BUSINESS PLAN FORMAT           Whether you plan to apply for a business loan or not, you need to have a roadmap or plan to get you from where you are to the successful operation of your business.  The pages that follow demonstrate the content of a simple business plan which has been found to be successful in obtaining startup funds from banks.  You are encouraged to use all or whatever portions of this fit your business.           Please DO NOT write page after page of drivel or copy from someone else’s plan or one of those templates you can find on the Internet.  In most cases this will not “sound" like you, nor will it be short and to the point.  Those who read these things are busy people and will not be inclined to spend time reading irrelevant paperwork.           Throughout this sample, there are  italicized  comments which are meant to guide you in preparation.  If you follow this format it is reasonable to expect a finished document with 15-20 pages plus the supporting documents in the last section.           If you have good quality pictures of your space, products or other items, you might include them as another way to convey just what you plan to do.  A map of your location, diagram of floor space, or other illustration is also sometimes helpful.  On the other hand, do not add materials simply to “bulk-up” the report.            While content is critical, it is also important to make this presentation look as good as possible.  For this course, you will create the business plan in Word and submit the plan and all attachments through the Assignment drop box. That means all attachments have to be in digital form. For a bank loan or an investor, you would normally provide them with a print version. Print the pages in black ink on a high quality tinted letterhead paper.  Color is not necessary but would add some interest in headlines, etc.  Bind the document in a presentation folder or with a spiral binding.  Don’t simply punch a staple in the upper left corner.            If your were going to pursue a bank loan or an investor, it would be normal to take this business plan to your SCORE counselor for a review and critique. NOTE:  Before you begin your inspection of the simple plan outline which follows, take a moment to review the Business Plan Checklist on the next page. BUSINESS PLAN CHECKLIST           By way of review, here is a concise list of the basic requirements for a Business Plan, as recommended by the MIT Enterprise Forum: · Appropriate Arrangement - prepare an executive summary, a table of contents and chapters in the right order. · Right Length - make it not too long and not too short, not too fancy and not too plain. · Expectations - give a sense of what founder(s) and the company expect to accomplish three to seven years in the future. · Benefits - explain in quantitative and qualitative terms the benefit to the consumer of the products and services. · Marketability - present hard evidence of the mar.

1. BUSINESS PLAN FORMAT
Whether you plan to apply for a business loan or not, you
need to have a roadmap or plan to get you from where you are
to the successful operation of your business. The pages that
follow demonstrate the content of a simple business plan which
has been found to be successful in obtaining startup funds from
banks. You are encouraged to use all or whatever portions of
this fit your business.
Please DO NOT write page after page of drivel or copy
from someone else’s plan or one of those templates you can find
on the Internet. In most cases this will not “sound" like you,
nor will it be short and to the point. Those who read these
things are busy people and will not be inclined to spend time
reading irrelevant paperwork.
Throughout this sample, there are
italicized
comments which are meant to guide you in preparation. If you
follow this format it is reasonable to expect a finished document
with 15-20 pages plus the supporting documents in the last
section.
If you have good quality pictures of your space, products
or other items, you might include them as another way to
convey just what you plan to do. A map of your location,
diagram of floor space, or other illustration is also sometimes
helpful. On the other hand, do not add materials simply to
“bulk-up” the report.
While content is critical, it is also important to make this
presentation look as good as possible. For this course, you will
create the business plan in Word and submit the plan and all
attachments through the Assignment drop box. That means all

2. attachments have to be in digital form. For a bank loan or an
investor, you would normally provide them with a print version.
Print the pages in black ink on a high quality tinted letterhead
paper. Color is not necessary but would add some interest in
headlines, etc. Bind the document in a presentation folder or
with a spiral binding. Don’t simply punch a staple in the upper
left corner.
If your were going to pursue a bank loan or an investor,
it would be normal to take this business plan to your SCORE
counselor for a review and critique.
NOTE: Before you begin your inspection of the simple plan
outline which follows, take a moment to review the Business
Plan Checklist on the next page.
BUSINESS PLAN CHECKLIST
By way of review, here is a concise list of the basic
requirements for a Business Plan, as recommended by the MIT
Enterprise Forum:
·
Appropriate Arrangement
- prepare an executive summary, a table of contents and
chapters in the right order.
·
Right Length
- make it not too long and not too short, not too fancy and not
too plain.
·

