and affordable prices. Some items will sell as low as [10%] profits, but most of the products will be priced from [25% to 40%] with an average order price of [$0.00].

WebsiteINSTRUCTIONS: Outline whether the business will have a website and what the website will be used for. Will the website contain products that can be purchased, or will it be a showcasing website that outlines the business? Additionally, discuss what sections the website will include and why.

QUESTIONS: (1) Will you have a website?

a. If so, what will it be used for? b. What pages or information will it include?


The business will attempt to drive customers and sales reps to use the website as the primary source of processing orders and communicating company and [product/service] information. The business will have a website featuring the business phone number, hours of operation, availability, and a map of directions.

The website will also have links to the business’s social media pages to influence brand loyalty. The website will further feature specials, testimonials, frequently asked questions, and offer a chat system for support. Additionally, the website will be used as a tool for both the support staff and customers.

Social/Digital MarketingINSTRUCTIONS: Similar to the website, this section outlines if the marketing efforts will include social media and why or why not. It should also be explained how social media will be used and if it will have a major impact on the business’s success.

QUESTIONS: (1) How will the website and online presence be used to grow the reputation and market the

business?



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Marketing will center primarily around the distribution of the website link to help influence customers to visit the website, which will plug and pull unique hits on real-time database reporting and stats. The business concept will rely on achieving a high-ranking status for keywords to draw customers to place an order or inquirer. A visit to the website will be the primary event. For instance, after viewing an advertisement, the customer is expected to visit the website. From the website, they can reach out further via phone, chat, or support email or form. The business will be linked from hundreds of niche websites where the business will advertise, partner, and establish relationships.

Marketing ProgramsINSTRUCTIONS: The marketing program section includes specific actions for the marketing strategy. This section of the business plan also defines the customer groups, their needs, and the technology required to meet those needs. This section should outline how the business also intends to monitor customer satisfaction and marketing performance.

QUESTIONS: (1) How will the business monitor and maintain its marketing efforts and performance?


The business will rely on a combination of customer feedback and sales reports captured from the website to determine how well the business is performing. Customer review surveys will be available to customers via email, which will offer the option to receive discounts on products when a survey or feedback is submitted. All employees will be made aware of the business's commitment to customer service, and the survey will also be used to evaluate employee performance.

Sales Strategy

INSTRUCTIONS: Now that you have described the important elements of the business, you may want to summarize the strategy for their implementation. If the business is new, prioritize the steps that must be taken to open the doors for business. Describe the objectives and how the business intends to reach them and in what time parameters.

QUESTIONS: (1) What sales/planning methods will be utilized?(2) How will employees be trained on sales to continue growth?


Because the business is newly established, we understand that we will have to prove our business’s worth to customers to earn their business. As equally important, we need to sell both the business and its products/services.

We will approach sales from a salesperson-customer relationship angle. All sales representatives will be trained and encouraged to assist customers in a personal and engaging manner. By gathering key customer information and seeking feedback on our products, we will focus on the following areas:

Targeting our marketing efforts more effectively. Developing product offers that will increase sales. Training and developing sales representatives to effectively service the customer. Increasing awareness of our business within the targeted marketplace.


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Developing future sales opportunities that allow for continued growth of the business.

Sales ForecastINSTRUCTIONS: The sales forecast is the backbone of the business plan. People measure a business and its growth by sales, and the sales forecast sets the standard for expenses, profits, and growth.

This information can be shown in a chart or table, either by months, quarters, or years, to illustrate the anticipated growth of sales and the accompanying cost of sales.

QUESTIONS: (1) What are the projected monthly sales for the business?


Note: The table below can be copied from the purchased financial workbook in the "Charts" section

Table 3: Year 1 Monthly Expenses

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep$0

$2,000$4,000$6,000$8,000

$10,000$12,000$14,000

Year 1 Monthly Expenses

Direct CostOther Expenses

Months in Year 1

Milestones

INSTRUCTIONS: The milestones set the plan tactics into practical, concrete terms, with real budgets, deadlines, and management responsibilities. They are the building blocks of strategy and tactics. And they are essential to the ongoing plan-vs.-actual management and analysis, which is what turns the planning into management.

