Aptitudes d'un entrepreneur business plan sample

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ENTREPRENEURSHIP CENTRE

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Aptitudes d'un entrepreneur business plan sample

  1. 1. Sample Business Plan Welcome to BizPlanBuilder®. Here is a sample of the complete business plan text used for the Angel/VC plan. (It’s the most comprehensive version designed to pitch a new idea to the most sophisticated investors.) As you’ll see, there is more than enough to use. If the text/concept fits your business model, use it, if not, you can discard what you don’t require. The plan for the extraordinary business JIAN’s philosophy is to give you ideas and content from the best business plans cross-pollinated from every industry vs. lots of industry-specific examples that you must undo (unless you are starting an ordinary business…) Investors are rarely industry-specific, but they do understand business, profits, growth, value and return on investment. Speak their language correctly and you will get funded.Variables like [Company], [Owner/Founder] are automatically replaced from the data file. [Othervariables in brackets like this] include example text that give you ideas and that you will edit.Although this is a protected .pdf of the text provided within BizPlanBuilder (you cannot copy any text orprint it), you can read it now and edit it using the BizPlanBuilder application. Expert comments throughout, in green, can be turned on/off with an icon in the BizPlanBuilder application – in this sample, they add about 40 pages – it’s as if we’re sitting next to you all the way. When you turn these off they disappear completely and the black text rolls up. They won’t print.At the end of this narrative sample, we include a sample of the PowerPoint “investor pitch” slideshow.BizPlanBuilder also includes 54 supporting documents important for completing the process of raisingmoney – you can see the list here.Investors ask a lot of questions – They say they want a 2-page business plan, but I think you will agreethat few people will write you a check without learning more… BizPlanBuilder has it.Click these links to review the financial models provided in BizPlanBuilderUnlike other business planning software, BizPlanBuilder enables complete flexibility for a perfect fit. • Financial Models Click here for a complete description of BizPlanBuilder’s forecasting system. • Financial Summary Add this to your Executive Summary to provide that 2-page intro to Angels. • Business Start-up Costs Use this worksheet to total everything you need to expand / get started. • Financial Assumptions These few worksheets drive the entire model automatically. • Investor Analysis Shows screen and introduces a few concepts. • Ratio Analysis Shows screen and explains ratios.) • Sensitivity Analysis Shows the screen and explains Best/Worst Case analysis. • Business Valuation Model Shows the screen and how we calculate valuation. www.jian.com
  2. 2. Here is a sample cover letter to send to VCs. We also include similar letters to angels, bankers, suppliers and friends. You may want to visit our website to learn more about the latest VC sentiments. Try to keep this letter to one page. The type is initially set at 12 point for easier reading – we also left the right margin “ragged” so it doesn’t’ look so formal! [Company Legal Name] [Address] [City] [State] [Zip Code] [Telephone][Date][Addressee][Address Title][Investment Company Name][Investor Address][Investor City, State Zip]Dear [Investor First Name],It was great talking with you today. I’ve enclosed a copy of the Executive Summary from our businessplan for your review. I really appreciate your responding to [name of person who referred you]’ssuggestion that we meet. After speaking with you, I am convinced that [Company]’s business model,objectives, market direction and approach to [xxx] match your company’s criteria, as we discussed, andrepresent a very attractive growth and investment opportunity for your organization.As you evaluate the potential return on this investment, you will probably find these key points ofconsiderable interest:[Company] recently [briefly discuss your company’s most significant major accomplishment of the pastyear].[Company] is currently positioned as the leading [xxx] in [xxx], and we anticipate [slow / steady / rapid /exponential] growth in the next [xx] [days / weeks / months / quarters / years]. This will support our [xxx]and allow us to [xxx] most effectively.
  3. 3. We have partnered with [xxx] to [xxx] since [Month, year], and are already seeing results that fullysupport our forecasts of $[xx] million in annual sales by 20[xx].According to [name the source of the statistics you are about to quote], growth is forecast at[xxx,xxx,xxx] new [type of customers] customers in our targeted segment every year for at least the next[xx] years.As [Company]’s [xxx] solves the critical issue of [xxx] for [xx]% of customers, growth forecast at $[xx]million annually leads us to expect a significant increase in revenues by [Month / Quarter] of 20[xx]. Weare on track for an [IPO / acquisition] by [month / quarter] of 20[xx].A first-round investment of $[xxx] million will be used to [xxx], with planned second-round funding of$[xxx] million to complete [xxx] and market [xxx] in [xx] [type of market] markets.The attached Executive Summary should answer most of your questions regarding this [Company]opportunity. We are prepared to make a full presentation, at your earliest convenience. [Company] mustmove swiftly to take advantage of the opportunity to [xxx]. I will call early next week to arrange anappointment. Should you have questions in the meantime, please feel free to contact me on my cell phoneat, [xxx-xxx-xxxx]. We look forward to meeting with you.Best regards,[Owner/Founder]Founder & CEO[Company][Telephone][Founder Email]
  4. 4. Cover Page – Use this page to design a nice cover for your planUse a photograph of your product or of someone performing your service – replace our logo below.This of this as a cover of your brochure – make it attractive to an investor or lender. [Your Logo Here]If you need a great new or updated logo, we recommend Logo Design Gurus who can put onetogether for you for as low as $99! Please visit their website for more information. [Company Legal Name] [Your slogan here]Here are several title ideas to choose from or edit into what suits your business and application foryour business plan: Business Plan SBA Loan ProposalProduct/Service Launch Proposal
  5. 5. Go confidently in the direction of your dreams. live the life you have imagined. ~ Henry David ThoreauWhen you publish and print your plan, these comments will be removed automatically, and thepage will reflow itself correctly. You can click on the “bullhorn” icon above to turn them on and off. [Your Logo Here] [Company Legal Name] Business Plan [Month, year issued] ____ Business Plan Copy Number [Owner/Founder] Founder & Chief Executive Officer [Address] [City], [State] [Zip Code] [Telephone] [fax] fax [mobile] mobile This document contains Confidential & Proprietary Information belonging exclusively to [Company]. This is a business plan. It does not imply an offering of Securities.
  6. 6. This copy number is for your tracking purposes only.Before sending or giving your plan to an investor, hand write the number of the business plan in thespace provided, Add all relevant information regarding the individual or company to whom you’vegiven this copy in your Business Plan Distribution and Follow-up Sheet.It’s important to know where you’ve distributed copies of your plan. Only number the copies given toinvestors. They may wonder how many people are looking at your deal—if their copy number ishigh, they may think that many people have seen your plan and passed (then wonder why?) Youcan use an alpha-numeric system for plans given to others.Use the included “Investor Tracking” spreadsheet to follow up with potential investors.Print your business plan double-sided.Leave this page blank so it doesn’t show through the back of your title page…The first page your readers see will be the Table of Contents on the following pageWe recommend assembling your printed plan using colored, number tabs. (Most investors we’vetalked with admit that they like these!)
