template-creative-business-plan

7/23/2019 TEMPLATE-Creative-Business-Plan

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Business Plan Template for CreativeBusinessCreated by Monica Davidson of Freelance Success

Its actually not possible to create a perfect template for a creative

business plan a business plan is unique to each business it

describes and of course each document differs greatly from one

endeavour to the next

!his document is simply a collection of ideas and suggestions to

help you create your o"n business plan# one that tells the story ofyour business in an interesting and engaging "ay It can also help

other people understand your plans for financing# mar$eting and

succeeding in your creative business

!he narrative is the main section of this template It contains

several questions divided into sections %or$ through the sections

in any order you li$e# but save the Summary for last

&eave out any questions that dont apply to your type of business# but dont s$ip the questions that 'ust

seem too hard !hose questions can give you the most enlightening ans"ers# and require yourattention and thought (nce youve finished# youll have a collection of small stories on various topics

)oull then need to edit them into a smooth*flo"ing narrative and plan

!he true value of creating a business plan is not in having the finished pile of paper in your hand !he

real value lies in the process of researching and thin$ing about your creative business in a systematic

"ay !he act of planning# researching and brainstorming helps you to thin$ things through# study and

research if you are not sure of the facts# and loo$ at your ideas critically It ta$es time no"# but can help

you avoid expensive and disastrous mista$es later

!his business plan is a generic model suitable for all types of creative businesses +o"ever# you shouldmodify it to suit your particular circumstances ,efore you begin# revie" the section titled Rening the

Planat the end It has tips for fine*tuning your plan to ma$e an effective presentation to investors or

ban$ers If this is "hy youre creating your plan# pay particular attention to your "riting style )ou need

to be as professional as possible in the quality and appearance of your ideas# your finances based on

solid research# and your goals practical and achievable

It typically ta$es at least a "ee$ to complete a good plan Most of that time is spent in research and re*

thin$ing your ideas and assumptions Ma$e time to do the 'ob properly# and dont s$ip bits )ou "ont

regret the effort# even if its hard "or$ -nd finally# be sure to $eep detailed notes on your sources of

information and on the assumptions underlying your financial data .ood luc$/

Monica Davidson 2013 FEEL FREE TO !E T"#! FOR $OR!ELF% &T DO'(T

REPROD)E *#T"OT OR PERM#!!#O'+ Than,s+


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Business Plan

COVER PAGE

$o-. 'a/es

$o-. &-siness 'a/e

&' and )' if co/an45

Street -ddress

0ostal -ddress

City# State# 0ostcode

!elephone

1*Mail

%ebsite




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I. Ta7le of )ontents

(nce youve completed the sections# ma$e sure you format it into a proper professional*

loo$ing document and compete this table of contents




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II. Eec-tive !-//a.4

%rite this section last

%e suggest that you ma$e it a page for start*up businesses# and no more than t"o pages

for more established businesses

Include everything that you "ould cover in a five*minute meeting

1xplain the fundamentals of the proposed creative business2

%hat is your service3

Do you offer products as "ell3

%ho "ill your clients or clients be3 %ho are the o"ners "hat is their experience3

%hat do you thin$ the future holds for your business and your industry3

Ma$e it enthusiastic# professional# complete# and concise

If youre applying for a loan# state clearly ho" much you "ant# precisely ho" you are going

to use it# and ho" the money "ill ma$e your business more profitable )ou "ant to be able

to ensure repayment




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III. ;ene.al &-siness Desc.ition

%hat business "ill you be in3 %hat "ill you do3

Mission Statement2 Many businesses have a brief mission statement# usually in 45 "ords

or fe"er# explaining their reason for being and their guiding principles If you "ant to draft a

mission statement# this is a good place to put it in the plan# follo"ed by2

,usiness .oals and (b'ectives2

.oals are destinations * "here you "ant your business to be3

(b'ectives are progress mar$ers along the "ay to goal achievement

For example# a goal might be to have a healthy# successful business that is a leader in

your field and that has a loyal client follo"ing (b'ectives might be annual turnovertargets and some specific measures of client satisfaction

,usiness 0hilosophy2 %hat is important to you in business3

!o "hom "ill you mar$et your products3 6State it briefly here * you "ill do a more thorough

explanation in the Ma.,eting Plansection7

Describe your creative industry Is it a gro"th industry3 %hat changes do you foresee in

the industry# short term and long term3 +o" "ill your ,usiness be poised to ta$e

advantage of them3

Describe your most important business strengths and core competencies %hat factors "ill

ma$e the business succeed3 %hat do you thin$ your ma'or competitive strengths "ill be3