The milestones are a list of objectives that your business may strive to reach. It can also be presented in a table or Gantt chart.

QUESTIONS: (1) What tasks will the business need to complete in the next 12 months to achieve its goal? (include

tasks and timeframe for completion)


Table 4 identifies the milestone events that are strategically important for the business and provides an outline of dates as to when the events should take place.

Table 4: Milestones


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Locate Building

Construction

Furniture and Setup

Hire Employees

Network and Market

Grand Opening

7/24/17

8/13/17

9/2/17

9/22/17

10/12/17

11/1/17

11/21/17

12/11/17

12/31/17

1/20/18

Milestones

Exit Strategy

INSTRUCTIONS: Is the business seeking to grow and then be sold? If so, the exit strategy section is where to include information on reaching the liquidation goal. It may seem odd to develop a strategy this soon to leave the business, but potential investors will want to know the long-term plans. The exit plans need to be clear as they will dictate how to operate the company.

QUESTIONS: (1) Is the business seeking to grow and then be sold?

a. What goals must be met to achieve the sale?(2) What is the plan if the business is not successful?

a. How will the business maintain, or will it sell its assets?


While most businesses take the time to develop a customer base, [Business Name] has an advantage of being in a high traffic area, which lends itself to an immediate base of potential customers. The business will grow as we further develop a loyal customer base, as such we can expect improvements in sales quarter over quarter. We have the financial resources to self-fund the business for up to one year, which is the amount of time we give the business to be profitable and self-sustaining. If, after the first holiday season, the business is not profitable, we will not renew our lease and will liquidate inventory. Any inventory remaining after liquidation will be sold over time through websites such as eBay and Etsy.

Organization and Management

Organizational Structure

INSTRUCTIONS: This is an overview of the organizational structure in the subsections. This section summarizes the information about the business' organizational structure, participating business members' duties, and expertise, as well as their education and qualifications.

This section is especially important if you have a partnership or a multi-member limited liability company (LLC). However, even in a single-person business, it doesn't hurt to summarize how the business is organized and will run.

QUESTIONS: (1) How will the business be structured? (owner, employees, operations)


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a. What are the responsibilities of each role?(2) Will the business have employee benefits?


As a small business with one owner and minimal employees, the business doesn’t require an organizational structure. The owner will manage all key roles and responsibilities.

The business will be owned by [owner name], with 100% ownership interest. General duties will include a review of daily operations, inventory control, employee training, employee hiring and firing, ordering supplies, and routine maintenance and upkeep of the equipment and facilities management.

The owner will also hire sales and customer service staff. All full-time employees will be compensated with benefits, including health insurance and education and training. They will have an opportunity to participate in profit sharing.

Management Team

INSTRUCTIONS: How will managements’ background or experience help make this business a success? How active will the owners be, and what areas of management will be delegated to others?

Describe the business’s management team, including the following:

What are their qualifications and background? (Resumes can be included in an Appendix.)

What are their strengths or areas of expertise that support the success of the business?

What are their responsibilities, and are the responsibilities clearly defined (particularly important in partnership agreements)?

What skills does the management team lack that must be supplied by outside sources or by additional hiring?

Also include the resumes of the board of directors, investors, etc. The details of this section are important to investors and banks as it shows them the qualifications of the team members.

If the business is a franchise, what type of assistance can be expected, and for how long? Include information about operating procedures and related guidance that may have been provided by a franchisor.

QUESTIONS: (1) What are the backgrounds of the managerial team members?

a. Why are they qualified for these roles?(2) How much will managers/investors be paid, and when?