  7. 7. Table of Contents AFTER you have completed your plan, choose the Assemble Plan Preview option in the File menu. BizPlanBuilder will assemble all the elements you have checked in the index into a complete plan preview. In Plan Preview, review the plan, and when you are satisfied, select Save Assembled Plan as…. Follow the on-screen instructions. Be sure to create a new folder for your plan, and remember to open the folder before you click Save. (Some word processors open the folder automatically for you.) As you save your plan, the Table of Contents updates automatically, and “Error! Bookmark not defined,” will be replaced by the correct page numbers. In Word, highlight the entire contents area below, then push the F9 key to update the entire Table of Contents as well as the page numbers.Executive Summary ....................................................................................................................... 1Market Opportunity ...................................................................................................................... 12Vision, Mission, Goals & Objectives .......................................................................................... 15Company Overview...................................................................................................................... 20Management ................................................................................................................................. 23Market Analysis............................................................................................................................ 29Business Strategy........................................................................................................................ 39Demand / Revenue Model............................................................................................................ 42Product Strategy .......................................................................................................................... 46Competition .................................................................................................................................. 54Internet Strategy........................................................................................................................... 61Marketing Plan & Strategy........................................................................................................... 69Risk................................................................................................................................................ 94Operations .................................................................................................................................... 98Environmental Sustainability.................................................................................................... 106Present Situation........................................................................................................................ 110Financial Plan ............................................................................................................................. 113Exit / Payback Strategy.............................................................................................................. 122Summary ..................................................................................................................................... 124Supporting Documents ............................................................................................................. 127Capital Requirements ................................................................................................................ 136
  8. 8. [Company] Business Plan Executive Summary For an overview of Executive Summary see the BizPlanBuilder Handbook of Business Planning or look on the JIAN website under ‘Solutions’ / ‘Planning’ Create a clear, compelling, detailed discussion of your value proposition to your customer (benefit - cost). Every word counts and should build your case. Be sure your writing is crisp and concise. “You must communicate succinctly yet convincingly just what the business is, who will execute the strategy and how it will change people’s lives.” – Marsha VandeBerg, Entrepreneurial Edge The Executive Summary should pinpoint what your business is intended to do, who the management team is today and who those players will be in five years, plus company capabilities that will enable you to achieve your business objectives. This section is a “mini” version of your business plan. It’s everything you’ve said in the entire business plan—summarized in one to three pages, and it’s intended to generate excitement about what you’re doing. State the business concept, basic financial points (such as sales projections and capital requirements) and current status of the company. Identify the owners, key personnel and what each brings to the table. You may have previous industry experience, or maybe you’ve hired someone with a notable track record or connections. State what your company has achieved so far. Even a start-up can list things like patents, prototypes, contracts and test-marketing results. The Executive Summary provides an overview that distills the essence of the plan’s key parts and—most important—hooks the prospective investor. “The importance of the summary should not be underestimated. Unless it captures the interest of the venture investors and appears convincing, they will not bother to read further.” ~ Alan Salzman & John Doerr Because the Executive Summary presents a high-level overview of your business and indicates how your business plan is organized, it should usually be written after all the other sections of your business plan are completed. At the end of the day, there is no right way to write a business plan – you and your business are unique and the structure just helps you tell your story in a compelling way. The opening paragraph establishes the structure you have set up, or are intending to set up to support your vision. It includes a legal description of the business, identification of the management team, Board of Directors, and significant relationships between the company and outside entities, including customers, suppliers, government agencies, etc. The first paragraph of the Executive Summary is the Executive Summary of the Executive summary[Company Legal Name] was [formed / created] in [Year Started] to [describe the purpose of yourbusiness activities in plain English as if you were explaining it to your mother]. rd … to build housing for 3 world countries out of used shipping containers. …to produce a complete suite of business-building software tools integrated on the internet enabling entrepreneurs to collaborate on their business plans, marketing plans… … to produce a line of hypoallergenic soaps and makeup to be sold in health spas worldwide. … to produce a film about electing the first woman president of the United States.Overall, our company can be characterized as a [retail merchant / computer hardware installation, serviceCONFIDENTIAL - Subject to NDA 1
  9. 9. [Company] Business Planand repair / wholesale deli and bakery / childcare / car rental] business specializing in [your area ofspecialization].BackgroundFor many years people have [suffered from/paid too much for/made shoes by hand/describe the problem]. Describe the [concept / opportunity / niche] in your marketplace that you’ll be able to exploit as you build your business to the next level, etc.Today, the 2002 NAICS Title market [has grown exponentially / diminished significantly / remainsrelatively constant / experiences fluctuations based on the economy], creating demand for [the gap yourbusiness will fill]. A good quote from a prominent source establishing / illustrating the widespread need for your product / service would be good here. Replace this quote with something comparable for your market: “30 million households suffer from mouse attacks every day…” - [Prominent Industry Magazine or Resource][Company] [is creating an / will launch an / has an established] operating infrastructure, with [well-recognized brands / customer letters of intent / proprietary content / satisfied business communities/strategic partners / distribution channels / outsourced production]. [Company] is now transforming itsproducts and services, as well as its fundamental business model, to take full advantage of [the newestInternet-based technologies /current market trends / recent changes in xxx].We have just [started / completed] the [design / development / testing / introduction] of [product /service]—a novel and proprietary [soap for cleaning vinyl / retail store display system / construction tool /approach to bookkeeping / technology for xxx, etc.]. Explain choice of form. For more info, visit our website “Business FAQS – Business Planning ” [Company] [has been / will be] established as [a / an] [Sole Proprietorship / S Corporation, CCorporation, Limited Liability Company / Partnership / Limited Liability Partnership] based on theadvice of our advisory board. This structure [will give / gives] us the greatest tax and operationaladvantages based on the nature of our business and our anticipated growth.[Company] [is /will be] located at [Address], with satellite offices in [City, State]. Planned expansion will[describe what you foresee regarding expansion and any additional facilities that you expect will becomenecessary in the next two to five years].By [benchmark year] our operation [was / will be] producing [$x] [sales / units / products] annually, and[has operated / is expected to operate] at [financial condition—profitable, break-even, etc.] [ever since /through the xxx phase of the product life cycle]. Revenue projected for fiscal year 20[xx], withoutexternal funding, is expected to reach $[x]. Annual growth projections indicate an [increase / decrease] of[x]% per year through 20[xx].Now, [Company] is at a point where [what you need or want to do next]. We intend to secure $[x]through [a / an] [line of credit / SBA loan / angel investor / venture funding] to [expand our product line /enhance or improve our family of proven products / acquire xxx / upgrade our production facilities, etc].CONFIDENTIAL - Subject to NDA 2
