Aptitudes d'un entrepreneur business plan sample

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. [Other
variables 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 or
print 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 raising
money – 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 agree
that few people will write you a check without learning more… BizPlanBuilder has it.
Click these links to review the financial models provided in BizPlanBuilder
Unlike 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

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 business
plan for your review. I really appreciate your responding to [name of person who referred you]’s
suggestion 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, and
represent 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 of
considerable interest:
[Company] recently [briefly discuss your company’s most significant major accomplishment of the past
year].
[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.

We have partnered with [xxx] to [xxx] since [Month, year], and are already seeing results that fully
support 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]. We
are 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] must
move swiftly to take advantage of the opportunity to [xxx]. I will call early next week to arrange an
appointment. Should you have questions in the meantime, please feel free to contact me on my cell phone
at, [xxx-xxx-xxxx]. We look forward to meeting with you.
Best regards,

[Owner/Founder]
Founder & CEO
[Company]
[Telephone]
[Founder Email]

Cover Page – Use this page to design a nice cover for your plan
Use 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 one
together for you for as low as $99! Please visit their website for more information.

[Your slogan here]

Here are several title ideas to choose from or edit into what suits your business and application for
your business plan:

Business Plan
SBA Loan Proposal
Product/Service Launch Proposal

Go confidently in the direction of your dreams.
live the life you have imagined.
~ Henry David Thoreau

When you publish and print your plan, these comments will be removed automatically, and the
page will reflow itself correctly. You can click on the “bullhorn” icon above to turn them on and off.

[Your Logo Here]


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.

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 the
space provided, Add all relevant information regarding the individual or company to whom you’ve
given 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 to
investors. They may wonder how many people are looking at your deal—if their copy number is
high, they may think that many people have seen your plan and passed (then wonder why?) You
can 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 page
We recommend assembling your printed plan using colored, number tabs. (Most investors we’ve
talked with admit that they like these!)

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 ....................................................................................................................... 1
Market Opportunity ...................................................................................................................... 12
Vision, Mission, Goals & Objectives .......................................................................................... 15
Company Overview...................................................................................................................... 20
Management ................................................................................................................................. 23
Market Analysis............................................................................................................................ 29
Business Strategy........................................................................................................................ 39
Demand / Revenue Model............................................................................................................ 42
Product Strategy .......................................................................................................................... 46
Competition .................................................................................................................................. 54
Internet Strategy........................................................................................................................... 61
Marketing Plan & Strategy........................................................................................................... 69
Risk................................................................................................................................................ 94
Operations .................................................................................................................................... 98
Environmental Sustainability.................................................................................................... 106
Present Situation........................................................................................................................ 110
Financial Plan ............................................................................................................................. 113
Exit / Payback Strategy.............................................................................................................. 122
Summary ..................................................................................................................................... 124
Supporting Documents ............................................................................................................. 127
Capital Requirements ................................................................................................................ 136

[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 your
business 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, service

CONFIDENTIAL - Subject to NDA 1


and repair / wholesale deli and bakery / childcare / car rental] business specializing in [your area of
specialization].

Background
For 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 / remains
relatively constant / experiences fluctuations based on the economy], creating demand for [the gap your
business 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 its
products and services, as well as its fundamental business model, to take full advantage of [the newest
Internet-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, C
Corporation, Limited Liability Company / Partnership / Limited Liability Partnership] based on the
advice of our advisory board. This structure [will give / gives] us the greatest tax and operational
advantages 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 become
necessary 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], without
external 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].



Market 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 on
market research / private research / industry surveys, etc.] we estimate the number of potential customers
to 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], the
overall market for the 2002 NAICS Title industry [worldwide / nationwide / in this region] is projected to
be $[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 / wants
xxx] 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] [your
market] 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 it
is a better value].
Other products in our product family include:



[List products and necessary definitions].
Xxx
Xxx
xxx

Overall our existing product line is in the [give status: introductory / growth / maturity / nearing the end
of its life cycle] stage. With several products in the [introductory] stage, [xx] in decline, and others at
their likely peak, we have multiple opportunities to [introduce new products / re-release more up-dated
products / take waning products out of circulation / identify potential new markets / redirect declining
products 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]
xxx
These assets give us several options with respect to [growth / expansion / reorientation]. We have offers
on the table for [OEM deals / licensing / production / repurposing—describe the opportunities for your
company 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 / through
home 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 business
model, 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 the
market 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. These
competitors charge [comparable / a wide range / within a $x range of] prices: [list examples and range of
prices 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]



[Product 3] $[$XX-XX] [$XX-XX] [$XX-XX] [$XX-XX]

Competitive Pricing
The 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 infusion
of capital from an IPO / Competitor 3’s release of xxx / a widespread (downward / upward) sales trend in
xxx 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 an
opportunity / 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 xxx
in every package / offering volume discounts / securing extensive media coverage and customer
commentary regarding the major improvements in xxx / reducing our prices / increasing our prices /
providing personal delivery / responding to specific customer requests within xxx hours / simplifying xxx
to 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 lack
of awareness / economic slowing or recession / recent losses in related industries / explosive growth that
exceeds our ability to respond—whatever your top risks are].
Provide 1- to 2-line descriptions of your top 2 or 3 business risk
We face [briefly describe primary risk]. Our strategy for minimizing risk in this area includes: [describe
your strategy.]
Changes in [the market / the environment / legislative regulations / the economy] may also require that we
make 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 Plan
Responses from customers indicate that our [product name(s)] [is / are] enjoying an excellent reputation
and we fully intend to continue this trend. Inquiries from prospective customers suggest that there is
considerable demand that we are [prepared / preparing] to meet.



Relationships with [leading OEMs (Original Equipment Mfgs.) / retailers / Fortune 500 / 1,000
companies / major accounts / manufacturers and distributors] substantiate [Company]’s [fitness /
readiness / preparation] for [considerable growth / consistent sales volumes / market expansion] and
accomplishment in the 2002 NAICS Title for the [market / region / area].
[Company]’s marketing strategy is to aggressively enhance, promote and support the significant benefits
of 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 in
your 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 are
targeting 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 [several
channels / an exclusive distributor relationship / authorized resellers / direct to consumers, etc.]. We will
be driving our [lower margin / high margin / specific / complete line of] products through [key
distributors, Distributor 1 and Distributor 2] OR [xxx product line] through [our online showroom / home
shows / individually-selected retailers / direct mail promoting retail channel resellers / extensive
advertising 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 [list
advantages—faster response to market shifts / access to markets they don’t reach through xxx / presence
in 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 / largest
retailers] where [x] % of our channels sales, and [x]% of our overall sales [originate / will]. Our objective
is to [maintain high sales volumes / increase our sales volume / reduce our sales volume / minimize our
sales 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.



We 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 figure
based 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 industry
On an ongoing basis we will budget our advertising investment at [x]% of total sales. By consistently
tracking the results of our advertising, we [have determined / will be able to determine] the effectiveness
of our ad campaigns. This will allow us to adjust this budget allocation appropriately to ensure the highest
possible 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 at
least [x] times per [month / quarter / year].
Give 1- to 2-line descriptions of your top 2 or 3 publicity strategies or areas of focus
We will track, wherever possible, all revenue generated from our advertising, promotion and publicity
efforts. We anticipate at least $[x] in sales to be generated directly from our promotions, and potentially
an additional $[x] in retail / distribution channel sales in response to our ads.

Production, Delivery & Fulfillment
Currently, 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 x
supplier]. 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 / production
efficiency / costs associated with raw materials storage, etc].
Due to [expected rapid growth / anticipated product introductions / a downward trend in x / sustained
level sales], our production should [be expanded / exceed current production capacities / level off / drop
for 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 advantage
you 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 and



exhibit the drive to succeed—commonly referred to as ‘fire in the belly.’” ~ Ken Wilcox, Executive
Vice President & Chief Lending Officer, Silicon Valley Bank
Our management team consists of seasoned managers and experts whose backgrounds and experience
make them ideally suited to their respective roles. A brief review of the training and expertise they bring
to [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, and
acquired 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 first
name] the necessary skills to direct the operations of [Company], with primary emphasis on streamlining
operations 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 in
differing environments and circumstances. [CFO first name] has taken [x] companies through the growth
phases 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, as
well 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]. Annual
growth is projected to be [x]% per year through 20[xx]. We feel that within [x] years [Company] will be
in a suitable position for [further expansion / an initial public offering / profitable acquisition]. At this
time, 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 the
demise of a major competitor, etc].
To achieve our objectives, we plan to [build a distribution channel / 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].

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]’s
experience 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—provide
specific examples]. To implement these plans we require a [loan / line of credit] totaling $[x] for the
following 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 orders
and 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-tune
our competitive advantages.
Well-timed funding will allow us to achieve our marketing, development and sales goals for the
immediate future. Our projections for post-funding sales are as follows for the next 5 years:

Fiscal Year (000) 2007 2008 2009 2010 2011
Revenue $ 4,408 $ 369 $ 720 $ 873 $ 1,284
COGS 889 51 93 122 179
Gross Profit $ 3,519 $ 318 $ 627 $ 752 $ 1,105
Gross Margin 80% 86% 87% 86% 86%
Operating Expenses $ 1,931 $ 1,774 $ 2,005 $ 2,136 $ 2,391
Operating 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…



$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 / expand
our facilities and production area / increase income-producing holdings] to [meet market demand / take
advantage of the xxx emerging market / increase shareholder returns / create a new profit center or
revenue stream, etc].

Exit Strategy / Return on Investment
The attached financial projections indicate that the full repayment of our [loan / line of credit] will be
achievable 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 / existing
customers 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 Leonard
The market for [Company] [product(s) / services] is clearly [what the market is doing], giving us a prime
opportunity to [what you’ve said you will do in your plan]. The [consistent sales volume / rapidly
expanding 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 back



into the company, we expect to [accelerate loan payments / reduce our line of credit balance to zero] and
be 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 the
application of suggestions from the test market. We anticipate even stronger growth than indicated in this
plan, based on our most recent test market responses. Our plan is to launch product sales first from our
website, 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.



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 new
solutions 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-related
industries / statewide / among xxx enthusiasts / everywhere, etc.].
According to [name of quoted authority], this market [insert a quote supporting your assumptions about
market 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 today's 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 or
commentator 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 a
compound annual growth rate of xx%.
The strong correlation between [describe related-market conditions or sales of related products / services
that 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 in
the 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.



Seizing 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, you'll
get a baby in a month. - Werner Von Braun
Many 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 xxx

We [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, economically
reaching [xxx,xxx] customers via direct mail.
— OR —
Many potential customers are immediately and economically accessible via [local newspapers / the
Internet / xxx business associations / state and local Chambers of Commerce / xxx Society events / online
news 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-business
promotion, 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 request
information / order service instructions] online. We [have / have not] built in a payment transaction
mechanism, 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 [does
not fit / provides a critical element] in our business model. The most important aspect of our [online
presence / lack of online presence] is that [a key function (say scheduling) can be handled by the
individual customer on our / we have none of the ongoing expense or headaches associated with
maintaining 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-



the-clock customer support and sales / to replace print collateral / as our interface for customer service
and delivery scheduling / the fastest way for customers to buy xxx direct / to direct customers to our
resellers].
Currently, [only a few / xx% / a significant number / most of] our [customers / vendors] prefer using the
Internet for their interactions with [Company]. As more [people / businesses] access the Internet, we
anticipate a [gradual / steady / rapid / sudden] increase in the number of [customers / vendors] likely to
choose the website [to place orders / to track their accounts / for information / for sales support / for
customer 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-regulated
scheduling 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 online
functionality and friendly user interface. It provides the [accounting / reporting / statistical] functions we
need to stay ahead of the market.
By automating these processes and making them available online, we effectively reduce administrative
costs formerly associated with [order entry and processing / monthly closes / histories required for
materials 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 to
the market opportunity, enabling a swift response to sudden shifts in demand, new market trends, and
changes in customer requirements.



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 yesterday's 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.



Mission 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 1
The [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 company's 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 the
way people xxx / cost less than competing products / are more readily available than xxx / meet the needs
of the xxx market]. Our first responsibility is to the [xxx] who use our products and services. Our second
responsibility 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 3
Through 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 / products
that improve the quality of life for xxx / the benefits of xxx for the xxx market / a first-class resource for
xxx / products that meet all the requirements of xxx / products that produce [xxx results], faster and more
easily 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.



Primary goals often fall within the following categories:
o > Profits
o > Products
o > Quality
o > Growth
o > Fields of Interest
o > Community

In order for [Company] to attain its vision as described in our vision and mission statements, we must
achieve the following primary strategic goals:
Corporate: By [x], 20[xx] [Company] will [Corporate goal(s)]. We will [acquire xxx company / be
acquired 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 xxx
product(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-related
goal(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 expand
our marketing efforts to include the [xxx] [market / industry / region / country(s)] and generate additional
revenues as much as [x]% above current levels.
Sales: By [x], 20[xx] [Company] will [state your Sales-related goal(s)]. Our products will be prominently
displayed 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 the
competition.
For 20[xx] (year 2) 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 will
carefully 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.



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 people

We feel confident that our stated goals can be reached, based on the experience of our management team
in environments where they managed [substantial growth / market or product transitions / rapid high-tech
development / 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]. Annual
growth 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 additional
product lines to xxx / expand our existing facilities…].
At this time, our objective is to [secure 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 the demise of a
major competitor, dot.bomb, etc]. Our research indicates that we should be able to meet or exceed
projected 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].




To accomplish our next primary goal of [list next goal from above], [Company] will complete the
following objectives:

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 off
our line of credit from cash flow.



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 no
good source for [product]. Thinking that there must be other [type of enthusiasts / people working with or
wanting 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 out
where they obtained xxx]. They were all [frustrated with the lack of resources / unhappy with current
suppliers / unwilling to drive xxx miles] to support [area of interest]. In [less than a month / a matter of
months / 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 and
market analysis, drawing on forecasts and statistics from [industry analysts xxx and xxx / government
statistics obtained through xxx / industry watchers such as xxx / editorial commentary covering the xxx
industry].
In [Year Started], [Company] secured the proper licensing and began the process of planning the new
business. [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 market
segment], 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 business
grows to profitability. Recent growth in the [market / geographic environment / economic environment] is



creating a [slowly / steadily / rapidly] increasing demand for [name your type of products] that [describe
applications 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 the
same time, we step out of the corporate environment into a growing, high-margin business that allows us
to 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 high
quality [manufactured / hand-crafted / baked / xxx] products. Because these [product name]s were
popular 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 tests
each new [product]. The great majority of customers that [Company] builds [product name] products for
are [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 Description
Company Name
The 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 don't fail now and again, it's a sign you're playing it safe.” - Woody Allen
Legal 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 will
afford [Company] opportunities for [advantages of this structure], while protecting [note the assets
protected by this structure]. Depending on actual business growth and expansion, [Company] may in the
foreseeable 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?



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 company's 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 state
authorities regulate the manufacture and sale of [xxx]. [Company] has obtained all necessary federal and
state 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 increased
taxation 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 / weekly
interaction / 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].



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. It's 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 people
who 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 you



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] is
accomplished. With [this / these] position(s) filled, we will have everyone we need to effectively and
efficiently execute our plan.

Executive Team
A leader knows what's best to do; a manager knows merely how best to do it. - KEN ADELMAN
Provide a brief description of each person's 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 First
Name] 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 need
for [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] has
realized 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 primary
emphasis 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 coordinate
among 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) of
study]. First-hand experience with [area of experience, for example business ownership / international
trade / 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 independent
CPA, [CFO first name] also worked with a variety of clients in [list industries, particularly those related



to 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 with
ongoing 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] shares
of common stock for Employee Incentive stock options.

Management Team Ownership & Stock Allocation
Officers & 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 following
positions:
[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.



Outside Support
Our 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 person's actual résumé in the Supporting Documents.

The strength of the [Company] management team stems from combined expertise in both management
and 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 the
establishment of broad and flexible goals. Our goals are designed to meet the ever-changing demands of
the swift-moving marketplace requiring our products. This is evident when the team responds to
situations 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.” ~ DANDEMIS
An 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 most
effective 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 person's actual résumé in the Supporting Documents.

[Director name], [current / past Title] of [Director affiliation / company], provides extensive expertise in



[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 new
products / 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 which
this director provides expertise]. As we [what do you plan to do], [Director first name] will provide
invaluable insight and direction.
Paste or key in any additional Director descriptions you need here.

Board of Directors’ Stock Allocations
Director Age Stock
[xxx] [Director Title] 39 500,000
[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 of
businesses 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 of
our respective businesses as we share ideas and suggestions. Our advisory board participates in regular
brainstorming sessions, and we frequently contact advisors individually to draw on their specific areas of
expertise.
[Advisor name], is currently the [Title] of [Advisor company]. [He / she] provides a ready source of
expertise relative to [business / field / industry / area of specialization], to help [Company] [what you do
with 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 a
similar strategy.



Paste or key in any additional Advisor descriptions you need here.

Board of Advisors’ Stock Allocations
Advisor Title Age Stock
[xxx] [Advisor Title] [x] [xx]

Staffing
Discuss additional staffing requirements based on necessary talents, skills, experience or expertise.
[Company]’s development team recognizes that additional staff is required to properly support marketing,
sales, research, and support functions.
Currently, [Company] has [x] employees working in [x] [departments / groups]. An additional [x]
employees will be required to meet projected market demand over the next [xx] years. Anticipated
staffing requirements are listed below.
List projected staff needed. Delete any unnecessary positions, or replace with necessary positions
not currently listed below.
Position to be Filled # Required Required By
Management [x] [month, year]
Marketing [x] [month, year]
Sales [x] [month, year]
Engineering [x] [month, year]
Customer Relations [x] [month, year]
Technical Support [x] [month, year]
Administration [x] [month, year]
Manufacturing [x] [month, year]
Assembly [x] [month, year]
Skilled Labor [x] [month, year]
Repair [x] [month, year]
Field Service Technicians [x] [month, year]
Maintenance [x] [month, year]

“Never carry someone longer that their mother did.” – Jay Shelov
Remember that it is up to you to determine if your people are doing what you need done.



Market Analysis
For an overview of Market Analysis, refer to the BizPlanBuilder Handbook of Business Planning.
This section describes the existing and projected marketplace in which you will introduce / promote
your company and products.
“A winning plan shows direct interaction with the possible purchasers of the product or
service. By involving customers in product development, utilizing beta sites, conducting in-
depth surveys, generating purchase orders, directing focus groups and demonstrating one-
on-one contact with real customers, a plan can communicate personal connection to real
customers.” – Ray Smilor Excerpt from “How to Read a Business Plan”
Only a fool tests the depth of the water with both feet. – African Proverb

Industry Analysis
The [x] market is growing at a rapid rate. The market for these products amounted to $[x] million in
20[xx]—representing a [xx]% growth over $[xxx] million in 20[xx].
Referenced sources agree that the major trend is for [xxx]. The trend has been pushing toward
development of [xxx products] and, hence, the latest development of distributed or shared resources.
Independent market research indicates that there is currently only [xxx] [product] for every [xxx]
customers. The 2002 NAICS Title industry, as a whole, is looking to [manufacturers / suppliers / retailers
/ experts] for expansion of existing [applications / product lines / services].
The overall [xxx] market for the 2002 NAICS Title industry is projected to be $[xxx] [million / billion]
by the end of 20[xx]. The overall market potential for [product category] is estimated to be $[xxx] million
by 20[xx], and the [additional product types] portion of this market is estimated to be $[xxx] million.
The area of greatest growth in the 2002 NAICS Title market is in the area of [xxx].
Be sure to site your sources, such as industry analysts, Census, and trade journal studies.
“You can observe a lot just by watching.” - YOGI BERRA

Market Segment
By product feature, by lifestyle of target consumers, by geographical location, by season, etc.
Create and include charts where appropriate.
Key points in defining the market segment for [Company]’s [product name] are [xxx], [xxx], and [xxx].
Target Market Total Percent of Business
1. We will be selling primarily to (check all that apply):
a. Private sector xx%
b. Wholesalers xx%
c. Retailers xx%
d. Government xx%
e. Other [define] xx%
2. We will be targeting customers by:



a. Product line / services xx%
We will target specific product lines
b. By geographic area xx%
c. By sales patterns from the past three years xx%
d. To the xxx industry / market xx%
e. Other [define] xx%
3. We expect our target market to spend $__________ on our type of product this coming year.

Currently, the market is shared by [x] participating competitors.
How is the market distributed among major participants?
What are the per-share gain and loss trends?
Summarize your view of the trends and implied opportunities.
[Product type] users are looking for quality and productivity improvements. [Past / current / recent / lack
of] development of [product type]s has resulted in the need to [describe necessary changes, corrections,
applications of new technologies]. This innovation is called "[xxx]," and allows [product type] to [operate
/ be used] most [efficiently / economically / at the lowest cost of ownership / without modification /
indefinitely] as [xxx].
For an existing business (your own or a recent or future acquisition) review:
Sales History
Market Share & Position
Industry Trends
Profits
Marketing Methods
Based on [x] product category performance over the past two years, the stability of this market segment is
[volatile / uncertain / solid, etc.]. From our own sales history and industry trend analysis, we anticipate
sales to [drop / stabilize / increase gradually / increase x-fold / experience a sudden spike / exceed our
production capability] by [month, year].
What do industry forecasters predict for the next two years?
The major market segments for [Company] products are:
List, by broad category, the types of customers you are likely to sell to. (Retailers, Electrical
Contractors, Mail-order catalogs, etc.)
[Segment 1]
[Segment 2]
Products such as our [product name] generally appeal to the [xxx] segment of the market and retail in the
$[xx] to $[xxx] range. The vast majority of sales in this category will be handled by [OEMs / Retailers /
Manufacturer's Representatives]. Additional sales into this segment will come through direct channels.
Over the past [xx] years, similar [product manufacturing / product sales] companies have proven that
meaningful features can be developed for this class of product, such as [xxx], [xxx], and [xxx]. These
companies have primarily focused on [manufacturing techniques / special materials / secret recipes /
chemicals / machinery] to improve the quality of [xxx] in [product type] products. These products have



been successfully distributed throughout the industry. Competitor 1, Competitor 2, and Competitor 3 all
offer products that compete closely with our own [product name(s)] in this market.
Based on [industry analyst / market analyst] forecasts, and factoring in our current sales trends and market
position, estimates indicate that [Company] should easily produce and distribute more than [x] [thousand /
million] units of [product name] in the next [x] to [x] years. The market potential for [product name] in
these quantities—with a current retail price of $[x] per unit—will yield approximately $[x] million. This
translates to a [Company] market share exceeding [xx]% of the overall market.
Source: Industry analysts, census, and trade journal studies.
Credit your sources appropriately.
Of the [x] [thousand / million] potential customers for [product type] products, approximately [xx]% will
[buy / use / want / expect] [xxx] to help them [deliver their work / maintain xxx / expedite their
production / reduce costs]. [xxx] of these [type of product] products will have a [xxx] capability, and
about [xxx] of those products will require the addition of [note other necessary features] to meet customer
requirements.
Repeat the above information for as many market segments as you require.