John Doe: Over 15 years of experience in business and sales, marketing, product development, operations, and business leadership. U.S. Air Force veteran in logistics operations. Served as a business and marketing consultant for Fortune 500 companies, including AAMCO, Baylor Hospital, and Children's Hospital, amongst others. The owner was also the Director of Sales and Marketing at a competing company before taking the role as CEO and marketing director of [Business Name]. He has recently started a marketing research and business consulting agency in the Dallas-Ft. Worth area. His education includes an M.S. in Internet Marketing, and a Doctorate of Business Administration in Marketing. He will use his logistics, design, programming, business, and both internet and traditional business marketing knowledge and skills to develop the company.


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Management Team Gaps

INSTRUCTIONS: Include areas of the management team that are currently not filled, possibly because of a lack of finances or resources. State what the position is, why it is not filled, who will manage for now, and when the position is expected to be filled

QUESTIONS: (1) What job positions will need to be outsourced? Why?


Until the business reaches [$0.00] in annual revenues, it will utilize a part-time bookkeeper to assist in payroll and income tax preparation (Reference legal and accounting line item on the income statement).

The owner has exceptional marketing, sales, and graphic design experience; however, he does not have extensive experience in financial management. The business will fill this gap by hiring a part-time bookkeeper to assist in setting up books and managing them monthly.

Personnel Plan

INSTRUCTIONS: Use this section to outline further details regarding the personnel. How will the team be managed? How will employees be paid? How much will they be paid?

If the business has employees, describe the chain of command. What training and support (such as a handbook of company policies) will be provided to employees? Will there be any incentives for employees that will enhance the growth of the company?

QUESTIONS: (1) Who are the owners and how much stake do they have in the business? (2) What are the roles and responsibilities of the owners?(3) What are the roles and responsibilities of the employees?(4) How will the employees be compensated?(5) What will the employee policy include?


Management and the investing team members will be the sole employees during the startup phase until the business goes live at the beginning of May 2017. Management will not take a salary until the second year because they will be under a profit-sharing agreement.

Starting May 1, 2017, the business will add one employee per month starting on the first of each month in May, June, August, and September. The employees will be recruited from a network of contacts within the local area and job boards.

Beginning in September 2017, we will hire a part-time office manager from a temp agency at $12 per hour for 20 hours per week. This will move to 30 hours per week in year two and 40 hours per week in year three.

For the first eight months, the owner will have a varied number of responsibilities. He will be the graphic artist, sales representative, marketer, operations manager, and handle all ordering of raw materials. After approximately eight months, the owner will bring on board an independent marketing representative to assist with sales and marketing. The owner will not take a salary for the first two years of operation. In year three, the owner will draw a [$0.00] salary, increasing over time to [$90,000].


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The cornerstone of the personnel plan is to maximize productivity and minimize the labor burden on the company's operating expenses. As the business grows, it should expect to see steady increases in personnel to match the increases in sales.

Our employee policies will include:

Weekly management meetings Monthly employee meetings Ongoing training Performance reviews every six months Performance incentives Encouragement of creativity

Strategic Alliances

INSTRUCTIONS: List any partnerships that the business will have. This is a great time to mention how the business has teamed up with other local vendors or groups of investors who will maintain a portion of the work responsibilities.

QUESTIONS: (1) Will you have any business alliances or vendors?

a. Who are they?b. Why are they needed? c. What is the negotiated deal?


The business has developed important and profitable strategic alliances with the established businesses of [insert: alliance partners]. The alliances will enable the business to use the business expertise and financial support of the Alliance members to help penetrate the market more quickly. Alliances with __________ will also help to __________.

The Agreement with the alliance includes: [insert: alliance terms and agreement].

Risks in this relationship are that the alliance partner(s) could go out of business or cancel the alliance if it moves to another industry and/or gain a larger contract. To mitigate such risks, we intend to continually staff employees with knowledge aligning with the roles and responsibilities of the alliance. We will also keep cash on hand to make certain that we can handle the financial responsibilities in the event that the alliance partners end their relationship with the business.

Financial Plan

The full details of the startup and operating costs should be included in the Appendix. However, you can reference appropriate tables, charts, or page numbers as you give a brief summary accounting of the startup needs and operational budget.

