Business Plan 1 Enliven Architecture in.docx

Business Plan
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Enliven Architecture institution
Samaher Bakhsh 1120069
Remaz Basrawi 1110138
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Table of Contents
I. Executive Summary

II. Section One: The Business
o Description of Business
o Company Profile
o Company ownership
o Company Background
o Products/Services
o Market Analysis
o Marketing Plan
o Location
o Competition
o Management and Operations
o Personnel
o Application and Effect of Loan or Investment
III. Section Two: Financial Data
o Projected Financial Statements
• Income Statements
• Cash Flow Statements
• Balance Sheets

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• Assumptions to Projected Financial Statements
o Break Even Analysis
o Sources and Uses of Funds
IV. Section Three: Supporting Documents Historical financial
statements,
o tax returns, resumes, reference letters, personal financial
statements,
o facilities diagrams, letters of intent, purchase orders,
contracts, etc.
V. References

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List of figures
Figure 1. Potential client percentage.
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Figure 2. Beautat business park's location
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Figure 3. Building's surroundings.
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I. Executive Summary
The Enliven Architecture Intuition will be located in an office
building placed along Al-Malik
road, Jeddah city, Saudi Arabia. It is managed by the two
architects Remaz Basrawi and Samaher
Bakhsh which focuses on two main types; architecture and
environmental design with full services
including the execution phases through partnerships with other
firms. Also, the type of projects
varying from single family homes to multi-family housing,
affordable housing, and commercial
buildings.
II. Section One: The Business

A) Description of Business
1.Company Profile:
Enliven architecture institution is a collective of architects,
designers and inspired thinkers dedicated to
improve the human experience. Our vision is to design a
sustainable building that have a low negative
impact on the environment. We target home owners,
developers, and contractors.
2.Company Ownership:
Business Partners:
Samaher Bakhsh
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Remaz Basrawi
It start-up company that will operate in the upcoming year of
2018 by the two architect Samaher
Bakhsh and Remaz Basrawi. The architects studied and
graduated from Dar Al-Hekma University;
they practiced the profession for long time until they reach the

high level of qualification to have the
Saudi licensed from The Saudi Council of Engineer. The firm
will practice the passion of producing
areas that would admit the clients to enjoy the experience of
accommodating environmentally
welcoming atmosphere.
3.Company Background:
The architectural firm will take a place in an office building
located along Al-Malik road, Jeddah city,
Saudi Arabia. It is a multi-disciplinary firm that focus on two
main categories; architecture and
environmental design. Our firm will provide full services
including the execution phases through
partnerships with different firms.
It will be successful firm because it focusses on green design
that not only helps cut down on
emissions released into the ozone but also helps in reducing
energy, water, and HVAC costs. It also
categorized in improving the environment, economy and social.
The studies qualified the architects to
run this business by being trained to find and provide
sustainable solutions for the exiting problems.

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B) Products/ Services
The firm will provide:
- Environmental Studies and researches
- Architectural Drawing which include plans, sections, and
elevations
- Construction Drawing which include the electrical, plumbing,
and mechanical
- Project management
The provided services are applicable to different type of
projects ranging from single family homes
to multi-family housing, affordable housing, and commercial
buildings. The firm has a special and
unique feature which is considering the sustainability in
designing the buildings for the clients.
Sustainability improve the quality of human experience with the
built structure. Moreover, there are
two type of sustainable approaches; active and passive. Each
type varied in their costs. Even though
sustainability could be expensive, it will save money in the

future. According to the features that are
providing, the firm will stand out and take a unique position
among other firms.
C) Market Analysis
Through the study of the architectural market in Jeddah City,
“there is a strong demand for housing in
the city, both at the high-end luxury side of the market, and in
the affordable sphere; 20% of housing
demand to 2025 will be in the high-income range, 30% in the
middle income and 50% affordable. This
demand pressure is expected to drive an annual need for over
43,000 units, growing to 58,000 by 2025.
Similarly, significant investment is being made in commercial
space, whether offices, retail or hotels,
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as part of the large scale urban renewal the city is undergoing.
A stated mission of the city is to cater to
religious tourism, and the extensive expansion of hotel and
retail space underlines this aim.” (Design
and consultancy for natural and built assests , 2015) Therefore,
the firm will meet the market needs;