Strengths, Weaknesses, Opportunities & Threats (SWOT Analysis)
Strengths
In covering your strengths, be sure to place at least as much (if not more) emphasis on marketing
(as well as your management team) as on your product.
[Company] brings a considerable pool of product and marketing strengths to the [market name]
marketplace. In terms of product strength, [product name] has several distinct advantages over the
competition. First is its marked advancement in [xxx technology / operating efficiency / customer options
/ functionality].
Address these areas for each of your products. How else is the product favorably differentiated
from the competition:
In delivery?
In actual performance?
In quality and reliability?
In production efficiencies?
In breadth of line and / or options and enhancements?
[Company]’s greatest strength is the innovative approach it has taken to designing and building [product
names]s. Being a smaller company, [Company] has greater flexibility than its larger competitors to try
different materials and methods since it does not have to consult with an entire panel of engineers or
obtain unanimous approval from multiple divisions to implement a viable new customer-approved
solution. This means that the latest breakthroughs in design will be implemented and tested here before
comparable products are even off the drawing board at competitive companies.
In marketing, our most powerful assets are:
[x]
[x]
[x]
Describe your strengths:
o In segmentation



o In distribution
o In pricing
o In brand awareness / image / recognition
In the corporate arena, [Company] is supported by [xxx].
Describe your company strengths:
o Size
o Financial resources
o People
o Reputation
o Business Relationships
Weaknesses
“What is a weed? A plant whose virtues have not yet been discovered.” ~ RALPH WALDO
EMERSON (1803-1882)
Because of its relatively small size, [Company] is not yet a “household” name among [customers
prospective customers]. If [Company] had the resources to [produce more [product name]s / market more
widely], it would be possible to increase sales revenues in the lucrative market that is made up of
[businesses / consumers] who are [anxious to find a xxx product / serious about their hobby / prepared to
spend whatever it takes] and want the best [product type] on the market.
There [is / are] [a single / several] [minor / annoying / major] handicaps inherent in our product. The only
notable marketplace disadvantages caused by this weakness are [xxx] and [xxx]. The disadvantage
derives primarily from [negative communications from the few customers inconvenienced by the problem
/ a higher volume of returns than we would have if the problem was corrected / dealing with irate
customers who’ve encountered the problem, etc]. This [has / has not] proven to be an issue in the
marketplace itself because [the problem creates return hassles for our customers and our retailers / the
problem is not evident unless you use the product in a problematic environment / the problem only occurs
for customers in certain circumstances / the problem only affects 1 in xxx customers]. The greatest impact
is [a somewhat less positive customer experience / in product returns / additional service expense for us /
warranty repairs].
Company weaknesses, at this time, consist only of [xxx]. However, we are taking steps to [xxx]. We feel
these measures should eliminate or significantly reduce the problem.
Research has shown that this market annually generates total sales of $xxx million worldwide Currently,
[xx] of the larger [manufacturers / product developers / resellers] in the U.S. and Europe dominate this
market.
[Company] has a substantial amount of work to do in order to secure a portion of the European market.
[Company] is currently competing with [product type] builders who have been designing and building
[product]s for [customers] since [year] and whose names are now almost synonymous with [product
type]. Furthermore, with European [businesses / consumers], national loyalty is frequently a factor in the
final purchasing decision.
By 20[xx] we should be able to position ourselves to [xxx] and thereby reduce this weakness
considerably.
Opportunities
“Too many people are thinking of security instead of opportunity. They seem more afraid of
life than death.” - James F. Byrnes



The upside potential for [growth / expansion / new product introductions] will support substantial revenue
increases in the immediate future. Over the next two years, our current [product name], [product name]
and [product type] products are expected to perform at rapidly-increasing levels in [emerging
international markets / markets where until recently, likely customers lacked access to the technology
required to use [Company] products / in next-generation markets with an entirely new customer profile].
Based on current and projected market conditions introduced in the Product Strategy section of this plan,
it is apparent that [Company] will be able to [xxx] and [xxx], to take full advantage of [xxx]. Allowing for
[unexpected / seasonal / economically or politically driven] drops in sales, market trends indicate that
[Company] stands to realize a [minor / acceptable / significant / major] jump in revenues, due to [justify
potential with logical rationale].
Unexploited Opportunities
“Opportunity is missed by most people because it is dressed in overalls and looks like
work.” - THOMAS EDISON
[Company] could create a completely new product application by entering the [xxx] market and
positioning [product name] as a [xxx] rather than the [product use] use for which it was originally
designed. As this is a market that neither we nor our competitors have yet tapped, we would only be
competing for dollars that might otherwise be spent on [xxx] or [xxx]—unrelated purchases.
Further opportunity for our product exists in [xxx] market(s).
Describe how the current line of products and technological capabilities might be leveraged
effectively in other markets.
Describe the estimated cost of entry, time-frame, and risk in this market.
Still another possibility for development involves [xxx].
Alternative distribution, technology licensing, creating up / down market brands, etc.
Threats
Environmental threats include [wildfires, or a moratorium on lumber harvests resulting in a shortage of
raw materials for production / fuel shortages resulting in reduced or interrupted production runs / long-
term drought reducing water rights required for production, etc.].
During the early nineties, a great number of [product type] [builders / manufacturers / resellers] who had
not foreseen the tremendous popularity of new [product type]s suffered financial difficulties when the
demand for the older [product type]s fell. As a result, many companies either merged with other [product
type] companies or went out of business. [Company]’s revenues were not as dependent on [xxx customers
/ outdated production methods / the older product type], so the impact was not as great. However, this
industry downturn did have a negative impact on most companies’ plans for future expansion and
development. Until recently, in fact, [Company] was one of the few American [product type] companies
to aggressively pursue a share of the European market. Now, a number of [product type] companies have
built their facilities to take advantage of the [new / sustained / stabilized / growing] demand for newer
[product type] products and have been aggressively pursuing market share in the U.S. and abroad.
Other known threats include [trade barriers or embargo / localized recession or depression in our
geographic target market, etc].

Customers
Who is buying products or services in this category?
Use information from industry reports, census data, trade journal studies, etc.



A customer is the most important visitor on our premises.
He is not dependent on us. We are dependent on him.
He is not an interruption in our work.
He is the purpose of it.
He is not an outsider in our business.
He is a part of it.
We are not doing him a favor by serving him.
He is doing us a favor by giving us an opportunity to do so.
- Mohandas Karamchand Gandhi (a.k.a. Mahatma Gandhi)

“It’s critical to communicate just who the customer is today, and who he or she will be five
years from today. “It’s appalling to see so many [businesses] with good ideas, who can’t
answer the question about marketplace demographics.” ~ Lawrence Mohr, Founding Partner,
Mohr Davidow Ventures, Silicon Valley, CA
“A convincing plan effectively describes the knot in the stomach of buyers. It delineates
what buyers are worried about and why they are concerned about it. It shows, through
personal experience, survey data, statistics, and buyer testimonials, what keeps customers
awake at night.” - Ray Smilor. Excerpt from “How to Read a Business Plan”
Use information from industry reports, census data, trade journal studies, etc. to define and profile
your target audience.
Knowing exactly who you're selling to is crucial to obtaining a favorable response from your
banker—he / she knows that all the sales talent in the world is wasted unless it's directed at the
right person, who has the need, the ability and the authority to purchase what you sell.

What kind of profile does your customer fit?
o Innovator
o Early Adopter
o Early Majority
o Late Majority

What current economic factors influence your customers’ spending?
What personal factors influence your customers’ buying decisions?
Who else influences the final decision to purchase?
Demographics consist of the basic qualities and characteristics of your market: age, gender,
culture, employment, industry, income level, marital status, location, family, occupation, education,
social status, etc.
We’ve provided a sample template below where you can list the demographic attributes of your
customers. You may want to include several types of customers in your demographics, such as
Business Owner, Homemaker, Teens, Dual Income No Children, Nuclear Family, Older Couple, or
Young female Professional, if they are likely to constitute some portion of your target market.
Psychographics consist of the emotional and behavioral qualities of your target market: lifestyle,
motives, needs, interests (leisure pursuits, sports, etc.), purchase history (recent buyers of your
product) emotions, rationales, psychology and thought processes behind the decision to buy your
product. They may also include your customers' interests, associations to which they belong, other



similar or related products they've purchased, activities in which they're engaged, the length of time
they remained with a particular job, etc. Demographics define the qualities of those people who
may *need* your product, while psychographics are the qualities of those who may not need your
product as much as they *want* your product.
Technographics (Here’s a new one for you) describes the relevant level of technology embraced
by your customers and the role technology plays in their buying decisions for products such as
yours.

The most typical customer for our product is someone in the [x] field, and who currently uses a [type of
product] for [use / application / purpose].
It is likely that potential customers are going to be familiar with [similar products / existing products that
our new product will replace / our type of product] and that they will readily accept our new [product
name or type], provided that we [approach / educate / contact / convince or persuade them to switch].
Complementary products already in use by our customers include [list other products that work with
yours]. Customer ownership of these products is a tremendous help in compelling customers to [acquire
our product / use our product].
It is easy to understand why people are motivated to buy [product type] products. They really need to
[xxx] and our [product name] meets that need.
What motivates people to buy your product? (Provide a practical and an emotional reason)
Ask your customers—via telemarketing, warranty cards, ad inquiries, etc.
How are the key competitors perceived?
How do your customers (current and potential) perceive your company and your products?
(This will tell you your current positioning in their minds…)
How will they receive your [new / enhanced / redesigned] product?
How sensitive are intended customers to pricing differences?
This information is frequently available with demographic statistics.

Customer Profile
Include Titles of people who:
o INITIATE the inquiry for your product/service,
o INFLUENCE the decision(s) to buy (and how they influence it),
o DECIDE which product or service to buy, and
o PERMIT the purchase to be made (sometimes the decision maker and the permitter are
the same person, but oftentimes, for example, the CFO will sign the paperwork after
another manager has submitted his/her recommendation).
Our primary audience is comprised of customers between the ages of [x] and [x], who use our products
[at work / on the road / during leisure time] for [data storage / collaboration / interacting with customers,
associates, vendors / sports / relaxation / refreshment / renewal / leisure activities / gaming / marketing /
tracking and trading stock / watching market trends / delivering educational presentations, etc.].
[Company] customers [businesses / themselves] typically have annual [revenues / incomes] of $[xx to
xx]; already own xxx, and foresee expanding their [xxx] activities to include [xxx].
[Company] meets their specific needs for [your product type] with [the best / the only / the most



appealing / the most cost effective / our proprietary technology] solution for [xxx—what they want to do].
More than xx% of our customers fall into these parameters:
NOTE: We’ve included templates below for your customer profile. Edit the most suitable profile(s),
or create your own to correspond with your actual customer profiles. If you customize the sample
profiles, be sure to change the text color (and style, if necessary) to correspond with the rest of your
plan.
Be sure to credit your information sources for any materials you site, including your own research. If
you have conducted extensive market surveys and analysis, you may want to include more
information about the methodology you used, the size of your target population, and any pertinent
discoveries that were not part of your original assumptions about your targeted market segment.
This can be included in the Supplementary Documents section of your business plan.
Corporate Executive
Title: [President, VP Finance, VP Mfg, VP Sales, Office Manager]
Authority: [Permitter, Decision-Maker, Influencer, Technical Advisor, Initiator]
Viewpoint: [Big Picture, Financial, Department, Personal]
Position: [Responsibilities / daily activities]
Emotional Influences: [Status, power, empire building]
Practical Influences: [Saving money, efficiency]
Education: [Ph.D., MBA, Bachelor, College, Technical School, High School]
Limitations: [Geographical, Purchasing Approval]
You will need to mix & match these sections to suit your business.
Add the following section before the next section you add.

The other xx% fall within roughly x% of these ranges, so our market is [relatively cohesive / diversified /
extremely broad], making it [easy / relatively easy / difficult / nearly impossible] to identify and reach
these customers with our marketing efforts.
Young Married Couples
Age: [35-55]
Income: [Medium to high]
Sex: [Male or Female]
Family: [Married or no children]
Geographic: [Suburban]
Occupation: [White collar]
Attitude: [Early adapters]
Housewife
Age: [35-55]
Income: [Fixed]
Sex: [Female]
Family: [Full nest]
Occupation: [White collar / Blue collar family]
Attitude: [Early majority]
Young Professional
Age: [25-35]



Income: [Medium to high]
Gender: [Male or Female]
Family: [Bachelor or married]
Attitude: [Innovator]
Wealthy Rural Families
Age: [35-55]
Income: [High]
Family: [Full nest]
Geographic: [Rural]
Attitude: [Early majority]
Older Couple
Age: [55-70]
Income: [High or fixed]
Family: [Empty nest]
Occupation: [White collar or none]
Attitude: [Late majority]
Elderly
Age: [70+]
Income: [Fixed]
Family: [Empty nest]
Occupation: [None]
Attitude: [Late majority]

Case Study

Where possible, succinctly document Customer Case Histories of their selection, application and
success with your company and product(s).
PURPOSE: Investors and new customers will feel reassured about doing business with you.
Customer Case Histories are excellent sales tools for your sales force. Don't neglect this simple
and powerful asset.

Customer List
On a separate page, list your major existing customers alphabetically.
If appropriate, describe their application and uses of your product(s).



What are the principal buying motives for your products/services (practical & emotional)?

Ask your customers -- telemarketing, warranty cards, ad inquiries, etc.!
How are the key competitors perceived?
How do these people perceive your company and products/services? And/or how WILL they
receive your (new) product/service?
How sensitive are they to pricing differences?



Business Strategy

"Strategy is concerned with drafting the plan...
shaping the individual campaigns and within these
deciding on the individual engagements."
- Karl Von Clausewitz, 1796

As the idea for this business grew out of our own dissatisfaction with available resources for [product],
[Company] offers customers advantages that appealed first to us, then to those we interviewed in our
research. We have developed a unique approach to this business, designed to satisfy our own wishes as
customers, and evolved to address other issues raised by prospective customers. We provide [exclusive,
value-added service / a highly-effective customer loyalty program / customer referral credits / personal
instruction / training / assembly / installation…whatever sets you apart]. To date, we have not
encountered any other [product / service] combination offering similar added-value. [Company] fully
intends to establish itself as the source of choice for [product type] products in the [xxx industry / xxx
marketplace / city / county / region].

Growing Into the Future
[Company] is looking further into the future than just [developing and revising its current products /
adding new (products / product line) / creating a web presence / offering products over the web].
[Company] has recognized a unique opportunity to [describe the unique opportunity].
Your future vision could be related to a new product, a service you will offer that will increase the
desirability of your products, new technology that will enhance sales…
Your strategy could be to make use of a new selling channel, such as the Internet, or a retail group
that represents a related product but has never carried a product like yours.
This section could be focused on a strategy to promote your product in an entirely new market
where it will initially have no competition.
If you have come up with a way to sell your product that would preclude or supplant competition,
describe it here.
[Company] will [offer / deliver] this [product / new service related to our product(s) / functionality /
capability / technology] to customers through [describe how you will get this new product or service to
customers]. Based upon [Company]’s experience with [existing / proven] [products / services], this
strategy will allow us to [describe your anticipated results], and market the new [product / service] as a
solution to [describe the problem this new approach solves].
Customers will be able to [describe what customers will now be able to do that they couldn’t before]. This
way, [Company] product lines will extend rapidly and diversely, with [little added cost / minimal
advertising / ready customer acceptance]. Additionally, this [product / service] will enable customers to
[describe additional customer benefits].

Wants & Needs of [Customer Type] [Company]'s Response to Customer Requirement
[Problem customer needs to solve] [Customer benefit of your product / service]




We have planned a carefully focused, targeted media blitz surrounding our [new product launch / grand
(re)opening / relocation…] Working with the local Chamber of Commerce and a local advertising firm to
create high levels of visibility, we will announce our [initial media event] and follow up with scheduled
promotions to continue the momentum into 20[xx]. Working with [PR Firm or Consultant name], we
have developed press releases and ads that will display on [municipal transit vehicles (buses—sides and
rear, overheads on the train, etc) / billboards along major arteries / bus stop transparencies…].
We plan to add momentum with radio spots and an [on-air contest] to name [store mascot / a product
category…]. We anticipate local TV coverage at our press conference and when we announce the winner
of our contest. The nature of our product line lends itself nicely to [logical tie-in promotions with xxx /
strategic alliances to cross-promote related industries / high-visibility promotion in xxx].

Business Strategy Snapshot

1) Leverage [Company]’s successful brands of [product / service type].
2) Capitalize on first-to-market product momentum, in anticipation of market and technology
convergence in the coming months and years.
3) Transform [Company]’s products into [describe your transformation process].
4) Leverage [Company]’s customer-base, marketing, and current content to quickly [state what
your strategy will accomplish].
5) Enable [customers] to [what they will now be able to do…] and enjoy the benefits of [describe
the solution you’re providing].
6) License 3rd party developers to [create after-market products / services] to further expand
[Company]’s product line and extend [Company]’s reach.
7) Acquire [xxx] to extend the useful life of [product name] giving it wider appeal in the [market
or customer group] market.
8) Aggressively [sell products and services / promote new features, benefits, applications, etc.]
through [new / multiple] channels to [list customers you will aggressively target].
9) Cross-sell [describe products / services you will promote] to [your target audience for cross-sell
promotion], [locally / nationwide / worldwide].
10) Build a community of [xxx] [thousand / million] [individual / consumer / business / corporate]
customers by 20[xx].
11) IPO or acquisition: 20[xx]-20[xx].

Summary Financial Projections
Due to some Word/Excel limitations, you may need to insert this Excel table manually…
th
Open the Financial Model to the Summary tab (7 tab from the left.)…
Look to the upper right for a green table.



Copy the entire table, click in front of the ‘x’ below (for placement), then pull-down under Edit (menu
bar) and click ‘Paste Special,’ Click on ‘Microsoft Office Excel Worksheet Object, ’ then ‘Paste Link’

Fiscal Year (000) 2007 2008 2009 2010 2011
Revenue $ 4,408 $ 369 $ 720 $ 873 $ 1,284
COGS 889 51 93 122 179
Gross Profit $ 3,519 $ 318 $ 627 $ 752 $ 1,105
Gross Margin 80% 86% 87% 86% 86%
Operating Expenses $ 1,931 $ 1,774 $ 2,005 $ 2,136 $ 2,391
Operating Income $ 1,588 $ (1,455) $ (1,378) $ (1,385) $ (1,286)

$5,000

$4,000

$3,000

$2,000

$1,000

$-

$(1,000)

$(2,000)
2007 2008 2009 2010 2011

Revenue Operating Income



Demand / Revenue Model
You must show multiple ways your business can and will make money.
“Mathematicians are like Frenchmen: whatever you say to them they translate into their own
language and forthwith it is something entirely different.” - Johann Wolfgang Von Goethe (1749-
1832)

Our revenue model has grown from [Company]’s initial focus on [your original area of focus], and will
expand to encompass [new products or services / multiple revenue sources / untapped markets] supported
by [this new introduction / expansion of our existing line] as follows:

Direct Purchase
All [products / services] can be [purchased/licensed] individually or in bundles/package deals. Customers
will be able to purchase directly from [Company] as well as pay immediately. This reduces accounts
receivables and increase cash.

Projected Product / Service Pricing
Purchase price of $xxx includes:
Product A
12 Month Warranty

Subscription of $xxx / month includes:
24x7 service, plus:
Automatic Updates / Upgrades

Payment of $xxx / month includes
All of the above, plus
Access to ALL content

Subscription of $xxx / month includes
(ASP Model: Minimum 12-month commitment):
All of the above, plus:
Enterprise multi-use subscription: up to 20 users ($499.00 / month up to 50 users)

Financing
Given the company’s position in the marketplace, it is very possible that it can be lucrative to support our
customers with financing (subject to certain legalities). Systems will need to be built to accommodate,
control and manage such a process.



Retail Distribution
The Company [has / will have] [a / an] [new / established] profitable business selling its product through
[your sales channel]. [Company] intends [to / to continue to] maximize revenue through this channel
[indefinitely / for at least the next xx years / until xxx].

Customer Purchase Options
All [Company] [products / services] can be purchased [individually / as part of a package / as a combined
product and service option]. Customers will be able to [contract for services / add other components /
obtain parts / upgrade their xxx] through [their local retailer / direct from [Company] / field reps / online /
by phone, fax or mail].

Strategic Alliances — Promotion & Revenue Sharing with Related Businesses
A strategic alliance is simply a business-to-business collaboration. Alliances are formed for joint
marketing, joint sales or distribution, joint production, design collaboration and countless other
tasks. Alliances pool resources to reduce costs and increase revenues.
Because the [target market] marketplace is [diverse / concentrated / scattered / notoriously hard to reach /
easy to reach], [Company] will [build relationships / extend existing relationships] with [affiliates /
alliances] to reach more of the potential market(s) where these alliance companies and affiliates have an
established presence and credibility with the [alliance customer type].

There are many ways to reach the top of an oak tree;
(a) start climbing, (b) sit on an acorn, (c) make friends with a big bird...
this is a list of BIG Birds.

[Company] has already formed some very important relationships with major companies in the 2002
NAICS Title industry, including:
xxx
xxx
xxx

OEM Relationships
Original Equipment Manufacturer (OEM) relationships [examples: a car manufacturer includes brand X
tires on its SUVs; an answering machine company includes a digital display from Company Y in its
answering machines; a software publisher licenses an installer software package that’s included as part of
the software, allowing the user to install the application; a computer hardware company obtains rights
from several software publishers to combine their respective applications in a promotional software
bundle] provide another source of income, selling our [your product name] as part of [the complete
product sold to the end user—the car, including your tires; the software including your installer; the
bundle including your software application; the answering machine including your Liquid Crystal Display
(LCD)], with little or no added costs for [Company]. [This / These] relationships provide [widespread /
some / little] product recognition for our [product name] brand. The major advantage of selling through
OEMs is to [provide rapid market penetration / get our name in front of customers we might not reach
otherwise / capture customer and market information through product registration / generate additional
revenues with no effort on our part].