Startup needs should include one-time-only purchases, such as major equipment or supplies, down-payments, or deposits, as well as legal and professional fees, licenses/permits, insurance, renovation/design/decoration of the location, personnel costs prior to opening, advertising, or promotional material.

Once ready to open the business, you will need an operating budget to help prioritize expenses. It should include the money needed to survive the first three to six months of operation and


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indicate how the business intends to control the finances. Include the following expenses: rent, utilities, insurance, payroll (including taxes), loan payments, office supplies, travel, entertainment, legal, accounting, advertising, promotion, repairs, maintenance, depreciation, and any other expenses specific to the business.

You can also include information (or cross-reference other sections of this business plan, if covered elsewhere) about the type of accounting and inventory control system you are using, intend to use, or, where applicable, what the franchise expects you to use.


Note: The financial data and tables can be exported by using the provided financials Excel workbook if you received along with this template

The Start-up requirements for cash, inventory, expenses, and assets will see the business through year [1/2/3], as we hire sales representatives and secure increasing market share. Even with our conservative estimates, based on market research and the industry knowledge and experience of the owners and alliances, we will far surpass the break-even point by month [1-12] of business. This financial advantage is largely a result of the deferred salaries of the principals, who will take salaries starting in the [first/second] year based on the success of the business.

Our structure of [shipping/employees/material/etc.] means that our variable costs always exceed our fixed costs - we have low overhead and are investing in low-risk face-to-face sales to generate profits. The largest operating expenses are [rent, travel for the managers, and payroll for our part-time office manager]. With a qualified biller, we should collect payments quickly and maintain a positive cash balance.

We will repay the initial loan within __________ years, at [3.75%] interest. If sales go better than projected, we may pay it sooner. We do not expect future rounds of investment or loans since the business will be self-sustaining by the end of year __________. By the end of the __________ year, the business will have a respectable net worth.

The financial plan will cover the following: Required Cost of Start-Up Profit and Loss Cash Flow Balance Sheet

Important Assumptions

INSTRUCTIONS: The success of the business is likely based on assumptions rather than facts. As you discuss the business goals, list the assumptions that need to happen for those goals to achieve success.

QUESTIONS: (1) What are the business’s assumptions? e.g. if everything were perfect, how would that play out?


We are assuming the following key points: We will submit our business application by [March 7] and receive a license in [30

days] of submission. We will successfully recruit field sales reps per our schedule to reach seven reps by

the date of __________, with the first reps coming online to begin selling in May.


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We will be able to successfully leverage our corporate account relationships to drive business from organizations and groups.

We will successfully secure supplier/product agreements with __________, including favorable credit terms (60 days) at the outset; and with the availability of product samples, marketing materials, and token inventory at no cost or a nominal cost.

We are able to find proper contract workers to assist with construction, maintenance, and other business needs.

Startup Costs

INSTRUCTIONS: Summarize key details concerning the starting or acquisition of the business. (If this is not applicable to the business, delete). You can also include a table showing the startup cost.

As noted in the preceding section, include a table of startup or acquisition costs in the Appendix.

QUESTIONS: (1) What are the startup costs?

a. What are they used for?


Furniture and fixtures consist of [leather chairs, stools, and small booths, along with waiting area furniture]. The furniture will be purchased at a discount from local auctions, online, yard sales, and given by friends and/or family.

More specifically, startup requirements include the following: Legal fees to draw up employment agreements and various company legal

documents. Office supplies and stationery to purchase business cards and stationery with the

new company's information; this is also intended to cover basic office supplies (pens, paper, calculators, files, etc.)

The initial cost to obtain the appropriate general liability insurance policy of $300K on our facility.