the study shows lack attention toward sustainability and green
building design approach. Therefore, the
firm will fill this gab by meeting the business needs while
keeping up with the new technology and
introducing new sustainable solutions to the market.
The firm will offer its service to home owners who are looking
to find design for their future houses, as
well as developers and contractors in the domestic and
international markets. Although it is are going
to provide the services to a relatively broad scope of customers,
the target market is affordable
housing, renovation and commercial buildings.
Potential clients for the firm’s market is broken down into three
categories (Figure 1) : home owners,
developers, and contractors. Home owners are the largest group
based on population and this will be
emphasized in all of the firm's marketing and promotional
efforts. Targeting the remaining three
groups will be dependent upon establishing meaningful
relationships, and responding and qualifying
for request for proposals.

Home
owners
55%
Develo
pers
24%
Contra
ctors
21%
Figure 1. Potential client percentage.
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D) Marketing Plan
Marketing our firm is very important to help in increasing
business and being well known among the
society. The market will consider our price as it will be a bit
less than the other companies to get
attention from customers. Once the trust of clients has been
gained, the growth and development of the

business has been accomplished with a perfect standing of the
company in the market. Only then, the
price can be increased with competing price to the market.
Some examples that will help the firm to be famed is by doing:
1. Export our design as portable, and shareable objects:
- Design portfolio having our design philosophy, company
produces, so that whenever we meet a
potential client, we can offer them a small sample of what
makes our firm so great. In digital
and printable format and make our information clear and easy to
understand. (Website and
Social Media)
2. Follow up:
- Having a business cards on hand while visiting networking
events. (Advertising, Brochures)
3. Organize an open lecture series at our firm:
- Organize an open lecture series to invite anyone in our office
which provide an opportunity to
introduce our firm to a new audience.

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E) Location
Located in AL-Shati District, Beautat Business Park, King
Abdul Aziz Road, Jeddah City,
Saudi Arabia (Figure 2). The office will be situated on the
prestigious business strip on King's Road
which is commonly known as the most important business
avenue in Jeddah. The location is
surrounded by multiple commercial and office buildings (Figure
3). The Beautat business park’s
design respect its context and show some aspects of
sustainability. It will present to the client what the
firm is standing for through their experience within the business
park.

Figure 2. Beautat business park's location
Figure 3. Building's surroundings.
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F) Competition
The architectural firm compete by having good quality of
designing and considering different
sustainable approaches that would profit the clients on the long
period. These approaches forms variety
of designs and proposals that would facilitate different design
solutions to allow the customers having
a friendly, energy effective, and cost efficient designs for
environment.
List of companies:
1. Solaiman Abdullah Elkhereiji Consultants (SAK)
Company description and strength: The company includes a
team of Architects and Engineers who are
involved in all stages of projects of various natures from
inception to completion. Their aim is to

design innovative, sustainable, functional and economical built
environments (About Us: SAK
Consultants, 2017).
2. AFM Consultant
Company description and strength: They focus on creating
quality and cost-effective services
for a wide range of projects. Their senior staff are well aware of
international standards and codes as
well as local regulation. They seek to provide regional
architectural solutions that serve both projects
and their contextual surrounding (About Us: Abdulfatah
Mo'men Consultant, 2017).
3. Laceco Architects and Engineers
Company description and strength: They focus on designing
esthetically refined, contextually
distinctive, functional, sustainable, and cost efficient buildings
and development. The services that they
provide includes, architecture, master planning, engineering,
environmental studies and management
(About Us: Laceco Architects and Engineers, 2017).

