Business Plan Outline - Example A

Getting started with any business is quite an undertaking.  A business plan clearly states what your business is all about.  A business plan is  important for funding, sponsorship, and many other areas of business start-up and operation.
Please follow the suggested outline and consider the questions listed under each heading. Omit areas that are not applicable to your specific business.

The Cover Sheet

• Identify the business and the document.
• Identify the location and telephone numbers of the business or where the principals can be reached.
• Identify the person who wrote the business plan.

Statement of Purpose

• Who is asking for the money?
• How much money is needed?
• What is the money needed for?
• How will the funds benefit the business?
• Why does this loan or investment make business sense?
• How will the funds be repaid?

Table of Contents

• Section One: The Business

A. Description of Business
B. Product/Service
C. The Market
D. Location of Business
E. The Competition
F. Management
G. Personnel
H. Application and Expected Effect of Loan
I. Summary

• Section Two: Financial Data
• Section Three: Financing Proposal
• Section Four: Exhibits
• Section Five: Supporting Documents


Section One: The Business
A. Description of Business

What business are you in?
What is the status of the business? (startup, expansion, takeover)
What is the business form? (Proprietorship, Partnership, Corporation)
Why is your business going to be profitable? (or continue to grow)
When will (did) your business open?
What hours of the day and days of the week will (are) you in operation?
Is your business seasonal?

B. Product/Service

-What are you selling? (not "what are your products or services?")
-What are the benefits (as opposed to the features) of what you are selling?
-How do your products and /or services differ from competing products and/or
services?
-If your product is new or state-of-the-art or otherwise unique, what makes it
different? Desirable?
-If your product or service line is not special, why would people buy from you?

C. The Market

-What are your markets?
-Which ones are buying from you now?
-What products are they buying?
-Who are the people who are buying from you?
-How would you characterize your markets? (growing, steady, declining)
-Why do these people buy from your company?
-Why do they buy from you and not the competition?
-What are they buying from you? On what cycle?
-How can you find more buyers like these?
-What is the size of your market?
-What percent of each market do (or will) you have?
-What is each market's growth potential?
-As each market grows, will your share increase?
-Is the market competitive or not? If not, why not?
-How will you attract and keep these markets?
-How can you expand your markets?

Check out sample exhibits for Annual Sales Forecasts

D. Location of Business

-Where are you located?
-What are the physical features of your building? What should you have?
-Do you lease or own your space?
-What renovations are needed, and how much will they cost?
-Does zoning in your area permit your kind of business?
-What other kinds of businesses are in your area?
-Why did you pick this site over others?
-Why is this the right location for your business? Where should it be?
-How will this choice of location affect your operating costs?
-Are any demographic or other market shifts taking place?

E. The Competition

-Who are your five nearest competitors?
-How is their business? (steady, increasing or decreasing)
-How are their operations similar and dissimilar to yours?
-What have you learned from watching their operations?
-How will your operation be better than theirs?

F. Management

1. Personal history of the Principals
Who is on the management team?
What is your business background?
What management experience have you had?
What education (including both formal and informal learning experiences) has a
bearing on your managerial abilities?

What are your ages, special abilities and interests, reasons for going into
business, where do you live and have lived, etc.

Are you physically up to the job?
Why are you going to be successful in this venture?
What is your personal financial status?

Check out sample exhibits for Owner's Personal Financial Statement.

2. Related work experience
What is your direct operational experience in this kind of business?
What is your managerial experience in this kind of business?
What other managerial experience have you had? (different businesses, clubs,
teams, civic or religious organizations, etc.)


3. Duties and responsibilities

Who does what?
Who reports to whom?
Who makes final decisions?
G. Personnel

What are your current needs ?
What skills will your employees need in the near future? In five years?
What are your plans for hiring and training personnel?

H. Application and Expected Effect of Loan

How much money do you need?
For what purposes will it be used?
Check out exhibits for Sources and Uses of Funds

I. Summary

Summarize ideas developed in the preceding sections.
Make sure the different parts of the analysis make sense, support each other
logically and coherently, and project probable success.

Section Two: Financial Data (forms attached) 
• List additional financial documents to be found in the Exhibits section.
A. Sources and Uses of Funds
B. Capital Equipment List
C. Balance Sheet
D. Break-Even Analysis
E. Projected Income Statement
1. Three Year Summary
2. Detail by Month, 1st year & Quarter, 2nd and 3rd years

F. Cash Flow Projections

1. Three Year Summary
2. Detail by Month, 1st year & Quarter, 2nd and 3rd years

G. Budget Deviation Analysis

H. Historical Records (Balance Sheets, Income Statements and Tax Returns for
past 3 years.

I. Summary
Explain basic assumptions used in their preparation.
Provide other comments necessary to understand the documents
Position the documents in the Exhibits section.

Section Three: Financial Proposal 
• Explain fully your proposal to the lender.

Section Four: Exhibits (as required and/or appropriate) 
Section Five: Supporting Documents 
• For example: Brochures & advertising materials, industry studies, blueprints & plans, maps & photos of locations, magazine or other articles, lists of equipment owned or to be purchased, copies of leases & contracts, letters of support from future customers, other materials which support the assumptions in this plan.

SUBSIDIARY SCHEDULES FORM

Sources of Funds
Owners Investment
A.
B.
Total Owners Investment
Bank Loans
A.
B.
Total Bank Loans
Other Loans
Econ. Develop. Loans
Total Other Loans
Total Sources
Uses of Funds
Buildings/Real Estate
Land/Improvements
Construction
Remodeling
Leasehold Improvements
Total Bldgs/Real Estate
Capital Equipment
Furniture
Equipment
Fixtures
Machinery
Total Capital Equipment
Administrative Costs
Deposits
Prepaid Insurance
Goodwill
Total Administrative Costs
Opening Inventory
A.
B.
C.
D.
Total Inventory
Preopening Expenses
Accounting & Legal
Advertising
Car/Delivery/Travel
Insurance
Interest
Outside Services
Payroll Taxes
Rent
Repairs & Maint.
Supplies
Taxes
Telephone
Utilities
Wages
Misc. 0
Total Pre-opening Expenses
Owners Withdrawal
Working Capital Requirement
Contingency Fund


SUMMARY SCHEDULE FORM

SOURCES OF FUNDS
Owners's Investment
Bank Loans
Other Loans
Total Sources
USES OF FUNDS
Building/Real Estate
Capital Equipment
Administrative Costs
Opening Inventory
Preopening Expenses
Owner's Withdrawal
Working Capital Requirement (from Cash Flow Projection)
Contingency Fund (amount required to make Cash Flow Projection breakeven)
Total Uses

SECURITY AND COLLATERAL FORM

Collateral for Loans .......... Value .......... Description
Note: Value is lower of cost or market value
Total Collateral
Signers for Loans (Requires all major owners)
Guarantors for Loans (Other than owners)