Rent (1-month rent and 1-month deposit @ $3290 per month). Office equipment lease - computer, printer/copier/scanner/fax machine. Telecommunications - Cost of DSL internet connection, phone line listed under the

company name in directory assistance; purchase of the phone. Accounting - For 7-8 hours to get our bookkeeping processes in place (accounts

payable to suppliers, lessors, etc., accounts receivable from Medicare and patient co-pay, commission payout system, basic journal entry system for recording orders, collections, etc.

Marketing Materials - Purchase desktop brochure software and brochure-quality paper, secure marketing materials from manufacturers, create a basic website, license use of research articles, and create flyers and brochures for corporate account use, facility use, and use to recruit salespeople.

Other - Unanticipated expenses.

Source and Use of Funds

INSTRUCTIONS: List how much financial help the business is seeking, where it intends to get the funds, and how it will use the funds to maintain the business and manage expenses.

QUESTIONS: (1) Where will/does the business expect to receive its funding?

a. How much is needed from each source?(2) What are the expected expenses?


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To date, the owner has invested almost [$0.00] ([42%] equity) out of pocket to meet these startup costs, including payment of [rent and security deposit].

The owners are seeking a working capital loan in the amount of [$0.00] to meet startup inventory requirements and licensing requirements. The loan will be secured by [XYZ filings] on all inventories and receivables.

The owners are also seeking a commercial loan in the amount of [$0.00] to purchase [equipment and office supplies].

The funds will also be used for providing the necessary working capital requirements for funding day to day operations for the initial year of operations. The owner has enough funding to completely fund the business for the first three months without relying on sales or other sources of funds. The funds are liquid and primarily in the form of marketable securities.

Regular monthly expenses are estimated at [$0.00] for paying employee salaries and other regular business expenses. The business is expected to generate [$0.00] in the first year, and gross profit is expected to be [$0.00].

Key Performance Indicators

INSTRUCTIONS: An important aspect of the strategic planning process measures the progress of the business towards the attainment of its planned goals. This measurement of progress is an essential feature of strategic plan implementation (i.e. plans are one thing, but making things actually happen is quite another).

Management must periodically assess progress and take corrective action if progress is not being achieved. Without a periodic assessment of progress, strategic plans are likely to fail.

List the goals of the business below and then note how the business will monitor whether the goal was achieved.

QUESTIONS: (1) What are the business’s goals?

a. What are the steps needed to achieve each goal?


Objective: Gain new customers using the business’ website.

KPI: Setup and implement email marketing strategies.Become active on social media and gain more than 1500 followers.Advertise on social media and Google search engine.Have a website professionally built and optimized for keywords.Implement backlinking strategies to generate website visitors.

Business Risks

INSTRUCTIONS: With every business, there are risks. List the risks of the business and how they could be a problem for potential investors. You may be able to gather some risks using the “threats” section of the SWOT analysis.

QUESTIONS:


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(1) What are the business's risks, and how will they be overcome?(2) What are the business's opportunities, and how will they be achieved?


The greatest risks we have in our business are [marketing, pricing, management]. We feel we can overcome these risks by ________.

The opportunities before us are significant; we have the opportunity to [be the first; dominate a niche; become a dominant force] if we can _________.

Break-Even Analysis

INSTRUCTIONS: A break-even analysis can tell you what sales volume you are going to need to generate a profit. It can also be used as a guide in setting prices.

There are three primary ways to increase the profits of a business: generate more sales, raise prices, and/or lower costs. All can impact the business: if you raise prices, you may no longer be competitive; if you generate more sales, you may need to add personnel to service those sales, which would increase your operating costs.

QUESTIONS: (1) When is the business expected to break-even?

a. What are the factors that influence the timeframe in which the break-even will be achieved?


Note: The break-even analysis can be completed by using the provided financials Excel workbook.Note: If the sales dollars are below the break-even point, your business is losing money

The following table and chart show the break-even point in the first year when the owners are deferring compensation. With a low monthly fixed cost and variable costs (including commission and shipping), the business needs to sell per month the amount calculated below to break even. Market research and previous experience assure us that we will easily surpass the break-even point within our first __________ months of business.