3. Expectations
- give a sense of what founder(s) and the company expect to
accomplish three to seven years in the future.
·
Benefits
- explain in quantitative and qualitative terms the benefit to the
consumer of the products and services.
·
Marketability
- present hard evidence of the marketability of products and
services.
·
Revenue Basis
- justify the means chosen to sell the products and services.
·
Development Status
- provide level of product development that has been achieved
and describe process and associated costs.
·
Management Team
- Portray founder/partners as a team of experienced managers
with complementary skills.
·
Rating
- suggest an overall rating of product development and team
sophistication.
·
Financial Projections

4. - provide believable financial projections with key data
explained and documented.
·
Investment Return
- show how investors can cash out in three to seven years with
appropriate capital appreciation.
·
Financier Interviews
- present to the most potentially receptive financiers to avoid
wasting time as resources dwindle.
·
Oral Presentation
- create an easy and concisely explainable well orchestrated oral
presentation
(This is the Cover Page)
BUSINESS PLAN
ABC COMPANY
Street
City, State, ZIP
Telephone
Website
email Address

5. Date
ABC COMPANY
Street
City, State, ZIP
Telephone
This is the first page if you are asking for funding.
This can be in the form of a letter, dated and addressed to
the individual from whom you are requesting the funds. It can
also be just a simple statement in paragraph form (no more than
half a page).
In this letter or statement, include this information:
● This is a request for funds in order to do what?
● Name the business and whether it’s a
proprietorship, partnership or corporation.
● Who are the principles?
● How much are you requesting, on what terms,
and when do you need it?
● How much are you putting into the project?
● What will the money be used for?
● How do you expect to pay it back?
While not absolutely necessary, you can refer to different
portions of the Plan when answering the questions above.
Sign this sheet.

6. TABLE OF CONTENTS
Number all the pages in the Plan and key them on this page.
Loan Request
Section 1 - Description of the
Business
General
Owners and Credentials
Purpose/Mission
Location
Products and Services
Business Advisors
Map
Section 2 - Business
Operations
Business Hours
Equipment and Processes
Suppliers
Section 3 -
Marketing
General
Competitors
Pricing Policies
Advertising Strategy
Section 4 - Financial Data

7. Basic Assumptions
Start Up Expense
Profit and Loss (3 years)
Section 5 - Supporting
Documents
Personal Resumes
Personal Financial Statement
Federal Tax Returns (3 yrs)
Credit Report and Score
While not absolutely necessary, tabs or divider pages would be
a nice touch.
Section 1
DESCRIPTION OF THE BUSINESS
This entire section can be accomplished in not more than 3
pages. Keep your paragraphs short and use the sub-heads as
shown to make the material easier to read.
GENERAL
This is the general introduction to all that will follow. Name
the owners and the type and name of the business. Where is it
located? What products or services will be offered? You need
not go into detail; this is just a general statement of what is to
come.
OWNERS AND CREDENTIALS
What form of organization is used? Who are the principles?
Give a detailed description of each owner, complete as to

8. marital status, education and business experience. Remember
that your lender will be impressed by your credentials so don’t
skimp on this description. Modesty here will win no points.
PURPOSE OR MISSION
Describe why you are doing this. Who will it benefit and what
are your overall aims or objectives?
LOCATION
Give your specific location if you have one. If not, describe the
ideal location or what you are looking for and how you are
going about it. Describe your lease in respect to cost, terms,
etc. Describe the area, traffic count and other favorable
factors. What about parking, visibility, lighting, etc? Refer the
reader to an accompanying map. If layout is important, add a
drawing of the floor plan, including dimensions, fixtures,
equipment, etc.
PRODUCTS AND SERVICES
It will be very important for the lender to understand what you
intend to sell. Describe the products or services in some detail,
but avoid very technical talk, buzzwords and other “speak” that
can confuse the reader. You may find it helpful to group
products or services into categories
BUSINESS ADVISORS AND SUPPORT NETWORK
A lender will be encouraged by knowing that you are not
attempting to do this without assistance from other “experts”.
List here (names, companies and addresses and telephone

9. numbers) those whom you are using as advisors, including your
Accountant, Attorney, Insurance Broker, Banker, SCORE
Advisor, etc. If you have joined the Chamber of Commerce, a
Trade Association, or another business group, list them also.
Section 2
BUSINESS OPERATIONS
Here you are going to describe how the business operates,
perhaps in no more than two pages. This will be particularly
important if you will be manufacturing something. If you are in
the selling game, describe your basic sales technique (not to be
confused with advertising which comes along later).
BUSINESS HOURS
Be specific in order to show that you have already planned even
the smallest of details. Do you operate by appointment or by
walk-ins. If you are working out of your home, can people visit
you there? How will you monitor customer traffic?
EQUIPMENT AND PROCESSES
You probably will need certain fixtures and equipment. Do you
already have this or must it be purchased? Will it be new or
used? Is it state-of-the-art? If you are manufacturing
something, provide a brief, non-technical summation of the
process.
SUPPLIERS AND SUB-CONTRACTORS
Provide a listing (names and addresses) of your principal
suppliers. This shows that you have planned ahead and already
know how you will obtain those supplies you need to run the