  10. 10. [Company] Business PlanMarket Opportunity Market Analysis—Ideally, the market is big enough to result in an acceptable return for investors, but small enough to be defined and addressed.The [your target market / market segment / 2002 NAICS Title industry] is [growing / shrinking /changing] [rapidly / slowly / at a steady rate]. The market for [type of product] products amounted to $[x]million in 20[xx]–representing a [x]% [growth / decline] as compared with $[x] million in 20[xx]. How big is your potentially reachable market?[Company] has investigated the number of people likely to use or benefit from our [x] products. Based onmarket research / private research / industry surveys, etc.] we estimate the number of potential customersto be [xxx] and the number we are likely to reach at [xxx].According to the [research firm / industry report / trade journal—identify your source], dated [xxx], theoverall market for the 2002 NAICS Title industry [worldwide / nationwide / in this region] is projected tobe $[x] [billion / million / hundreds of thousands] by the end of 20[xx].From our research, we’ve determined that customers purchase [your type of product] products primarily[in supermarkets / via the Internet / from wholesalers / at street fairs, etc.]The greatest growth in the [x]market is in the area of “[x].” Currently, market distribution is shared by [number of competitors]participants, with [top competitor name (this could be you)] considered the market leader.In the next [x] to [x] years, our forecasts indicate that there will be more than [x] [thousand / million]units of [product name / product group name] distributed by [Company]. The market potential for[product name] in these quantities – with a current retail price of $[x] per unit – is approximately $[x][thousand / million]. This translates to [Company]’s market share at [x]% of the overall market by 20[xx].Customers[Company]’s target market includes [list types of customers].The typical customer for our products is someone who is [in the xxx field / uses xxx / needs xxx / wantsxxx] and who currently uses [product (yours or a competitor’s)] for [describe use, application or purpose].A partial list of [Company] customers includes: [20,000 asthma sufferers] [5,000 practitioners of ______[think about the people who influence your customers] [xxx]Product Strategy Describe your current product(s) / services, and how you produce and deliver them. Include a brief outline of your future development plans. Describe current and desired facilities & equipment. Include artists’ renderings, blueprints, drawings, flow charts, photos, etc.[Company] [currently offers / will soon offer] [x] products for the [consumer / B2B / wholesale] [yourmarket] market. Our principal product, [xxx], gives customers [list customer benefits][Company]’s [product / service name] meets customer requirements with the unique [capacity /functionality / service option] for [describe what it does / what it offers that other products don’t / why itis a better value].Other products in our product family include:CONFIDENTIAL - Subject to NDA 3
  11. 11. [Company] Business Plan [List products and necessary definitions]. Xxx Xxx xxxOverall our existing product line is in the [give status: introductory / growth / maturity / nearing the endof its life cycle] stage. With several products in the [introductory] stage, [xx] in decline, and others attheir likely peak, we have multiple opportunities to [introduce new products / re-release more up-datedproducts / take waning products out of circulation / identify potential new markets / redirect decliningproducts to new international markets, etc].[Company]’s proprietary [technology / intellectual property / patented processes, tools or products]include(s): [List proprietary assets]. [Patented product] [Copyrights on 10 books] xxxThese assets give us several options with respect to [growth / expansion / reorientation]. We have offerson the table for [OEM deals / licensing / production / repurposing—describe the opportunities for yourcompany based on these assets.]Business Model How will you make money? “Give away the handle, sell the blades…” Think of FedEx, Dell Computer, a caterer who opens a deli to bring in potential catering customers…[Company]’s business model [has evolved / is evolving]. Initially, we sold [xxx] [direct to customers /business-to-business / through major retailers / to xxx manufacturers under OEM licensing / throughhome shows in a multi-level marketing program / door-to-door / at sidewalk kiosks, etc].With the rapid adoption of [xxx] in the past [xx] [months / years], we have had to rethink our businessmodel, to include [online sales / retail distribution channels / small retail shops / airport concessions /sales directly out of our warehouses, etc.] In our current business model, we find we need to support [xxx]sales with an [informational website / online store / army of sales reps, etc.] that allows us to penetrate themarket far more effectively than we could using the old business model.Competition What is your competitive advantage, given the fact that other companies probably make and/or sell products similar to yours?Companies that compete in this market are Competitor 1, Competitor 2 and Competitor 3. Thesecompetitors charge [comparable / a wide range / within a $x range of] prices: [list examples and range ofprices for each competitor to substantiate your statement].Product [Company] [Competitor 1] [Competitor 2] [Competitor 3][Product 1] [$XX-XX] [$XX-XX] [$XX-XX] [$XX-XX][Product 2] [$XX-XX] [$XX-XX] [$XX-XX] [$XX-XX]CONFIDENTIAL - Subject to NDA 4
  12. 12. [Company] Business Plan[Product 3] $[$XX-XX] [$XX-XX] [$XX-XX] [$XX-XX]Competitive PricingThe major strengths and weaknesses of our competitors include [example: price, location, quality].The major competitors’ objectives and strategies are [list].The major competitors’ most likely response to current [economic, social, culture, demographic,geographic, political, governmental, technological, and competitive] trends affecting our industry will be[list likely competitor responses].Key factors, such as [Competitor 1’s first-to-market leadership position / Competitor 2’s recent infusionof capital from an IPO / Competitor 3’s release of xxx / a widespread (downward / upward) sales trend inxxx and related products] have resulted in the present competitive position in the industry. This means the[Company] will need to [describe what you will need to do in response to these factors, such as: seize anopportunity / overcome a threat / ride the wave / stabilize / rethink your strategy / introduce xxx, etc.].Compared to competitive products (or the closest product available today) our [product / service] [can /will] [describe your competitive advantage]. How would/do your customers compare your product with those of competitors? Advantages of your product or service—its qualities that exceed existing products or services. Describe the unique selling proposition that differentiates you or your products.Our strategy for [meeting / supplanting / dominating] the competition is [adding value in the form of xxxin every package / offering volume discounts / securing extensive media coverage and customercommentary regarding the major improvements in xxx / reducing our prices / increasing our prices /providing personal delivery / responding to specific customer requests within xxx hours / simplifying xxxto make technical support almost unnecessary, etc.].Risk If you bring it up first, you demonstrate that you have thought through your challenges and are likely to be aware and experienced at what you are doing. You must eliminate as much risk (real & perceived) as possible before investors, bankers and others can even hear or think about their ROI.Top business risks for [Company] as we [create / enter / expand in] the [x] market include [current lackof awareness / economic slowing or recession / recent losses in related industries / explosive growth thatexceeds our ability to respond—whatever your top risks are]. Provide 1- to 2-line descriptions of your top 2 or 3 business riskWe face [briefly describe primary risk]. Our strategy for minimizing risk in this area includes: [describeyour strategy.]Changes in [the market / the environment / legislative regulations / the economy] may also require that wemake adjustments to account for [describe the next specific area of risk].An environmental risk that may cause some concern is [your top environmental risk]. We address this by[x].Marketing PlanResponses from customers indicate that our [product name(s)] [is / are] enjoying an excellent reputationand we fully intend to continue this trend. Inquiries from prospective customers suggest that there isconsiderable demand that we are [prepared / preparing] to meet.CONFIDENTIAL - Subject to NDA 5
  13. 13. [Company] Business PlanRelationships with [leading OEMs (Original Equipment Mfgs.) / retailers / Fortune 500 / 1,000companies / major accounts / manufacturers and distributors] substantiate [Company]’s [fitness /readiness / preparation] for [considerable growth / consistent sales volumes / market expansion] andaccomplishment in the 2002 NAICS Title for the [market / region / area].[Company]’s marketing strategy is to aggressively enhance, promote and support the significant benefitsof xxx—unique to our product’s [functionality / variety of uses / market acceptance / favored status]. List your unique features, benefits, established market position and presence.Sales Strategy[Product]’s special [functionality / market requirements / seasonal or geographic appeal—as mentioned inyour Market Analysis section / characteristics / usability] allows us to capitalize on xxx and as a result,our sales strategy typically results in / is expected to yield] [$xx] in [annual / quarterly] sales. We aretargeting the [xxx] audience with [special promotions / a concentrated ad campaign, etc]. Examples: appealing to walk-in retail customers, reaching executives by direct mail, demonstrating your product in manufacturing facilities, etc. Briefly describe how your sales strategy will address specific market / environmental conditions.Distribution Channels[Company]’s marketing strategy includes [plans to sell / selling] our [product(s)] through [severalchannels / an exclusive distributor relationship / authorized resellers / direct to consumers, etc.]. We willbe driving our [lower margin / high margin / specific / complete line of] products through [keydistributors, Distributor 1 and Distributor 2] OR [xxx product line] through [our online showroom / homeshows / individually-selected retailers / direct mail promoting retail channel resellers / extensiveadvertising with publications that provide fulfillment in exchange for ads and part of the proceeds—whatever you’re doing in available distribution channels]. Give a 1- to 2-line description of the major distribution channels for your product.The determining factors in choosing these channels are [access to resellers / minimal receivables handling/ greatest direct access to the greatest number of potential customers, etc.].Our mix of distribution channels will give us distinct advantages over our competition, including [listadvantages—faster response to market shifts / access to markets they don’t reach through xxx / presencein xxx where we have an exclusive relationship / X,XXX-person sales force promoting our product(s),etc].With [number of] sales channels, [Company]’s primary channel [is / will be] [largest distributor / largestretailers] where [x] % of our channels sales, and [x]% of our overall sales [originate / will]. Our objectiveis to [maintain high sales volumes / increase our sales volume / reduce our sales volume / minimize oursales volume / eliminate sales] through this channel, while [rapidly expanding / stabilizing / reducing /eliminating] sales in [xxx channel] and [growing / stabilizing / reducing] sales in our [xxx channel].Advertising & Promotion Be sure to position your company/product based on perceived value in the minds of your customers and prospective customers.Our advertising and promotion strategy is to position [Company] as the leading [manufacturer /distributor] in the market.CONFIDENTIAL - Subject to NDA 6