%hat bac$ground experience# s$ills# and strengths do you personally bring to this ne"

venture3

&egal form of o"nership2 Sole trader# partnership# proprietary limited company# co*

operative3 %hy have you selected this form3




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IV. P.od-cts and !e.vices

Describe in depth your products or services 6technical specifications# dra"ings# photos#

sales brochures# and other bul$y items belong in endices7

%hat factors "ill give you competitive advantages or disadvantages3 1xamples include

the high level of quality# and perhaps unique or proprietary features

%hat do your products or services cost3 +o" did you come up "ith this figure3

Do you have any plans to raise your fees in the future3 %hat have you based this

assumption on3




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V. Ma.,eting Plan

Ma.,et .esea.ch > *h4?

8o matter ho" good your product and your service# your business cannot succeed "ithout

effective mar$eting* and this means careful research Its dangerous to assume that you

already $no" about your intended mar$et )ou need to do mar$et research to ma$e sure

youre on trac$ 9se the business planning process as your opportunity to uncover data

and to question your mar$eting efforts )our time "ill be "ell spent

Ma.,et .esea.ch > "o@?

!here are t"o $inds of mar$et research2 primary and secondary

0rimary research means gathering your o"n data For example# if youre thin$ing of

opening a shop to sell your creative "ares# do your o"n traffic count at a proposed

location# use the "eb to identify competitors# and do surveys or focus*group intervie"s to

learn about customer preferences

If youre proposing a service*base creative business# go online and find out about your

competitors# and thin$ about your "eb and social media strategy Contact potential clients

and sit do"n "ith them to discuss their needs and ho" you might meet them 0rofessional

mar$et research can be very costly# but there are many boo$s that sho" small business

o"ners ho" to do effective research themselves

Secondary research means using published information such as industry profiles# trade

'ournals# ne"spapers# maga:ines# census data# and demographic profiles !his type of

information is available in public libraries# industry associations# chambers of commerce#

from vendors "ho sell to your industry# and from government agencies such as the

-ustralian ,ureau of Statistics

-lso consider your local library -s old*fashioned as boo$s might be# most librarians are

pleased to guide you through their business data collection )oull be ama:ed at "hat is

there !here are also a myriad online sources than you could possibly use )our chamber

of commerce has good information on the local area !rade associations and trade

publications often have excellent industry*specific data

In your mar$eting plan# be as specific as possible; give statistics# numbers# and sources

!he mar$eting plan "ill be the basis# later on# of the all*important sales pro'ection


http://www.abs.gov.au/http://www.abs.gov.au/


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Econo/ics

Facts about your industry2

%hat is the total si:e of your mar$et3 %hat is current demand in target mar$et3!rends in target mar$et


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public profile )ou build features into your product or service so that you can sell the

benefits

%hat after*sale services "ill you give3 Some examples are discount on next service# =*for*

> offers# "arranty# service contracts# support# follo"*up and so on

)lients

Identify your targeted clients# their characteristics# and their geographic locations#

other"ise $no"n as their demographics

!he description "ill be completely different depending on "hether you plan to sell to other

businesses or directly to consumers If you sell a consumer product# but sell it through a

channel of distributors# "holesalers# and retailers# you must carefully analyse both the end

consumer and the middleman businesses to "hich you sell

)ou may have more than one client group Identify the most important groups !hen# for

each client group# construct "hat is called a demographic profile2

-ge .ender &ocation Income level Social class and occupation 1ducation (ther 6specific to your industry7

For business clients# the demographic factors might be2

Industry 6or portion of an industry7 &ocation Si:e of firm ?uality# technology# and price preferences (ther 6specific to your industry7




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)o/etition

%hat other businesses and@or products "ill compete "ith you3

&ist your ma'or competitors

%ill they compete "ith you across the board# or 'ust for certain products# certain clients# or

in certain locations3

%ill you have important indirect competitors3 6For example# Foxtel competes "ith

cinemas# although they are different types of businesses7

+o" "ill your products or services compare "ith the competition3

9se the Competitive Analysistable belo" to compare your creative business "ith

your t"o most important competitors In the first column are $ey competitive factors Since

these vary from one industry to another# you may "ant to customise the list of factors

In the column labelled Me# state ho" you honestly thin$ you "ill stac$ up in clientsA minds