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4. Amsad Architectural institution
Company description and strength: Their services include
architecture, landscape architecture,
planning, environmental design, and interior design that
produces innovative, sustainable iconic
buildings and urban environments. (About Us: Amsad
Architectural Institution , 2017)
5. Omrania architecture office
Company description and strength: Their design is described as
both practical and idealistic
endeavor. They services includes architecture, engineering,
interiors, landscape, and urban design.
Their aim is to solve everyday problems and explore new
possibilities. They work with their clients to
create built environments that are functional, livable,
contextual, and sustainable. (About Us: Omrania
Architecture office, 2017)
All the companies mentioned above are successful in the field
based on their experience, the
number of the project they worked in and the awards they won.
However, the Laceco Architecture and

Engineers firm is the biggest competitor because they focused
on doing environmental researches that
help them innovate sustainable strategies. Also, they are
concerned in producing cost- efficient
esthetically refined designed building which will encourage the
clients to be sustainable.
G) Management and Operations
1. Meeting the client
2. Analyzing and studying the client’s requirements considering
sustainable
3. Finding the suitable solution for the client
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4. Beginning with diagram phase of the project
5. Meeting the client to argue the proposals
6. Approving the proposal
7. Starting with architectural drawing
8. Then construction drawing (plumping, electrical, and
mechanical)

H) Personnel
- Employs that will be hired in our firm are required at least to
have bachelor degree in the major
and the position they are working in. Also, they have to have
experience at least three years so
that will improve and help in developing the firm faster.
- An opportunity the firm will offer is to allow graduated
students to have an internship and work
in the future if they were qualified.
- Business Structure:
1. Project manager
2. Architects
3. Admin and HR Manager
4. Marketing and Sales Executive
5. Accountant
6. Customer Care Executive / Front Desk Officer
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Table of Personnel Salaries and benefits:
I) Application and Effect of Loan or Investment
The firm plan will be introduced to several well-known
companies to invest in it.
Salaries and benefits quantity Basic salary Annual salary Other
benefits Total
Project manager 2 15,000 360,000 50,000 410,000
Architect 3 7,000 252,000 25,000 277,000
Admin& HR Manager 1 5,000 60,000 10,000 70,000
Marketing & Sales 1 5,000 60,000 10,000 70,000
Accountants 1 5,000 60,000 10,000 70,000
Customer care 1 3,000 36,000 8,000 44,000
Total 9 40,000 828,000 113,000 941,000
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References

About Us: Abdulfatah Mo'men Consultant. (2017, March 23).
Retrieved from Abdulfatah Mo'men
Consultant web site : http://www.afm-consultants.com/
About Us: Amsad Architectural Institution . (2017, March 23).
Retrieved from Amsad architectural
Institution Website: http://amsad.com/
About Us: Laceco Architects and Engineers. (2017, March 23).
Retrieved from Laceco Architects and
Engineers Website: http://www.laceco.net/
About Us: Omrania Architecture office. (2017, March 23).
Retrieved from Omrania Architecture office
website: https://omrania.com/
About Us: SAK Consultants. (2017, March 23). Retrieved from
SAK Consultants Web site: http://sak-
consult.com/introduction.php
Design and consultancy for natural and built assests . (2015).
Global City Focus: Jeddah , 3-5.
Software, P.A. (n.d.). Architecture Firm Business Plan.
A Sample Architectural Firm Business Plan Template. (n.d.).

Writing a Business Plan Georgia State SBDC 1
Writing a Business Plan
Small Business Development Center
Georgia State University
404-651-3550
web: www.gsu.edu/sbdc
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Why Write a Business Plan?
A Business Plan helps you evaluate the feasibility of a new
business idea in an objective, critical, and unemotional way.