These relationships also provide [Company] [worldwide coverage through established sales forces /
access to related markets / free promotion / media promotion too costly for our marketing resources].
We have signed OEM agreements with:
xxx, where our [product name ] product is part of their xxx.
xxx.
xxx.

We are currently negotiating OEM agreements with [xxx] and [xxx].

Joint Marketing Agreements
Joint marketing with established companies will produce revenues, credibility, and market presence.
[Company] is pursuing joint marketing agreements with other organizations to increase visibility and
credibility through association for [Company] products in the [x] market. Our plans include having [joint
marketer name] market our [xxx] products within their product line, in their promotional materials, and
on their website. We will similarly promote their products along with our own.
We plan to offer [other company's product name] to augment our product line.
[Company] currently has joint marketing relationships with [joint marketer name] and [joint marketer
name]. We are working on agreements with [prospective joint marketer name], [prospective joint
marketer name], and [prospective joint marketer name].

Third Party Supplier Agreements
To provide our customers the greatest usability, we require [additional features / components] to enhance
its [attractiveness / capabilities / functionality]. This will help us meet customer requirements more
effectively.
Because we do not have the resources to [develop / produce / install] this [feature / functionality /
component] internally, we rely on [x] manufacturers for the development of [additional features /
components]. [Air conditioning / graphic equalizer / software plug-ins—whatever you have developed,
manufactured or installed] is a good example of a third-party enhancements that makes our [x] product
more appealing, and extends its usefulness for our customers.
[Company] has established Third-Party Supplier relationships with:
[xxx], suppliers of [xxx]
[xxx]

Additional Third Party Supplier agreements are being negotiated with [x].
[Company] is always looking for additional sources of revenue, and opportunities to create profit centers
derived from existing revenue opportunities, alternative markets, and repositioning current products for
applications in other markets. At this time, we are also considering [describe any potential new revenue
sources under consideration].

Customer Value Proposition
This is a common question asked by investors – why would a customer buy your products or
services?



Some of this is lifted from our own plan to give you an idea…
Many books, college courses, and seminars exist to assist business people to solve a myriad of business
problems. Software applications (spreadsheet, word-processing, and database) have been created as tools
to assist people to solve their own problems. Many vertical market applications (accounting, billing) have
been written to solve specific problems. Many business people have the spreadsheet, word-processing,
and database software, but they often do not have the knowledge to effectively handle the multitude of
projects and problems facing them. Others do have the knowledge (consultants and seasoned managers),
but they do not have the time necessary to work on these projects. JIAN templates combine the
knowledge with the software (with a tremendous amount of typing and formatting work already
completed) to provide the fastest and most efficient means for successfully completing a complex project
quickly and inexpensively.
For example: [Product/Service] enables [customers/entrepreneurs/business managers/consultants] using
existing word-processors and spreadsheets to complete a business plan by simply filling in blanks and
editing. Overwhelming customer response indicates that BizPlanBuilder and our other products enjoy a
exceptional reputation. Inquiries from prospective customers suggest that there is continuing and growing
demand for this type of [product/service]. The Company is constantly offered suggestions for future
products.

The nature of [Company] products enjoy many advantages:
Technological non-obsolescence (lower maintenance, longer product life)
Industrious customer set (more stability through tough times)
Sustained sales potential per title (buyer pool continually renewed)
Low tech-support requirement (capacity for more titles on same overhead)
Cross-industry application (business functions are generally universal)
Line-leverage with multiple titles (extending the original sale)
Strong retail shelf appeal (no demo or technical ability required)
Add-on sales of related, non-[Company] products (using direct marketing techniques)
Difficulty of software competitor entry (more than technical acumen required)
Large diversity of possible products (limited only by knowledge set)

If you can find a quote from a credible source that supports your customer value proposition, add it
here.
“Finding and buying the right computer system is one thing; putting it to effective use is quite
another. Although many executives have the software they need to handle the multitude of
projects and problems they face, they simply don't know how to make that software work for
them. Those who do understand the workings of this new technology often don't have the time
to start from scratch with every new project. To address this problem, JIAN created and
introduced project-specific software packages that operate as templates in conjunction with
popular PC and Macintosh applications like word-processors, spreadsheets and databases.
Using these templates, executives in a wide variety of businesses can apply the software they
already own (and are familiar with) to the full range of projects and problems that demand
their attention.” ~ California Business Magazine



Product Strategy

Principle of Elegance: Maximum strength with minimum materials.
- Ren Zaphiropoulos

For an overview of Product Strategy, refer to the BizPlanBuilder Handbook of Business Planning
“Investors consider whether you are focusing on a single project or a number of projects.
On the other hand, investors may feel uncomfortable with a one-project company if the
product that results shows no sign of leading to subsequent generations or related
products.” - Ken Wilcox, Executive Vice President & Chief Lending Officer, Silicon Valley Bank

Current Product
Proprietary information is available to investors upon signing of a Non-Disclosure Agreement.
What are the characteristics of your product or service?
Describe how your product works or how the service is used.
How has your product or service evolved over the past two years?
[Company] currently offers [product type] products for the [market segment(s)] market(s), including.
[Product name], a [product type] for [xxx]

[xxx], our principal product, consists of [xxx]. Overall our existing product line is [give status].
Development of [new products / existing product upgrades / spin-off products] is in progress and future
[product type(s)] products are planned.
The first product developed by [Company] is called [product 1], and was introduced in [year introduced]
in order to [describe purpose].
Since then, we have introduced [product 2] in [year introduced], and then [brief history of your product
line up to today].
Proprietary Technology / Intellectual Property
Most Venture Capitalists (many angel investors too) are nuts about IP (Intellectual Property)
protection, leveraging IP assets, etc. “What is your IP Strategy?” What do you have that you can
protect so well that an 800 pound gorilla can't come in and re-engineer everything in 6 months or
less and then pound you in the market.
If you have a ton of IP, but none of it is truly 'unique'. It is more a compilation of many things from
many sources. While that has value, the question is, How Much and at What Cost?
Our products are protected under the following:
List any patents, copyrights, trademarks, licenses your company owns.
For patent and trademark information, go to www.pto.gov
General Patent and Trademark Information: [703] 557-INFO.



Status Information for a Particular Trademark: [703] 557-5249.
For general copyright information, call [202] 479-0700 or go to www.
For our [xxx] [technology / capability] we have [OEM / licensing / royalty] agreements with [xxx] as
follows: [give general terms of agreements].
Customer Return on Investment
For most customers, [product name] will pay for itself in terms of [xxx] within [xx] months, due to our
[xxx].
Factors influencing rapid customer ROI include:
Fewer rejects or breakdowns
Faster completion of [xxx]
Reduced cost of ownership
Faster inventory turns
Improved efficiency
Greater convenience
Lower warranty costs
Advantages of a better-quality end product
Cost savings in other areas
Regarding cost savings, [product name] will save our customers money in terms of [x].
Reduced labor costs, lowered reject rate, reduced downtime, lowered inventory costs, improved
convenience and displaced employee activity

Our customers can generate more profits in terms of [heightened productivity, improved product
performance, increased capacity and concentrating on their business rather than the use [or results of
failure to use] our product.
Our investment in [product name / product line name] has [consistently / seasonally / sporadically]
produced [a / an] [outstanding / acceptable / marginal / unacceptable] return for [Company]. In the last [x]
[weeks / months / quarters / years], [product / product line] has shown a [xx]% internal ROI, based on net
profits divided by the total investment made for that period.
Useful Features / Benefits
How do your features and benefits differ from other similar products?
What customer reactions might be anticipated due to these characteristics?
Explain how you will satisfy customer needs and wants.
All [Company] products have [particular characteristics unique to your company]. The capability for
[xxx] is a particularly unique feature that we alone can offer our customers.
These combined capabilities provide [note specific customer benefits]. This, in turn, can be used for [note
more/related customer benefits].
Benefits could include: entertainment, improved appearance, better health, overload reduction,
stress relief, reduced project time.
[Product 1] provides [list features] features that give customers [list specific customer benefits].
[Product 2] provides [list features] features that provide [list specific customer benefits].
In addition, [xxx].
Note attributes that:



Establish the reasons customers will buy from you.
Prove that sales will be made.
Prove that you can convince people to buy.
Quantify your claims where possible.
[Product name] is an extremely [xxx] product, requiring [xxx]. For example: one of [Product]’s features is
its ability to [xxx]. [Product] allows users to [xxx] [more quickly / more easily / more cost effectively,
etc.].
[xxx] is another powerful feature. This includes [xxx]. [xxx] saves a tremendous amount of time when
[xxx].
Compared to traditional [xxx]s, [product name] is approximately [xxx times faster / half as expensive to
own and operate / one third as likely to break down under xxx conditions / xx times as popular as
[competitive product xxx].
In addition, [product name] does not require [xxx] or [xxx].
Describe the major unique value-added characteristic your product line or process provides to the
customer and how this translates to a competitive advantage for your company.
The combined major benefits of all [Company] products are improved [xxx] through [xxx], and [xxx].
Product Life Cycles
Explain life cycle for your product(s). Is it in the emerging, growth, maturity or decline stage?
For increased personal understanding, it is recommended that you create a simple chart covering
the life cycles of your products.
Where are your products on this chart? If several products are in different life cycle positions,
indicate each separately.
Describe the time factors influencing your ability to make money on your product sales, as well as
the effects of economic cycles. Include contingencies.
What conclusions do you draw from the life cycle positions? Are they up to date? Are there any
early warnings of obsolescence?
The life cycle for [product line name] can best be described as follows: [describe life cycle position].
Due to our recent efforts to [xxx], [Product 1] is in a strong market position. We feel that for the next
[projected period of time] it will continue to [xxx] and generate profits at or above expected levels.
[Product 2] will need to be [improved / upgraded] within [xx] [months / years] in order to ensure that it
does not move into the decline stage.
Overall, we conclude that our products will continue to be viable in the marketplace during the next [xx]
[months / years] and that [Company]'s future planning and product-related activities will ensure a strong
market presence.
Product Selection / Development Criteria
Describe how your company arrives at its product development decisions.
Factors that should be covered in your selection criteria include: financial benefit to company,
relatively low investment requirements, positive return on investment, fit with present strategy,
feasible to develop and produce, relatively low risk, time required to see intended results.
Because marketing is [our single largest / a large] expense and it is where [most / much] of our effort is
applied, customer focus is a very important criteria. The idea is to keep our customers forever, by
continually offering them a valuable product or service, thereby diminishing our costs of reaching and



appealing to them. Wise product selection is therefore critical to [Company]'s success.
At [Company], we realize that development projects are growing steadily more expensive. To assure the
best possible product decisions we have implemented the following criteria for evaluating and selecting
projects:
Include any of the following criteria that apply to your situation, or add your own.
Can you meet the needs of the customer and solve a specific problem?
[Company] provides products to assist customers with [xxx]. Our [xxx] products help reduce time, effort
and expense by [x]%, and easily retail for $[x] – $[x] each.
Can your product be implemented using off-the-shelf parts?
[Company] can implement product or service using [list off-the-shelf parts]. Other parts are fabricated
[internally / by [Supplier I] and [Supplier II] / offshore in our own facilities located in [country].
Where will you need to comply with new laws or government programs?
New laws or government programs that may impact our product include [list regulations, legislation,
programs or statutes]. [Company] will comply with these regulations by [xxx].
Can we adapt to or capitalize upon needs / business concepts?
Would it make sense to add the product to our catalog; to send product literature to our existing
customer base?
[Company] will add new [product type(s)] to our [product line, catalog, product literature] to meet new
opportunities in [xxx].
Per Sun Tzu's The Art of War, as to our product, we must choose our competitors and the playing
field carefully. Go where the competitors are not. Be first. Avoid "me too" products. If a similar
product exists, can our product be superior in its functionality, presentation or marketing?
Look at potential sales, growth, profits, and time to payback of development costs.
What barriers must be overcome for a potential new product entry?
Does the existing item have an existing perceived value. What would it cost elsewhere, or what
other product or means could be used to accomplish the same task? For example, using
BizPlanBuilder as an example, we would ask: How much would it cost JIAN customers to write a
business plan without BizPlanBuilder?
We will use outside material providers when they have [a body of knowledge / materials] useful to
expedite the development of a [Company] product. Providers are selected based upon their expertise,
active participation, reputation and success in their field, plus the overall quality of their [materials /
workmanship]. When beneficial, we seek to blend the [materials / ideas / components] of several
[suppliers / authors / inventors] to create an optimal hybrid product delivering the greatest benefits to our
customers. These 3rd parties are generally compensated by [a lump sum cash purchase / an earn-out basis
/ royalty].
It is our philosophy that a product must be improved by at least [x]% every [xx] months in order to
maintain its competitive position, market value and price point. We must maintain our ability to adapt as
the environment, market demand, our customers' needs, and our capabilities change.

Planned Products
[Company] plans to continually develop new products and enhance existing products. In response to
demonstrated market demand, new products or services being developed in the near future include [xxx],
[xxx], and [xxx].



Additional concepts / plans for follow-on [next generation] products include [xxx].
Discuss plans for your next generation of products.
Discuss add-on products or services for future customer needs.
[New Product 1] development [will begin / started] on [date] 20[xx]. The targeted release of [New
Product 1] is for [month], [20[xx]. Development and testing will require the following resources: [list
staffing, materials, tooling, capital equipment, technology, new processes].
The targeted release of [New Product 2] is for [month], [20[xx]. [New Product 2] development [will begin
/ started / is scheduled to begin] on [date] 20[xx], and will require the following resources [list staffing,
materials, tooling, capital equipment, technology, new processes].
If you feel it would be beneficial, add details of your development plans, including milestone dates,
for each of the new products mentioned above.

Research & Development
In response to demonstrated needs in our market, new [products / services to support new, existing or
planned products] are being developed to include [xxx], [xxx], and [xxx]. These new [products / services]
are particularly important to [describe prospective customers], as, to date, their choices have been limited
to [note the alternatives to your product, or service for your product]. [Product / service] will make it
possible to easily [describe what your new addition will provide for the customer]. Launches are planned
for [month], 20[xx] and [month], 20[xx].
Much of the development time and effort at [Company] during the past [x] [months / years] has been
spent on research and [product / process] development for [New Product x]. During 20[xx], [Company]
spent approximately [x]% of sales revenues on R&D. Our plans for 20[xx] and beyond call for [a / an]
[increase / decrease] in R&D spending to [x]% of sales.
[Company] is regularly examining roles that new products will play in the growth of the company. In
order to promote the speed and effectiveness of our future new product development efforts, [Company]
management is committed to the following: [list your commitments].
New product development commitments by management could include: beefing up the R&D staff,
reorganizing to empower development team(s), a dedicated customer requirements group, placing
greater emphasis on training, better market research, more formal product selection criteria,
providing upgraded resources, raising quality standards.
These commitments will span a period of [x] [months / years] and cost in the range of $[x].
In addition to our existing products, we [have developed / plan to introduce] [product or product-related
service name] follow-on [product(s) / service(s)], with launch dates anticipated in [quarter and year].
[New Product / Service name] is a [type and nature of the product / service] and we expect [immediate /
swift / global / gradual / relatively rapid / relatively slow] adoption in the [market name] market. [New
Product / Service name] represents a / an [easily-implemented / quickly installed / low-cost / viable
alternative] solution to the problem of [customer problem your product / service solves]. [Type of
customers] prospective customers can now easily [what they can do with or because of your product].
Other [Company] products include [list products not yet discussed], which we expect to [note your
expectations for these products in the immediate future].
Testing
[x] products listed in the Current Product section have been tested for ability to be manufactured and [are
currently ready / by (month, 20xx) will be ready] for market
To validate manufacturing feasibility for [product name], the following [tasks / operations] were tested in



our pilot production process:
Task / Operation (Sample) % of Time
Product technology and methods xx%
Key parts and vendors xx%
Processing sequence and repeatability xx%
Capital equipment and vendors xx%
Specifications and control measures xx%
Production lead-time and volume standards xx%
Total 100%

Pilot testing indicates standard unit production will be [xx] hours per [xxx] units. Processes have been
validated to ensure optimally cost-effective, quality output.
Final tests were successful with regard to [all / most / etc.] evaluation criteria. Results are available on a
need-to-know basis, as indicated for proprietary information. Testing was conducted during the period
[month, year] through [month, year], at [xxx] facilities.
Volume testing will be accomplished by [xxx].
How this will be accomplished and when.
Use milestone chart to indicate ramp-up tasks, resources, and milestones.
Specify equipment, facilities, labor, etc., required in terms of quantity, number, and cost.
The following [product / process] requires additional pilot testing prior to volume testing:
list or otherwise indicate necessary tests.
Xxx
Xxx
xxx

These products are expected to be ready for market within [x]-[months / years], contingent upon current
products generating sufficient cash flow to support additional product development.
Joint Development Efforts
[Company] [is working in / has completed] joint development efforts with [xxx] and [xxx]. Financial and
technical responsibilities [are / were] also shared in a joint development project with [xxx]. A pending
project may be entirely funded by [xxx], who will [hold / relinquish to us] all rights to the resulting
[product / technology].
A joint development project with [xxx] has been discussed, but has not yet begun. This project will
require [technical input / development efforts / research] from [xxx], [xxx], and [xxx].
Exhibits
If pertinent, include drawings of the product to be manufactured or a detailed description of the
service to be offered.
Include tests made, and the data and results, if available.
Show a master Pert chart of product plans.
For additional details, the following product-related documents are included in Supporting Documents.
[insert list of documents.]



Inventory, Production Costs & Capital Investment
Describe the proposed organizational location, make vs. buy, facilities, and logistics.
Keep emphasis on the productive use of capital, labor, and material resources, manufacturing
processes, vendor relations, experience and distribution requirements. Statements are needed to
indicate initial volume and expansion requirements as well as product / process complexity,
uniqueness, and costs.
Key factors in the [fabrication / manufacturing / assembly] process include [xxx].
Raw / prefabricated materials, components, and subassemblies required for production include [xxx].
List and describe capital equipment, material, and labor requirements.
Are prices negotiable?
Are the above items readily available?
List Quality / Technical specifications.
List Inventory requirements.
Identify hazardous materials or other significant safety factors.
Our key suppliers include:
Supplier I Plastic assembly
Supplier II Packaging, warehousing & fulfillment
Supplier III Computers & Equipment
Are alternate sources / materials available?

Unit price
[Company] currently builds [qty] of [product name]s. The price for each [product a] is $x, the price of
[product b] is $x, and the price of a [product c] is $x. The prices of these [products] are not expected to
increase during the three- to five-year period reflected in the financial projections.
We take advantage of economies of scale by taking advantage of [xxx].
Quantity discounts, package deals.
Indicate resource capacity and expected utilization over time; any installation and maintenance
costs; and vendor availability, if applicable.
Describe the business by listing production rates, capacity constraints, or required quality
assurance and safety programs.
In comparison to other companies, [Company]'s products are [reproduced / completed] quickly and
economically by [describe how your process or production techniques accomplish this].
Comparative analysis shows these figures to be [higher than / lower than / in alignment with /
significantly better than] competitor costs. This is due to the fact that [xxx], so our overall costs [are
typically stable year round / fluctuate by season / rise and fall with the stock market / increase or decrease
depending on market demand].
Are your products more efficiently produced than that of the competition (due to manufacturing
costs, energy savings, leaner management)?
Is your product of better quality?
Is your quality control program more thorough?
Are parts made in-house or subcontracted?



What new tooling is required for production and what are the estimated costs?
Quality Control (Investors will want to know that warranty costs will be identified and reasonable).
Unit Cost
At [Company] we will [fabricate, assemble, subcontract, etc.] the following [key parts, components,
subassemblies, etc.]:
List parts, etc., with vendors, lead-time, costs, etc.
The following breakout lists the material and labor expenses required to build a [product name]:
Computer design and drafting (x hours of labor) $xx
Creating the jig/mold/ for the [product] (x hours of labor and $x for materials) $xx
Casting/welding/assembling (x hours of labor and $x for materials) $xx
Shaping/finishing the [product] (x hours of labor and $x for materials) $xx
Painting and buffing the [product] (x hours of labor and $x for material) $xx
Packing and shipping to the customer $xx
Total cost to produce one [product] and ship it to our customer: $xx

Inventory costs
The fact that [Company] custom builds [product]s to each individual’s specifications means that there is
no inventory of [product name]s in stock. The company does maintain the necessary inventory of [xxx]
materials necessary to build and ship one week’s worth of orders (approximately xxx products). The cost
of [quantity and number units] of the [xxx] materials is $xxx. The cost of maintaining this perpetual
inventory is $xxx per month for space at a nearby storage facility.
Labor costs
[Company] has [xxx] employees, including the officers and owners of the company. The [x] [designers /
assemblers / builders] [Company] has hired are each paid a salary of $xxx/year. When [Company]
obtains the financing, then [xxx] additional [designers / assemblers / builders] will be hired at individual
salaries of $xxx/ year. Based upon previous years, [Company] has generally given [5-10]% salary
increases to non-owner employees every year. We expect to continue giving a similar percentage for the
next 3-5 years.
Capital equipment purchases & maintenance costs.
The machinery used to design and build [product name] is sufficient for current production levels.
However, if demand increases to our projected level, then [xxx] additional workstations will be needed
for [xxx] new employees. The investment for the machinery and computer equipment for each
workstation is $xxx. Upon funding, this equipment will be ordered and placed into service within [xx]
[days / weeks / months].