  14. 14. [Company] Business PlanWe will utilize the following media and methods to drive our message home to our customers: Give 1- to 2-line descriptions of your primary advertising tactics for promoting your company and products to your customers (classified ads, color catalog, etc.)For the next [x] [months / years], advertising and promotion will require $[x]. We arrived at this figurebased on [current advertising response rates / launch plans for xxx / consistent ROI with xxx promotions,etc.]. Figure about 10% to 50% of sales $$$ the first year, depending on your industryOn an ongoing basis we will budget our advertising investment at [x]% of total sales. By consistentlytracking the results of our advertising, we [have determined / will be able to determine] the effectivenessof our ad campaigns. This will allow us to adjust this budget allocation appropriately to ensure the highestpossible return on our investment in advertising and promotion.Publicity / Public Relations (PR)During 20[xx], [Company] will focus on the following publicity strategies:Complete at least [x] media contacts per [month / quarter].Have our products mentioned, included in competitive round-ups, and / or the subject of full articles atleast [x] times per [month / quarter / year]. Give 1- to 2-line descriptions of your top 2 or 3 publicity strategies or areas of focusWe will track, wherever possible, all revenue generated from our advertising, promotion and publicityefforts. We anticipate at least $[x] in sales to be generated directly from our promotions, and potentiallyan additional $[x] in retail / distribution channel sales in response to our ads.Production, Delivery & FulfillmentCurrently, production [is / is planned to be] [outsourced / handled internally at our xx plant in xx /distributed among xx vendors / up for bid] OR of [product line] is handled [at xxx location / by xsupplier]. Key considerations in terms of production and delivery include [rising cost of fuel or electricity/ transportation costs / availability of raw materials / adequate personnel to meet demand / productionefficiency / costs associated with raw materials storage, etc].Due to [expected rapid growth / anticipated product introductions / a downward trend in x / sustainedlevel sales], our production should [be expanded / exceed current production capacities / level off / dropfor our declining products / stabilize near current levels] within [number of months / years]. At that point,our production facilities will need to [expand / move / be reduced / be distributed among several vendors/ be rolled out to a full turnkey contractor, etc.]. Our biggest production advantage is [describe advantageyou currently enjoy or expect to realize].Management Team Insert additional executive and management profiles as appropriate. See Executive Team Background Template in the Supporting Documents section of BizPlanBuilder. For ideas regarding management team development, see “Management Team Development” in the Resources section of BizPlanBuilder. “The investor wants to see a complete team, functional in each critical area, with sufficient experience to indicate competence. Ideally, the team has worked together before, hopefully succeeding, although failure is not absolute cause for rejection. The team must display integrity andCONFIDENTIAL - Subject to NDA 7
  15. 15. [Company] Business Plan exhibit the drive to succeed—commonly referred to as ‘fire in the belly.’” ~ Ken Wilcox, Executive Vice President & Chief Lending Officer, Silicon Valley BankOur management team consists of seasoned managers and experts whose backgrounds and experiencemake them ideally suited to their respective roles. A brief review of the training and expertise they bringto [Company] are as follows:[Owner/Founder], Founder & CEO, [age], [degree(s) and major] started [Company] in [Year Started]after working in [x] for [x] years. [Founder First Name] has started [two / several] businesses, andacquired invaluable experience in the 2002 NAICS Title industry and with [x] that will help make[Company] successful in a relatively short time. [Company], now in its [1st / second / third / Xth] year,[has operated / will operate] on [its own revenues / owner equity / a family loan / a bank loan, etc.]without [external / other] funding [since it inception / until (month and year funding is expected)].[COO/Business Manager name], [age], COO, [degree(s) and major] has served as [title / role /occupation] in the 2002 NAICS Title industry for [x] years, and in [field / industry] for [x] years.Additional experience in [field / industry / research / training / experience] and [xxx] give [COO firstname] the necessary skills to direct the operations of [Company], with primary emphasis on streamliningoperations and implementing cost-saving alternatives.[CFO/Accountant name], [age], CFO, [degree(s) and major] has served a variety of companies as CFO,giving [him/her] a broad background of experience and opportunities to create financial stability indiffering environments and circumstances. [CFO first name] has taken [x] companies through the growthphases planned for [Company], and is ideally suited to direct the financial aspects of our success. Include other key people as appropriate to your business… CTO, Architect, Chief Pilot, etc. Insert additional descriptions below for other executives in your organization whose background and experience contribute to your effectiveness as a management team. Strong company backgrounds pertinent to your management team’s functions are good references to demonstrate a solid pool of talent and assure a higher probability of future success.Outside Management Support[hourly / project basis][xxx], Accountant / CPA[xxx], Corporate Attorney[xxx], [Type of Consultant]Additionally, our outside management advisors provide tremendous support for management decisions, aswell as broad experience and creativity.Objectives Near term and long term.Projected revenues for fiscal year 20[xx], without external funding, are expected to be $[x]. Annualgrowth is projected to be [x]% per year through 20[xx]. We feel that within [x] years [Company] will bein a suitable position for [further expansion / an initial public offering / profitable acquisition]. At thistime, our objective is to [propel the company into a prominent market position / reclaim market share /establish a new market in an emerging industry / seize an opportunity to fill a market gap created by thedemise of a major competitor, etc].To achieve our objectives, we plan to [build a distribution channel / establish strategic partnerships /CONFIDENTIAL - Subject to NDA 8
  16. 16. [Company] Business Planintroduce xxx product or service, etc.]. This will require [describe what you will need to do this in termsof additional people, material, facilities, a company you’ll need to acquire, etc].Capital Requirements It takes longer and cost more than you expect – ask for what you really need. It doesn’t do to set out for Hawaii with enough gas to go half way! Also, remember that investors want their investment paid back first! The profit is gravy, but be sure your mantra is all about returning their investment to them asap.Based on the opportunities identified through research and analysis, and building on [Company]’sexperience and what we feel are sound business assumptions, our [initial / first-second-third year / total]capital requirements are for $[x] by [month], [financing year].To accomplish this goal, we have developed a comprehensive plan to [what you plan to do—providespecific examples]. To implement these plans we require a [loan / line of credit] totaling $[x] for thefollowing purposes: Choose the activities pertinent to your goals, or create statements for your specific use of investment funds:Build manufacturing facilities and ramp up production and inventory to meet customer demands.Maximize sales with an extensive campaign to promote our products / services.Add retail outlets, regional marketing / sales offices, print a direct-mail catalog.Reinforce Customer Support services to handle the increased demands created by the influx of new ordersand broader coverage of existing accounts.Augment company staff to support and sustain prolonged growth under the new marketing plan.Increase Research and Development to create additional follow-on products as well as to further fine-tuneour competitive advantages.Well-timed funding will allow us to achieve our marketing, development and sales goals for theimmediate future. Our projections for post-funding sales are as follows for the next 5 years:Fiscal Year (000) 2007 2008 2009 2010 2011Revenue $ 4,408 $ 369 $ 720 $ 873 $ 1,284COGS 889 51 93 122 179Gross Profit $ 3,519 $ 318 $ 627 $ 752 $ 1,105Gross Margin 80% 86% 87% 86% 86%Operating Expenses $ 1,931 $ 1,774 $ 2,005 $ 2,136 $ 2,391Operating Income $ 1,588 $ (1,455) $ (1,378) $ (1,385) $ (1,286) Open the Comprehensive Financial model to the Overview page Scroll to the right and you will see a mini financial summary and a graph – follow the instructions there…CONFIDENTIAL - Subject to NDA 9
  17. 17. [Company] Business Plan $5,000 $4,000 $3,000 $2,000 $1,000 $- $(1,000) $(2,000) 2007 2008 2009 2010 2011 Revenue Operating Income To customize this bar chart for your business, double-click anywhere inside the frame. In a moment, a workbook will appear. Click on the ‘Data’ tab to access the spreadsheet. Enter your sales projection figures. Click on the ‘Graph’ tab. Add or modify legends. Insert a caption below the chart. For instructions for working with the chart (and other how-to’s for working with Word and Excel), see the How-To section at the bottom of the BizPlanBuilder Index where you will find static Help screens.. For online help with the chart legends, double click in the chart, then pull down in the Help menu to Contents and Index. Type “legend” into the search box, and select the option you need.We anticipate additional financing requirements of $[x] and $[x] in [x] [months / years] and [x] [months /years] to allow us to [increase production capacities / develop x new products or technologies / expandour facilities and production area / increase income-producing holdings] to [meet market demand / takeadvantage of the xxx emerging market / increase shareholder returns / create a new profit center orrevenue stream, etc].Exit Strategy / Return on InvestmentThe attached financial projections indicate that the full repayment of our [loan / line of credit] will beachievable in [x] years. With the requested financing, the results of our [use of funds—development /marketing / upgrade, etc.] will be increased profits generated by [higher sales / lower COGS / existingcustomers upgrading to the new product, etc.]. We anticipate repaying the loan by [Month], 20[xx].Conclusion This is your all-out pitch to investors “I have learned that communicating my unhappiness is not the same as communicating what I want or need.” - Thomas LeonardThe market for [Company] [product(s) / services] is clearly [what the market is doing], giving us a primeopportunity to [what you’ve said you will do in your plan]. The [consistent sales volume / rapidlyexpanding annual sales figures / explosive growth] for this market support [Company] reaching its break-even point by [month / quarter / year] and profitability in just [x] years. By driving [x]% of profits backCONFIDENTIAL - Subject to NDA 10
  18. 18. [Company] Business Planinto the company, we expect to [accelerate loan payments / reduce our line of credit balance to zero] andbe debt free by [month / quarter / year], a full [x] [months / years] ahead of schedule.Initial responses to test marketing with potential customers indicate a strong affinity for [Company]products. Test marketing also provided important insights into the customer and end-user experience,both with the purchase process, and using the beta version of the product. This plan reflects theapplication of suggestions from the test market. We anticipate even stronger growth than indicated in thisplan, based on our most recent test market responses. Our plan is to launch product sales first from ourwebsite, generating cash flow before we move into the retail channel. Add any personalized concluding remarks that you feel would augment the credibility of your plan, or answer a specific question that comes up as you discuss your plans with interested parties. If the same question comes up repeatedly in discussions with prospective partners, lenders or investors, you will probably do yourself a favor to incorporate the topic into your plan. Be sure you provide a clear explanation.CONFIDENTIAL - Subject to NDA 11