• Marketing – Is there a market? How much can you sell?
• Management – Does the management team have the skill?
• Financial – Can the business make a profit?
It provides an operating plan to assist you in running the
business and improves your probability of success.
• Identify opportunities and avoid mistakes
• Develop production, administrative, and marketing plans
• Create budgets and projections to show financial outcomes
It communicates your idea to others, serves as a “selling tool,”
and provides the basis for your financing proposal.
• Determine the amount and type of financing needed
• Forecast profitability and investor return on investment
• Forecast cash flow, show liquidity and ability to repay debt
Who will use the plan? If you won't use the plan to raise
money,
your plan will be internal and may be less formal. If you are
presenting it to outsiders as a financing proposal, presentation
quality and thorough financial analysis are very important.
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Basic Business Plan Guidelines
Writing a Business Plan will probably take a lot of time. Up to
100 hours or

more is not uncommon for a new business that requires a lot of
research.
A typical plan will have three sections. Section one is a written
section
describing Management and Marketing aspects of the business.
Section Two
includes financial projections. Section Three is supplemental
information.
A short (3-5 pages) Executive Summary is often added at the
beginning of
more complex business plans.
• Section One should be thorough, but concise and to-the-point.
Use
headlines, graphs and "bullets" to improve readability. Length
of this
section is usually 10 - 20 pages.
• Section Two describes in numbers the outcome of your
business
strategies and plans. Your financial projections should be based
on facts
and research, not “wild guesses.” Be prepared to justify your
numbers.
• Section Three contains supporting information to reinforce the
first two
sections. This section’s contents will vary with your type of
business.

Owners should be very involved in the planning process. Hiring
someone to
do it or delegating it to someone who is not a key member of
the company
will result in an inferior plan.
No plan (or a poor plan) is a leading cause of business failure.
You can
improve your chances of success with a good Business Plan.
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Ten Ways to Ruin Your Business Plan
These errors in business plan preparation and presentation will
undermine the
credibility of the plan and hurt your chances to receive funding:
• Submitting a “rough copy,” (with coffee stains and typos) tells
the reader that
management doesn’t take the planning process seriously.
• Outdated historical financial information or unrealistic
industry comparisons
will leave doubts about the entrepreneur’s planning abilities.
• Unsubstantiated assumptions can hurt a business plan; the
business owner

must be prepared to explain the “why” of every point in the
plan.
• Too much “blue sky” - a failure to consider prospective
pitfalls - will lead the
reader to conclude that the idea is not realistic.
• A lack of understanding of financial information. Even if
someone else
prepares the projections, the owner must be able to explain
them.
• Lack of specific, detailed strategies. A plan that includes only
general
statements of strategy (“We will provide world class service and
the lowest
possible price.”) without important details will be dismissed as
fluff.
Especially important if the business plan is prepared for a
lender:
• No indication that the owner has anything at stake. The lender
expects the
entrepreneur to have some equity capital invested in the
business.
• Unwillingness to personally guarantee any loans. If the
business owner isn’t
willing to stand behind his or her company, then why should the

bank?
• Starting the plan with unrealistic loan amounts or terms. Do
your
homework and propose a realistic structure.
• Too much focus on collateral. Even for a cash-secured loan,
the banker is
looking toward projected profits for repayment of the loan.
Cash flow should
be emphasized as the source of repayment.
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Business Plan Outline
Cover Sheet: Business Name, Address, Phone Number,
Principals
Executive Summary or Statement of Purpose
Table of Contents
Section One: The Business
A. Description of Business
B. Products/Services
C. Market Analysis
D. Marketing Plan
E. Location

F. Competition
G. Management and Operations
H. Personnel
I. Application and Effect of Loan or Investment
Section Two: Financial Data
A. Projected Financial Statements
Income Statements
Cash Flow Statements
Balance Sheets
Assumptions to Projected Financial Statements
B. Break Even Analysis
C. Sources and Uses of Funds
Section Three: Supporting Documents Historical financial
statements,
tax returns, resumes, reference letters, personal financial
statements,
facilities diagrams, letters of intent, purchase orders, contracts,
etc.
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Section One: The Business
The following pages describe in detail each part (A through I)
of the previous
Business Plan Outline. Disregard any questions that do not
apply to your business.