Competition
Two campers are walking through the woods. They see a bear! One takes off his backpack and
starts to put on his running shoes. The other asks, “Do you really think you can outrun that bear?”
“No,” he replied, “I just need to outrun you.”
Never delude yourself regarding competition. There is and always will be some form of competition
for what you are doing. Competition is a way of life. We compete for jobs, promotions, scholarships,
in sports—and in almost every aspect of our lives. Advances in technology can send the profit
margins of a successful business into a tailspin causing them to plummet overnight or within a few
hours. Because of this volatility and competitiveness, it is important to know your competitors.
Competition—Having two or three competitors may help educate the market, but few investors will
want to go up against companies with well-established installed bases even if you have a superior
product or technology.
Discuss your key competitors with regard to product or service, price, location, promotion,
management, and financial position.
Look in your telephone book yellow pages or in online phone and manufacturer directories.
Look in the industrial directories at your local library. Search on-line databases that provide
competitive profiles of other companies.
Read industry magazines and look for advertisers who sell a similar product / service.
False or incomplete information here translates as dishonesty, ignorance, or negligence to
investors, and bankers. They presume competition in some form—you had better identify it in its
variety of forms.
“Pay less attention to what men say. Just watch what they do.” - Dale Carnegie
Survey your competitor's sales line anonymously and ask how their products are better than yours.
Who are your five nearest direct competitors?
Who are your indirect competitors? (you install swimming pools… perhaps your customer wants a
roof, a tennis court, or a new car, so you must make a swimming pool a higher priority…)
How are competitors’ sales: steady? increasing? decreasing?
What have you learned from their operations? from their advertising?
What are their strengths and weaknesses?
How does their product or service differ from yours?
Start a file on each of your competitors. Keep folders of their advertising and promotional materials
and their pricing strategies. Review these files often to learn when and how often they advertise,
sponsor promotions and offer deals. Study the copy used in the advertising and promotional
materials, and their sales strategy. Understand your competitors and how they operate their
businesses.

[Company]’s product(s) offer [xxx] in [xxx] [applications / uses / situations].
Companies that compete in this market are Competitor 1, Competitor 2 and Competitor 3. These
competitors charge [comparable / a wide range of / within a $x range of our] prices:
[List examples and range of prices for each competitor to substantiate your statement].



Our top 3 competitors are:
[Competitor 1]
President / Owner [xxx]
Address [xxx]
Years in Business [xxx]
Market Share [xxx]
Price / Strategy [xxx]
Product / Service [xxx]
Features [xxx]

[Competitor 2]
Address [xxx]
Market Share [xxx]
Features [xxx]

[Competitor 3]
Address [xxx]
Market Share [xxx]
Features [xxx]

Below, we have included a more complete Competitive Round-Up listing additional details on each of our
competitors.
List below your strengths and weaknesses compared to your competition (consider such areas as
location, size of resources, reputation, services, personnel, etc.):
Key factors, such as Competitor 1’s first-to-market leadership position / Competitor 2’s recent infusion of
capital from an IPO / Competitor 3’s release of xxx / a widespread (downward / upward) sales trend in
xxx and related products] have resulted in the present competitive situation in the industry. This means
that [Company] will need to [describe what you will need to do in response to these factors, such as: seize



an opportunity / 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 type] [can / will]
[describe your competitive advantage].
[Company]’s [product 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 it is a better
value].
[Company]’s key competitor’s major strengths and weaknesses include [list strengths and weaknesses
such as: price, location, quality, suitability].
Competitor 1’s objectives and strategies are [list known strategies and objectives].
Competitor 1’s most likely response to current [economic / social / culture / demographic / geographic /
political / governmental / technological / competitive] trends affecting our industry will be [list likely
competitor responses].
Our products and related services are positioned in the minds of prospective customers as [first, therefore
best / the genericized name for this type of product (such as “Kleenex” for tissue, “Xerox” for photocopy,
“FedEx” for overnight delivery, “Q-tips” for cotton swabs, and “BizPlanBuilder” for business planning
software) / the industry leader / the one to buy / the one they’ve seen advertised / the one their friend,
associate or family member uses, etc.]. This positioning in the minds of potential customers gives
[Company] a decided [advantage / disadvantage] as a competitor [cannot claim / already owns] the lead
position. [They / We] are then left to compete on [price, delivery, location / value] alone.
New firms entering and old firms leaving this industry affect our sales of [product type] products because
[describe how these changes affect your sales].
Sales and profit ranking for major competitors in the [xxx] industry have changed in recent years. The
change has come about because [list reasons for ranking change].
Today, competitive threats come from [other companies / other industries / new or entrenched
technologies / foreign competitors], and [xxx].
[Company]'s products perform in virtually all situations where [your features, benefits, your customers
are likely to be].
Unique attributes of [Company] products and related services include [describe your differentiating
attributes].
The ability to [what it can do] is unique to [product name], and our research indicates that its
[performance / content / functionality / ease-of-use / intuitive nature / friendly user interface / kid-appeal /
mom-appeal / color / flexibility / broad range of uses, etc.] is superior to anything else on the market
today.
In all comparisons, [Company]'s products provide more features and deliver superior performance
compared with nearly all competitive products. In many instances, the number of differences is
substantial. A complete technical comparison is available.
Put all comparisons and test results in Supporting Documents.
[Competitor x]'s competitive product does not provide the same capabilities as [your product name] in a
situation where [describe circumstances].
The only way [your product name] and [competitor product name] from [Competitor x] compete is in the
area of [describe competitive area].
The [competition] advertises in [xxx], [xxx], and [xxx] publications.



Discuss results—if they advertise consistently and continuously there, then it must be working.
[Competitor] products only operate [describe the limitations of the competing product].
- OR -
This market segment is not shared with any direct competitors. Competition does exist, however, in the
[industry / countries]. Competitors in this area are
[xxx]
[xxx]
[xxx].
To perform an in depth analysis of your major competitors, complete the chart below. Columns
have been provided to describe up to three competitors. If necessary, add more columns.

Competitive Roundup
The following chart illustrates how [Company]'s product compares to the competition in several different
key areas.
Competitive Roundup—Company

Product [xxx] [xxx] [xxx]
Company Competitor 1 Competitor 2Competitor 3
Estimated 20[xx] Sales $[x] $[x] $[x] $[x]
Estimated Share of Market [x]% [x]% [x]%
Estimated Advertising Budget $[x] $[x] $[x]
Rank: 1=Weak to 5=Strong
Product Line [x] [x] [x]
Quality [x] [x] [x]
Technology [x] [x] [x]
Advertising Effectiveness [x] [x] [x]
Sales Force Excellence [x] [x] [x]
Distribution [x] [x] [x]
Manufacturing Efficiency [x] [x] [x]
Standing in Industry [x] [x] [x]
Future Potential [x] [x] [x]
Seriousness of Competition [x] [x] [x]
Number of Employees [x] [x] [x]
Greatest Strength [x] [x] [x]
Key Weakness [x] [x] [x]
Competitive Roundup—Product
Price [x] [x] [x]



Size [x] [x] [x]
Capacity [x] [x] [x]
Ease of Use [x] [x] [x]
Installation [x] [x] [x]
Range [x] [x] [x]
Appearance [x] [x] [x]
Quality [x] [x] [x]
Design [x] [x] [x]
Useful Life [x] [x] [x]
Trade-in Value [x] [x] [x]
Technology [x] [x] [x]
Responsiveness [x] [x] [x]
State-of-the-Art [x] [x] [x]
Best-of-Breed [x] [x] [x]
24-Hour Availability / Support [x] [x] [x]
Technical Expertise [x] [x] [x]
Repair Service [x] [x] [x]
Efficiency [x] [x] [x]
Guarantee / Warranty [x] [x] [x]
Complete [x] [x] [x]
On-Time Capability [x] [x] [x]
Upgrades [x] [x] [x]

Observations & Conclusions
It appears, from the above information, that [xxx].
Generally in war the best policy is to take a state intact;
to ruin it is inferior to this.
To win one hundred victories in one hundred battles is not the acme of skill.
To subdue the enemy without fighting is the acme of skill.
- Sun-Tzu, The Art of War

Are there market niche opportunities we have overlooked?
Are our resources being deployed against the most serious competitors?
If significant, place competitors' advertisements and brochures in the Supporting Documents
section, or have them available upon request.



Indirect Competition
A new roof competes with a swimming pool, tennis court, new car, vacation – not just other roofing
contractors!
If you win, who loses?
Tom Landry, former head coach for the Dallas Cowboys football team, talks about practicing their
offensive plays against a truly determined defensive team – without considering who or what is
working against you, you cannot develop and effective winning strategy.
Other things potential customers may spend their money on include a [swimming pool/vacation] – these
are indirect competitors. We must convince customers that using our product/service is their top priority.
Our value proposition is that we can save customers the most money quickly, leaving them cash for other
projects. If they use our product/service immediately, then they can [get more benefit than building a
tennis court/xxx] because [xxx].
If we win, they lose…
Besides direct and indirect competition, there are forces in the world who may resist our success. If this
company wins, they lose. While there are many potential partners to support the Company’s success, the
following companies/industries may perceive [Company] and our [products/services as a threat:
[Oil industry – our solar panels provide an inexpensive alternative]
[Real Estate Salespeople – our sell-it-yourself real estate system makes them unnecessary]
xxx

[Company] Competitive Advantages
A brief summary of [Company]’s competitive advantages:
Valuable Brands: established over a period of [xxx] years and through more than $[xxx] million in
cumulative revenues generated to date by [Company].
Satisfied Customers: installed base of [xxx,xxx] licensees (xxx,xxx recently updated in database).
Established Strategic Partners: co-marketing, reselling, etc.
Proprietary Content: including [Company]’s copyrights, ®s and trademarks.
[Company] is also positioned as a hosting source, especially advantageous to mobile and wireless
computer users.

The distinctive competitive advantages that [Company] brings to this market are:
1) Experience in this market. [Company] has [xxx] years of hands-on experience in this industry.
2) Sophistication in finance and distribution. We are the low-cost supplier in these price sensitive
markets.
3) [Company] enjoys a broader, more complete product line, enabling customers to extend their initial
purchase and continue to upgrade to our more sophisticated [product type].
4) [Company]’s pricing philosophy is to price according to the value we deliver, as well as what the
market will pay. Through economies of scale, many items currently on the market can be sold with
lower prices, yet a higher net profit.
5) Rather than being strictly regional, [Company] will expand into the [national / international]
marketplace.



6) [Company] will use overseas bank accounts, monitor markets and hedge accordingly to control
foreign currency exchange risks.
7) With suppliers where we have established a relationship or are known to be financially secure,
[Company] will work on a pre-pay basis. This allows us to enjoy greater discounts.
8) Our capitalization will allow us to fully address our markets with comprehensive marketing and
customer service.

Regarding our Service, the distinctive competitive advantages [Company] offers are:
1) Experience in this market. [Company] has [xxx] years of hands-on experience in this industry.
2) Sophistication in management and finance. We are able to run an efficient and lean structure, yet still
provide quality service to our clients and customers.
3) Due to the nature of this industry, we will be able to rent office space in more moderately priced
buildings.
4) As a unique product and service company, we will be able to keep our margins high, allowing us to
provide internal financing for growth possibilities.



Internet Strategy
You need little justification for developing and promoting your online presence.
“It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts
to suit theories, instead of theories to suit facts.” ~ Sir Arthur Conan Doyle (1859-1930)
Excerpt from Softmail Direct: Here are some simple examples using these basic concepts to
enhance your overall marketing plan—and increase the return on your marketing efforts:

Example 1.
-Objective: Sell products on the Internet.
-Strategy: Create a Web site to sell products.
-Tactic: Launch an integrated order-processing Web site by end of the first
quarter. Use direct mail and other traditional marketing methods to promote your site.

Example 2.
-Objective: Conduct an online customer survey.
-Strategy: Drive customers to a designated URL that contains the survey.
-Tactic: Launch an email campaign to drive people to the survey URL—provide
an incentive; set a deadline.

Example 3.
-Objective: Increase company branding online.
-Strategy: Publish company collateral on the Web.
-Tactic: Convert company brochures to HTML or PDF and render company logo
for Internet publishing.
Excerpted from BizLand.com survey:
The most effective way to promote your Web site:
Search engines -- 31.09%
Banner ads -- 14.48%
Offline advertising -- 23.27%
Direct mail -- 8.83%
Domain Names -- 22.30%

Internet Marketing & Internet Commerce via www.[Company].com
The Internet [has played / plays / will play] a [minor / major / no] role in our business, as [describe why
and how the Internet will or will not impact your business].



The Internet provides opportunities for [sales / marketing / fulfillment / customer interaction / customer
information] as well as opportunities to [reach a wider audience / sell to customers outside our local
market / be located by search engines, adding millions to the potential customer pool]. As Internet access
and use increase globally, so will [Company]’s market. Our products can be [located / read about / viewed
/ demonstrated / purchased] by customers anywhere on Earth with Internet access.
—OR—
The nature of our business does not lend itself to Internet sales, however, we recognize a clear need to
have an Internet presence. Our [customers / prospective customers] have told us they appreciate being
able to find additional information about our [product / service / hours of operation / coming events / rates
/ delivery times and options, production time / availability, etc.] online. Other customers still prefer phone
or walk-in access to this kind of information.
—OR—
The Internet is primarily [a / an] [advertising / information / customer service] channel for us. By
providing [demos / samples / photos / descriptions / system specs / system requirements / comparative
charts / use specifications / regulatory data / program or service options / ways to contact us / online
customer support] and other useful information, [Company]’s Web Site is becoming a useful [marketing /
pre-sales / post-sales / customer service / support / public awareness / industry awareness] tool.

Insert Home Page Example Here

The challenge [was / is] to entice people to visit www.[Company].com and [order products / find
precisely the information they want or need—easily / create an incentive for them to xxx]. In [year],
www.[Company].com was created to enable customers to [purchase online / contact us / learn about our
company / find directions to our store(s) / review schedules / arrange for services / secure extended
warranties / register their purchases / participate in user groups / provide feedback about our product(s)
and service(s) / apply for xxx / use our xxx / subscribe to xxx / read our newsletter—whatever your
customers use or could use your site for].
For online sales, [Company] has established a relationship with an outside vendor, [Vendor name],
([vendor’s city]), to process orders and credit card verification, and then transmit the order files to [us]—
OR—[fulfillment vendor name], our manufacturing and fulfillment vendor in [fulfillment vendor’s city]
for fulfillment. As [Company]’s site has evolved, [customer satisfaction / customer responses / customer
awareness / industry awareness] [has / have] been [extremely positive / helpful in improving our xxx /
enlightening with regard to specific customer requirements / discouraging], and sales [overall / online]
have [increased steadily / increased exponentially / remained constant / declined] as a result. We attribute
this [change / stabilization] primarily to [xxx].
[E-commerce Vendor name] provides [a / an] [xxx] system and services for enhanced fraud detection and
scoring, as well as additional services for EDI and fulfillment messaging, tax calculation, territory
management, export control, and digital certificate distribution and management.Currently, [Company]’s
website can [describe what the e-commerce element of your site does for your customers]. Further,
customer participation in [list services and functions available on the site] requires customer sign-in, and
provides an accurate address for future [Company] mailings to them.
[Company] tracks on-line sales revenue based on reference codes (Sales Source Key) to measure the
effectiveness of our various promotional and advertising vehicles. Most [Company] literature and
promotional materials promote the [online purchase option / information resources / company, product
and service information] available on our website. Online tracking features also help us track where
customers have clicked through from another site, and the areas they actually visit on our site.



[Company]’s Internet Future
The Internet [is / will be] an important part of [Company]’s future, and it is important for [Company] to
gain in-depth experience with the medium to secure a further competitive advantage.

Internet Marketing Strategy
Our challenge is to [describe the challenge with respect to desired business results and its relation to your
Internet strategy]. Meeting this challenge will involve:
Marketing Approach
We will promote [Company]’s website as if it were a product. For example: part of [Company]'s [type of
advertising media—billboard / radio / magazine / newsletter / in-flight] advertisements will promote
[what you’ll provide on your site], available on-line. Compelling ads will offer [a free analysis to
determine the most suitable product for the customer’s application / online ordering / a downloadable
demonstration of our product / online billing and payments / offers for free product samples, etc.]
Key-Word Search
Whenever anyone uses a popular search engine to search for ‘[key words relative to your product or
service]’ in Google, Yahoo!/Overture, Excite, AltaVista, an advertisement / link to [Company]’s website
should appear.
Try this software: http://www.goodkeywords.com, you can download a free software product that
enables you to enter your keywords so you can see how many times they have been searched in
the past month(s). This may be the most credible and timely market research available today.
According to recent search engine statistics (using the Overture keyword analysis tools), these keywords
produce the following number of inquiries over the past [xx] months:
Employee 25,091
Employee background check 4,441
Restaurant business plan 3,309
Xxx 000
Xxx 000
Xxx 000
You can also use this method to determine better words to use in your advertising copy. For
example, ‘business consultant’ is requested 17,772 times while ‘business expert’ is requested 77
times. Which word would you use if you were writing an ad or direct mail piece to reach business
consultants?
Hot Links & Referral Incentives
We plan to use strategically-placed hot links from other online locations such as [websites, portals,
forums, where you expect to have a presence]. This does not necessarily mean a button on AT&T's site.
Rather, it means providing users with a compelling reason to come from a related site where [Company]
is referenced to our site. For example, from a website devoted to [topic related to your product], an
enticing graphic or line of text would hot link interested users to the [Company] site. The link will
emphasize [an attribute of your product that will solve a particular problem for the site visitor. Thus, the
links themselves become well-thought-out advertisements, and provide relevant, compelling reasons to
click on the link to [Company].com.
[Company] offers an “Affiliate Program” enabling you to set up a [Company] catalog page on your site.
We pay a [xx]% commission for all sales referred to [Company].com via your website. Likewise,
[Company] [offers / plans to offer] [x]% commission for referrals to our site that result in sales. We have
engaged with [Affiliate Management Vendor name—for example, Tracking Soft]. We will be able to
positively “track the clicks” of the referring URL all the way through to order placement. This is crucial



for convincing referring sites to point to [Company]. So far, we have referring links from more than xxx
sites.

On-line Catalog & Showroom
[Company].com will serve as a / an] [on-line store / catalog] giving [Company] customers a way to see
everything they might need to see in order to make a buying decision. Including:
Answers to Commonly Asked Questions
Directory of Store locations
Customer quotes, success stories, case studies
Product Specifications
[Company].com will act as an on-line Showroom providing:
Back-up for Advertising & Direct Mail
Order Entry & Fulfillment
Low-cost fulfillment alternative worldwide.
Show examples of [Company] [product type] in action
Offer specially recommended books with a few comments from [Company] experts as to why we
recommend these books to our customers—[Company].com provides a link whereby a customer can
order the book directly through [Company].com. [Company].com fulfills the order and pays [Company]
a percentage of the sale.
Offering selected products and services of Alliance Partners
Opportunities for customers to post their financing efforts and success stories

Marketing Partners
Currently, [Company] has an established relationship with [partnercompany.com). Their e-mail responder
to those seeking [xxx] through their on-line database delivers a message recommending [Product 1]. The
e-mail page contains a hot-link directly to a special order page on www.[Company].com. [Partner
Company] receives a commission on all sales referred by them. [Company] plans to add as many other
connections of this nature as possible.
Future mailings and advertising will include this reference to [Company]’s site: [message that will entice
recipients to respond]. Use our search engines to locate them. at www.[Company].com.” When Internet
users seek [xxx] resources, popular search engines will lead them to [Company]’s website.

Content — Business Resources
[Company]’s site should DO something for its customers. This will generate repeat visits to the site.
Information [Company]’s customers and prospective customers will find useful includes:
For example, most automobile manufacturers enable you to ‘assemble’ the vehicle of your choice,
including colors schemes and accessories, etc.
Demonstrations of how [Company] products work
Provide references to laws & regulations regarding the [industry / product usage, etc.].
Reviews of books we recommend
Recent government surveys regarding 2002 NAICS Title companies and demographics
Provide succinct answers to common customer questions
Free sample products offers



[Company] Newsletter. In lieu of a printed newsletter, we plan to put the information on-line. To be sure
that [Company]’s customers, prospects and others are aware, we plan to mail a significantly cheaper piece
pointing them to the Web site. All literature will describe the availability and listings of the information
available on [Company].com. Also, it is possible to promise and provide a downloadable store coupon as
an incentive for visiting the site or for a specific product.

Strategic Marketing Alliances
In order to substantiate [Company]’s various online offerings, the Internet Marketing Manager will be
tasked with developing strategic alliances that add value and revenue streams. Since [Product 1] (and then
[Product 2] if [Product 1] is successful) is [Company]’s flagship product, the alliances should be in
keeping with the theme of [that / those] product(s). The Internet Marketing Manager should establish
relationships with 10-20 key alliances that will be included on [Company].com, and define how the model
will work. In other words, [Company] simply offers a hot link (the least preferable) or sells products or
services of the partner. For example,
‘www.xyz.com’. Companies / services that will help you raise money.
‘www.xyz.com’. Offer site visitors a special price on the [xxx].
‘www.xyz.com’. xxx

Other sites for [Company] to link to include:
‘www.xyz.com’. because they have tremendous traffic and we can provide [products / services] to their
customers which [Alliance Partner name] feels adds value to their marketing and products.
‘www.xyz.com’. because they have 2,000,000 visitors every day and [Company]’s [product type]s
complement [Alliance Partner name]’s products and services.
Search Engines: We must continue to have [Company] products and the [Company] name effectively
indexed and listed with the leading search engines:
Google, AltaVista, Excite, Yahoo!, and others

Online Resellers
[Company] plans to establish reseller relationships with numerous resellers to further extend our reach
into our primary market segment. To date, we have met with [Prospect 1], [Prospect 2], [Prospect 3].
Companies providing a variety of means to purchase [product type] over the Internet are emerging from
every direction:
[E-Commerce Vendor 1] An e-commerce vendor to providing and managing online stores for
companies that prefers not to manage their own. For instance, Software.net charges a set-up fee and 15%
of sales.
[E-Commerce Vendor 2] A well-financed on-line distributor that handles encryption and pays distributor
prices. Serves as a distributor and clearinghouse for hundreds of smaller online resellers.
[Demo Vendor name] Provides a unique try-before-you-buy technology enabling customers to download
software, then purchase and unlock it after they have had a chance to work with it.
[Online Distributor Name] An on-line distributor who pays distributor prices.
[E-commerce Vendor] maintains encrypted versions of [Company] software, serves as a clearinghouse
and enables [Company] to sell through other on-line resellers as well. We plan to pursue the resellers they
already have relationships with and establish them as [Company] online resellers. (Current clients include



the big three xxx distributors, xxx, xxx and xxx.)
Currently, [Company] has established a “mirror” site featuring identical product descriptions to those on
www.[Company].com—the ordering mechanism has been removed to allow our resellers to enable their
customers to access [Company]’s product information, but return to the resellers’ order page for
purchasing. This assists resellers to provide more [Company]-related product information to their
customers without risk of losing their sale.

