Business plan blue print

YOUR BUSINESS PLAN:

1.       Introduction  and summary of business plan:

·         Purpose of the plan

·         Business and history of the company

·         Major customers

·         Summary of income statements

·        Address and telephone number

2.         The company-its industry and objective:

·         Industry background.

·         Corporate short and long terms objectives.

·         Company size and market share.

·         Expected rate of profitability.

·         Strategies to reach objectives.

3.         Products and Services:

·         Principal products and services.

·         Proprietary position and potential.

·         Product development.

·         Trademarks and royalty agreements.

4.         Market:

·         Assessment of market size, history, market segments and product position.

·         Cost/benefit of the product.

·         Market pricing and company strategy.

·         Evaluation of competition, customer service, lead time, price, terms, location and product quality.

·         Marketing strategy defined; how and why sales will be made.

·         Description of type and size of customer base, relationship and percent of total sales with major customers, stability and special terms.

·         Product distribution and sales force.

·         Advertising and promotion approach.

·         Product or product-line profitability and markups.

5.         Manufacturing:

·         Plant locations and description of facilities.

·         Description of manufacturing process if unique.

·         Capital equipment requirements.

·         Labor force.

·         Cost and quality control.

·         Backup sources of supply.

6.         R& D and Engineering:

·         Status of product line; what remains to be done, how, time required, at what cost.

·         Product life circle and technical obsolescence.

·         Plans to meet competition.

·         Needs for manufacturing and application engineering.

·         Proprietary and patent positions.

7.         Management:

·         Management team, responsibilities and skills.

·         Identification of principal owner-managers.

·         Human resource projections and plans.

·         Supporting external advisers and relationships, attorneys, accountants, investors and lenders.

·         Board of directors.

8.         Historical financials:

·         Latest balance sheet plus income statement for the past two to three years.

·         Brief explanation of major operating variances.

·         Consideration of sales and cost sales data by product line if significant.

9.         Financial plan and forecast:

·         Profit and loss/cash flow forecast by month or quarter.

·         Forecasted balance sheets at year-ends.

·         Summary of all significant assumptions used in forecast considering sales plan, changes in customer base, selling-price increases, margin improvement, material and labor.

10.     Proposed financing:

·         Desired financing.

·         Use of proceeds.

·         Securities or debt instruments offered and terms.

·         Payback and collateral.

11.     The future:

·         Commentary and summary on where the company is going.In planning for “start-up”, new ventures,new product lines and additional plants should be considered.

·         Identify the critical events or actions that must occur in order for you to achieve your objectives.E.g. Opening of a pilot operation to test a new product or service or approval on a patent application.

·         Identify and assess the key assumptions on which the new venture’s success depends.

·         Set out events that must take place in a necessary sequence.For example,the sequence may be:

-          Completion of concept.

-          Product testing.

-          Prototype developed.

-          Pilot operation opened.

-          Market tests.

-          Production start-up.

-          Initial key sales.

-          Develop a graphic presentation of the aforementioned sequence of the key events by dates and by expenditures. If appropriate.