A. Description of the Business
Part A provides an overview of key information which is
developed in greater detail
in the following pages. Aim for clarity and simplicity in this
part. Too much detail
here gets in the way of the main ideas. The Elevator Test - Can
you explain your
basic business idea in the time it takes to get from the lobby to
the 5th floor?
Basic Questions:
1) What general type of business is this?
2) What is the status of the business? Start-up, expansion or
take-over?
3) What is the business form? Sole Proprietorship, Partnership,
Corporation
or Limited Liability Company?
4) What are your products?
5) Who are (will be) your customers?
Additional Questions for Start-Ups:
1) Why will you be successful in this business?
2) What is your experience with this type of business?
3) What will be special or unique about this business?
4) Why will your business be successful?
Additional Questions for Purchase of Existing Business:
1) When and by whom was the business founded?
2) Why is the owner selling?

3) How was the purchase price determined?
4) What are the current financial conditions and trends?
5) How will your management make the business more
profitable?
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B. Products/Services
In this section, describe your product offering. This will
include details of product
features and an overview of unique technology or processes.
But don’t stop there and
don’t focus too much on technology. You must also describe
the product benefits and
why customers will want to buy.
For most businesses, the products/services are not totally
unique. If yours are, take
advantage of this while you can and plan for the competitive
battles that will come.
If your products/services are not unique, you must find a way to
position your
products/services in the mind of your customer and to
differentiate them from the
competition. Positioning is the process of establishing your
image with prospects or
customers. (Examples include: highest quality, lowest price,

wider selection, Best
customer service, faster delivery, etc.)
Basic Questions:
1) What products/services are you (will you be) selling?
2) What are the features and benefits of what you sell?
3) What Position do you have (or want to have) in the market?
4) How do your products/services differ from the competition?
5) What makes your products unique and desirable?
6) Why do (will) customers buy from you?
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C. Market Analysis
For start-ups or existing businesses, market analysis is
important as the basis for the
marketing plan and to help justify the sales forecast. Existing
businesses will rely
heavily on past performance as an indicator of the future. Start-
ups have a greater
challenge - they will rely more on market research using
libraries, trade associations,
government statistics, surveys, competitor observation, etc. In
all cases, make sure
your market analysis is relevant to establishing the viability of
the business and the

reasonableness of the sales forecast.
Questions for Existing Businesses:
1) Who are your current customers? (List largest customers or
categories.)
2) What do they buy from you?
3) Why do they buy from you? (Quality, Price, Reputation,
etc.?)
Basic Questions:
1) Who are the purchasers of your products or type of
products? (Geographic,
Demographic and Psychographic characteristics)
2) What is the size of the market? Is it growing?
3) What is (will be) your share? How will your share change
over time?
4) What is the industry outlook?
5) Are there segments of users who are under-served by
competition?
6) Do any of these under-served segments present
opportunities?
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D. Marketing Plan

In this section, you include the highlights or your detailed
marketing plan. The basic
components of a Marketing Plan are:
· What are you selling? (What benefits do you provide and
what position or
image do you have?)
· Who wants the things you sell? (Identify Target Markets)
· How will you reach your Target Markets and motivate them to
buy?
(Develop Product, Price, and Promotional Strategies)
Product Strategies
1) How will products be packaged?
2) How broad will your product line be?
3) What new products will you introduce?
4) What Position or Image will you try to develop or reinforce?
Pricing Strategies
1) What will be your pricing strategies? (For example:
Premium, Every Day
Low Price, Frequent Sale Prices, Meet Competitor Price, etc.)
2) How will you compare with competition and how will they
respond?
3) Why will customers pay your price?
4) What will be your credit policies?
5) Is there anything about your business which insulates you
from price
competition?

6) Can you add value and compete on issues other than price?
Promotional Strategies
1) Who are your Target Markets?
2) How will you reach your Target Markets? (What Media will
you use?)
3) How will you motivate them to buy? (What Message will
you stress?)
4) What is the cost and timetable for implementation of the
marketing plan?
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E. Location
Locations with greater customer traffic usually cost more to buy
or rent, but they
require less spending for advertising to attract customers. This
is especially true of
retail businesses where traffic count and accessibility are
critical.
Basic Questions:
1) What is the business address?
2) Is it owned or leased? If leased, what are the terms?
3) Are renovations or modifications needed, and what are the
costs?
4) Describe the property and the surrounding area.
5) Why is this a good location for your business?