Figure 6: Break-Even Price

0 20 40 60 80 100 120

$(15,000)

$(10,000)

$(5,000)

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

BEP

Profit (Loss)

Total Revenue

Break-Even PriceTotal CostTotal RevenueProfit (Loss)

Sales Price


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Total fixed costs associated with the business are [$0.00] and represent the annual expenses. The variable cost (overhead) is estimated to be [$0.00] per unit. Based on the assumption of [$0.00] as the average sales price per unit, the break-even revenue is [$0.00] or [00] units.

Business Ratios

INSTRUCTIONS: Some investors want to know the financial ratios of the business. You can find the ratios of your business by using the provided financials Excel workbook if purchased with this template. Include a table below or text noting those ratios


Statements

INSTRUCTIONS: There are three key projections needed for this section; Profit and Loss, Cash Flow, and Balance Sheet. For startups, such statements are called pro forma statements.


Note: The below statements can be completed and copied over to this document by using the provided financials Excel workbook.


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Projected Profit and LossYear 1 Year 2 Year 3

Revenue $135,960 $135,960 $135,960

Direct Costs $56,640 $56,640 $56,640

Gross Margin $79,320 $79,320 $79,320

Gross Margin % 58% 58% 58%

Operating Expenses

Salary $40,000 $40,000 $40,000

Employee Related Expenses $1,200 $1,200 $1,200

Rent $38,388 $38,388 $38,388

Marketing $6,000 $6,000 $6,000

Total Operating Expenses $85,588 $85,588 $85,588

Operating Income ($6,268) ($6,268) ($6,268)

Interest Incurred $2,575 $1,643 $606

Depreciation and Amortization $115 $115 $115

Income Taxes $0 $0 $0

Total Expenses $144,918 $143,986 $142,949

Net Profit ($8,958) ($8,026) ($6,989)

Net Profit / Sales (7%) (6%) (5%)


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Projected Cash FlowYear 1 Year 2 Year 3

Net Cash Flow from Operations

Net Profit ($8,958) ($8,026) ($6,989)

Depreciation and Amortization $115 $115 $115

Change in Accounts Receivable $256 $0 $0

Change in Inventory $0 $0 $0

Change in Accounts Payable ($555) $0 $0

Change in Income Tax Payable ($456) $0 $0

Change in Sales Tax Payable $188 $0 $1

Change in Prepaid Revenue

Net Cash Flow from Operations ($9,410) ($7,911) ($6,873)

Investing & Financing

Assets Purchased or Sold ($345)

Investments Received

Change in Long-Term Debt ($8,965) ($10,002) $0

Change in Short-Term Debt $932 $1,037 ($10,002)

Dividends & Distributions ($376)

Net Cash Flow from Investing & Financing ($8,754) ($8,965) ($10,002)

Cash at Beginning of Period $24,500 $6,336 ($10,540)

Net Change in Cash ($18,164) ($16,876) ($16,875)

Cash at End of Period $6,336 ($10,540) ($27,415)


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Projected Balance Sheet

As of Period's End

Starting Balances Year 1 Year 2 Year 3

Cash $24,500 $6,336 ($10,540) ($27,415)

Accounts Receivable $256 $0 $0 $0

Inventory $2,300 $2,300 $2,300 $2,300

Other Current Assets $635 $635 $635 $635

Total Current Assets $27,691 $9,271 ($7,605) ($24,480)

Long-Term Assets $250 $595 $595 $595

Accumulated Depreciation ($333) ($448) ($563) ($678)

Total Long-Term Assets ($83) $147 $32 ($83)

Total Assets $27,608 $9,418 ($7,573) ($24,563)

Accounts Payable $555 $0 $0 $0

Income Taxes Payable $456 $0 $0 $0

Sales Taxes Payable $888 $1,076 $1,076 $1,077

Short-Term Debt $8,033 $8,965 $10,002

Prepaid Revenue

Total Current Liabilities $9,932 $10,041 $11,078 $1,077

Long-Term Debt $18,967 $10,002 $0 $0

Total Liabilities $28,899 $20,043 $11,078 $1,077

Paid-in Capital $963 $963 $963 $963

Retained Earnings ($2,254) ($2,630) ($11,588) ($19,614)