!hen chec$ "hether you thin$ this factor "ill be a strength or a "ea$ness for you

Sometimes it is hard to analyse our o"n "ea$nesses !ry to be very honest here ,etter

yet# get some someone else to assess you * this can be a real eye*opener Bemember that

you cannot be all things to all people In fact# trying to ma$e everyone happy causes many

businesses to fail because their efforts seem scattered and diluted )ou "ant an honest

assessment of your firmAs strong and "ea$ points

8o" analyse each ma'or competitor In a fe" "ords# state ho" you thin$ they compare

In the final column# estimate the importance of each competitive factor to the clients >

critical; not very important




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Ta7le 1A )o/etitive nal4sis

F)TOR Me !t.ength *ea,ness)o/etito.

)o/etito.

/o.tance

to )lient

!e.vice

P.ice

B-alit4

!election

P.od-cts

Relia7ilit4

!ta7ilit4

Ee.tise

Re-tation

Location

ea.ance

).eativit4

@a.ds

dve.tising

#/age

8o"# "rite a short paragraph stating your competitive advantages and disadvantages

'iche

8o" that you have systematically analysed your industry# your service# your clients# and

the competition# you should have a clear picture of "here your ,usiness fits into the "orld

In one short paragraph# define your niche# your unique corner of the mar$et




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!t.ateg4

8o" outline a mar$eting strategy that is consistent "ith your niche

P.o/otion

+o" "ill you get the "ord out to clients3

Advertising2 %hat media# "hy# and ho" often3 %hy this mix and not some other3

+ave you identified lo"*cost methods to get the most out of your promotional budget3

%ill you use methodsother than paid advertising# such as your "ebsite# social media#

events attendance# printed material# an information $ind or some other $ind of givea"ay#"ord of mouth 6ho" "ill you stimulate it37# and net"or$ of friends or professionals3

%hat imagedo you "ant to pro'ect3 %hats your brand3 +o" do you "ant clients to see

you3

%hat plans do you have for graphic image support3 !his includes things li$e logo design#

cards and letterhead# brochures# signage# and interior design 6if clients come to your place

of business7

Should you have a system to identify repeat clients and then systematically contact them3

P.o/otional &-dget

+o" much "ill you spend on the items listed above3

,efore startup3 6!hese numbers "ill go into your startup budget7

(ngoing3 6!hese numbers "ill go into your operating plan budget7

P.icing1xplain your method or methods of setting prices For most small businesses# having the

lo"est price is not a good policy It robs you of needed profit margin; clients may not care

as much about price as you thin$; and large competitors can under price you any"ay

9sually you "ill do better to have average prices and compete on quality and service

Does your pricing strategy fit "ith "hat "as revealed in your competitive analysis3

Compare your prices "ith those of the competition -re they higher# lo"er# the same3

%hy3




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+o" important is price as a competitive factor3 Do your intended clients really ma$e their

purchase decisions mostly on price3

%hat "ill be your client service policy3

P.oosed Location)ou may not need a location outside the home# but if you do# thin$ about "hat you "ant

and need in a location Many startups run successfully from home for a "hile

)ou "ill describe your physical needs later# in the Oe.ational Plan section +ere#

analyse your location criteria as they "ill affect your clients

Is your location important to your clients 3 If yes# ho"3

If clients come to your place of business2

Is it convenient3 0ar$ing3 Interior spaces3 8ot out of the "ay3

Is it consistent "ith your image3

Is it "hat clients "ant and expect3

%here is the competition located3 Is it better for you to be near them 6li$e art galleries or

groovy cafes7 or distant 6li$e boring office buildings73

Dist.i7-tion )hannels

+o" do you sell your services or products3 %rite do"n your thoughts on each

Direct 6mail order# "eb# catalogue7

%holesale

Betail

)our o"n sales force

-gents

Independent representatives

,id on contracts




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!ales Fo.ecast

8o" that you have described your products# services# clients# mar$ets# and mar$eting

plans in detail# its time to attach some numbers to your plan 9se a sales forecast

spreadsheet to prepare a month*by*month pro'ection !he forecast should be based on

your historical sales# the mar$eting strategies that you have 'ust described# your mar$et

research# and industry data if available

)ou may "ant to do t"o forecasts2 >7 a best guess# "hich is "hat you really expect#

and =7 a worst caselo" estimate that you are confident you can reach no matter "hat

happens

Bemember to $eep notes on your research and your assumptions as you build this sales

forecast and all subsequent spreadsheets in the plan !his is critical if you are going to

present it to funding sources




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VI. Oe.ational Plan

1xplain the daily operation of the business# its location# equipment# people# processes# and

surrounding environment

P.od-ction

+o" and "here are your products or services produced3

1xplain your methods of2

0roduction techniques and costs

?uality control

Customer service

Inventory control

0roduct or service development

Location

%hat qualities do you need in a location3 Describe the type of location youll have