For Mail Order, Telemarketing, Manufacturing, Consulting, or
other companies
where the customer does not purchase while physically at the
business address, less
location detail is needed. Modify the location section to fit
your situation. In some
cases, a good location may be one close to suppliers,
transportation hubs or a
complementary business that will also attract your Target
Market.
F. Competition
"Who is your competition?" is one of the first questions a
banker or investor will ask.
Business by nature is competitive, and few businesses are
completely new. If there
are no competitors, be careful; there may be no market for your
products.
Expand your concept of competition. If you plan to open the
first roller skating rink
in town, your competition includes movie theaters, malls,
bowling alleys, etc.
Basic Questions:
1) Who are (will be) your largest competitors? List them.
2) How will your operation be better (and worse) than your
competitors?
3) How are competitors doing? What are their sales and
profits?
4) (If Start-Up) How will competition respond to your market
entry?

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G. Management and Operations
Because management problems are the leading cause of business
failures, it is
important to discuss management qualifications and structure.
Resumes of Principals
should be included in supporting data. If your business will
have few employees and
rely heavily on outside professionals, list these key people and
their qualifications. If
you are seeking financing, include personal financial statements
for all principals in
supporting data section.
Basic Questions:
1) What is the business management experience of the
management team?
2) What are the functional areas of the business?
3) Who will be responsible for each functional area?
4) Who reports to whom?
5) What will salaries be?
6) What management resources outside the company are
available?
7) How will your products/services be produced? (Describe
manufacturing
processes, proprietary technology and key supplier

relationships.)
H. Personnel
The success of many companies depends on their ability to
recruit, train and retain
quality employees. The amount of emphasis in your plan will
depend on the number
and type of employees required.
Basic Questions:
1) What are the personnel needs now? In the future?
2) What skills must they have? What training will you
provide?
3) Are the people you need available?
4) What is their compensation? What fringe benefits will be
provided?
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I. Application and Effect of Loan or Investment
This section is important whether you are seeking a loan,
outside investment (equity)
or investing your own money. It may be necessary to complete
Section Two,
Financial Data, before completing this part.

Basic Questions:
1) What is the total investment required?
2) How will the loan or investment be used?
3) How will the loan or investment make the business more
profitable?
4) When will the loan be repaid?
5) If you are seeking equity (selling part of the business to an
investor): -
What percent of the company are you willing to give up?
- What rate of return is possible for the investor? (Note: If
your business
plan will be presented to private investors, seek legal counsel to
be sure
you are in compliance with securities laws.)
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Section Two: Financial Data
A. Projected Financial Statements
The basic purposes of financial projections are:
• Establish the profit potential of the business, given reasonable
assumptions

• Determine how much capital the company needs and how it
will be used
• Demonstrate the business can generate the cash to operate and
re-pay loans
It is usually helpful, but not necessary, to complete at least a
rough draft of Section
One (the written section) before attempting the financial
section. In the written
section, you will develop and describe your strategies for the
business. In the
financial section, you will estimate the financial impact of those
strategies by
developing projected Income Statements, Balance Sheets, and
Cash Flow Statements.
It is usually recommended that these projected statements be on
a monthly basis for
at least the first twelve months or until the business is
profitable and stable. Activity
displayed beyond the monthly detail may be in summary form
(such as quarterly or
annually.) The forecast period for most business plans is two to
four years.
Before you start developing projected financial statements,
gather the suggested
information on the following pages. The personal computer is
an excellent tool for
financial projections; and those with a good background in
accounting and personal
computer spreadsheets may want to create their own financial
forecast model. (There
are also some specialized software programs which have basic
templates to help with
your financial forecast.)