  19. 19. [Company] Business Plan Market Opportunity This section could be appended to the Market Analysis section; however, you may want to keep this ‘opportunity’ section as it refers to what you can do with the previously analyzed marketplace. There is plenty of copy to work with in this section. Use what makes sense for your business situation. The idea is to demonstrate the extent of your business opportunity here. There are significant numbers of prospective customers who will buy what you sell, and ideally, they can be reached via an obvious channel or area of interest. ‘There are x million sailboat owners in the world. Every one of them is afraid of tearing their sails in high winds…’ Your strategy, discussed further on in your plan, might include advertising in “Sailing” magazine.[Your market or industry] is [growing exponentially / growing rapidly / holding steady / looking for newsolutions to xxx / increasing each year by xxx customers, etc.] in the [local / regional / state / national /worldwide / xxx industry] market. The demand for [new products / new services / more affordable xxx /easy-to-use xxx / ready access to xxx] seems to be expanding [throughout the xxx area / in xxx-relatedindustries / statewide / among xxx enthusiasts / everywhere, etc.].According to [name of quoted authority], this market [insert a quote supporting your assumptions aboutmarket size and direction.]The xxx market has maintained a steady xx% growth rate for the past xx [months / quarters /years]. We anticipate a significant spike in sales figures when xxx is introduced [early / late] [this / next / 1st / 2nd / 3rd / 4th] [quarter / year / after xxx]. - XXX Industry News, Chicago Be sure to apply the “Quote” and “Quote Source” styles to the quote you use here. You can select the sample copy and start typing to overwrite the example, or simply select any quote text you key in, and pull down to select the Quote style from the style menu above. To see detailed instructions and illustrations of this process, see “Working With Your Plan Narrative” in the Getting Started section of BizPlanBuilder or the Getting Started booklet that came in the envelope with your CD.To effectively compete in todays markets, [identify your target customer, i.e. backhoe operator,veterinarian, florist, corporate farm, consultant, homeowner, renter, leaseholder, small business,hairdresser…]s need [xxx] that [has /have] traditionally been [cost-prohibitive / in short supply /accessible only to larger business organizations / inefficient / ineffective / available only as a custom-designed, proprietary product / unavailable at the xxx level]. According to [industry analyst orcommentator name], the [your target market] market will increase spending on [your type of product]products from $xxx [million / billion] in 20[xx] to $xxx [million / billion] in 20[xx], representing acompound annual growth rate of xx%.The strong correlation between [describe related-market conditions or sales of related products / servicesthat drive or influence your sales] and the [your target market] market bodes well for [Company]. The[market segment / local target population / related xxx market] is growing [slowly / steadily / rapidly /exponentially / by xx% annually], due to [current regional change influencing growth patterns / growth inthe xxx industry / increased demand since the closure of xxx, etc]. With [x]% growth in [our market /related industry], we fully anticipate revenues from our own growth to exceed [related industry / xx%]growth by [20xx]. If you have market/industry statistics, and/or your own sales trends, you could insert a chart or graph here depicting the anticipated market over the next two to five years.CONFIDENTIAL - Subject to NDA 12
  20. 20. [Company] Business PlanSeizing the Opportunity Let your readers know that you have easy, direct access to your potential customers. Crash programs fail because they are based on the premise that, with nine women pregnant, youll get a baby in a month. - Werner Von BraunMany potential customers are immediately and economically accessible through popular media: [Publication A] has xxx,xxx circulation, and xxx paid subscribers who xxx [Publication B] has xxx,xxx circulation, and xxx paid subscribers who xxx [Publication C] has xxx,xxx circulation, and xxx paid subscribers who xxxWe [currently / plan to] advertise in these publications [monthly / periodically / during the xxx season].We can also rent mailing lists from each of these publications for $[x] per thousand, economicallyreaching [xxx,xxx] customers via direct mail. — OR —Many potential customers are immediately and economically accessible via [local newspapers / theInternet / xxx business associations / state and local Chambers of Commerce / xxx Society events / onlinenews or user groups / xxx clubs / viral marketing / customer referrals / concert venues / xxx fan clubs /co-marketing partners / in-store promotions / fliers posted on college campuses / related-businesspromotion, etc.].Integrating the Internet While your business may not lend itself to online sales, most businesses find it advantageous to at least have an informational website describing who you are, what you do, where you’re located and how to reach you. Providing product and company information online can reduce pre-sales, price-shopping and “tire- kicker” calls. It can also reduce customer service calls if you use your site to explain how you handle things like product upgrades or returns, scheduling a delivery or service, providing customer service or support, processing custom orders, etc.Having a web presence is [very important / of no importance / somewhat important] for [Company]because [provide the reason for your stance].The Company’s website serves as an [information / marketing / sales / communication / collaboration]tool more than anything. Customers can [request services / view their account details / find or requestinformation / order service instructions] online. We [have / have not] built in a payment transactionmechanism, as online sales represent [a significant portion / a small portion / no portion] of our business.We decided to [take advantage of the many benefits / pass on the option] of hosting a website, as it [doesnot fit / provides a critical element] in our business model. The most important aspect of our [onlinepresence / lack of online presence] is that [a key function (say scheduling) can be handled by theindividual customer on our / we have none of the ongoing expense or headaches associated withmaintaining a] website. If you have determined that you will not establish an Internet presence now or in the near future, you can delete the following paragraphs in this section. (But read through the copy. You may realize there is a reason to have a website that hadn’t occurred to you before.)[Company] has identified several market segments that [are / will be] best served by [introducing /enhancing] our Internet presence, and making xxx available on our website. These market segments [are /are not] our primary focus, so the website will serve [as our pre-sales information source for customers /our main sales channel / our only sales channel / a secondary sales channel / a means to provide around-CONFIDENTIAL - Subject to NDA 13
  21. 21. [Company] Business Planthe-clock customer support and sales / to replace print collateral / as our interface for customer serviceand delivery scheduling / the fastest way for customers to buy xxx direct / to direct customers to ourresellers].Currently, [only a few / xx% / a significant number / most of] our [customers / vendors] prefer using theInternet for their interactions with [Company]. As more [people / businesses] access the Internet, weanticipate a [gradual / steady / rapid / sudden] increase in the number of [customers / vendors] likely tochoose the website [to place orders / to track their accounts / for information / for sales support / forcustomer service / for technical assistance]. — OR —[Company] has determined that the Internet is the most effective means of managing [vendor / reseller /customer / regulatory / service / maintenance] accounts. We have implemented a secure, password-protected area of our website for [vendor materials procurement, account histories and order tracking /wholesaler and reseller purchasing / customer account histories and order tracking / agency-regulatedscheduling and tracking / scheduled customer services / maintenance tracking for xxx products].We selected [name of the online accounting / order entry / MRP / CRM or other application] for its onlinefunctionality and friendly user interface. It provides the [accounting / reporting / statistical] functions weneed to stay ahead of the market.By automating these processes and making them available online, we effectively reduce administrativecosts formerly associated with [order entry and processing / monthly closes / histories required formaterials and resource planning / service scheduling conflicts / employing individual account managers /generating, filing and maintaining paper transaction records / transaction processing / tracking xxx costs].At the same time, this approach positions us to most effectively track and manage our activities relative tothe market opportunity, enabling a swift response to sudden shifts in demand, new market trends, andchanges in customer requirements.CONFIDENTIAL - Subject to NDA 14
  22. 22. [Company] Business Plan Vision, Mission, Goals & Objectives “For I dipt into the future, As far as human eye could see, Saw the vision of the world, And all the wonder that would be.” - Alfred Lord Tennyson For an overview of company Vision and Mission, refer to the BizPlanBuilder Handbook of Business Planning, and the “Vision” and “Personal Mission Statement” resource materials in the Pre-Planning section of BizPlanBuilder. You and your staff may want to write both your Vision and Mission Statements completely from scratch. Be sure you capture the spirit and uniqueness of your business. What is the vision that drove/drives the creation of your business? This is a “big-picture” view of what your business is about, and where you see it in the future. Include what you want for the business and for yourselves (personally and financially) 5-10 years from now. Your vision should incorporate what you see as your company’s role in the world and in the lives of the your stakeholders—customers, employees, vendors, investors, and the environment—everyone and everything you touch or impact. Expand your thinking on this. Allow yourself to see the biggest possible picture—from 360°.Vision “Nothing ages so quickly as yesterdays vision of the future.” - Richard Corliss Your vision can change and be updated over time – you are never stuck with one picture of the future. Imagine Walt Disney waving his arms in the air pointing toward an Orange grove and describing the Matterhorn bobsled ride, “right there,” Tomorrow Land, “over there,” and Fantasy Land “over there,” with a monorail going around the whole thing… Was he crazy? Perhaps. No more than you are. He pitched his vision to more than 600 potential investors to get the 30 who put in the money to launch Disneyland. See “Vision” in the Pre-Planning section of BizPlanBuilder.By 20[xx] [Company] will be a highly visible company known as the best [xxx] in the [xxx] industry,serving [xxx—who you plan to serve and where, e.g. the xxx market worldwide]. We will have developed[xxx] and marketed these products in the [xxx] channel, providing a better xxx for [millions / thousands /hundreds] of xxx, becoming [a / the] leader in [xxx]. Sales will exceed $[xxx] annually, and [Company]will be actively promoting [xxx] to improve xxx for xxx. Example from JIAN: JIAN’s vision is to be a lasting, thriving company, acknowledged globally for its integrity, spirit and contribution to the prosperity and productivity of its customers, employees, stakeholders and community.CONFIDENTIAL - Subject to NDA 15
