 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
How To Write a Business Plan
A business plan is a formal statement of a set of business goals, the
reasons why they are believed attainable, and the plan for reaching those
goals. It may also contain background information about the organization
or team attempting to reach those goals
BUSINESS PLAN OUTLINE
Cover Sheet: Name(s) of principles(s); name, address and phone # of
business.
STATEMENT OF PURPOSE
A brief (less than 1 page) statement of the business plan objectives.
QUESTIONS
In General:
1. What is the purpose of this plan? Will it be used as an:
- operating guide?
- financing proposal
2. What is the business structure (i.e., sole proprietorship, general
partnership, limited partnership, C corporation, or Subchapter S
corporation
3. Who is (are) the principle(s)?
4. What is to be done?
5. Why will it be successful?
For A Financing Proposal:
6. Who is asking for money?
7. How much money is being requested?
8. What is the money needed for?
9. How will the funds benefit the business?
10. How will the funds be repaid?
11. Why does the loan or investment make sense?
A. DESCRIPTION OF THE BUSINESS
GENERALLY EXPLAIN:
1. What the business is (or will be):
2. What market you intend to service, the size of the market, and your
expected share;
3. Why you can service what market better than your competition;
4. Why you have chosen your particular location;
5. What management and other personnel are required and available for
the operation; and
6. Why your investment or someone else's money (debt/equity) will help
make your business profitable.
QUESTIONS:
1. Type of business; primarily merchandising retail, manufacturing,
wholesale, or service?
2. What is the nature of the product(s) or service(s)?
3. Status of business start-up, expansion of a going concern, or take-over
of an existing business?
4. Business form: sole proprietorship, partnership or corporation?
5. Who are the customers or clients?
6. Why is your business going to be profitable?
7. When will (did) your business open?
8. What hours of the day and days of the week will you be (are you) in
operation?
9. What have you learned about your kind of business from outside
sources (trade suppliers, banks, other business people, publications)?
NOTE: If yours is a seasonal business, or if the hours will be adjusted
seasonally, make sure that the seasonality is reflected in your replies to
the two previous questions.
FOR A NEW BUSINESS
10. Why will you be successful in this business?
11. What is your experience in this business?
12. Have you spoken with other people in this type of business about their
experience, challenges and rewards? What were their responses?
13. What will be special about your business?
14. Have you spoken with prospective trade suppliers to find out what
managerial and/or technical help they will provide?
15. Have you asked about trade credit?
16. If you will be doing and contract work, what are the terms? Reference
any firm contract and include it as a supporting document.
17. Do you have letters of intent from prospective suppliers or purchasers?
FOR A TAKE-OVER:
18. When and by whom was the business founded?
19. Why is the owner selling it?
20. How did you arrive at a purchase price for the business?
21. What is the trend of sales?
22. If the business is going downhill, why? How can you turn it around?
23. How will your management make the business more profitable?
B. THE MARKET
Generally explain who needs your product or service, and why.
QUESTIONS:
1. Who exactly is your market? Describe characteristics: age, sex,
profession, income, etc., of your various market segments.
2. What is the present size of the market?
3. What percent of the market will you have?
4. What is the market's growth potential?
5. As the market grows, will your share increase of decrease?
6. How are you going to satisfy the market?
7. How will you attract and keep your share of the market?
8. How can you expand your market?
9. How are you going to price your service or product, to make a fair profit,
and at the same time, be competitive?
10. What price do you anticipate getting for your product or service?
11. Is the price competitive?
12. Why will someone pay you price?
13. How did you arrive at the price? Is it profitable?
14. What special advantage do you offer that may justify a higher price?
(You don't necessarily have to engage in direct price competition).
15. Will you offer credit to your customers (accounts receivable)? If so, is
this really necessary? Can you afford to extend credit? Can you afford bad
debts?
C. COMPETITION
QUESTIONS:
1. Who are your five nearest competitors? List them by name.
2. How will your operation be better than theirs?
3. How is their business: steady? increasing? decreasing? Why?
4. How are their operations similar and dissimilar to yours?
5. What are their strengths and/or weaknesses?
6. What have you learned from watching their operations?
7. How do you plan to keep an eye on the competition in the future?
D. LOCATION OF BUSINESS
1. What kind of building do you need?
2. What are the attributes and/or salient features of your present or
desired business location?
3. Why is this a desirable area?
4. Why is this a desirable building?
5. Does the community around which you intend to locate the business
show enthusiasm for you and your business?
6. What are the advantages and disadvantages of the site in terms of
wage rates, labor unions, and labor availability?
7. How much space do you need?
8. Do you need a long-term or short-term lease?
9. Is the building accessible by public transportation?
10. Is the building close to customers or suppliers?
11. Is free or low cost parking nearby?
12. What are the state and local taxes, laws, utilities, zoning, and variables
that may affect the location of you business?