The quality of your projection depends on the accuracy of the
assumptions. (Garbage
in - Garbage out.) Existing businesses will rely heavily on past
financial results as the
basis for their forecasts. Start-ups have greater challenges.
They must do extensive
research to prove the reasonableness of their numbers.
Examples of sources include:
Industry data from public sources and trade associations,
personal interviews with
potential customers and people in the business, competitive
observation and analysis,
etc.
If you would like assistance, gather the suggested information
on the following pages
and contact the Small Business Development Center. The
SBDC will review the
information from your research and help you develop your
projection.
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Steps in Financial Projections
For items 1 and 2, use the following “Fixed Asset/Start-up
Expense List.”
1) Estimate fixed asset requirements for the first year. Include
Land, Buildings,

Leasehold Improvements, Equipment, and Vehicles.
2) Estimate any start-up or one-time expenses. Include any
expenses needed to begin
operation such as legal fees, licenses, and initial marketing
costs.
For item 3, use the following “Unit Selling Price and Cost
Analysis” sheet.
3) Define each “unit” of your product or service and estimate
the selling price and
direct cost per unit. In the appropriate places on the form,
estimate Cost of Sales and
calculate Gross Profit as a percentage of the selling price.
For items 4 through 6, use the following “Projected Income
Statement”.
4) Estimate sales by month for at least one year. (Unit sales
price times the number of
units.) Consider how start-up, marketing, and seasonal factors
affect sales.
5) Estimate monthly Cost of Sales and Gross Profit based on the
percentages of sales
calculated in #3 above. Use a weighted average if multiple
product lines.

6) Estimate and itemize fixed expenses by month for at least
one year. Include things
like rent, insurance, utilities, salaries, marketing,
legal/accounting, etc. Determine all
categories which apply to your business, but don’t include
expenses here that are in
“cost of goods (services) sold.”
Research items 7 through 10, and provide a short narrative.
7) Describe the amount of inventory (if any) required to support
the sales forecast.
Express in number of days sales or turnover if possible.
8) Describe your credit, sales, and collections policies. If you
will make sales on credit,
estimate the number of days after the sale before the average
customer pays.
9) Describe how fast you must pay your vendors for any items
you will purchase.
10) Also: - Estimate obligations for Income Taxes.
- Businesses already in operation will need the latest Balance
Sheet.
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Fixed Asset/Start-up Expense List
Fixed Asset Description: Cost:
Land/Building ____________________________________
Equipment and/or Vehicles
____________________________________
Leasehold Improvements
____________________________________
(Other)_____________________________
____________________________________
___________________________________
____________________________________
___________________________________
____________________________________
Start-up Expense Description:
Legal/Organization Costs
____________________________________
Initial Marketing & Promotion
____________________________________
Licenses and Permits
____________________________________

Beginning Inventory
____________________________________
(Other)_____________________________
____________________________________
___________________________________
____________________________________
___________________________________
____________________________________
___________________________________
____________________________________
Total Fixed Asset and Start-up Expenses:
_______________________________
Note: List major items individually. You may group other,
smaller items (like office equipment)
into a single line item.
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Unit Selling Price and Cost Analysis
(Make additional copies of this sheet if necessary.)

Product or Service #1:
_______________________________________________
A. Selling Price: __________________
less
Direct Costs:
Materials ___________
Labor ___________
Sub-contractors ___________
(Other)_______________ ___________
_____________________ ___________
_____________________ ___________
_____________________ ___________
B. Total Cost per Unit __________________
C. Unit Gross Profit (A minus B) __________________
D. Gross Profit % (C divided by A) ____________
Product or Service: #2:
______________________________________________
A. Selling Price: __________________
less
Direct Costs:
Materials ___________
Labor ___________
Sub-contractors ___________
(Other)_______________ ___________
_____________________ ___________
_____________________ ___________