  23. 23. [Company] Business PlanMission Statement We’ve provided several samples statements below. You can customize, blend or combine them; use a few of the phrases we’ve provided; or start from scratch. See “Personal Mission Statement” in the Pre-Planning section of BizPlanBuilder for insights into developing a mission statement. Option 1The [Company] mission is to provide world-class [business xxx / consumer xxx] [product(s) / solution(s)]for millions of [xxx customers / xxx businesses] [in the xxx area or industry / statewide / nationwide /worldwide] to help them: Increase their sales and reduce costs Increase their companys productivity and profitability Enjoy xxx more Quickly and easily xxx Reduce or eliminate the need for xxx Option 2[Company]’s mission is to offer innovative, practical, top-quality products that [save time / improve theway people xxx / cost less than competing products / are more readily available than xxx / meet the needsof the xxx market]. Our first responsibility is to the [xxx] who use our products and services. Our secondresponsibility is to our employees and our community. In carrying out our day-to-day business we will: Treat our employees with [xxx]. Follow the philosophy that our customers are [xxx]. Contribute to the quality of life in our community by xxx. Option 3Through its long-term commitment to this mission, [Company] will be known as a company that [xxx].We serve our customers, vendors, and employees by offering [tools to simplify xxx projects / productsthat improve the quality of life for xxx / the benefits of xxx for the xxx market / a first-class resource forxxx / products that meet all the requirements of xxx / products that produce [xxx results], faster and moreeasily than any other product]. Example from JIAN: JIAN’s mission is to be the preferred source for comprehensive, innovative software, products, services and resources that enable business people worldwide to build, maintain and enhance their businesses successfully.[Company] Goals If you are writing your business plan to assist your company with its ongoing operations, be thorough and list as many major goals as necessary to address the requirements called out by your Vision and Mission Statements. If you are seeking funding with this business plan, you may want to focus on the top two or three financial or business development goals that will need to be achieved through the additional funding. Delete the goals that you do not need. From the book, Built to Last, you might consider a ‘Big Hairy Audacious Goal’… something far- reaching like, “Put a Coke within reach of every person on Earth.” Komatsu says, “Surround Caterpillar,” but we believe that a negative goal, or one dependent on another entity, is less likely to reach fruition.CONFIDENTIAL - Subject to NDA 16
  24. 24. [Company] Business Plan Primary goals often fall within the following categories: o > Profits o > Products o > Quality o > Growth o > Fields of Interest o > CommunityIn order for [Company] to attain its vision as described in our vision and mission statements, we mustachieve the following primary strategic goals:Corporate: By [x], 20[xx] [Company] will [Corporate goal(s)]. We will [acquire xxx company / beacquired by a large company / be a publicly traded company] and our value will grow to $[x] per share.Products: By [x], 20[xx] [Company] will [develop new xxx products / revive, update and relaunch xxxproduct(s) / acquire xxx product(s) to expand our line]. We expect to replace [xx]% of [competitive /existing products or services] by 20[xx].Market: By [Month / Quarter (Q1, Q2, Q3, Q4)], 20[xx] [Company] will reach [Customer-relatedgoal(s)]. We will have an active customer base of over [xxx]. To reach these customers, we plan to add[retailers / distributors / service centers / sales representatives / independent contractors] at a rate of [x]per [month / year], and we will have a total of [xxx] [distributors / retailers] by 20[xx]. We will expandour marketing efforts to include the [xxx] [market / industry / region / country(s)] and generate additionalrevenues as much as [x]% above current levels.Sales: By [x], 20[xx] [Company] will [state your Sales-related goal(s)]. Our products will be prominentlydisplayed in over [xxx] retail stores and influential establishments, on [xxx] websites, and knowledgeable,supportive salespeople and consultants will direct customers to our products over those of thecompetition. For 20[xx] (year 2) total sales will exceed $[00,000,000]. For 20[xx] (year 3) total sales will exceed $[00,000,000]. For 20[xx] (year 4) total sales will exceed $[00,000,000]. For 20[xx] (year 5) total sales will exceed $[00,000,000].Operations: By [month / quarter], 20[xx] [Company] will produce our defined [Operations / Production-related] goal(s). Compared to past performance of [product / service name, type] in the [market / industry]market, we intend to [what you will do operationally to achieve your stated goals]. Match your performance expectations to industry conditions and / or explain how and why your operations will be different from those of competitors.Finance: By [month / quarter], 20[xx] [Company] will [state your finance-related goal(s)]. We willcarefully evaluate and plan investments and budget expenses to generate a consistent [x]% pretax profit.Based on a [x]% market share for our [xxx] product by 20[xx], we estimate our return on investment to be[xx]%. How much return will be generated and by when? Illustrate how you will ensure that lenders receive payment in full, on or before the payoff date. Based on planned activities, indicate how much the company will be worth in future years.CONFIDENTIAL - Subject to NDA 17
  25. 25. [Company] Business Plan If you have other significant company goals, list them.By [month / quarter] of 20[xx] [Company] will [list other major goals and targeted completion dates]. List other major goal(s).These might include: Understand customers, competition and industry, and meet specific customer requirements Product / service / channel / customer congruency Greatest possible product / service life cycle extension Achieve [xx] product turns annually Grow [Company] in [xxx new fields of interest / xxx new or emerging markets] Balance people / management / business goals Transition from single-point to distributed management Streamline business processes to operate lean, with 20 vs. 50 employees Develop company values and culture Hire the best peopleWe feel confident that our stated goals can be reached, based on the experience of our management teamin environments where they managed [substantial growth / market or product transitions / rapid high-techdevelopment / migration from one product platform to another, etc.] and [xxx].Relate previous track record of managers to demonstrate feasibility of actually achieving your goals,given the experience of the people involved.Objectives Optional: Depending on the target audience you want to reach with this business plan, you may or may not need to include this section on the specific objectives or tactics your company will employ to reach the strategic goals listed above. If you do not wish to go to this level of detail, delete this section. Otherwise, obtain the required information (from your management team, if applicable) and complete this section. Cheat me in the price, but not in the goods. - THOMAS FULLER Real discipline is when you can pick strawberries without eating any. - DOUG LARSON Where do you want to go from here? What will an investor’s or lender’s money buy you? Specifically? What will it look like?Projected revenues for fiscal year 20[xx], without external funding, are expected to be $[x]. Annualgrowth is projected to be [x]% per year through 20[xx]. We feel that within [months / quarters / years][Company] will be in a suitable position to [add additional stores in other parts of the city / add additionalproduct lines to xxx / expand our existing facilities…].At this time, our objective is to [secure a prominent market position / reclaim market share / establish anew market in an emerging industry / seize an opportunity to fill a market gap created by the demise of amajor competitor, dot.bomb, etc]. Our research indicates that we should be able to meet or exceedprojected revenues within [months / quarters / years].In order to help attain our primary goal of [list first primary goal from above] during the next year,[Company] will carry out the following specific objectives: [x] by [Month], 20[xx].CONFIDENTIAL - Subject to NDA 18
  26. 26. [Company] Business Plan [x] by [Month], 20[xx]. [x] by [Month], 20[xx].To accomplish our next primary goal of [list next goal from above], [Company] will complete thefollowing objectives: [x] by [Month], 20[xx]. [x] by [Month], 20[xx]. [x] by [Month], 20[xx]. If you want to outline the objectives for more than two of the goals listed, copy the above text for each goal.Other objectives we have set for ourselves include [xxx]. Make sure these objectives fit with the goals set previously. If you want to outline the objectives for more than two of the goals listed, copy the above text for each goal.Other objectives we have set for ourselves include [xxx]. Make sure these objectives fit with the goals set previously.To achieve our objectives, we plan to [establish strategic partnerships / introduce xxx product or service,etc.]. This will require [describe what you will need to do this in terms of additional people, material,facilities, a company you’ll need to acquire, etc].As noted elsewhere, we have also established a goal of being debt-free by [month / year], and paying offour line of credit from cash flow.CONFIDENTIAL - Subject to NDA 19