13 How do you plan to keep an eye on any demographic shift in your area?
E. MANAGEMENT
QUESTIONS:
1. What is you business background?
2. How does your background/business experience help you in this
business?
3. What management experience do you have?
4. Do you have managerial experience in this type of business?
5. Do you have managerial experience acquired elsewhere-whether in
totally different kinds of business, or as an offshoot of club or team
membership, civic or church work, etc.?
6. What weakness do you have and how will you compensate for them,
i.e., will you hire employees or pay consultants who have management
abilities/expertise that you don't have?
7. What education do you have (including both formal and informal
learning experience) which have bearing on your managerial abilities or
knowledge of the industry?
8. Personal data: age; where you live and have lived; special abilities and
interests; and reasons for going into business?
9. Are you physically suited to the job? Stamina counts.
10. Why are you going to be successful at this venture?
11. Do you have direct operational experience in this type of business?
12. Who is on the management team?
13. What are the duties of each individual on the management team?
14. Are these duties clearly defined? how?
15. Who does what? Who reports to whom? Where do final decisions get
made?
16. What and how will management be paid?
17. What additional resources have you arranged to have available to
help you and your business (accountant, lawyer, et al.).
NOTE: A personal financial statement must be included as a supporting
document in your business plan if it is a proposal for financing. Also,
include your resume as a supporting document.
F. PERSONNEL
QUESTIONS:
1. What are your personnel needs now? In the near future (3years)? In
five years?
2. What skills must they have?
3. Are the people you need available?
4. Will your employees be full-time or part-time?
5. Will you pay salaries or hourly wages?
6. Certain employee benefits are mandatory. Find out what they are.
7. Will you provide additional fringe benefits? If so, which ones? Have you
calculated the cost of these additional fringe benefits?
8. Will you utilize overtime? If so, you may be required by law to pay time
and a half, double time, and/or other extra costs.
9. Will you have to train people for both operations and management? If
so, at what costs to the business?
This free sample business plan will help you prepare a professional
business plan so you can obtain business loans. You can also use
business plan templates which are available in the market.
reasons why they are believed attainable, and the plan for reaching those
goals. It may also contain background information about the organization
or team attempting to reach those goals
BUSINESS PLAN OUTLINE
Cover Sheet: Name(s) of principles(s); name, address and phone # of
business.
STATEMENT OF PURPOSE
A brief (less than 1 page) statement of the business plan objectives.
QUESTIONS
In General:
1. What is the purpose of this plan? Will it be used as an:
- operating guide?
- financing proposal
2. What is the business structure (i.e., sole proprietorship, general
partnership, limited partnership, C corporation, or Subchapter S
corporation
3. Who is (are) the principle(s)?
4. What is to be done?
5. Why will it be successful?
For A Financing Proposal:
6. Who is asking for money?
7. How much money is being requested?
8. What is the money needed for?
9. How will the funds benefit the business?
10. How will the funds be repaid?
11. Why does the loan or investment make sense?
A. DESCRIPTION OF THE BUSINESS
GENERALLY EXPLAIN:
1. What the business is (or will be):
2. What market you intend to service, the size of the market, and your
expected share;
3. Why you can service what market better than your competition;
4. Why you have chosen your particular location;
5. What management and other personnel are required and available for
the operation; and
6. Why your investment or someone else's money (debt/equity) will help
make your business profitable.
QUESTIONS:
1. Type of business; primarily merchandising retail, manufacturing,
wholesale, or service?
2. What is the nature of the product(s) or service(s)?
3. Status of business start-up, expansion of a going concern, or take-over
of an existing business?
4. Business form: sole proprietorship, partnership or corporation?
5. Who are the customers or clients?
6. Why is your business going to be profitable?
7. When will (did) your business open?
8. What hours of the day and days of the week will you be (are you) in
operation?
9. What have you learned about your kind of business from outside
sources (trade suppliers, banks, other business people, publications)?
NOTE: If yours is a seasonal business, or if the hours will be adjusted
seasonally, make sure that the seasonality is reflected in your replies to
the two previous questions.
FOR A NEW BUSINESS
10. Why will you be successful in this business?
11. What is your experience in this business?
12. Have you spoken with other people in this type of business about their
experience, challenges and rewards? What were their responses?
13. What will be special about your business?
14. Have you spoken with prospective trade suppliers to find out what
managerial and/or technical help they will provide?
15. Have you asked about trade credit?
16. If you will be doing and contract work, what are the terms? Reference
any firm contract and include it as a supporting document.
17. Do you have letters of intent from prospective suppliers or purchasers?
FOR A TAKE-OVER:
18. When and by whom was the business founded?
19. Why is the owner selling it?
20. How did you arrive at a purchase price for the business?
21. What is the trend of sales?
22. If the business is going downhill, why? How can you turn it around?
23. How will your management make the business more profitable?
B. THE MARKET
Generally explain who needs your product or service, and why.