_____________________ ___________
B. Total Cost per Unit __________________
C. Unit Gross Profit (A minus B) __________________
D. Gross Profit % (C divided by A) ____________
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Projected Income Statement
For the 12 Months Beginning __________
Total
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Month 8 Month 9 Month 10 Month 11 Month 12 Year 1
Total Revenue
Cost of Goods Sold
Gross Profit
Accounting & Legal
Admini Salaries

Autos & Vehicles
Depreciation
Dues & Subscriptions
Entertainment
Equipment Rental
Insurance-Business
Insurance-Health
Interest
Contract Labor
Licenses
Marketing
Miscellaneous
Office Supplies
Postage
Rent
Repairs & Maintenance
Telephone
Taxes-Payroll

Taxes-Other
Travel
Utilities
Other:
Total Expenses
Pre-Tax Profit (Loss)
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A. (Cont.) Optional Method to Calculate Needed Capital
Many businesses can get a reasonable picture of their financial
future by using the following
formula. If the business will start making sales very soon after
opening, you may decide to multiply
monthly fixed expenses by a number smaller than six.
Total Required Capital =
Six Months of Fixed Expenses + Asset Purchases + Start-up
Expenses

Column 1 Column 2
Monthly Fixed Expenses
Salaries (include owner) __________
Payroll Taxes at 12% __________
Rent __________
Marketing and Advertising __________
Supplies __________
Telephone & Utilities __________
Insurance __________
Maintenance __________
Legal and Accounting __________
Miscellaneous __________
(Other)_________________ __________
Monthly Fixed Expense Sub-total _________ x 6 =
_________
Asset Purchases
Purchase of Land and Building ___________
Decorating and Remodeling ___________
Fixtures and Equipment (plus installation) ___________
Deposits on Rental Property and Utilities ___________
Beginning Inventory ___________
Asset Purchase Sub-Total __________
Start-up Expense You Pay Once
Legal and Accounting Organization Costs ___________
Licenses and Permits ___________
Initial Advertising and Promotion ___________
(Other)______________________________ ___________
Start-up Expense Sub-total __________
Total Estimated Cash Needed to Start (Add Column 2)

__________
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B. Break Even Analysis
Break even (B/E) analysis is a simple, but very effective
financial feasibility test. B/E is used to find
the amount of sales necessary to pay all fixed costs (and have
zero income.) In your business plan, it
represents a minimum acceptable performance. Follow these
steps to calculate:
1) Determine Contribution Margin Percent. Contribution
Margin (CM) equals Sales minus
Variable Expenses. CM% equals CM dollars divided by Sales.
Note: The biggest variable
expense is usually Cost of Goods Sold (CGS), which is the
direct material and labor necessary
to make a product or service ready for sale.
2) List and total all Fixed Expenses for a specific time period
(usually one month.) Fixed
expenses do not rise or fall with sales volume. Examples: rent,
insurance, utilities, etc.
3) Break Even Sales is Fixed Expenses divided by Contribution

Margin %. (See Example)
Example:
Unit sales price: $10 Monthly Fixed Expenses:
Rent 2,000
less Cost of Goods Sold: Utilities 1,000
Material & Labor 3 Salary 3,000
less Other Variable Exp: Other 4,000
Commissions 1
Total Fixed Exp. $10,000
Unit Contribution Margin = $6
($10 - $3 - $1)
CM % ($6 ÷ $10) = 60%
B/E = Fixed Expense ÷ CM %
B/E = $10,000 ÷ .6
Monthly B/E Sales = $16,667
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C. Sources and Uses of Funds
The Sources and Uses of Funds is a statement of how much
money you need (and where it will
come from) and how that money will be used. This statement

should be included if your business
plan is being presented to a lender or investor. By definition,
sources must equal uses. The
following is an example of a typical format.
Sources:
Term Loan __________
Line of Credit __________
Personal Equity __________
Outside Equity __________
Other __________
Total Sources __________
Uses:
Purchase Building __________
Purchase Equipment __________
Renovations __________
Inventory __________
Working Capital __________
Cash Reserve __________

Other __________
Total Uses: __________
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