Earnings ($8,958) ($8,026) ($6,989)

Total Owner's Equity ($1,291) ($10,625) ($18,651) ($25,640)

Total Liabilities & Equity $27,608 $9,418 ($7,573) ($24,563)


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Profit and Loss Statement (With Monthly Detail)2017 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17

Revenue $11,330 $11,330 $11,330 $11,330 $11,330 $11,330 $11,330 $11,330 $11,330 $11,330 $11,330 $11,330

Direct Costs $4,720 $4,720 $4,720 $4,720 $4,720 $4,720 $4,720 $4,720 $4,720 $4,720 $4,720 $4,720

Gross Margin $6,610 $6,610 $6,610 $6,610 $6,610 $6,610 $6,610 $6,610 $6,610 $6,610 $6,610 $6,610

Gross Margin % 58% 58% 58% 58% 58% 58% 58% 58% 58% 58% 58% 58%

Operating Expenses

Salary $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,334 $3,334 $3,334 $3,334

Employee Related Expenses $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100

rent $3,199 $3,199 $3,199 $3,199 $3,199 $3,199 $3,199 $3,199 $3,199 $3,199 $3,199 $3,199

marketing $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Total Operating Expenses $7,132 $7,132 $7,132 $7,132 $7,132 $7,132 $7,132 $7,132 $7,133 $7,133 $7,133 $7,133

Operating Income ($522) ($522) ($522) ($522) ($522) ($522) ($522) ($522) ($523) ($523) ($523) ($523)

Interest Incurred $248 $242 $236 $230 $224 $218 $212 $206 $199 $193 $187 $180

Depreciation and Amortization $10 $9 $10 $9 $10 $9 $10 $10 $9 $10 $9 $10

Income Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Expenses $12,110 $12,103 $12,098 $12,091 $12,086 $12,079 $12,074 $12,068 $12,061 $12,056 $12,049 $12,043

Net Profit ($780) ($773) ($768) ($761) ($756) ($749) ($744) ($738) ($731) ($726) ($719) ($713)

Net Profit / Sales (7%) (7%) (7%) (7%) (7%) (7%) (7%) (7%) (6%) (6%) (6%) (6%)


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Balance Sheet (With Monthly Detail)As of Period's End Starting Balances Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17

Cash $24,500 $22,638 $21,233 $18,994 $17,588 $16,183 $14,776 $13,370 $11,965 $10,557 $9,151 $7,743 $6,336

Accounts Receivable $256 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Inventory $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300

Other Current Assets $635 $635 $635 $635 $635 $635 $635 $635 $635 $635 $635 $635 $635

Total Current Assets $27,691 $25,573 $24,168 $21,929 $20,523 $19,118 $17,711 $16,305 $14,900 $13,492 $12,086 $10,678 $9,271

Long-Term Assets $250 $595 $595 $595 $595 $595 $595 $595 $595 $595 $595 $595 $595

Accumulated Depreciation ($333) ($343) ($352) ($362) ($371) ($381) ($390) ($400) ($410) ($419) ($429) ($438) ($448)

Total Long-Term Assets ($83) $252 $243 $233 $224 $214 $205 $195 $185 $176 $166 $157 $147

Total Assets $27,608 $25,825 $24,411 $22,162 $20,747 $19,332 $17,916 $16,500 $15,085 $13,668 $12,252 $10,835 $9,418

Accounts Payable $555 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Income Taxes Payable $456 $456 $456 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales Taxes Payable $888 $1,076 $1,077 $1,076 $1,076 $1,077 $1,076 $1,076 $1,077 $1,076 $1,077 $1,076 $1,076

Short-Term Debt $8,033 $8,107 $8,182 $8,257 $8,333 $8,410 $8,487 $8,565 $8,644 $8,723 $8,803 $8,884 $8,965