QUESTIONS:
1. Who exactly is your market? Describe characteristics: age, sex,
profession, income, etc., of your various market segments.
2. What is the present size of the market?
3. What percent of the market will you have?
4. What is the market's growth potential?
5. As the market grows, will your share increase of decrease?
6. How are you going to satisfy the market?
7. How will you attract and keep your share of the market?
8. How can you expand your market?
9. How are you going to price your service or product, to make a fair profit,
and at the same time, be competitive?
10. What price do you anticipate getting for your product or service?
11. Is the price competitive?
12. Why will someone pay you price?
13. How did you arrive at the price? Is it profitable?
14. What special advantage do you offer that may justify a higher price?
(You don't necessarily have to engage in direct price competition).
15. Will you offer credit to your customers (accounts receivable)? If so, is
this really necessary? Can you afford to extend credit? Can you afford bad
debts?
C. COMPETITION
QUESTIONS:
1. Who are your five nearest competitors? List them by name.
2. How will your operation be better than theirs?
3. How is their business: steady? increasing? decreasing? Why?
4. How are their operations similar and dissimilar to yours?
5. What are their strengths and/or weaknesses?
6. What have you learned from watching their operations?
7. How do you plan to keep an eye on the competition in the future?
D. LOCATION OF BUSINESS
1. What kind of building do you need?
2. What are the attributes and/or salient features of your present or
desired business location?
3. Why is this a desirable area?
4. Why is this a desirable building?
5. Does the community around which you intend to locate the business
show enthusiasm for you and your business?
6. What are the advantages and disadvantages of the site in terms of
wage rates, labor unions, and labor availability?
7. How much space do you need?
8. Do you need a long-term or short-term lease?
9. Is the building accessible by public transportation?
10. Is the building close to customers or suppliers?
11. Is free or low cost parking nearby?
12. What are the state and local taxes, laws, utilities, zoning, and variables
that may affect the location of you business?
13 How do you plan to keep an eye on any demographic shift in your area?
E. MANAGEMENT
QUESTIONS:
1. What is you business background?
2. How does your background/business experience help you in this
business?
3. What management experience do you have?
4. Do you have managerial experience in this type of business?
5. Do you have managerial experience acquired elsewhere-whether in
totally different kinds of business, or as an offshoot of club or team
membership, civic or church work, etc.?
6. What weakness do you have and how will you compensate for them,
i.e., will you hire employees or pay consultants who have management
abilities/expertise that you don't have?
7. What education do you have (including both formal and informal
learning experience) which have bearing on your managerial abilities or
knowledge of the industry?
8. Personal data: age; where you live and have lived; special abilities and
interests; and reasons for going into business?
9. Are you physically suited to the job? Stamina counts.
10. Why are you going to be successful at this venture?
11. Do you have direct operational experience in this type of business?
12. Who is on the management team?
13. What are the duties of each individual on the management team?
14. Are these duties clearly defined? how?
15. Who does what? Who reports to whom? Where do final decisions get
made?
16. What and how will management be paid?
17. What additional resources have you arranged to have available to
help you and your business (accountant, lawyer, et al.).
NOTE: A personal financial statement must be included as a supporting
document in your business plan if it is a proposal for financing. Also,
include your resume as a supporting document.
F. PERSONNEL
QUESTIONS:
1. What are your personnel needs now? In the near future (3years)? In
five years?
2. What skills must they have?
3. Are the people you need available?
4. Will your employees be full-time or part-time?
5. Will you pay salaries or hourly wages?
6. Certain employee benefits are mandatory. Find out what they are.
7. Will you provide additional fringe benefits? If so, which ones? Have you
calculated the cost of these additional fringe benefits?
8. Will you utilize overtime? If so, you may be required by law to pay time
and a half, double time, and/or other extra costs.
9. Will you have to train people for both operations and management? If
so, at what costs to the business?
This free sample business plan will help you prepare a professional
business plan so you can obtain business loans. You can also use
business plan templates which are available in the market.
| Home | Start Up Business Loans | Business Loans | Real Estate Loans | Line of Credit | Equipment Leasing | Contact | Site Map |
Whether you are buying a business, already in business, starting a business, need equipment for your business or just
need working capital, Bizzloans has got you covered.
We Specialize in Business Lines of Credit, Business Acquisition Loans, Start up Business Loans, Business
Working Capital, Loans for Commercial Land, Real Estate Loans, Commercial Hard Money Loans, Equipment
Financing, Equipment Leasing, Unsecured Business Loans and lot more.
need working capital, Bizzloans has got you covered.
We Specialize in Business Lines of Credit, Business Acquisition Loans, Start up Business Loans, Business
Working Capital, Loans for Commercial Land, Real Estate Loans, Commercial Hard Money Loans, Equipment
Financing, Equipment Leasing, Unsecured Business Loans and lot more.
____________________________________________________________________________________________