10. business.
Section 3
MARKETING
In 2-3 pages, you can describe what might be the most critical
section of your Plan because it will indicate how you intend to
go about getting customers. The lender will be very interested
in how specific you are, and how well you have thought this
through.
GENERAL
This is the introductory part of this Section and can be
somewhat general. Describe your principal and secondary
markets in terms of where they are, who they are and how you
will reach them. This might be an excellent place to list the
specific reasons why you will have a market advantage (don’t
overestimate the value of “customer service”).
COMPETITORS
Name your competitors and show their location on a map if this
is useful. How have you researched them? What advantages
might you have over them? Indicate your plan to deal with this
competition.
PRICING STRATEGIES
What will be your overall pricing strategy – low ball, average,
high? How will you decide on the prices for your products or
services? Are the prices competitive? If you can name a few
key items (each should account for at least 10% of Sales) list
them and show the prices you plan to offer.
ADVERTISING STRATEGY

11. You should be able to describe, in great detail, the first 3
months of advertising you will do, including an estimate of the
costs involved, and the media used:
Mailings Website Tradeshows
Yellow Pages Events Newspaper
Personal Calls Magazines etc.
How will you know which media is most effective for you? If
you can include sample advertisements, do so.
Section 4
FINANCIAL DATA
A lender will be VERY interested in how you portray your
income and expense, how long it will take to break even, and
how you expect to be able to pay back the loan. This Section
will be heavy on the numbers, but if they are not QUICKLY
understood by a reader, you will lose him or her … and
probably not get a loan. Remember: the lender wants a
reasonable amount of assurance that he/she will get back the
loan amount with interest, and if there is a lack of
understanding of your Plan, or an obvious flaw in it, you will be
DOA!
BASIC ASSUMPTIONS
Every financial plan
is based on certain assumptions and it will be helpful if you list
some of the obvious ones. This also shows the lender that you
are a knowledgeable player and one who has thought through all
the important elements of your project. The following items are
usually the basic assumptions for a new business and the
funding necessary to start up:

12. ● The start date.
● The date funds will be available, the amount,
debt service and payback commencement date.
● The equipment and supplies needed will be in
place on opening day.
● The percentage increases in Sales, Cost of Sales
and Expenses from year to year.
● Add other important assumptions you have made,
or will make.
START UP EXPENSE
Here you will be listing just about everything you will need in
order to start the business. In each category, list the item and
how much you expect to spend on it. Again, doing this shows
the lender that you are VERY organized and know
exactly what you need in order to be successful.
INVENTORY AND SUPPLIES:
These are the items you will stock for resale. Unless you are
making them yourself, you will purchase them from a supplier.
If not it might be well to describe how you will be able to
respond to a customer on the very first day.
LEASEHOLD IMPROVEMENTS:
It is likely that you will require certain renovations or
improvements to the property you are using as the location for
your business (even if it is home-based). Whether you do these
things yourself, or hire others to do so, there will be costs
involved. Include

13. such things as
Electrical Renovations, Carpet, Counters, Signs, Walls,
etc.
FURNITURE, FIXTURES & EQUIPMENT:
Most businesses will require certain equipment, and if you are
planning to manufacture something, you will require tools and
equipment. At the very least, a business will need a computer,
telephone, desk and chair, and may also need vehicles, cash
register, counters, etc. This can be a VERY long list
sometimes.
OTHER:
You will probable incur initial expenses for Rent and Security
Deposit, Licenses, Fictitious Name or Incorporation, Insurance,
Utility & Telephone, Business Stationery, Forms, Operating
Funds (at least 3 months), and Contingencies (often 10% of
your total Other). Don’t overlook all the expenses you incur
just in investigating the business (travel, seminars,
etc.).
12 MONTH PROFIT AND LOSS PROJECTION
This is the spreadsheet that details each category of income and
expense for each of the first 12 months of business. It is not
important whether this exercise be called a Pro Forma,
Estimate, or Projection; spending the time thinking about the
details is, however, critical. The final form is a spreadsheet
that can be accomplished by using Microsoft Excel, a template