  27. 27. [Company] Business Plan Company Overview For help with your Company Overview, refer to the BizPlanBuilder Handbook of Business Planning. In this section, provide a detailed description of your business. An excellent question to ask yourself is: "What business am I in?" In answering this question include your products, market and services, as well as a thorough description of what makes your business unique. Remember, however, that as you develop your business plan, you may have to modify or revise your assumptions and definitions. The business description section is divided into three primary sections. The first section describes your business. The second section discusses your product or service. The third section covers the location of your business, and why this location is desirable (if you have a franchise, some franchiser organizations assist in or control site selection). Discussion areas: The Company Overview establishes the structure you have set up, or are intending to set up to support your vision. It includes a legal description of the business, your product description, the type of business you’re in and current status of the company, identification of the management team, Board of Directors, and significant relationships between the company and outside entities, including customers, suppliers, government agencies. It covers the licenses or permits you will need to operate your business. What you have learned about your kind of business from outside sources (trade suppliers, bankers, other franchise owners, franchiser, publications, etc).After [x] years in [field or industry], and [x] years as [an avid] [area of interest—skier / needleworker /programmer / interior designer…], [Owner/Founder] [was living in / was working in / moved to /explored] a [city / county / state / xxx business / the xxx industry] where [he / she] found that there was nogood source for [product]. Thinking that there must be other [type of enthusiasts / people working with orwanting to obtain xxx product] in the [area / field / industry], [he / she] began looking for people who[shared this interest / could provide resources for xxx]. Having found a [club / user group / society /association] in [xxx], [Owner/Founder] began [participating with the group / contacting people to find outwhere they obtained xxx]. They were all [frustrated with the lack of resources / unhappy with currentsuppliers / unwilling to drive xxx miles] to support [area of interest]. In [less than a month / a matter ofmonths / the next year] [Owner/Founder] met [Founder 2], and began to formulate a plan to meet the[apparent / growing] demand for [product].[Company Legal Name] founder(s) dedicated [xxx] [months / years] to highly-focused research andmarket analysis, drawing on forecasts and statistics from [industry analysts xxx and xxx / governmentstatistics obtained through xxx / industry watchers such as xxx / editorial commentary covering the xxxindustry].In [Year Started], [Company] secured the proper licensing and began the process of planning the newbusiness. [Company] [is now ready to open / opened] a [manufacturing / wholesale / retail / direct-to-consumer] company serving the [high-end / low-price / local / neglected] market for [what you sell.]Located in [city / county / region name], this company will serve the needs of [define your marketsegment], and provide all the conveniences of [xxx].With [no / few / only distant / inadequate] companies available to meet the needs of 2002 NAICS Title,[Company] is poised to take a front-runner position in this market, with room to expand as the businessgrows to profitability. Recent growth in the [market / geographic environment / economic environment] isCONFIDENTIAL - Subject to NDA 20
  28. 28. [Company] Business Plancreating a [slowly / steadily / rapidly] increasing demand for [name your type of products] that [describeapplications for your product(s)]. We are excited to have this opportunity to apply our [industry / business/ hobby / avocational…] interests and experience to meet a need we had experienced ourselves. At thesame time, we step out of the corporate environment into a growing, high-margin business that allows usto work in the areas of our greatest [interest / passion / skills]. - OR -[Company Legal Name] was started by [Owner/Founder] in [Year Started] and began building highquality [manufactured / hand-crafted / baked / xxx] products. Because these [product name]s werepopular with [businesses / consumers / serious xxx enthusiasts], [Company] moved from a workshop [in /behind / near] [Owner/Founder]s home, to a larger space located at [Address] in [City, State] in [Month,year]. [Company] now employs [xxx] people, including [Owner/Founder], who designs, builds, and testseach new [product]. The great majority of customers that [Company] builds [product name] products forare [business owners / IT professionals / CPAs / consumers] who require their [product type]s and[product type]s to be [top quality / light / responsive /good-looking / long-lasting / affordable / sturdy /indestructible].Legal Business DescriptionCompany NameThe legal name of [Company] is [Company Legal Name]. Include your DBA(s) (“Doing Business As” or fictitious name) in the legal name of the company. You may have more than one. If more than one will be used for the business in this plan, list both and explain why you have multiple names. You may want to include copies of the documentation for your DBA in the Supporting Documents section of your business plan. “If you dont fail now and again, its a sign youre playing it safe.” - Woody AllenLegal Form of Business Explain choice of form. For more info, visit our website “Solutions – Business Planning – Answers”Based upon competent accounting, legal and tax advice, [Company] [was / will be] established as [a / an][Sole Proprietorship / S Corporation / C Corporation / Limited Liability Company (LLC) / Partnership /Limited Liability Partnership (LLP)] with [Owner/Founder] as [Founder 1 title]. OR [Owner/Founder]and [Founder 2] as partners in a Limited Liability Partnership (LLP), etc.]. This business structure willafford [Company] opportunities for [advantages of this structure], while protecting [note the assetsprotected by this structure]. Depending on actual business growth and expansion, [Company] may in theforeseeable future transition to [a / an] [foreseeable new structure] for the [type(s) of advantage(s)]advantages of that business structure.Business Location[Company]’s [corporate headquarters / main office] is located at [Address], [City], [State] [ZipCode],with [annex / satellite / international] [offices / production facilities] in [list locations]. The location of your business can play a decisive role in its success or failure. Your location should be built around your customers. Be sure it’s readily accessible, and that it provides a sense of security. Consider these questions when addressing this section of your business plan: o 1. What are your location needs? o 2. What kind of space will you need?CONFIDENTIAL - Subject to NDA 21
  29. 29. [Company] Business Plan o 3. What makes an area desirable? a building desirable? o 4. Is the intended location easily accessible? Is public transportation available? Is street lighting adequate? o 5. Are market shifts or demographic shifts occurring? It may be a good idea to make a checklist of questions you identify while developing your business plan. Categorize your questions and, as you answer each question, remove it from your list.[Corporate Headquarters][Business office][Other business locations]Government Regulations If major obstacles exist, discuss how you have dealt with or plan to deal with those obstacles. List licenses and permits required. Include copies in the Supporting Documents section of your business plan. How would you describe your companys relationship with the government agency? How will this agency regulate your business?Because [Company] is operating in the [xxx] industry we are subject to regulation. Both federal and stateauthorities regulate the manufacture and sale of [xxx]. [Company] has obtained all necessary federal andstate permits, licenses, insurance and bonds to operate its facilities. There can be no assurance that[Company]s operation and profitability will not be subject to more restrictive regulation or increasedtaxation by federal, state, or local agencies in the future. Required permits, licenses and insurance include: [xxx] License [xxx] Permit [xxx] Bond or Insurance[Company]’s business is most affected by [regulation or licensing requirement that influences operations]requirements which, to date [have / have not] presented major obstacles to profitable operations. Should[obstacles / further obstacles] arise, we are prepared to [xxx] and [xxx] in order to remain in compliance,while protecting [profits / assets / the environment—whatever is relevant].Regulatory involvement in businesses like ours is [minimal / typically an annual inspection / weeklyinteraction / on an as-needed basis, etc.]. [Company]’s relationship with each agency is [friendly /amicable / strained due to xxx / almost non-existent due to the infrequency of interactions].CONFIDENTIAL - Subject to NDA 22
  30. 30. [Company] Business Plan Management If your business is you as a freelancer, you’ll need to manage yourself. Being your own boss is one thing. Managing a business requires more. “When in charge, take charge!” ~ General George S. Patton If you’re building an entrepreneurial organization, you’ll also need the ability to manage people as your business grows. Its particularly important that you assess your own skills (and the tasks and functions for which you have no aptitude, patience or interest. Prepare to hire people with the skills you lack. See also, Business Black Belt. The most important way to reduce perceived risk in investors’ minds is to establish the ability of your management team to actually build the company you have envisioned. Your plan describes the people who will build this magnificent business—the people behind the scenes who know what to do and how to use the proceeds of an investment or loan. For further information on building your leadership team, see “Developing Your Management Team” in the Resources section of BizPlanBuilder. Your plan should address these questions: o How can your team members’ backgrounds/previous business experience help you in this business? o Where will you need to compensate for your own lack of skills / experience? o What positions on your management team still need to be filled? Establish a clear picture of management team capabilities that contribute to the probability of future success. Be sure that the management team résumés you’ll add to the supplementary documents in your plan include career highlights describing team member accomplishments in their previous positions. Actual accomplishments make all the difference—to you in the hiring process, and ultimately to the success of your business. Venture capital companies can invest as much as $100,000 in due diligence—what they look at most are your people. Are your people really who you/they say they are? Have they really accomplished what you/they say they have? Choose your team carefully! A VC friend of ours says that the deal can be washed out with just one discrepancy. (No ‘3 strikes’ – just 1 strike can be enough to end your deal.)Like Starbuck’s coffee, where everyone must have “a passion for coffee and the coffee experience,” at[Company], everyone we hire has a passion for [industry / [product].Although no one has built a business exactly like [Company] before, we have assembled a team of peoplewho have built [xxx]. List management team areas of expertise that add up to the total transferable skills and experience necessary to support your business success. Take great care in who you hire… Are they a friend who can get you by for now or are they skilled, talented and driven to find their success with you? How big are their expectations? Do you trust them—don’t think; feel this in your chest. Good? OK. Feel a little sick? What do you know? Envision your future. Has this person helped you get there? Or have they used you? Did you use them? For some, it just doesn’t matter. People need a job. They will do it well, take your money and go home. That’s OK—you need these people and they need you. Tell them specifically what you want them to do. They want leadership. Imagine many people acting upon your direction to build what youCONFIDENTIAL - Subject to NDA 23