Pricing
[Company]’s pricing policy for website sales will be to offer its products / services as close to street
prices as possible. [Company] wants to maintain support for its resellers and alliance partners; however,
[Company]’s offer can be differentiated with free ground shipping of physical products purchased online
and special bundles of products as incentives to purchase immediately from [Company].com.

International
The current plan is to establish [distributors / partnerships] in selected foreign countries, whereby they
localize (and perhaps manufacture) [Company]’s product to suit their environment and market. Either
they or we would produce the packages and they would distribute to resellers. We would be paid a royalty
on sales in those countries.
Option: Simplify the entire process: Partners in each country would promote [Company] products with
the intention that customers could only purchase [Company] products by accessing [Company].com in the
US and downloading the software directly.
Customers would pay equivalent U.S. prices with no import duty
No V.A.T. (V.A.T. = Value-Added Tax—it’s 17.5% in the UK)
Minimal or no shipping charges
Customers would receive the product(s) immediately.
Credit card companies handle the currency exchange and deposit cash directly to [Company].
[Company] will enjoy a competitive advantage over incumbent / local competitors who must collect
taxes. This would reduce the need for developing packaging as well as the costs and risks of carrying
extra inventory. [Company]’s objective would be to seek partners with expertise emphasizing marketing.
(Do they need to be in the [xxx] business? Would an Ad / PR firm suffice?) We could advertise on
international air carriers, etc. [Company]’s website can be localized by cloning the existing website and
having the partner modify it to their requirements. [Company] would pay 20%-30% (50%?) of the sales
from our website into the specific country or territory.

Challenges
[Company] would need to establish methods to assure accurate accounting of pass-through sales and
guaranteed payment to Affiliate Management Partner.
The Affiliate Management Partners must be confident that they will be paid.
Download and installation must be impenetrable to hackers.
Credit cards must be verified on-the-fly before download.
To what degree must the website be localized?



Reports
At the end of each month, [Company] receives comprehensive reports prepared by its web service
provider. These reports show how many visitors came to the site, where they came from (links from
search engines or alliance partners’ sites or straight to [Company].com), which company pages were hit
most often (stack-ranked highest to lowest) and total sales.

Site maintenance
[Company] has recently implemented its own web server computer, hosted at [name of host]. Hosting
Services are in [host location city]. www.[Company].com uses [xxx Server software, including a xxx
Database with a xxx front end. It implements back-end e-commerce components from [e-commerce
provider name], located in [City, State].

Costs / Budget
[Company]’s current consulting Webmaster services will cost approximately $[xxx] during 20[xx], and
we plan to hire a full-time Internet Marketing Manager late in 20[xx]. This person will handle most
graphical and content changes. Banner advertising is currently being tested. We intend to budget: no more
than $[xxx] for 20[xx] (unless this proves profitable early on…)

Remaking [Company].com into a Destination Site
Now that [Company] has enhanced the e-commerce capabilities of its website, it is time to enhance the
content and online marketing aspects of the site. The following pages present a glimpse of the direction
that the “look and feel of the site will be taking.

Privacy & Security
Data security and privacy are a key element in achieving market acceptance of our new online services.
Accordingly, [Company] plans to focus initially on marketing to [web-oriented, IT-centric business
owners / operators such as e-commerce businesses]. These “early adapters” include a high percentage of
“gazelles” (fast-growing, aggressive firms that seek high market caps and potential domination of their
respective market niches). Through analysis of [Company]’s customer database, management estimates
that approximately [xx]% of [Company]’s users meet this definition of [customers / high-tech “gazelles.”]
They will be the first group targeted to become online {Company] subscribers. By addressing privacy and
security issues, [Company] assures the attraction of these customers to set an example and create buzz.
The slower-moving herds of future subscribers will follow; and our online concept will gain greater
acceptance globally.
[Company]’s Privacy / Security strategy includes:
If you don’t have one, feel free to grab ours from our website.
Multiple firewall protection with password-protected access to partitioned sections of each subscriber’s
files, with 100% subscriber control of subscriber-designated access by authorized viewers / collaborators.
Adherence to certain privacy standards and procedures will qualify [Company]’s website as an [Ernst &
Young “Web-Trust”] site that can carry [E&Y’s Web-Trust] logo. This is the privacy / security equivalent
of the “Good Housekeeping Seal of Approval” and it will help to eliminate end-user concerns.
Publication and promotion of [Company]’s Privacy and Security Policies, including [Company]’s
positions on information collection and sharing; information security and protection; email privacy and
online surveys; the use of cookies; anonymous browsing; children’s online privacy protection; website



links; future changes to privacy policies, etc. will all be available on the site.



Marketing Plan & Strategy
Marketing: How you can sell more stuff, more often,
to more people, at higher prices.
Sergio Zyman, Former VP of Marketing, Coca Cola

Marketing: Creating an environment where sales can occur.
Unknown (but a more feminine approach)

Strategy: The science of planning and directing large-scale operations, specifically of maneuvering forces
into the most advantageous position prior to taking action.
Marketing communication strategies, whether online or off, need to account for three basic
principles: objectives, strategies, and tactics. Objectives are your goals: what do you want to
accomplish with your marketing plan? Strategy is how you approach achieving your goals. Tactics
are the tools and actions you use to implement your strategy (Note: these are independent
principles—yet they are dependent upon each other—and each needs to be addressed in your
overall marketing plan).
This section outlines your strategy for meeting the market challenges you define, including your
approach to selling your product(s), how you will distribute your products, advertising and
promotion, public relations, and image.
How we will reach the market…
Carefully designing this portion of your business plan will enable you to respond quickly and
appropriately to changing business and market conditions and new business opportunities.
For more detailed background information for the Marketing Plan section of your business plan,
refer to the BizPlanBuilder Handbook of Business Planning. And check out JIAN’s MarketingBuilder
software package for developing a comprehensive Marketing Strategy and Plan, and the tools to
develop, manage, track and analyze your ad and media campaigns, direct mail, publicity and
events. MarketingBuilder picks up where BizPlanBuilder leaves off, to help ensure that you realize
the greatest possible return on your investment in marketing.

Benefits vs. Features
Sales Maxim: "Unless the proposition appeals to their INTEREST, unless it satisfies their
DESIRES, and unless it shows them a GAIN—they will not buy!"
Qualify Customer Leads: Know your customer’s level of need, ability to pay, authority to buy,
accessibility, extent of their sympathetic attitude, business history
[Company]'s marketing strategy is to enhance, promote and support the fact that our products [list your
unique features and benefits / established market position / market presence].
The overall marketing plan for our product(s) is based on the following fundamentals:
Discuss these topics in your strategy discussion:
Type of business you [want to be / are] in.
Segment of the market[s] you plan to reach.
Distribution channels used to reach your market segment: direct, Internet, retail, jobbers, wholesalers,
brokers, door to door, mail order, party plan, etc.



Share of the market you expect to capture over [xxx] [months’ / years’] time.

To prove the value of [product] we can [x].
Show each application.
Demonstrate effects.
Add credibility with scientific reports and studies.

The lack of [product features / benefits] in everyday [specific business / professional / manufacturing /
shipping / living / household situations] is demonstrated by [x].
Based on studies of [x].
Most of the country [and world] are [describe their situations / circumstances].
Describe why: [they have this particular problem / continue without your products].

Sales Strategy
[Product type] products should be treated as products with a [long-term / short-term] life expectancy.
If you produce and sell more than one product, discuss each.
Important! How long before product pays for itself (for your customer)?
As such, the target market segments for [Company]’s primary focus are [specific customers or market
segment]. Because of [product name]'s special market characteristics, [seasonal / geographic / etc., as
mentioned in your Market Analysis] our sales strategy [includes / incorporates]:
Briefly discuss how your sales strategy will address specific market / environmental conditions].

Positioning
How customers perceive your company and product, relative to competition.
Product / Business / Industry leadership.
Recommended Reading: Positioning, by Al Ries and Jack Trout, and The New Positioning by
Jack Trout.
A User Focus Group may provide product information and market feedback to determine how the
market sees your current position, and to help you position your product more effectively. .
Our [product name] product is seen by the consumer as [customer's perception of your product].
Its unique [technical / quality / performance] advantages can be exploited to arrive at a winning position
in the consumer's mind.
In terms of market segmentation advantages, we can use [emotional / ethnic / need-based] appeal to arrive
at a winning position relative to each targeted segment.
Repositioning [product name] as [an investment instead of a cost / an "escape from civilization," rather
than a (boring) vacation, etc.] is expected to generate interest and response among prospective customers
we have not reached before.
To be effective, our product must be positioned as relating to or necessary with [list any other products,
services, or environments upon which your sales depend or by which they are influenced]. We can
reposition our competitors by capitalizing on our own singular [first-to-market / ease-of-use / flexibility /



availability / simplicity] position that only we can claim.
What can be said / shown about your product that is uniquely yours, and will draw customers to
your product?
The Selling Basis for our product, then, is [state your unique position in the marketplace].
This is your fundamental strategy for all of the advertising you do.
Test the Unique Selling Basis on friends and potential customers to make sure that it is meaningful,
believable, motivating, memorable, simple, logical, and unique.

Branding
As the story goes, a long time ago, an executive from the Marlboro cigarette marketing department
asked their ad agency, “why are we paying you millions of dollars… we’ve been running this
cowboy theme for years!?” The agency rep responded, “You pay us millions of dollars to keep you
from changing it.”
Miss, n.: A title with which we brand unmarried women to indicate that they are in the
market. - Ambrose Bierce (1842-1914?), "The Devil's Dictionary"
Our marketing will be centered around [our expertise / our value to the customer / the longevity of our
products(s) / our established brand and market position / the position we intend to establish in the minds
of customers].
Convert Features Into Benefits—The "...Which Means..." Transition
PRODUCT FEATURE "WHICH MEANS / =" CUSTOMER BENEFIT
Performance Time Saved
Reputation Prestige
Components Reduced Cost
Sizes Greater convenience
Exclusive Competitive advantage
Ruggedness Continuous Output
Delivery Leadership
Service Increased Sales
Price Economy of Use
Design Ease of Use
Availability Reduced Inventory
Installation Low Operating Cost
Simplicity Reduced Upkeep
Terms Affordable Now
Workmanship Long Life
[Company] customers are typically looking for [list customer benefits] in [product type]s. [Product name]
meets their requirements through [note the product features that provide the benefits you just listed].

Buying Motives
RATIONAL REASONS TO BUY EMOTIONAL REASONS TO BUY



Economy of Purchase Smart move to purchase
Economy of Use Save money
Efficient Improve current operations
Reputation / Brand Desire of Prestige / Recognition
Inexpensive Increased Profits
Durability Use for a long time
Best-selling Desire to Imitate
Accurate Performance Desire for perfection
Labor-Saving Get more done in same amount of time
Time-Saving Have time for other things
Simple Construction Easy to understand
Simple Operation Everyone an use
Ease of Repair Inexpensive to fix / low down-time
Ease of Installation We can do this (now)
New design Desire to Be Unique
Space-Saving It will fit in my home/office/shop
Increased Production Availability
Complete Servicing Good Workmanship
Low Maintenance Reduced Waste
Thorough Research Made the right decision
[Company] customers tend to make buying decisions for [product type]s from the [rational / emotional]
perspective of [note the most significant influence in this decision]. [Product name] appeals to their sense
of [genuine need for xxx / deserving xxx / business reasons for the purchase, etc.]. In most instances, the
buying decision is based on [having shopped the market / an immediate impulse / authorization from a
particular influencer / waiting until the purchase is unavoidable].

Pricing
Look around at what your competitors are charging,
and charge a little more.
- Paul Larson
Your pricing strategy is another marketing technique you can use to improve your overall
competitiveness. Get a feel for the pricing strategy your competitors are using. That way you can
determine if your prices are in line with competitors in your market and if they are in line with
industry averages.
Pricing Considerations
How do you set prices? Is there a policy? A formula?
Is your pricing competitive?
Is there perceived value (it costs more therefore it must be better) inherent to the product or a
higher price?
Are prices based on costs—standard markup?



Why are your prices higher or lower than those of competing products?
Some pricing factors include:
retail cost and pricing
competitive position
pricing below competition
pricing above competition
service costs and pricing (for service businesses only)
material costs
labor costs
overhead costs
Staying on top of pricing
The key to success is to have a well-planned strategy for staying ahead of the market. You will
need to monitor prices constantly, and have policies in place so that in your absence, your
employees can make sound decisions. Keep an eye on operating costs as well. Sudden
fluctuations in indirect costs (such as the price of gasoline, electricity, heating) can quickly consume
your profits if you aren’t adjusting your pricing with increases in the cost of doing business. A single
month in which your utility bill doubles or triples without your noticing it could wipe out profits for
months to come.
Franchise operators also need to stay current with changes in their local marketplace, even if
certain policies are set by the franchise corporate office. You will be able to respond quickly to local
shifts in the market and adjust accordingly. Such changes can affect your competitiveness and your
profit margins if you wait until you receive a directive from the home office. You may also need to
alert corporate if you need to respond quickly to local circumstances. Franchise operators in other
areas may never encounter a similar situation, and corporate would not make a global change
How elastic (the effect of pricing on demand for product) is the market for your products?
(“Elasticity” refers to the way demand for a product is influenced by a price change. Demand is
elastic when a small price change significantly changes demand for the product. Computers are
considered to be elastic items—when prices drop, the number of people buying computers rises.
Liquor and tobacco products are considered inelastic. The number of customers buying these items
does not change significantly, regardless or price changes (Changes in the economy influence
these sales… more alcohol consumption during an economic downturn, for example.)
How do consumer preferences affect elasticity for your product(s)?
See also Break-Even Analysis under Financial Projections in the BizPlanBuilder Handbook of
Business Planning.
The prices for our products are determined first and foremost by [competition / costs / suppliers /
manufacturers / package deals].
It is important to know that [sliding scales / volume / regulated / competitive / perceived value], pricing is
essential to our market profile.
Compared to the competition, our prices are [xxx].
List examples of competitive pricing.
Put copies of price comparisons and reports in the Supporting Documents.
Different seasonal aspects of our market affect our pricing because [example: selling seasons].
We feel that our customers will pay $[xxx] because [explain purchasing rationale]



Margin Structure
Retail
Ask friends / customers in retail management about quantities that they are likely to buy. What
discounts would entice them to order more?
When selling to directly to retailers, “Keystone” means that the wholesale cost is 50% off SRP. In
other words, the retailer will sell your product for twice what they pay you for it.
Our retailers typically expect 50% off of SRP. Their mark-up is usually 50%-100%.
Distributor
Ask about quantities their customers are likely to order and their Gross Profit Margins /
Percentages.
Our distributors typically expect 60% off of SRP. Their mark-up is usually 5%-10%.
Manufacturer's Representative
What percentage commissions do they make? Usually between 5 and 20%.
See JIAN’s AgreementBuilder for a comprehensive Sales Rep agreement you can customize for
your situation. An Independent Contractor Agreement is included in BizPlanBuilder in the Manage
Your Business section.
We are using 5 regional rep firms (listed below) who earn an average commission of 5%-15% on net sales
(gross sales less returns and adjustments). Our agreement stipulates that they are paid 30 days after the
end of the month. Any returns and adjustments reduce commissions on a pro rata basis.
Xxx Western USA
Xxx Midwest
Xxx East Coast
Xxx Europe
Xxx Asia

Direct Sales
The majority of [Company] direct sales will be handled internally by our staff. Most of our [market
segment] customers tend to be [day care operators / general contractors / retail shop owners / new
business owners / homeowners, etc.], it is important that [female sales staff / sales staff with construction
experience / retail specialists / staff with strong business backgrounds / etc.] present our [product(s) /
service(s)] to our prospective customers in this market segment.
[Company] anticipates hiring [x] additional sales representatives to [cover additional territories / manage
retailers and distributors / manage specific markets / sell specific products].
Include Organizational chart in Supporting Documents
We have chosen to use a direct sales force because our products require considerable customer education
and post-sales support—directly from the company. Our price point, pricing structure and profits are such
that our cost of sales warrants a "person-to-person" selling strategy.

Discounts
We can take advantage of volume purchases by [xxx]. We then have some room in our margins to support
discounted pricing for customers who [purchase in volume / are exploring competitive options where the
buying decision is coming down to price / are buying multiple products at once / whose average purchase
exceeds $[xx] / other].



Volume discount on materials is applicable if a scheduled or standing order is placed (For example; 1,200
units ordered for a year = 100 units per month.)
Are there discounts options for paying cash or within [x] days?
[Company] has several cooperative advertising arrangements in place, where other manufacturers pay 2-
10% of purchases toward our advertising of their product.
We plan to review our pricing and margins every [x] [months / years] to ensure that we remain
competitive while protecting profit margins.
Should a new pricing policy be investigated? Are potential profits being lost?

Current Selling Methods
Activities selling your product(s):
Methods to promote your product or service include: face-to-face visits, telephone surveys and
solicitation, advertising, mail, radio, television, or other
Sample brochure, advertisements, announcements, or promotional literature. If you are using this
sort of collateral, be sure to include samples in the Supporting Documents section of your plan.
Allow for a margin of safety in your sales forecasts.
Recommended Reading: How to Master the Art of Selling, by Tom Hopkins, International Market
Press.
[Company] products are being sold in [x] retail stores throughout the USA
Our sales force of [x] people make direct pone calls to customers.

Distribution Channels
[Company]'s marketing and sales department leads have collaborated on a plan to sell our product(s)
through several channels.
The determining factors in choosing these channels are [x].
Customer profile and buying preferences
Geographic factors
Seasonal sales fluctuations
Channel track record with similar products already on the market.

The nature of [supplier / distributor] relationships in this industry is [note how suppliers and/or
distributors effect sales of your product].
Our key competition uses [the same distribution channels / a different channel / no distribution
mechanism at this time]. Our mix of distribution channels will give us the advantages of [list advantages]
over our competition.
[Company]'s current distributors include:
xxx
xxx
xxx

Our distribution channels include:



[xxx] Wholesale Distributors
[xxx] Authorized Resellers
[xxx] General Resellers who purchase [Company] products through
distribution.
Executive Sales
This type of selling is usually most appropriate for very expensive products or services [executive
jets, yachts and large estates come to mind] where it is important to deal principal to principal when
negotiating the sale.
Because our customers tend to be [top corporate managers / IT leads, etc.], it is important that [our
company president and senior managers / executive sales, etc.] present our [product(s) / service(s)] to our
prospective customers in this market segment.
Manufacturer Representatives
Because manufacturers' representatives carry several product lines that are compatible with ours, we feel
that it is appropriate to select manufacturers' representatives carrying [x], and [complementary and
compatible products—automotive products to parts stores, marine supplies to boat dealerships, etc.].
Distributors
One of the key elements designed into the [Company] marketing plan is the targeting of our distributors.
We will select distribution channels already in existence and staffed with professionals possessing
appropriate backgrounds and clientele.
[Company] products are highly consistent with the nature of [distributor name]'s business and the well-
being of their customer base. Also, it is significantly less difficult for us to reach these people and educate
them about the benefits in using [product name(s)].
This strategic marketing approach takes full advantage of the fact that these professionals are already
involved with parallel products and services. They already have a track record of experience.
By operating within these distribution channels in this manner, we can maintain control of our market. In
addition, we can generate growth at a reasonable pace and obtain excellent sales results.
Distributors must mark up your prices 15-30% to their retailers. Your sales revenue will have to be
reduced in order to accommodate distributor profit margins.
Retailers
Our Dealers look for these attributes to effectively sell [Company] products::
Price Point—attractive and reasonable
Profit Margin—worthy of sales emphasis
Technical Support—accurate and immediate response
Quality—design, construction and packaging
Advertising and Public Relations—customer awareness and demand
Effective Sales Materials—ease and expedite sales process
Competitive Advantages—features and benefits
Stocking and Delivery—available when needed
Market Stability—maintain profit margins and market position

[Possible / Current] Retail and Wholesale Outlets include:
The North American Industry Classification System (NAICS) has replaced the U.S. Standard
Industrial Classification (SIC) system. http://www.census.gov/epcd/naics02/naicod02.htm



Store type Total NAICS Code
Department Stores 23,275 5311
Garden Supply Stores 16,496 5261
Hardware Stores 40,140 5251
Giftware Wholesalers 3,524 5199
Electrical Equipment Wholesaler 41,313 5063
Total 124,748
Identifying potential resellers:
Collect mailing list catalogs—look at all the possible outlets for your product or service.
Look in your Telephone Directory's Classified Advertising under Mailing Lists.
Complete the chart above—the list may prove to be a valuable resource for resellers.
List any national or regional chains or independent stores that currently carry or could carry your
product.

OEMs
With Original Equipment Manufacturers (OEMs) we can incorporate our [product name or type] into
their product line by [explain how your product can be included within theirs—they sell your outboards
with their boats, your windshield wipers with their cars, etc.].
For manufacturers of [OEM biggest system / product] we can sell [product name or type] as part of their
[xxx].
We can also provide a private-label line as an additional product for [xxx] distributors.

Email
As we build our customer database, we will gather email addresses with opt-in permission to contact our
customers and prospective customers via email and other electronic means, extending our reach and
visibility with minimal resource allocation. Our email campaigns will include:
Offers to existing customers for additional [purchase opportunities].
Add-on services promotion.
e-Newsletter offering advice relevant to our [customers / clients / prospective customers / partners /
affiliates].
Offer [product enhancements / after-market products / latest models or releases / services scheduling
/ extended warranties / related products or services from our partners, etc.] directly from the website.
Emphasis will be on customer convenience, ready access, and quick response times.

Direct Response Mail
We will be exploring the benefits of incremental, coordinated direct mail programs in the [1st / 2nd / 3rd /
4th / last two, 3] [quarters / months] of 20[xx]. We anticipate a strong profit potential as we strengthen our
direct response capabilities. We will be approaching this scientifically, as we improve our customer
targeting ability. We propose [two 50,000-piece campaigns / four 10,000-piece mailings, etc.], each
preceded by a [1,000 / 2,500 / 5,000]-piece test.
All direct mail activities this year will be directed to [our existing customer base / tightly targeted mailing



lists / mailing lists acquired from [xxx] that have proven profitable in the past]. In addition, we will [test
external lists / test marketing partner lists / test bingo card lists, etc.].