0hysical requirements2

-mount of space

!ype of building

Eoning

0o"er and other utilities

-ccess2

Is it important that your location be convenient to transportation or to suppliers3

Do you need easy "al$*in access3

%hat are your requirements for par$ing and proximity to free"ay# airports# railroads#

and shipping centres3

Include a dra"ing or layout of your proposed facility if it is important# as it might be

for a manufacturer

Construction3 Most ne" companies should not sin$ capital into construction# but if

you are planning to build# costs and specifications "ill be a big part of your plan

Cost2 1stimate your occupation expenses# including rent# but also including

maintenance# utilities# insurance# and initial remodelling costs to ma$e the spacesuit your needs !hese numbers "ill become part of your financial plan

%hat "ill be your business hours3 Monica Davidson 2013 FEEL FREE TO !E T"#! FOR $OR!ELF% &T DO'(T



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Legal Envi.on/ent

Describe the follo"ing2

&icensing and bonding requirements

0ermits

+ealth# "or$place# or environmental regulations Special regulations covering your industry or profession

Eoning or building code requirements

Insurance coverage

!rademar$s# copyrights# or patents 6pending# existing# or purchased7

Pe.sonnel

8umber of employees

!ype of labour 6s$illed# uns$illed# and professional7

%here and ho" "ill you find the right employees3

?uality of existing staff

0ay structure

!raining methods and requirements

%ho does "hich tas$s3

Do you have schedules and "ritten procedures prepared3

+ave you drafted 'ob descriptions for employees3 If not# ta$e time to "rite some

!hey really help internal communications "ith employees

For certain functions# "ill you use contract "or$ers in addition to employees3

#nvento.4

%hat $ind of inventory "ill you $eep2 ra" materials# supplies# finished goods3

-verage value in stoc$ 6ie# "hat is your inventory investment73

Bate of turnover and ho" this compares to the industry averages3

Seasonal build*ups3

&ead*time for ordering3

!-lie.s

Identify $ey suppliers2

8ames and addresses

!ype and amount of inventory furnished

Credit and delivery policies

+istory and reliability

Should you have more than one supplier for critical items 6as a bac$up73

Do you expect shortages or short*term delivery problems3




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-re supply costs steady or fluctuating3 If fluctuating# ho" "ould you deal "ith changing

costs3

).edit Policies

Do you plan to sell on credit3

Do you really need to sell on credit3 Is it customary in your industry andexpected by your clientele3

If yes# "hat policies "ill you have about "ho gets credit and ho" much3

+o" "ill you chec$ the credit"orthiness of ne" applicants3

%hat terms "ill you offer your clients; that is# ho" much credit and "hen is

payment due3

%ill you offer prompt payment discounts3 6+int2 Do this only if it is usual and

customary in your industry7

Do you $no" "hat it "ill cost you to extend credit3 +ave you built the costs into

your prices3

Managing $o-. cco-nts Receiva7le

If you do extend credit or "or$ from invoices# you should do a pro'ection at least monthly

to trac$ ho" much of your money is tied up in credit given to clients and to alert you to

slo" payment problems - receivables pro'ection loo$s li$e the follo"ing table2

Total )-..ent 30 Da4s :0 Da4s 90 Da4sOve. 90

Da4s

cco-ntsReceiva7leP.oCection

)ou "ill need a policy for dealing "ith slo"*paying clients2

%hen do you ma$e a phone call3

%hen do you send a letter3

%hen do you get your la"yer or use -rts &a" to threaten3




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Managing $o-. cco-nts Pa4a7le)ou should also age your accounts payable# "hat you o"e to your suppliers !his helps

you plan "hom to pay and "hen 0aying too early depletes your cash# but paying late can

cost you valuable discounts and can damage your credit 6+int2 If you $no" you "ill be late

ma$ing a payment# call the creditor before the due date7

Do your proposed vendors offer prompt payment discounts3

- payables pro'ection loo$s li$e the follo"ing table

Total )-..ent 30 Da4s :0 Da4s 90 Da4sOve. 90

Da4s

cco-ntsPa4a7le

P.oCection




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VII. Manage/ent and O.ganisation