Prepaid Revenue

Total Current Liabilities $9,932 $9,639 $9,715 $9,333 $9,409 $9,487 $9,563 $9,641 $9,721 $9,799 $9,880 $9,960 $10,041

Long-Term Debt $18,967 $18,257 $17,540 $16,817 $16,087 $15,350 $14,607 $13,857 $13,100 $12,336 $11,565 $10,787 $10,002

Total Liabilities $28,899 $27,896 $27,255 $26,150 $25,496 $24,837 $24,170 $23,498 $22,821 $22,135 $21,445 $20,747 $20,043

Paid-in Capital $963 $963 $963 $963 $963 $963 $963 $963 $963 $963 $963 $963 $963

Retained Earnings ($2,254) ($2,254) ($2,254) ($2,630) ($2,630) ($2,630) ($2,630) ($2,630) ($2,630) ($2,630) ($2,630) ($2,630) ($2,630)

Earnings ($780) ($1,553) ($2,321) ($3,082) ($3,838) ($4,587) ($5,331) ($6,069) ($6,800) ($7,526) ($8,245) ($8,958)

Total Owner's Equity ($1,291) ($2,071) ($2,844) ($3,988) ($4,749) ($5,505) ($6,254) ($6,998) ($7,736) ($8,467) ($9,193) ($9,912) ($10,625)

Total Liabilities & Equity $27,608 $25,825 $24,411 $22,162 $20,747 $19,332 $17,916 $16,500 $15,085 $13,668 $12,252 $10,835 $9,418


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Cash Flow (With Monthly Detail)

2017 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun '17 Jul '17 Aug '17 Sep '17 Oct '17 Nov '17 Dec '17

Net Cash Flow from Operations

Net Profit ($780) ($773) ($768) ($761) ($756) ($749) ($744) ($738) ($731) ($726) ($719) ($713)

Depreciation and Amortization $10 $9 $10 $9 $10 $9 $10 $10 $9 $10 $9 $10

Change in Accounts Receivable $256 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Accounts Payable ($555) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Income Tax Payable $0 $0 ($456) $0 $0 $0 $0 $0 $0 $0 $0 $0

Change in Sales Tax Payable $188 $1 ($1) $0 $1 ($1) $0 $1 ($1) $1 ($1) $0

Change in Prepaid Revenue

Net Cash Flow from Operations ($881) ($763) ($1,215) ($752) ($745) ($741) ($734) ($727) ($723) ($715) ($711) ($703)

Investing & Financing

Assets Purchased or Sold ($345)

Investments Received

Change in Long-Term Debt ($710) ($717) ($723) ($730) ($737) ($743) ($750) ($757) ($764) ($771) ($778) ($785)

Change in Short-Term Debt $74 $75 $75 $76 $77 $77 $78 $79 $79 $80 $81 $81

Dividends & Distributions ($376)

Net Cash Flow from Investing & Financing ($981) ($642) ($1,024) ($654) ($660) ($666) ($672) ($678) ($685) ($691) ($697) ($704)

Cash at Beginning of Period $24,500 $22,638 $21,233 $18,994 $17,588 $16,183 $14,776 $13,370 $11,965 $10,557 $9,151 $7,743

Net Change in Cash ($1,862) ($1,405) ($2,239) ($1,406) ($1,405) ($1,407) ($1,406) ($1,405) ($1,408) ($1,406) ($1,408) ($1,407)

Cash at End of Period $22,638 $21,233 $18,994 $17,588 $16,183 $14,776 $13,370 $11,965 $10,557 $9,151 $7,743 $6,336


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Miscellaneous Documents

To back up the statements you may have made in your business plan; you may need to include any or all of the following documents in the appendix:

Personal resumes

Personal financial statements

Credit reports, business, and personal

Copies of leases

Letter of reference

Contracts

Legal documents

Personal and business tax returns

Miscellaneous relevant documents.

Photographs


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