Infomercials
[Company] plans to produce a [single / series of] infomercials intended to air in the [which time slot—
prime time, late night, morning] time slot on a [major network channel / minor network channel /
premium channel / local channel / specialty channel] channel. Our research indicates that the [which
segment] of our target market is [extremely / reasonably / somewhat] receptive to the infomercial delivery
style, and we anticipate response rates to [more than cover our costs / put us at break-even / create lift in
other channels]. Our primary reason(s) for this approach, include [anticipated increase in direct sales /
greater visibility / publicity generated as a result of the infomercial promotion / driving a significant
increase in channel sales].

Telemarketing
Look in your telephone directory under Direct Mail for mailing houses. Some also provide
telemarketing services including handling inquiries, orders, fulfillment and an 800 number with live
operators and data capture to build your own mailing lists from caller responses.
We will use [in-house / contract] telemarketing to perform the following functions:

Outside Sales Support
[Company] provides support for outside sales with:
Literature mailing
Follow-up calls
Order entry
Respond to inquiries
Order entry
Literature mailing
800# Order / Support Hotline
Marketing research

New Business
We have [xx] dedicated account managers who proactively pursue new business. Their activities include
contacting [distributors / retailers / customers], scheduling appointments for field reps and processing new
orders.
Our marketing team [has provided / is preparing and directing] the following sales support activities:
1) A comprehensive telephone script that everyone can use when answering phones and responding to
inquiries.
2) Responses for frequently asked questions for our website
3) Role plays with selling staff
4) Distribution opportunities.
5) Preparing a chart of CDI / BDI (Category Development Indices / Brand Development Index)
performance.



6) Tracking our ACV (All Commodity Volume) distribution, and that of the competition
7) Exploring worldwide opportunities and preparing a list of target countries in order of priority

Method
Our primary means of distribution will be [xxx].
How your products are (can be) distributed.
Make a chart to show how they get to the end-user consumer.
Additional planned channels include [xxx]. An important advantage to these alternate channels is
flexibility. By using more than one distribution method, [Company] will have more control and also
greater ability to respond to special [distributor / reseller / customer] needs and circumstances.
Other features of our secondary channels are low cost, quick start-up, and increased capacity.
Coverage
Regional target areas are defined as [identify each region]. Reports indicate that these areas generate the
highest level of consumer interest. Because our distribution network is [already set up or in use / easy to
implement / cost-effective, etc.] we can enjoy [national / international] delivery immediately. This, in
turn, will reduce shipping time and increase customer satisfaction. To date, [many of, [x] of, none of] our
competitors are able to achieve this.

Product Roll-out Program
We have selected from [xxx] key market areas.
Areas based on proximity—easy to sell into, contact, deliver to, have customers come to.
Manufacturers' Representatives we have chosen:
Name Territory Type
[ABC Sales] [Western U.S.A.] [Marine Supplies]
[xxx] [xxx] [xxx]

Distributors we have chosen are:
Name Customer Base Type
[DEF Distribution] [4,500] [Sailboat Dealers]

Retailers we have chosen are:
Name Number of Outlets Type
[GHI Stores] [31] [Sailboat Dealer]
[xxx] [xxx] [xxx]

There are [xxx] dealers in each region.
See Advertising and Promotion section under Direct Mail for ideas on locating dealers, wholesalers.
List regions in order of roll-out sequence.
List key distributors, retailers, etc. in each as top priority.



Advertising & Promotion
How you advertise and promote your goods and services could make or break your business. You
can have a great product or service—but if you fail to advertise or promote, you may find yourself
not having a business at all. Many inventors and business owners make the mistake of assuming
that the product will sell itself—that’s a rare (albeit possible) situation. Advertising and promotion
are the lifeline of a business and should be treated as such.
Take advantage of networking opportunities as a means to promote your business.
Develop short, concise, descriptive copy (text material) that clearly identifies what you sell, where to
buy it, and what it costs. Capture the attention of prospective customers with catchy phrases and a
message that appeals to a specific need or desire in those customers. Make sure the ads you
create are consistent with the image you are trying to project for both your product and your
company. Care and attention to, and tracking of your marketing program will increase the likelihood
of success for your business.
To develop a comprehensive marketing strategy and plan, get a copy of JIAN’s MarketingBuilder™
software. It includes tools to help you manage every aspect of your marketing activities, track and
analyze your effectiveness, develop promotional campaigns, budgets, media schedules and
more…
Develop tools and methods to increase your customers' awareness of your product(s) / service(s).
The purpose of your marketing activities is to enhance, promote, and support the idea (in the minds
of prospective customers) that your product meets their specific needs better than competing
products or other alternatives.
Remember: advertising and promotion are an investment, not a cost.
Recommended Reading: Ogilvy On Advertising, by David Ogilvy.
[Company] recognizes that the key to success at this time is aggressive, widespread promotion. To
accomplish our sales goals, we require an extremely capable advertising agency and public relations firm.
[Company] [plans to advertise / advertises] in [major trade magazines / consumer media / entertainment
media / local or special-interest-group publications] such as [xxx]. Upon funding, an agency will be
selected and, with their assistance, a comprehensive advertising and promotion plan will be drafted.
Advertising will be done independently and cooperatively with Distributors, OEM's, retailers and
companies with whom [Company] [has / plans to establish] joint marketing / sales relationships.
Objectives

We grew up founding our dreams on the infinite promise of American advertising.
I still believe that one can learn to play the piano by mail and that mud will give you a perfect
complexion.
- Zelda Fitzgerald (1900-1948) Writer, Wife of F. Scott Fitzgerald

Position [Company] as the leading [producer / service provider] in the market.
Position [product / service / brand] as the [first / best / only] [product type / service type] in the minds
of prospective customers and the world at large.
Create high levels of visibility in each of our target markets, the [list target markets] markets.
Increase company awareness and brand name recognition among business managers and [x]
retailers, buyers, customers.
Generate qualified sales leads and potential new distributors for field sales organization.
Through market research, develop significant, relevant data resources to create immediate and long-
term marketing plans.



Create product advertising programs supporting the [better taste / lower fat / more fun] position.
Coordinate sales literature, demonstration materials, telemarketing programs, and direct response
promotions in order to [xxx].
Describe how your advertising/promotion objectives fit together to maximize the impact of your
overall promotional campaign.

Direct & Indirect Marketing Campaigns
[Company] will [initiate measured / continue its time-tested] marketing programs (email, direct mail,
etc.). At the same time, we will test then introduce new marketing campaigns:
Drive web traffic with high-appeal offers, free [xxx] and other innovative incentives that allow us to
capture contact information and tailor individualized promotions based on what the customer or
prospective customer has responded to previously.
Promote high-visibility, high-demand partner products with [Company] [product / service] as the
secondary (and complementary) purchase-of-choice.
Develop a compelling referral incentive program.

Internet
[Company]’s primary strategy, while profitably selling tools to business owners, is to build a viable
database and destination website for business managers everywhere.
Historically, [Company] has a [xx]% follow-on buy rate of customers returning to purchase additional
[Company] products. This rate is currently increasing with email campaigns and website-based sales.
[Company] will build the dominant solutions-oriented business website for [your target customer], where
customers can find answers and access information for [xxx]. [Company] will build traffic and collect
customer demographic, psychographic, and technographic information, in support of selling ads as well as
selling 3rd party products and services to [customers].
See also the entire section devoted to our Internet Strategy.

Media Objectives
Create and promote awareness of [Company] among editors, industry analysts and groups,
engineers, buyers, customers and owners.
Establish an image of [Company] as a professional, completely reliable organization that is highly
positioned in the market.
Maximize efficiency in selection and scheduling of published ads in publications to cover [xxx] and
[xxx] markets.
Street Date: Product/service launch to be coordinated for [Date].
Setting a “street date” enables you to coordinate all media promotion for a set launch date as well
as assuring availability on the store shelves, in stock in your warehouse, debugged and
downloadable from your website, etc. This maximizes your launch impact and marketing efficiency.

We consider the media we have chosen to be the most effective because it:
consistently reaches [xx]% of our target market
has proven highly effective and profitable in the past
has been effective for our business partners



is where [all / none] of our competitors advertise

We will develop an advertising campaign built around [product innovation / high-performance /
competitive advantages], beginning with a “who we are” statement and supporting it with ads that
reinforce our [xxx] message. Additionally, we will develop consistent reach and frequency in our
advertising throughout the [month / quarter / season / year].
Due to the nature of our product, it is necessary to run [full-page 4-color ads / 1/4 page B&W ads /
classified ads in xx publications / 30-second radio spots, etc.].
The best way to reach our potential customers is to develop a focused advertising campaign promoting
our basic premise—“[your selling basis / theme / position in market].”
For example: “The fastest, easiest way to write a business plan to attract investment capital”
To maintain / establish our [x] company image, the delivery and tone of our statements will be
[understated elegance / hard-driving excitement / excellence / glamour / reality / slice-of-life].
Ads will convey the look and feel of a [describe your image] company.
Research indicates that [direct mail / direct response / TV / radio] advertising has not yet been used by
any of our competitors.
The consumer mindset, as described in Marketing Strategies is [x].
See also Customer section.
Ideally, after becoming familiar with our product(s), the consumer will [state the action you want the
customer to take].
Specify actual consumer action—call our toll-free 800 number and place your order using your credit
card / call for a brochure / visit our tradeshow booth, website, etc.
Being specific here will set the stage for developing appropriate ads.
To eliminate the biggest objections to immediate action, our advertisements must address [known /
anticipated] [objections / difficulties] with [product acceptance / how to own or use] [product name]
immediately.
Because [product name] is so [innovative / unique / etc.], it is important to develop a promotional
campaign that is consistent and easy to understand.
Accordingly, [Company] has created a system of research and response to ensure maximum return from
on our advertising dollars.
Develop an ad history: One way to measure publication effectiveness is to count the number of
responses / inquiries and / or purchases per 1,000 readers [paid circulation]—given a particular ad.
Vary your ads (by size, message, etc.—one variable at a time) and measure the differences. Now
you can calculate the number of responses per your investment in advertising.

Media Strategy
Our plan is to maximize ad life with monthly and weekly publications.
To get the most out of our promotional budget, our media coverage will focus on the [type of audience
your media coverage targets] audience.
Recap your customer profile from the Market Analysis section.
Select a specific group that buys your product or service.



We will use the following advertising / promotion sources:
Proven in-flight media
Mass-mailed catalogs [Fingerhut / MicroWarehouse / Land’s End / Eddie Bauer / Sharper Image /
Lillian Vernon / Nightingale-Conant / Career Track, etc.] backed by [in-house / third party / 1-800
order acceptance / online electronic] ordering and fulfillment.
Selected business publications
Selected publications read by (influencers): Business Experts, CPAs, Bankers, Attorneys
Selected publications read by (influencers): Technical Consultants, ship builders, and architects.
Business-talk radio in select markets; PBS in select markets.
Strategic and contextual banner advertisements.
Search engine search-results banner ads for keywords: “business,” “capital,” “manage,” etc.
Select primary business publications with high specific-market penetration.
Schedule adequate frequency of ads to create recognition and impact market with corporate image
and product messages.
Where possible, position advertising in or near [articles on industry / product reviews / front cover / center
spread] and appropriate editorials.
Utilize U.S. editions of [consumer / trade / specialty publications].
Take advantage of special high-interest issues of major publications when possible.
Billboard
Our first major billboard promotion will appear at the intersection of Highway 101 and the 380 off-ramp
– where it can be seen by most the San Francisco airport traffic.
Billboards are often most effective for promoting a local business (i.e. your business is located
within 10 miles of the billboard.)
During the dot.com era many billboards listed the web address… how dumb is that? Do you have a
computer in your car to go online? Are you going to write it down at 60mph? You’re not likely to
remember it after another 20 miles of driving… What if they listed their 800# (perceived as a free
call – easy. No-brainer) and the offer was for a free brochure… you get their address and email
address, then you send them an inexpensive postcard with your web address.
Conferences, Seminars & Trade Shows
Our first major conference promotion will be at [xxx] where we will introduce our [product/service].
[xxx,000] [customer types/computer buyers, golfers] are expected to attend. The Company will have a 10
x 10 booth for 3 days and be offering [product samples/free CDs/free estimates/] and demonstrating our
newest [xxx].
Magazines
Our first major magazine promotion will be full page ads in [magazine], [magazine], and [magazine]
magazines. The expected circulation exceeds [xxx] and is highly concentrated to reach [boat
owners/ranchers/etc.]. All issues will include a unique “Sales Source Key’ enabling us to positively track
the sources of our sales in order to measure our return on investment and make media adjustments
accordingly.
Newspaper
Our first major newspaper promotion will be a 1/3 page ad in the [Wall Street Journal] starting [date] and
running for [xx] consecutive days. We will track and measure sales
Personal contacts
Our [Founder/CEO/VP Sales] has many high-level contacts in the 2002 NAICS Title industry. We plan to



make special trail offers to these key players in order establish prominent customer accounts to showcase
our [products/services].
Radio
Our first major radio promotion will be on KXXX radio in the greater San Francisco bay area. According
to their demographic data, their audience consists of [middle aged male] listeners likely interested in a
solution for [squeaking fan belts].
You though we were going to say baldness or something like that didn’t you? Shame on you!)
For example, if you want, you can have Howard Stern rave about your product, service or company
for a full 60 seconds to the entire nation for $30,000. Call Liz, at KROCK in New York, 212-314-
9271.
Television
Our first major TV promotion will be [Kxxx] TV serving the greater San Francisco bay area. According
to their demographic data, their audience consists of [teenage] viewers likely interested in new [web-
based games].
Trade Associations, User Groups, Clubs
Our first major trade association will be at [xxx] where we will introduce our [product/service]. [xxx,000]
[customer types/computer buyers, golfers] are expected to attend. The Company will have a 10 x 10 booth
for 3 days and be offering [product samples/free CDs/free estimates/] and demonstrating our newest
[xxx].
Yellow Pages
Many of our customers are local and often “let their fingers do the walking.” The Company will develop
and maintain a prominent position in our local phone book classified advertising directory.
Other
In addition to the above mentioned advertising and promotion, we also intend to [send direct mail (see
below)/provide free samples/].

Preliminary Media Schedule
Media Circulation Budget Ad Size CPM
[Magazine, TV, Radio]50,000 $1,500 1/4 Pg $30.00
[xxx] 450,000 $4,400 1/2 Pg $9.78
[xxx] [xxx] [xxx] [xxx] [xxx]
Total 500,000 $5,900 3/4 Pg $11.80

Anticipated Response [ex: 1 / 1,000] 500 responses at [$11.80] each.
CPM = Cost per Thousand. This is a common measure to compare the costs of different media
based upon is reach. You would also need to compensate for page size, TV / radio spot length, etc.
Editorial dates—when they will run special issues. (Special Issue: Office Automation, etc.) that will
enhance your ads.
Obtain a copy of the “rate card” from the publications you consider.
Visit Standard Rate & Data online. They have data on every media on Earth.
We expect to achieve a reach of [total circulation / audience], and to maintain that for a period of at least
[months].



Due to the [seasonal / geographical, etc.] nature of our audience, we plan to [how you will counter these
issues].
In response to competitor's advertising, it is necessary to [xxx].
Explain how your message will contrast with theirs.
What if they run similar ads?

Promotions
In addition to standard advertising practices, we will gain considerable recognition through [xxx].
Trade programs (trade advertising for product)
Press releases (if product is justifiably new and innovative).
Include budget and rationale.
See Public Relations section as well.
[Product name] has already been [installed / put in service] at more than [xxx] [companies / customers /
stores / government agencies]. Our products will be placed / offered in additional [xxx]'s at substantial
discounts.
The number of trade shows attended will be increased from [xxx] to [xxx] each year. These shows will be
attended independently and with the companies with which [Company] has joint marketing / sales or
OEM agreements.
Reports and papers will be published for trade journals and technical conferences.
[Product name(s)] will be displayed as a service in a [retail store / manufacturing / professional]
environment—a showcase for [Company]'s products and an ongoing [test / market test / product
development / promotional] environment.
Consumer will be encouraged to [call the 800# / clip the coupon / come to store / call for a demo or to
order].

Direct Marketing: Direct Mail
Target selected business categories
Describe any activities or plans you have for direct mail promotions.
Go to your local Post Office and request copies of The Mailer's Guide. It contains abridged
information on bulk mailing permits, size, thickness and folding restrictions, mail classification items,
customer service programs, and useful information.
Collect mailing list catalogs—look at all the possible outlets for your product.
Mail to selected 2002 NAICS Title experts, 2002 NAICS Title consultants, 2002 NAICS Title investors,
2002 NAICS Title attorneys, etc., depending on your target market and the people who influence your
target market.
Look in your Telephone Directory's Classified Advertising under Mailing Lists.
[Company] will expand direct marketing to potential customers using inexpensive mailing pieces
(postcards) designed to create awareness. The direct mail piece will drive them to [Company]’s website
for the full presentation and fulfillment. [Company] will offer [free xxx and xxx] to capture customers’
email addresses and permission to contact them in the future with additional product offers, news and
articles of interest.



Based on our research, there is significant sales potential in direct marketing to [target customers /
influencers / resellers.] Statistics support this position:
[xxx,xxx (number of)] [businesses / consumers / corporate libraries / safety managers / school teachers…]
purchase [what they buy, that you sell] every year. To reach this entire market annually, we will need to
send out [xx,xxx] mailers every month.
As we mail to purchased lists, we will refine and scale regular mailings to the [xx thousand / million]
[U.S. businesses / teachers / hobbyists / homemakers / chefs…] ultimately sending [xxx] [thousand /
million] pieces every month.
In addition to using direct mail to distribute our products, we will communicate directly with our
customers through [product upgrade offers / information updates / product announcements], and [creation
of a quarterly newsletter / other incentive to say yes to contact]. The direct mail objective is fully for
profit.

List Management
Given the growing potential of [example: channel alternatives to the retail store], we are building our
capabilities in database marketing. We have brought our customer list in house for this first phase as we
develop our database sophistication. Our registration cards and periodic customer surveys will help us
understand our customer, and measure the success of our marketing, sales and product activities. Profile
overlays or other lists that we buy will fill in our awareness gaps. This in-house presence will provide our
sales and tech support teams with tools that streamline their operations, while they update our customer
knowledge on a daily basis. We plan to develop a customer information system that will help us make
sound decisions by providing historical answers to the marketing questions we pose.

Incentives
Describe any activities or plans for sales incentives.
Consider the appropriate use of advertising specialties like coffee mugs, t-shirts, imprinted gifts and
gadgets.
Look in your Telephone Directory's Classifieds under Advertising Specialties and request some
catalogs for ideas.
Some lasting and economical incentive ideas that fit our company and customers include:
Coffee mugs (our customers have office jobs)
Tape measures (for customers like interior designers and construction foreman)
Floating key chains (since our customers are boat owners)

Indirect Marketing – Strategic Partners, Affiliates, & Associations
Part of [Company]’s strategy is to reach business owners through everyone surrounding them. These are
the people business owners trust and respond to, and who can be easily located and reached. [Company]
will market to these “influencers” through direct mail, conferences, special promotions, targeted
advertising, as well as special incentives.
[Company] has a long history of strategic relationships, including Microsoft, IBM, Apple, AT&T,
PacBell, Intuit, Wells Fargo, Travelers, VISA and others.



Affiliate Marketing – Strategic Alliances & Influencers
The following key points summarize [Company]’s marketing strategy for affiliate marketing:
Provide products through the 2002 NAICS Title web portals (xxx, xxx, and xxx) that sell products to
their visitors.
Leverage relationships with respected 2002 NAICS Title experts in closest alignment to [customers]:
2002 NAICS Title consultants, 2002 NAICS Title attorneys, investors.
Expand on [Company]’s relationships with Fortune 500 partners and leverage their resources.
Link websites to [Company] with an “Associates Program” to build traffic, on a pay-per-sale basis.
Market to and through organizations strongly influencing business owners and entrepreneurs: trade
associations, NBIA (incubators), NAFE, NAWBO, NFIB, and others.
[Company] currently donates the [book / materials] to High School / Elementary School classes.
Sponsor 2002 NAICS Title clubs.

Sales channels will include hiring representatives to focus on [customer segment], [customer segment],
and [customer segment] customers. From experience, [Company] has gained in the [market segment]
market, it will be better prepared to market effectively in [market segment] and throughout [market
segment / the USA / South America / Europe / xxx].

International Markets
In addition to Internet-based international sales, [Company] plans to establish distributors / partnerships
in selected foreign countries, whereby they will localize [Company]’s products and text to suit specific
markets. [Company] is currently in discussion with a “virtual international marketing department”
company to provide this as an out-sourced service. Partners in each country will promote [Company]
products and services such that customers can purchase [Company] products / services by accessing a
localized, native-language version of the [Company] site.
Online service / products sales have no import duty or V.A.T. (17.5% in the UK)
Online service users face no international shipping rates, which typically are exorbitant
Credit card companies handle the currency exchange and deposit cash directly to [Company]
[Company] will enjoy a competitive advantage over incumbent competitors that must collect taxes.

Advertising Budget
What is the optimum spending level for advertising and promotion?
How does this compare with industry averages?
For the next [xx] [months / quarters / years], advertising and promotion will require $[figure about 10 to
50% of sales the first year]. On an ongoing basis we will budget our advertising investment as [xx]% of
total sales.
We arrived at this figure based upon [our competitive research / market and industry-analyst forecasts /
marketing results for the past [xx] [months / quarters / years]. We have determined that advertising [in /
on] [industry publications / consumer magazines / newspapers / buses / billboards / the Internet / stadium
walls / reseller publications…] is necessary to [reach the right market / achieve forecast sales goals /
create or claim mindshare / reinforce our company or product identity / drive traffic to our website /
generate more repeat sales / retain customers and customer awareness…].



Our Spending vs. Industry Averages
If you have this information, it may be useful to include it – if not, don’t sweat it… Investors want to
see that you are promoting your products / services within reason for your industry, but you may
have reasons or circumstances requiring more or less promotion (like starting up)…
Advertising
Sales Promotion
Trade
Consumer
Other [specify]
Compared to industry average we are investing [more / less] in [Trade / Consumer / Industry, etc.]
promotion because [explain rationale].
Do the "heavy spenders" perform better?
What are your conclusions on spending for advertising in this category?