14. at
www.score.org/forms
, or by hand with pencil and a columnar pad. A handy form is
on the next page which you can use with a pencil (not a pen,
since you’ll be doing plenty of erasing). Since it shows only 6
months, copy and paste it together so that you can portray a
complete first year.
In the left hand column will be listed your estimated Sales, Cost
of Sales and Expenses. Across the top of the form are 13
columns, one per month plus a yearly total.
SALES or REVENUE.
This is the monthly income or sales you expect in each business
category. Note that lumping all sales into one category IS NOT
ACCEPTABLE! Every successful business earns revenue in
several categories and these must be detailed.
COST OF SALES or COST OF GOODS SOLD.
Generally speaking, every sale has a direct, or variable cost,
attached to it. If, for example, you retail a sweater for $50,
which cost you $25 from the manufacturer, your Cost of Sales is
$25. There are, of course, some Sales that might not have a
direct cost; repairing a flat tire might be an example (since it is
all manpower and no parts or replacements).
GROSS PROFIT.
Sometimes called Gross Margin, this is Sales minus Costs. This
number tells you how efficient your sales, costs, prices, etc. are.
EXPENSES.
Sometimes referred to as “Fixed” or “Overhead”, these items
are the General and Administrative Expenses that go on,
whether or not you make a sale. The most common include:
Payroll Insurance –
Business/Personal
Payroll Taxes Leased Equipment
Contract or Temporary Labor Postage or Mailing

15. Cost
Office or Operating Supplies Debt Service
(Loan Repayment)
Maintenance & Repair Taxes
Advertising Utilities
Vehicles or Delivery
Telephone
Accounting & Legal Other/Miscellaneous
Rent or Mortgage
At the time you are making this Estimate, you may not know the
exact amount of an expense, but you must include a reasonable
guess (and this may require some research).
Notice that the words Amortization or Depreciation do not
appear in the above list. These are accounting numbers that
may or may not appear in your statements, once you have
actually conducted the business. Your accountant will advise
you on these matters.
NET PROFIT.
This is the bottom line and indicates your success, at least
insofar as a P&L Statement is concerned. Keep in mind, of
course, that as the business owner you can pay yourself a salary,
buy insurance, pay your auto expenses, and receive a host of
other “perks”. It is very important for you to know what your
own personal ACTUAL compensation is. The P&L may say one
thing, but what you really receive can be quite different (and all
quite legal, so long as it is all accounted for in your
bookkeeping). If the bottom line does not show your actual
compensation, add a short footnote explaining what it really is.
All the columns and appropriate lines must be completed and
totaled to show what you project for your first year of activity.
It is then useful to expand this to a yearly total for a Second
Year and the Third Year. Most lenders will not necessarily
expect a huge profit to show in the first year, but will be
interested to see growth as well as an upward trend.

16. PROFIT AND LOSS STATEMENT
Account Name
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
SALES/REVENUE
1
2
3

17. 4
5
6
7
8

18. TOTAL SALES
COST OF SALES
9
10
11
12

19. 13
14
15
16
TOTAL COST OF SALES

20. GROSS PROFIT
EXPENSES
Payroll – Owner
Payroll Taxes - Owner
Payroll - Employees

21. Payroll Taxes - Employees
Temporary Labor
Operating Supplies
Repairs and Maintenance
Advertising

22. Automobile
Delivery
Accounting and Legal
Rent
Telephone

23. Utilities
Insurance
Interest
TOTAL EXPENSE

24. PROFIT (LOSS)
PROFIT AND LOSS (3 YEARS)
After completing a detailed estimate of Income and Expense for
the first twelve months of your business activity, you will want
to take all the individual totals for Year 1, and estimate how
each will increase or decrease in Year 2 and Year 3. This can
be portrayed on a second spreadsheet in this way, using the
same detailed Account Names as you did for Year 1.
Account Name Year 1 Year
2 Year 3
Sales
Cost of Sales
Expenses
Net Profit (Loss)
It might be well to show some footnotes to this chart, indicating
the percent increases from year to year, for Total Sales, Total
Cost of Sales, Total Expenses and Total Net Profit. If you add
product lines, add employees or make other significant changes,
it might be helpful to explain these actions in footnotes.
For your own benefit (and perhaps also for a lender’s) you may
want to display a “best case” and a “worst case” estimate for
each year in addition to what you have above, which might be

25. the “most likely” estimate.
Section 5
SUPPORTING DOCUMENTS
Insert in this section, copies (not Originals) of the following
personal documents.
Resume
Personal Financial Statement
Federal Income Tax Returns (3 yrs)
Credit Report and Score
Other Relevant Documents