  31. 31. [Company] Business Plan have envisioned. Not to worry, they know what to do and how it can be done. Just remember who is in charge.To complete our team, [Company] is [hiring / preparing to hire] a new [job title] and [job title]. [This /these] executive(s) will manage our [x] and [departments / divisions] respectively, and assure that [x] isaccomplished. With [this / these] position(s) filled, we will have everyone we need to effectively andefficiently execute our plan.Executive Team A leader knows whats best to do; a manager knows merely how best to do it. - KEN ADELMAN Provide a brief description of each persons background. Relate it to their functions in the new organization. Add other officers as appropriate. Below are examples of what to include about the people building your company—make a copy and repeat for every person on your management team. You can include their entire resume in the ‘Supporting Documents’ of your plan or provide them later.[Owner/Founder] - [Title] (age)[Owner/Founder] started [Company] after working in [field / industry] for [x] years, and in [field /industry] for [x] years. Coupled with extensive [research / training / experience] in [x], [Founder FirstName] is ideally prepared to run [Company]. [Founder First Name] graduated from [university or college]with a [degree] in [area of major study] and addition studies in [area].Having worked in [field / industry] for [x] years, [Founder First Name] became aware of an urgent needfor [market gap], and proceeded to plan and launch [first start-up Company]. This company grew to [$xxx(insert peak revenues)] in [year], and subsequently [sold / closed / merged / restructured], garnering a[dollar amount] payoff that enabled him / her to [what you did after that.] Ultimately, [Company] hasrealized significant benefits from that experience, as it provided the [experience / funding / people]necessary to successfully launch [Company].[Founder 2] - [Title] (39)[Founder 2] has served as [title / role / occupation] in the [field / industry] for [x] years, and in [field /industry] for [x] years. Additional experience in [field / industry / research / training / experience] and[xxx] give [Founder 2 First Name] the necessary skills to direct the sales of [Company], with primaryemphasis on expanding the customer base and implementing customer loyalty programs alternatives.[Founder 2 First Name] holds a degree in [degree(s) and major] from [xxx] University/school.[COO name], Chief Operating Officer (39)[COO name] has served as [title / role / occupation] in the [field / industry] for [x] years, and in [field /industry] for [x] years. Additional experience in [field / industry / research / training / experience] and[xxx] give [COO first name] the necessary skills to direct the operations of [Company], and coordinateamong our various divisions and departments.[COO first name] studied [major] at [university or college] and was awarded the [degree] with a major in[major], a minor in [minor field] and continued [his / her] education with ongoing studies in [area(s) ofstudy]. First-hand experience with [area of experience, for example business ownership / internationaltrade / offshore manufacturing] make [COO first name] an important player in [Company]’s planned[growth / expansion / redirection / evolution] into [area of growth / market / change].[CFO name], CFO (39)[CFO name] has served several companies as CFO, among them, [list companies]. As an independentCPA, [CFO first name] also worked with a variety of clients in [list industries, particularly those relatedCONFIDENTIAL - Subject to NDA 24
  32. 32. [Company] Business Planto your company’s industry], and brings this added perspective to the needs of [Company].[CFO first name] earned a [Bachelor of xxx / Masters degree / Ph.D.] at [university or college], and [his /her] CPA certification in [year received]. [CFO first name] has also continued [his / her] training withongoing coursework in [areas of study] to stay abreast of the latest developments in [area]. Duplicate and edit the Executive Team Bio Template from the Pre-Planning Documents section of BizPlanBuilder to describe each additional executive officer, vice president or director on your team.[Company] Stock Allocation[x] shares of [Company] common stock have been authorized by the State of [State]. At this time[000,000] shares are outstanding, and have been allocated as shown above.Stock vests over [00] years from the date of employment. In addition, we plan to allocate [000,000] sharesof common stock for Employee Incentive stock options.Management Team Ownership & Stock AllocationOfficers & Key Employees Title Age Shares[Owner/Founder] Owner / Founder / President / CEO 44 5,000,000[x] COO or Sr. Vice President [00] [000,000][x] CFO or VP Finance [00] [000,000][x] Vice President of Marketing [00] [000,000][Founder 2] Vice President of Sales [00] [000,000][x] Vice President of R&D [00] [000,000][x] Vice President of Operations [00] [000,000][x] Controller [00] [000,000][x] Corporate Attorney [00] [000,000]Of the [x] people who make up the corporate staff, there are [00] founders who hold the followingpositions:[x] title [x][x] title [x][x] title [x]Each founder has been provided with [x]% of the original stock issue. You may want to insert an Executive Team Responsibilities section here. You will find a template in the Master Supplementary Documents Section of BizPlanBuilder. Include the completed materials in the Supplementary Documents section at the end of your finished business plan. Résumés of additional key employees should be provided in the Supporting Documents.CONFIDENTIAL - Subject to NDA 25
  33. 33. [Company] Business PlanOutside SupportOur outside management advisors provide tremendous support for management decisions and creativity.[xxx] Accountant / CPA[xxx] Corporate Attorney[xxx] [Type of] Consultant Provide résumés of outside support staff in the Supporting Documents. An organizational chart describing necessary business functions and relationships may also be included in Supporting Documents. Include each persons actual résumé in the Supporting Documents.The strength of the [Company] management team stems from combined expertise in both managementand technical areas. This [has produced / is expected to produce] outstanding results over the [past / next][x] years. A complementary cross section of areas-of-expertise is crucial to securing a favorable response from potential investors.The leadership and alignment characteristics of [Company]s management team have resulted in theestablishment of broad and flexible goals. Our goals are designed to meet the ever-changing demands ofthe swift-moving marketplace requiring our products. This is evident when the team responds tosituations requiring new and innovative capabilities.Board of Directors A good Board of Directors can help you make good financial and high-level strategic decisions, and demonstrate to potential investors that other smart, experienced people are financially and legally involved with your company. The presence of a Board of Directors demonstrates that you are serious about financing and goes a long way to minimizing risks associated with investing in your business. Select advisors for their experience, standing in business, and enthusiasm for working with you. Advisors should be active participants you can call on any time for advice. A Board of Directors is usually comprised of no more than 5-7 people who are compensated with company stock. “Do not condemn the judgment of another because it differs from your own. You may both be wrong.” ~ DANDEMISAn outside Board of Directors, including highly qualified business and industry professionals/experts,[assists / will assist] our management team in making appropriate key decisions and taking the mosteffective action; however, they will not be responsible for management decisions. Use this section to highlight the backgrounds of your Board of Directors. Include each director’s name, age and position in your description. We’ve provided two Director and two Advisor descriptions that you can customize and modify for each of the participants on your boards. If you need additional descriptions, copy, paste and customize additional copies of any of the descriptions we’ve provided in either the Board of Directors or Board of Advisors section. Include each persons actual résumé in the Supporting Documents.[Director name], [current / past Title] of [Director affiliation / company], provides extensive expertise inCONFIDENTIAL - Subject to NDA 26
  34. 34. [Company] Business Plan[field / industry / area of specialization], to help [Company] take the best approach to [increasing sales /managing our operations / marketing our products…]. Additionally, [Director first name] has more than[x] years’ experience working with [x]—a distinct advantage for [Company] as we [introduce newproducts / expand our facilities / acquire xxx / move to the global marketplace…] - OR -[Director name], [current / past Title] of [Director affiliation / company], [age], brings [x] years’experience working [with / in] [x]. This is important for [Company] due to our focus on [area in whichthis director provides expertise]. As we [what do you plan to do], [Director first name] will provideinvaluable insight and direction. Paste or key in any additional Director descriptions you need here.Board of Directors’ Stock AllocationsDirector Age Stock[xxx] [Director Title] 39 500,000[xxx] [Director Title] [x] [xx][xxx] [Director Title] [x] [xx][xxx] [Director Title] [x] [xx][xxx] [Director Title] [x] [xx]Board of Advisors A Board of Advisors typically provides a peer-group environment where participants brainstorm and talk through ideas, drawing on diverse experience, markets and industries. Regardless of your business type, size or industry, a good Board of Advisors can help you make better decisions, and consider alternative approaches to your business that you might not have considered otherwise. The presence and availability of a good board of advisors provides a sounding board, a source of new ideas, and feedback that could prevent an expensive or disastrous faux pas with customers. Choose advisors for their diverse experience, standing in business, and enthusiasm for working with you. They can be window dressing, but should be active participants you can call on at any time for advice and support. Although a Board of Directors is usually no more than 5-7 people, a Board of Advisors can number to 30+. “When men lack a sense of awe, there will be disaster”. - LAO TSE, TAO TE CHING: 72[Company]’s outside Board of Advisors includes business owners and managers from a variety ofbusinesses and disciplines. Each offers a unique perspective, and a wealth of experience to draw on as we[grow / streamline / downsize / merge / branch out…]. We also get great “cross-fertilization” for each ofour respective businesses as we share ideas and suggestions. Our advisory board participates in regularbrainstorming sessions, and we frequently contact advisors individually to draw on their specific areas ofexpertise.[Advisor name], is currently the [Title] of [Advisor company]. [He / she] provides a ready source ofexpertise relative to [business / field / industry / area of specialization], to help [Company] [what you dowith the advice].[Advisor name], [Title] of [Advisor company], [age], brings [x] years’ experience working [with / in][business / field / industry / area of specialization]. We have identified a strong parallel between[Advisor’s business or industry] and our own, and [have been / expect to be] successful implementing asimilar strategy.CONFIDENTIAL - Subject to NDA 27

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