Outside Advertising Suppliers
Include some of the following references:
Advertising Agency
Public Relations Agency
Direct Mail
Mailing House
Direct Response Firm
Fulfillment House
Graphic Designer
Display Designer
Packaging Supplier
Demonstrations—Guides, Literature
Market Research Focus Groups
Sales Literature, Tools
Marketing / Planning Consultant
Premiums Suppliers
Telemarketers
Direct Response Advertising Firm
Printers

Publicity / Public Relations
This section can assist tremendously as you prepare to introduce your venture to its various public
segments.
See also PublicityBuilder described in the back of the BizPlanBuilder Handbook of Business
Planning.



The most powerful force in the universe is gossip.

Our publicity efforts are intended to accomplish the following:
Position [Company] at the leading edge in providing [type of product for xxx industry or xxx market
segment].
Increase [Company] reputation and name / brand recognition among [managers / buyers / customers]
in [xxx] [prospective companies / industries / markets].
Communicate on a regular basis with three target audiences:
Editors of major trade, business, market, industry and local publications
Key management personnel in existing customer companies
Organizations of employees and sales representatives

Publicity Strategy
During 20[xx] [Company] will focus on the following publicity strategies:
Develop a sustained public relations effort, with ongoing contact between key editors and top-level
personnel.
Develop a regular and consistent product update program for the major target media, keeping key
editors abreast of enhancements and new product introductions.
Develop an internal newsletter to cover key sales successes, significant marketing and manufacturing
events, technical support and product development stories. Internally, the newsletter will target all
company personnel and sales representatives; externally, the piece will target key customers and
prospects.
Develop a minimum of four technical articles written by key executives or engineers to be placed in
[list publications] within the next [x] months.
Establish contact with editorial staff for the purpose of being included in product "round-ups"—
product comparisons in [publications such as Consumer Reports, PC Magazine, Working Woman,
etc], where competing products are compared. This exposure builds credibility and market
acceptance.
See Bacon's Publicity Checker at your local library for a directory of publications and editors
covering your industry.
Produce a complete company backgrounder on [Company] to be used as the primary public relations tool
for all target media and editorial contacts. This will also be effective for inclusion in press kits, dealer kits
and sales packages. The backgrounder will include sections on the following broad subjects:
Overview of the Market: size; characteristics.
The Market in [years] present and future.
The Company
History
Management Philosophy
Brief sketches of Top Executives
The Products
Market Niches
Major Sales Announcement
Major contract agreements representing sales volumes of over $[x] will be written up and released to
selected media, editors and analysts as soon as practical after agreements are signed. Ideally, these will be
joint announcements. Concurrently, a shortened version of the release will be mailed to all internal and



external sales organizations, and post to the Press section of our website.
Press Release
[Company] [is developing / has developed / will develop] a series of press releases on the entire [product
line / service area]. We will prepare press releases for each new product introduction, technical
development, participation in major events, [awards / recognition] for [product / personnel excellence /
performance, etc.].
Include an 8x10 black-and-white glossy photo of your product or of an interesting demo of your
service—editors are likely to pick up your news release faster with a photo.
Editorial Visitation
Over the next [xx] months we will [host / invite] the most influential reporters and editors from
[publication and / or broadcast media names] for a visit to [Company]. During the visit, each of the
editors will receive a complete facility tour, product briefing(s), and an opportunity to interview the
chairman, president, product designer and marketing manager. If logistics or timing is a problem,
individual appointments can be arranged, or meetings will be scheduled during major trade shows.
Trade Show
[Company] typically participates in three kinds of trade shows: 1) [xxx], 2) [xxx] and 3) [xxx]. In the
past, we have concentrated on shows geared to [xxx]. Now that [xxx], it's time to expand our horizons to
shows that [xxx].
In 20[xx], instead of [xxx], [Company] will concentrate on [xxx]. In deciding on the [Company] plan for
trade shows, the following factors have been taken into consideration:
Target audience of the show—[will this get the message to our target market].
Geographic location— [a good mix of shows around the country].
Time frame—[preferably no more than one show per month].
Past experience—[if any with the show].
Participation in someone else's booth.
Keep our 'influencer' shows going.

Based on the above considerations, these shows have been chosen for 20[xx]:
[xxx]
[xxx]

Internal / External Newsletter
We [currently / plan to] produce [a four-page, black-and-white / 2-color / 4-color] newsletter to serve as
an informational piece for internal personnel, the sales force, and key customers. It [will include /
includes] sections covering each major department or organization within [Company] and a message from
the executive staff. It also highlights major developments, such as [key sales stories / successful customer
applications, uses, installations / significant marketing events / product development news].

Publicity Revenues
We anticipate at least $[x] in gross sales will be generated directly from our publicity, and possibly an
additional $[xxx] of indirect increase in sales throughout our various channels.



Literature
Corporate Capabilities Brochure
To portray [Company] as the leading supplier of state-of-the-art dynamic [xxx] we have developed a
company brochure included in Supporting Documents.
Recommended contents for brochure noted above.
Introduction / background
Importantly, a distinction between the "new" [xxx] and other products.
Statement of business philosophy.
Statement on technology and list of "firsts."
Facilities
A photographic tour.
Company Profile
Sales—portray full selling team, including Representatives and Distributors as a savvy, dedicated
support group with one overriding mission: customer satisfaction.
Marketing—emphasize expertise and drive of marketing team in their role of market research,
product development, new product management, etc., providing improved product ideas to the
user.
High-Tech Companies:
Manufacturing—In-depth view of sophisticated manufacturing with special emphasis on performance,
inspection, advanced methods, capacity.
Technical Support / Quality Assurance—Portray the QA and technical support staff as a highly competent
and dedicated group of individuals concerned with customer satisfaction, and with elimination and / or
improvement of substandard [xxx]'s.
Product Development—Present super high-tech image of the R&D group and their facilities. State-of-the-
art image is critical. Product innovation is critical. Use photos of "secret" products undergoing tests, etc.

Sales Support Collateral Materials
[Company] has developed a variety of collateral materials to support our sales efforts. These items
include:
Sell [Product name]
Audio / Video Introductory Tape
News Releases—List appropriate ones.
Brochures

Attract & Support Distributors
Letter of Introduction
Business Plan—Brief outline describing objectives, strategy, tactics to align resellers with you.
Questions and Answers—Address common questions.
Some Ideas—Other thoughts to be planted in reseller's minds—align their thinking with yours (collect
their input from successful experiences).



Samples of these materials are included in the Supporting Documents.
Help Distributors Sell [xxx]
Presentation Binder
Data Sheets, Price Lists

Trade Incentives
Allowances, Co-op Accruals, Warehouse Flushing Promotions, etc.

Marketing Responsibilities
Define who will be make these decisions:
New business development
Dealer support and OEM support
Sales-producing tools
Corporate graphics standards
Brand-name recognition
Direct response promotions
Telemarketing—scripts / training
Product positioning and identification

Next Steps
Based on the strategic plan, decisions that must be made now include [xxx].
The information needed to make these decisions is [xxx].
Data, research results, sales results, etc.
Key decisions to be made in the near term [next six months] are [xxx].
Include decisions to be made after six months, but before the next fiscal budgeting process.
The information needed to make both of these decisions with confidence includes [xxx].
Primary research projects (topic, time frame, budget).
Secondary research studies (topic, vendor, time frame, cost).
The most sensible research recommendations are to [xxx].
List questions you need immediate answers to.
Use data collected from a focus group.
Before proceeding further, review the marketing strategy statements you have made so far against
the following tests:
Are the strategies consistent with your evaluation of the marketplace and your capabilities?
Is the return on marketing investment sufficient to justify the risks? What are the chances of a
competitor executing a similar strategy? What would happen?
Are the strategies consistent with the political environment within the company?
Have you made sure your strategies are based on facts, not assumptions?
Does the overall strategy leave you critically vulnerable to a shift in market behavior? Are all your
eggs in one basket?



Is your appraisal of the competition open-minded and honest?
Is your strategy legal? (Businesses have karma too.)
Is the success of your strategy based on your ability? What are the chances of failure?
Have you thoroughly examined alternative strategies? Do you have a sound, logical rationale for
your recommendations?



Risk

Progress always involves risk;
you can't steal second base and keep your foot on first.
- Frederick Wilcox

Before you get anywhere close to discussing ROI with your investors, you must minimize, eliminate,
dissect… ALL risks. Until you remove as much risk as possible, your investors cannot even begin to
think about the upside. You may sell them initially in the blue-sky possibilities of your deal, but they
will likely wake up in a day or two with fear, uncertainty and doubt (FUD). The FUD-factor. Address
these concerns up front and you will have been on the offensive—wait until challenged and you will
forever be on the defensive.
Also think about how you will use invested/borrowed capital to further eliminate or reduce risk.
“I keep a list of the 10 most serious threats to the company. The lawyers hate this. It's actually
called ‘Ten reasons we're going to go out of business.’ It definitely focuses the mind as much as the
prospect of imminent hanging. So we ask ourselves, If we end up failing, what will be the reason?
And we go through the list. You're starting to build in what seems like paranoia, but it's really just
clear-eyed objectivity. I always enjoyed it. In fact, working on the risk-factor section is my favorite
part of drafting prospectuses. It lets you look at your company and say, Okay, what might go
wrong? You have an obligation to be as complete as you can, so it liberates your mind.” ~ Marc
Andreesen, excerpted from an interview in Fast Company.

Like any operation, there is always some risk associated with operating a business. For [Company], we
see our greatest exposure in the [current absence of competition / willingness of some customers to drive
great distances / possibility of a sudden, drastic change in the local economy, etc.] in this area. A
significant threat to our business would most likely derive from a sudden influx of competing
[companies], backed by a major corporation or conglomerate, setting up multiple locations within the
[city / county / region name] area.
In the event of a major change in the [related market] market, we might also expect to see [some
reduction in sales / some increase in sales / a shift to a different related market that would still drive sales
our way…]. We feel that we are sufficiently aware of potential risks and have contingency plans in place
to either minimize or eliminate them.

Business Risk
Cost Structure
[Company] opened a [xxx] in [month / year]. This new [facility / division] doubled our capacity and
increased our potential capacity by a factor of [x]. In conjunction with this expansion, we significantly
increased our marketing expense and overhead. Although [Company]'s [product name] and [product
name] products were well accepted in the market at former levels of production, there is no assurance that
we will be able to continue successfully marketing our increased production. If market acceptance of our
increased production slows, margins and profitability may suffer. While we operated profitably in the first
[x] months opening this facility, with the period ended [Month, year] (unaudited), [Company] is unable to
predict whether its operating results for the full fiscal year ending [date] will be profitable.



[Company] had planned to add equipment to further increase production capacity from cash flow over a
period of time. However, market opportunities for [Company] products have encouraged us to accelerate
our expansion plans. We believe the net proceeds from a [line of credit / loan] and cash flow from
operations will be sufficient to allow [Company] to meet the expected growth in demand for our products.
However, there is no minimum financing amount that must be raised. There can be no assurance that
sufficient capital will be raised or that future product sales will meet our growth expectations. Should
either scenario fail to occur, [Company] may elect to a) reduce the expansion to a level consistent with
our former slower growth plan, or b) pursue other financing alternatives. Implementation of either of the
foregoing options could delay or diminish [Company]'s ability to respond swiftly to market demand. It
could also limit our growth and adversely affect our profitability.
Competition
[Company] competes with national [product type] companies, several of whom dominate the [product]
market, and are based primarily in [list states]. [Competitor x] and [Competitor xx] have higher sales, and
greater [financial / production / distribution / marketing] resources than [Company]. Although we believe
that in [State(s)] most of the our market share has come from displacement of the brands produced by
local competitive companies, there can be no assurance that competition in the future will not increase
from the national brands or from present or new regionally-based [product type] companies, many of
them, like [Company], [having recently completed / currently planning] significant [facility / capacity]
expansions. Furthermore, if the market for [product type] continues to grow, the major national [product
type] companies will likely devote greater resources to this segment.
Industry Growth
The sale and consumption of [product type] has increased dramatically over the past [xx] years and
[Company] and other competing producers are increasing their production capacities in order to meet this
growth. There can be no assurance, however, that the growth will continue at the present rate, or at all,
and the demand for [product type] may not keep up with increases in supply. In this case [Company] may
face heightened competition and be unable to sell sufficient quantities of our product(s) to maintain our
revenue volume and profit margin.
Product Liability
[Company] has [xxx] Liability Insurance and will continue such coverage as long as it is available at a
reasonable cost. However, future increases in premium rates could make it prohibitive for us to maintain
adequate insurance coverage. A large damage award against [Company], not adequately covered by
insurance, would adversely affect our financial position.
Other risks that may affect your business include profit margin, seasonality, volatility of industry, product
elasticity, substitution, limited suppliers, dependence on major customer(s) and the performance of your
management team. To evaluate the risk factors for your business, see Elements of Risk on the following
page.

Environmental Risk
Economic
The economic risks affecting [Company] are [xxx]. The best strategy for [Company] is [diversification /
offering numerous products or services to multiple market segments].
Weather
[Company] has secured [planning / good management / xxx insurance coverage] to protect against
catastrophic events such as fire, floods or drought. Despite these precautions, a major natural disaster
could affect our business by causing [xxx].



Legal & Government
The State and Local ordinances or zoning laws that may impact our product or production processes
include [describe legal considerations that could influence your operations]. [Company] is staying abreast
of legal issues facing 2002 NAICS Title through [industry publications] and [xxx].

Elements of Risk
This table shows an example of how risk may be evaluated, where it stems from, and which areas
are most vulnerable. It allows you to compare your exposure, given various assumptions. This is a
suggested list of risks. Add other risk elements specific to your product or organization.
The total for Overall Risk should always equal 100%.
Assign degrees of risk to each area; low=1, medium=5 or high=10. Next, assign a risk percentage
to each area; 0% – 100%. The total risk percentage of all areas must not exceed 100%. Finally,
multiply the element of risk factor by the weight percentage to calculate the degree of risk. The
elements of risk that receive the highest totals should receive the most explanation in your business
plan.
You might want to insert a page break just before the heading of this section to keep your Elements
of Risk Chart (below) all on one page.
Below is a table depicting a subjective set of potential risks. We acknowledge the degree of each risk on a
scale from 1 to 10, its weight as a percentage of all of the potential risks, then we multiply to arrive at a
total risk factor to give you an idea of the magnitude and affect each risk has on our business:
Degree of Risk Weight Total Risk
(1-10) (%) Factor
Business Risk
Cost Structure 5 15% 45
Competition [x] [x] [x]
Industry Growth [x] [x] [x]
Product Liability [x] [x] [x]
Profit Margin [x] [x] [x]
Seasonality [x] [x] [x]
Complementary Industry [x] [x] [x]
Substitution [x] [x] [x]
Suppliers [x] [x] [x]
Customers [x] [x] [x]
Personnel & Management [x] [x] [x]
Environmental Risk
Economic [x] [x] [x]
Weather [x] [x] [x]
Legal & Government [x] [x] [x]
Overall Risk [x] 100% [x]



Rationale
As you can see, the greatest risk [Company] faces is in the area of [xxx], [xxx] and [xxx]. What we have /
plan to put in place to offset/eliminate/reduce these risks is [xxx].
OK, the risks are out of the bag, talk about what you can do about it. This proves that you have the
guts to look at them , you are honest enough to acknowledge them to your investors, and if another
potential risk is thrown on the pile, perhaps by an investor, you have already demonstrated your
ability to be realistic which may convince that you can also adeptly handle the !@#$%& they just
threw at you… ☺
List information to support your risk assumptions.



Operations

Headquarters / Office Location
While gathering our research with [xxx—type of business] businesses nationwide, we discovered that
[note special customer requirements], and that an easy way to address this issue was locating our facilities
and sales staff in [technology centers / major cities / outlying areas / the financial district / industrial parks
/ an area with a high concentration of youthful, web-savvy gamers, etc.], where [business customers /
consumers / online gaming enthusiasts] can [meet face to face to discuss contracts / drop in for a tour and
demo / connect by phone with live support staff / come in and test our technology with their own
applications to ensure compatibility prior to final negotiations / be drawn on for support and development
positions, etc.]. We also found that other items were of great importance to our customers and prospective
customers as well, including:
Customer requirement 1

With [Company] headquarters located [in / near / away from] the [downtown / business district / xxx] we
can [provide ready access / keep overhead down / include extra, affordable space for xxx servers /
accommodate anticipated growth / ensure optimal environmental conditions / incorporate the necessary
space for xxx / provide easy freeway exit and return for customers arriving from the airport…]. This is
important to our customers because [xxx]. Future office locations will also have to provide this
[convenience / access / low overhead / space] to meet growing demand and continue to provide the [xxx]
customers will have come to expect.
Our building is [a new structure / an older building, recently retrofitted to support xxx / in the high-tech
xxx Business Center] meeting our requirements for [system expansion / broadband connection and
availability / 24/7 guaranteed environmental control / proximity to other businesses / telecommunications
connectivity through xxx / xxx]. This is important to our customers, as they count on us for [high
availability / scalability / always-on access / xxx].
This setting meets our criteria for xxx, xxx and xxx, and appeals to our customers because xxx. Our
choice of an area where we would have [a free-standing building / plenty of space / no shared-space
constraints / lower overhead…] allows us to [take advantage of customers drawn by marketing from other
businesses in the complex / keep unique business hours responsive to customer requirements / contain our
own advertising costs / participate in cooperative advertising and promotions…]
Since our building is very much a part of what we offer our customers, we have carefully shaped our
overall presentation to the community. By working with a designer familiar with both the markets we
serve and the clientele we want to attract and hold, we have created an environment that appeals strongly
to our customers. It gives both new and returning customers a feeling of [being part of our xxx
community / comfort and relaxation to conduct their business with us / their specific business needs being
recognized, acknowledged and addressed / being happy to refer friends and associates or to bring friends
and associates with them to our offices].
By taking the attributes of our building and location fully into account, we have created a comfort level
for our customers (and employees) that encourages [a short, smooth sales cycle / long-term relationships /



service and relationship expansion as their businesses grow / them to refer us to friends, associates and
colleagues].

Information Technology
“Technology Stack” We want you to be aware of this techno BS/jargon and not look like a cow
staring at a new gate if/when an investor asks, “So, what is your technology stack?”
A company's “technology stack” runs from storage devices to databases (for example, OS 390
databases like IBM’s DB2 or distributed systems databases from Oracle, Informix, Sybase, or
Microsoft) to application servers (like the Windows application server and systems for ERP, e-
commerce, e-mail, and back-office services). Analyst Susan Aldridge of The Patricia Seybold
Group uses the metaphor of a relay race to describe the functioning of the technology stack. The
point of the race is to pass the baton smoothly from runner to runner -- that is, from storage device
to database to application server.
Describing your company's “technology stack” can be akin to bragging about your stereo/sound
system… “We use an xyz CD player into an abc pre-amp with an xyz power amp out to four JBL
monster speakers and a CV sub-woofer…”
“IT infrastructure” is another beauty – Information Technology infrastructure can be a bit much for
most businesses who use a couple of PCs or Macs to manage their accounting, inventory,
customer database, and maybe your website and graphics development…
[Company] provides services that rely [relatively little / somewhat / significantly] on technology. Our
primary technology focus is [the computers on which we keep our records and host our website, at [Web
Address] / the xxx that we use to carry out our service / state-of-the-art xxx to maintain a front-runner
position among competing services].
The company plans to utilize open source technology to build its ecommerce system and IT infrastructure.
We [are using/plan to use] a LAN of Macintosh/HP/Compaq/IBM/Dell desktop PCs connected through a
Airport/Cisco/Linksys wireless router system. We back-up our data daily to our network server as well as
to iBackup online storage systems.
The website serves as an [information / marketing / sales / communication / collaboration] tool more than
anything. Customers can [request services / view their account details / request information / order service
instructions] online. We [have / have not] built in a payment transaction mechanism, as online sales
represent [a significant portion / a small portion / no portion] of our business. We decided to [take
advantage / pass on the option] of hosting a website, as it [does not fit / provides a critical element] in our
business model. The most important aspect of our [online presence / lack of online presence] is that [a key
function (say scheduling) can be handled by the individual customer on our / we have no ongoing expense
or the headaches associated with maintaining a] website. We believe having a web presence is [very
important / of no importance / somewhat important] because [provide the reason for your stance].
iBackup is a secure, online storage/ backup, remote access and sharing solution for consumers
and businesses with a unique combination of backup and storage functions. It’s a pretty good deal
for just few dollars/month. Learn more about iBackup here.
Google's technology stack, the distributed file system Google uses to drive its services (think
300TB on 1,000 machines). Google uses clusters of low-end PC hardware and lots of high-end
network hardware to achieve the high availability and responsiveness that we have all come to
expect.
The Google philosophy can be expressed in five general principles: Work on things that matter,
affect everyone in the world, solve problems with algorithms if possible, hire bright people and give
them lots of freedom, and don’t be afraid to try new things. As a general practice, Google also



requires that its engineers spend 20 percent of their time working on personal technology projects
unrelated to their primary projects.
Running through the five principles, “work on things that matter” and “affect everyone in the world”
go hand in hand. In a corporate IT environment, applying these lessons means staying focused on
issues that need to be solved and solving the issues that have the broadest impact on your
employees and customers, which is “the world” being served by corporate IT. These are common
sense principles, perhaps, but worth stating explicitly.
The most intriguing principle might just be the one about solving problems using algorithms.
Expressed more generally, this tenet suggests that repeatable problems should be solved with
defined and repeatable processes; put more simply, automate what you can. From a corporate IT
perspective, this means constantly evaluating business processes to see where you can apply IT
strategically to make your organization more efficient, accurate, or just plain nimble — take critical
but mundane tasks and automating them so employees can concentrate on tougher issues
requiring focused human thought. – [the last 4 paragraphs were] excerpted from an article written
by Chad Dickerson, CTO of InfoWorld.