%ho "ill manage the business on a day*to*day basis3 %hat experience does that person

bring to the business3 %hat special or distinctive competencies3 Is there a plan forcontinuation of the business if this person is lost or incapacitated3

If youll have more than 4* employees# create an organisational chart sho"ing the

management hierarchy and "ho is responsible for $ey functions

Include position descriptions for $ey employees If you are see$ing loans or investors#

include resumes of o"ners and $ey employees

Bemember# you can use freelancers or sub*contractors to help you out Bemember they

"ill also need contract for their "or$# and you may need to pay them superannuation

Chec$ out this-!( .uide on contractors and employees to understand more

Do you have to provide insurance as "ell3

P.ofessional and dviso.4 !-o.t

&ist the follo"ing2

&a"yer

-ccountant Insurance agent

,an$

Consultant or consultants

Mentors and $ey advisors

,oard of directors

Management advisory board


http://www.ato.gov.au/content/4540.htmhttp://www.ato.gov.au/content/4540.htm


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VIII. Pe.sonal Financial !tate/ent

Include personal financial statements for each o"ner# sho"ing assets and liabilities held

outside the business and personal net "orth

("ners "ill often have to dra" on personal assets to finance the business# and these

statements "ill sho" "hat is available ,an$ers and investors usually "ant this information

as "ell




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IX. !ta.t>- Eenses and )aitalisation

)ou "ill have many expenses before you even begin operating your business Its

important to estimate these expenses accurately and then to plan "here you "ill getsufficient capital !his is a research pro'ect# and the more thorough your research efforts#

the less chance that you "ill leave out important expenses or underestimate them

1ven "ith the best of research# ho"ever# opening a ne" business has a "ay of costing

more than you anticipate !here are t"o "ays to ma$e allo"ances for surprise expenses

!he first is to add a little paddingG to each item in the budget !he problem "ith that

approach# ho"ever# is that it destroys the accuracy of your carefully "rought plan

!he second approach is to add a separate line item# called contingencies# to

account for the unforeseeable !his is the approach "e recommend

!al$ to others "ho have started similar businesses to get a good idea of ho" much to

allo" for contingencies If you cant get good information# "e recommend a rule of thumb

that contingencies should equal at least =5H of the total of all other start*up expenses

6especially if you have no prior experience in running a business7

1xplain your research and ho" you arrived at your forecasts of expenses .ive sources#

amounts# and terms of proposed loans -lso explain in detail ho" much "ill be contributed

by each investor and "hat percent o"nership each "ill have




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X. Financial Plan

!he financial plan consists of a >=*month profit and loss pro'ection# a four*year profit and

loss pro'ection 6optional7# a cash*flo" pro'ection# a pro'ected balance sheet# and a brea$*even calculation !ogether they constitute a reasonable estimate of your business financial

future More important# the processof thin$ing through the financial plan "ill improve your

insight into the inner financial "or$ings of your company

12>Month P.ot and Loss P.oCection

Many business o"ners thin$ of the >=*month profit and loss pro'ection as the centrepiece

of their plan !his is "here you put it all together in numbers and get an idea of "hat it "ill

ta$e to ma$e a profit and be successful

)our sales pro'ections "ill come from a sales forecast in "hich you forecast sales# cost of

goods sold# expenses# and profit month*by*month for one year

0rofit pro'ections should be accompanied by a narrative explaining the ma'or assumptions

used to estimate ,usiness income and expenses

Besearch 8otes2 eep careful notes on your research and assumptions# so that you can

explain them later if necessary# and also so that you can go bac$ to your sources "hen its

time to revise your plan

Fo-.>$ea. P.ot P.oCection Otional5

!he >=*month pro'ection is the heart of your financial plan !his section is for those "ho

"ant to carry their forecasts beyond the first year

(f course# $eep notes of your $ey assumptions# especially about things that you expect

"ill change dramatically after the first year

P.oCected )ash Flo@

If the profit pro'ection is the heart of your business plan# cash flo" is the blood ,usinesses

fail because they cannot pay their bills 1very part of your business plan is important# but

none of it means a thing if you run out of cash

!he point of this "or$sheet is to plan ho" much you need before startup# for preliminary

expenses# operating expenses# and reserves )ou should $eep updating it and using it

after"ard It "ill enable you to foresee shortages in time to do something about them

template-creative-business-plan

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