Manufacturing
As much as I want to promote and support America, I must advise you that most investors and
lenders expect you to be outsourcing your manufacturing to China. (..hate to say this, but we must
do what we can to assure our success and return to our investors.) It’s just cheaper and getting
cheaper every day. There will be more for Americans to do—we just need to rethink, rekindle and
reconnect…
American jobs are created everyday as a result of doing business with China. More and more
entrepreneurs are able to set up their own businesses because of the great pricing overseas. We
have just made an evolution from the factories to the office.
The Company has numerous sources for product manufacturing—Including both domestic as well as
offshore sources in China. (We [must/are] set up this way to both minimize our costs and allow for the
flexibility of rapid production without the long shipping lead time from overseas if/when needed…
The factory monthly production capacity is [xxx] units per day, [xxx] units per month. Production can be
ramped up within 6 months to [xxx] units per month if needed.
We have audited our production lines in China and have verified that they are capable of manufacturing
the product to our standard, and we are only using ISO 9002 approved factories to assure consistency.
The factory we which we have our alliance has all of the necessary approvals for our products: UL, FDA,
CE, ISO, Child Labor Compliant, etc. They are located near the Shanghai/Ningbo/Hong Kong port for
convenient exportation.
We have completed our engineering phase and have finalized our specification drawings.
We have submitted our AUTOCAD specifications to three factories for mass production prices and lead-
time estimates.
Our prototype of the [product] has been shipped to [ChingTao] for assuring sample production accuracy
and estimating price and lead time for tooling, production, and shipping.
Our product does/does not require new tooling to create custom molds. We have a contract with the
factory states that we own all right, title and interest to the molds, and they are only to be used for our
products on our orders and we have the right to retrieve or relocate these molds at any time that we see fit.
The lead time to open the mold tooling is 35 days, then we will see the first sample and make any needed
modifications.
This is standard lead time for Injection molding tools, simpler tooling can be completed in 5-10 days



Three plants with 735 workers [will be/ are available to / are busy] working to produce [xxx] units by
[date].
Our samples are being built in our main China facility—the completion date is set for [date].
Once samples have been evaluated and approved we will authorize full production to begin.
The standard production time after a confirmed purchase order is 2 weeks to procure the raw materials, 1
week to schedule in the production, 1 week of actual production time. 4-6 weeks total.
To minimize shipping costs we will ship by Ocean freight in either 20ft or 40ft containers.
Shipping time from the factory completion date is 30 days by Ocean or 5-10 days by air freight.
Payment terms have been negotiated as Net 30. (Which means 30 days from invoice issue date)
Payment terms for Asian manufacturing are generally 30%-50% paid up-front at time of purchase
order and the balance payable at time of/before shipping. Better terms of Net 15, 30, and 60 days
can be negotiated as you build up the relationship of trust. Most factories also welcome a Letter of
Credit payable at sight or 30, 60, 90 or 120 days.
Ralph Thompson, CEO, Novus Technologies in Salk Lake City, UT, manages product development
and offshore manufacturing through relationships with more than 29 factories in Taiwan and
mainland China. (We’re building karma points with Ralph!) ralpht@novus-tech.com

Facilities
The manufacturing facility [is / will be] located in [xxx].
This location [provides / will provide] necessary space for [initial / current] production and expansion to
meet projected demand over the next [xxx] [weeks / months / quarters / years]. Our current production
capacity, including internal and external production, is [xxx] units per [day / week / month / year].
Due to anticipated increased demand for up to [xxx] units per [week / month / year], additional facilities
will be needed by [month], 20[xx]. Selection of the future site includes the following considerations:
1) Sufficient available space, at a reasonable rate, plus the costs associated with moving / expansion
Land and construction costs
Transportation cost and route access: common carrier, company owned, pooling agreement with [x]
freight forwarders
Risks and insurance
Packaging and material costs and availability of / proximity to (suppliers / customers / resellers)
Labor pool availability, skills, costs
Local ordinances, licensing, and permit requirements
Government assistance (roads, training, exemptions, etc.)
Government restrictions and requirements (OSHA, NLRB, etc.)
Community attitudes toward business and manufacturing
Continued operating costs (utilities, communications, etc.)
Additional Space Requirements
The new equipment to be purchased will require additional [office / production floor / materials storage]
space. To meet this requirement, management is considering:



leasing additional space in a unit adjacent to the present facility
moving the entire facility to a larger facility
moving the administrative offices out of the current facility and leasing office space elsewhere for
management and administrative staff .
The best option for [Company] is to move our offices [down the street / to [City] / upstairs]. The new
office space is approximately xxx square feet. The terms of the new lease are $[xxx] per month for [xx]
months, and should meet our needs for at least the next [xxx] months..
Before you talk about buying real estate, either be sure you are getting an extraordinary deal on it
or consider that you are not in the real estate business and demonstrate to investors or lenders that
you can make a shrewd deal on a lease.
The acquisition cost for land and improvements is $[xxx], which will be allocated in [xxx] increments
over a period of [xxx] years. [Company] already owns / has access to / requires [xxx] of additional [land /
storage space / assembly space / shipping and receiving ] and supporting staff.
Within our facility, an efficient production process hinges on proper layout of [xxx].
It may be helpful to include a layout of the proposed plant and manufacturing flow chart in
Supporting Documents.
Equipment will be deployed as follows:
List equipment, number, capacity, space requirements cost, etc.
Provide rough illustrations of equipment layout and process flow diagrams.
This equipment is used in the processes as described and configured above to ensure that yields, lead-
times, and costs stay on track to provide projected gross margins.
Additional questions:
Where will distribution centers be located?
What packaging and handling equipment will be used and who will supply it?
What special equipment, if any, will be needed? i.e. trucks, tractors, etc.
Will warehouses be used? If so, where and what size? What inventory levels will be carried?
Equipment? Labor? Competition?
Staff
Line employees include [xxx] specialists and [xxx] general production labor. Staff employees include [x].
List current and required number of people and their skills.
How and when will they be trained?
Who will hire and manage them?
Discuss procedures and measures of effectiveness and productivity.
To protect proprietary interests and information, the following policies will be enforced (work with your
attorney to develop this section).
See AgreementBuilder for a Non-disclosure and Non-Compete Agreement.
Packaging & Transportation
These last steps in the manufacturing process are important in establishing the desired image for the
consumer. Of the standard packaging treatments available, the best choice for [Company]'s needs will be
[custom boxes / bubble pack / shrink wrap / poly bags…]. Since this is a readily available form of
packaging and a simple packaging process, considerable savings can be realized.



[Type of packaging] is more widely used, but in order to convey [a unique selling image / strong market
position] we [are considering / will begin / have begun] using [describe the type of packaging].
Our competitors use [type of packaging] as well, but by using distinctive graphics, [photos included in
Supporting Documents] we maintain our unique identity.

Fulfillment
Fulfillment is an important part of customer satisfaction. [Company] utilizes [our xxx group / an external
resource, xxx] to monitor and manage the delivery, billing, warranty service and repair of our products.
This helps to ensure customer satisfaction and repeat sales.
To improve operating efficiencies, we plan to use [fulfillment company name] as our fulfillment
company. Their facility is “state-of-the-art” and their customer record is excellent. By outsourcing this
function, we can avoid hiring additional internal employees, or expanding our telephone and computer
systems. We will also save on shipping costs due to the higher volume discounts [fulfillment company
name] earns serving multiple businesses from one location.
During the past [xxx] [months / years] this [group / vendor] has demonstrated outstanding ability to [xxx].
Their capacity is sufficient to handle our anticipated fulfillment needs for the next [xxx] years.
Transportation will be via [truck / train / air cargo].
How does your product ultimately reach your customer?
How many steps are involved?
What is the weakest link in your transportation / delivery chain, and how will you address that?
If using your own fleets, will the vehicles carry the same quality graphics as the product itself?
Is this the method your competitors use?
Comparative costs show that [xxx].
How do your packaging and transportation costs look in comparison to the competition?
Shipping Terms
F.O.B. Origin (Freight On Board) means that customer takes ownership the moment the product is put on
the truck (origin), and pays for shipping and insurance, etc.
F.O.B. Destination means that customer takes ownership after the product has been delivered. (at the
destination) The shipper pays for shipping and insurance, etc. and is liable for the product until it has been
delivered and signed for.
Since 20[xx], [Company] has managed its shipping department as a profit center. [Company] products are
shipped to our [distributors / end-users] via [F.O.B. Origin / F.O.B Destination / F.O.B. Buyers Factory /
Other]. We use the following as our primary carriers:
Ground: [x]
Second Day: [x]
Overnight: [x]

During the last [period of time] we have taken advantage of several discount programs, including [xxx] to
lower our average shipping costs by [xx]%. Future volume increases will allow us to take advantage of
the following discounts, [list potential discounts], thus further lowering our average shipping costs.
Our shipping department provides other unique services, including:



[List services]
Xxx
Xxx
xxx

Customer Service
Our customers emphasize that service and support are among their major concerns. They are constantly
impressed with the support we provide. Hot-line service is currently available to all registered customers
enrolled in a maintenance / support program.
We intend to provide free pickup and delivery for customers in the [xxx] areas by using [our own trucks /
couriers]. The purpose for this service is to assure customer satisfaction and loyalty, allowing us to
increase sales and maintain a high profile within our service area.
Another value-added service is providing customer inventory warehousing. This allows us to book larger
orders and provide faster order response.
Support to manufacturers' representatives will allow them to perform efficiently as a sales force. We
intend to treat the manufacturers' representatives as an extension of the [Company] direct sales force, and
they will be given the same support as [Company] internal sales staff.
Technical backup to OEM support groups is currently supplemented by [Company]. The OEM staffs
respond to the needs of their customers, and when they encounter a support issue that requires more
information, they direct their customer to [Company] or they may contact [Company] to obtain the
necessary information.
Technical support to marketing and sales functions will be strengthened. Pre- and post-sales situations
involving the application, presentation, and demonstration of [Company] products will be supported by
staff.

Returns & Adjustments Policy
Customer satisfaction is a high priority for [Company]. One of our goals is to make our product(s) so
good that there are few, if any, returns. Still, we recognize the fact that however good our product is, there
will be times when it simply does not meet the needs of some customers. To ensure a positive experience
and image in the minds of these customers, we offer a money-back guarantee. Our objective is to make
our customer service so good that even if a customer decides to return a product, we will retain that
person as a loyal customer, who will refer friends and associates, and make other purchases from
[Company] in the future.
At this time, general trade customs for handling returns are [describe how returns are generally handled].
We will use the following policies:
“If for some reason [product name] is not right for [you / your business] you may return it for a full
refund within 30 days of receipt of product. You must call [customer service phone number] for a Return
Merchandise Authorization number [RMA#]. Refunds are made only on the price of the product, plus
applicable taxes we collected at the time of purchase. Shipping costs are not refunded.”
“Credit card refunds are credited directly to the credit card you used to make your purchase. Refunds for
cash / check payments are made by check within 30 days of receipt of returned merchandise in saleable
condition, accompanied by the assigned RMA#.”
We intend to [follow / depart from] industry custom by implementing a returns and adjustments policy
that will [explain your plan and how it will work]. Our reasons for [following / departing from] customary



procedures are [give reasons—advantages, benefits for you and your customers].
Here is an optional section you may want to include with your business plan—either directly as part
of the main document or as an addendum.
Many investors, lenders and grant resources are looking for companies taking an active part in
environmental sustainability.



Environmental Sustainability

Zero Waste & Greening Benefits
Many leading businesses are realizing that waste is really lost productivity and the reduction of waste can
have considerable impact on the bottom line. We at [Company] are conscious of our ability to create
business value by pursuing the sustainable management of materials and processes. We view waste of all
kinds as an opportunity to improve efficiency and become more competitive. Sustainability takes into
account the waste stream, greening, as well as economic sustainability.
The Cost of Waste
In all kinds of businesses, there are two types of cost associated with waste:
waste disposal costs
‘hidden costs' associated with the generation of waste

Hidden costs include staff time from unproductive waste management work, storage and cleaning up
costs as well as the materials bought that are written off as waste. Putting a dollar value to these costs can
often produce quite surprising figures. Research indicates that waste disposal commonly only represents
10% of the total cost of producing waste, when all these extra 'hidden' costs are included.
Since waste is a sign of inefficiency, the reduction of waste usually reduces costs.
Hewlett Packard in Roseville, CA reduced its waste by 95% and saved $870,564 in 1998.
Epson in Portland, OR has reduced its waste to zero and has saved $300,000.
Interface, Inc. in Atlanta, GA has eliminated over $90M in waste.
Xerox Corp., Rochester, NY has had a Waste-Free Factory environmental performance goal since
the early 1990s. The criteria include reductions in solid and hazardous waste, emissions, energy
consumption, and increased recycling. Savings were $45M in 1998.

Sustainability
[Company] supports all three of the generally accepted goals of sustainability - economic well-being,
environmental protection, and social well being.
Economic well-being is improved by enabling organizations to identify inefficiencies in processes,
products and services and thereby to find cost-saving solutions to them.
Waste Reduction = Improved efficiency and lowers costs
Costs of compliance with regulations is reduced

Environmental protection is enhanced by reducing (ideally to zero) hazardous and solid wastes to nature
and by reducing the need for energy generation and hydrocarbon extraction.
Reduces demand for resources and energy from nature
Reduces wastes to nature

Social well-being is enhanced through efficiency improvements that allow more resources to be available



for all. In addition, more complete use of "wastes" will create jobs in return logistics and reprocessing
activities.
Waste managers become resource managers
Opportunities in return logistics
New products from recovered materials

The International Standards Organization (ISO), http://www.iso.org/, has created the standard ISO 14001
to measure Environmental Management Systems (EMS) of an organization, which takes into account the
environmental impact of manufacturing processes. Some companies have added an SMS module to the
ISO 14001 standard to establish an international standard to measure Sustainability Management Systems
(SMS) of an organization, which addresses amount of waste generated, economic sustainability, recycle
material use and impact of product and packaging on landfills.
The main considerations for EMS and SMS standards are:
Materials – non-hazardous to employees and consumers
Packaging – recyclable and minimal
Manufacturing processing chemicals – non-hazardous to employees and to environment
Energy – efficiency, decrease reliance on petroleum generated energy
Economic sustainability – includes organization providing livelihood to employees and associates, as
well as community in which organization thrives.
The LEED Green Building Rating System® (http://www.usgbc.org/leed/leed_main.asp) is a
voluntary, consensus-based national standard for developing high-performance, sustainable
buildings. Members of the U.S. Green Building Council representing all segments of the building
industry developed LEED and continue to contribute to its evolution.
While the above standards deal with manufacturing systems, the LEED (Leadership in Energy and
Environmental Design) standard was created by the US Green Building Council to certify the use of
recycled and non-toxic out-gassing materials in buildings, as well as building energy efficiency and
accommodation of solar passive or alternative energy generating systems in the design.

Design for Environment
Up to 70% of a product's environmental footprint can be influenced at the design stage. Design for
Environment (DFE) is the process of designing products and product systems to minimize environmental
impacts over the total product life cycle. Most environmental impacts are “locked-in” at the design stage,
which is when key decisions are made on materials, manufacturing methods and how the product will be
used and operated. Addressing environmental impacts at the design stage can produce solutions that are
likely to be environmentally positive and cost effective. Four strategies for designing innovative products
with minimal environmental impact are:
Efficient Design - Keep resource consumption & input to a minimum
Safe Design - Avoid toxic substances in materials or processes
Cyclic Design - Design so materials can be continuously cycled through industrial or natural systems
Communication Design - provide accurate, relevant, informative and verifiable communications

Presenting design solutions that address sustainability in production and consumption both today and in
the future is a realistic and achievable goal. Industry, the community and government need to continually
work together to initiate change and to motivate us to rethink the way we produce and consume products,
so that we tread more lightly on our planet. Through innovation in product design we can avoid waste and



can avoid toxicity going into landfill, as well as drive manufacturing efficiencies and improve the quality
of products.
Efficient Design
Keep the consumption, or input, of resources (materials, energy and water) to a minimum by doing more
with less. Design products which:
Avoid unnecessary components
Use the minimal amount of material necessary e.g. through light-weighting
Use minimal energy in production and use
Use renewable energy wherever possible
Use minimal water in production and use
Do not require disposable consumables during use (e.g. filters, cartridges, batteries)

Safe Design
Avoid toxic or hazardous substances in materials or production processes. These can be a risk to the
health of workers who make the product, to the consumer who uses it, and to the natural environment that
must deal with airborne, waterborne or solid wastes during the lifetime of the product.
Avoid pigments, inks and dyes that utilize heavy metals (e.g. cadmium, chrome)
Avoid processes that generate emissions of volatile organic compounds (e.g. solvent based printing)
Avoid finishing processes that produce toxic wastes in production (e.g. chrome plating)

Cyclic Design
Design products so materials can be continuously cycled through industrial or natural systems. This
avoids waste.
Design products which can be reused for their original purpose or an alternative use
Design products which can be remanufactured (e.g. electrical and electronic goods, furniture)
Specify recyclable materials for which there are readily available collection systems
Keep to a minimum the number of different materials and components to assist recycling
Allow for different materials to be easily separated for recycling
Where appropriate use a biodegradable material (e.g. paper or starch-based polymer)

Communication Design
Ensure that product-related environmental communication is accurate, relevant, informative and
verifiable. Encourage responsible purchasing and consumer behavior by:
Designing the consumer interface on appliances to encourage the selection of efficient options
Providing information on appropriate disposal, reuse or recycling options
Using appropriate logos and labels (e.g. polymer identification codes, recycling logos)

Because of its visionary endpoint, Zero Waste and Greening strategies lead to breakthrough
improvements as opposed to small step-by-step actions. This not only results in significant cost savings,
greater competitiveness and reduced environmental impact, but also will move us more quickly toward
environmental sustainability.
Resources:
http://www.zerowaste.org/case.htm



www.sustainability.ca
The Green Alliance assists businesses to reduce waste as well as costs through improving
materials efficiency. Maintaining a level of production while reducing waste involves rethinking
production systems, relationships in supply chains and how industrial raw materials are packaged
and transported as well as introducing recycling systems.
Green Alliance: www.greenalliance.org
Indigo Green Bioneer: www.kirstenmichel.com
Green-Mary: www.green-mary.com
GreenHome: www.greenhome.com



Present Situation
Describe the current condition of the business—a present-day "snapshot." If you are in the concept
stage, tell what you are doing now to build the foundation of the business.
Here is where you tell investors and lenders what you have accomplished so far.
Clearly describe the one current, dominant driving force behind your business:
Product / service offered?
Satisfying a market need?
Manufacturing?
Profit and income?
Technology?
Client / customer base?
Briefly take stock of your present situation regarding all of the following areas—one to two pages
should be sufficient.

This section provides a snapshot of [Company], as of [your plan date—month and year].

Company
[Company] was founded in [Year Started] and is presently in its [start-up / R&D / growth / maturity /
decline] stage. [Company] can best be described as a [product-based / manufacturing / xxx technology /
retail / sales and service] business, serving the [identify the market your business serves]. At this time, our
greatest strengths are our [market-leading product(s) / first-class customer service / state-of-the-art
technology / strong management team / innovative marketing / explosive sales—list your top three
strengths].
Take a couple of additional lines to elaborate on this description if you feel it is necessary.
There are some people who live in a dream world, and there are some who face reality; and then
there are those who turn one into the other. ~ Douglas Everett ~

Market Environment
The marketplace [has been undergoing rapid changes / has maintained consistent growth / has been
stagnant] for [x] years. We are now poised to [describe what you plan to do in response to this market
environment].
Be sure to describe time factors influencing your ability to make money with current products.

Products & Services
At present our [product] is in the [design / early development / test market / introductory / established /
mature] stage. Our current [product line / related service] needs [expansion / reorganization / upgrades /
paring down / an infusion of capital to xxx].



Pricing & Profitability
Current prices are [stable / eroding / increasing / fluctuating significantly among competitors] and profits
are [holding / eroding / increasing]. As we [anticipate / have traditionally enjoyed] a [xx]% gross margin,
and costs are [expected to remain stable / skyrocketing due to xxx / plummeting due to a glut of xxx in the
supply chain].

Customers
Current customers are using our [x] for [uses / applications]. They are requesting that we [make
improvements / add specific features / add safety mechanisms / provide simpler, easier-to-use models /
introduce a new model].

Distribution
We have [x] distribution center(s), and [wholesale distributors / retailers, manufacturer's representatives,
sales people] working out of [x] offices, with [storefronts / superstores / territories] in [x] [cities / counties
/ regions / states / countries].
Our primary distribution channel includes the industry’s top distributor(s), [Distributor 1], [Distributor 2]
and [Distributor 3], and approximately [x] retail stores. [Company]'s marketing strategy includes [plans to
sell / selling] our [product(s)] through several channels. We will be driving our [lower margin / high
margin / specific product name / complete line of] products through [key distributors, Distributor 1 and
Distributor 2] OR [xxx product line] through [our online showroom / home shows / individually-selected
retailers / direct mail promoting retail channel resellers / extensive advertising with publications that
provide fulfillment in exchange for ads and part of the proceeds—whatever you’re doing in available
distribution channels].

Management
Most of our management team is in place, however, we [require / will need to hire] a [Finance /
Production / Marketing / Sales, etc.] [executive / manager] to complete our team [immediately / by
(month / year) / prior to obtaining financing / upon securing financing] and support our strategy moving
forward. Additionally, we are currently seeking [xxx employees] to fill openings in [list areas where new
hires will work].

Technology
[Company]’s technology is [up to date / nearing obsolescence / old and needs replacement].
The Company operates and maintains its own Web site and Web server, co-located at [xxx] in [City],
[State].
The Company recently switched to the [osCommerce/ecommerce software] shopping cart now hosted on
the [Company] server and integrated through [Trust Commerce/credit card processing company] for
credit card transaction management, as well as electronic fulfillment and integration with [Company]’s
physical fulfillment house (Gung-Ho). We reduced costs from $xxx/mo (@xx% of all direct transactions)
to flat cost of $xx and restricted future transaction costs to [2.35]% + $.20 / transaction, dramatically
improving profits as the Company ramps sales.



Financial Status
Working Capital is generally current assets minus current liabilities.
"Quick capital" is cash plus receivables minus accounts payable.
Summary data from your financial statements should be entered below. Please refer to the
Financial Model or Statements you are using for this project.
Our complete financial status is provided in detail in the financial statements that accompany this plan.
For easy reference, we have included financial highlights here:
Current cash available is $[x].
Our Current Ratio is: Assets / Liabilities = [x].
Our Quick Ratio is: xx
(Cash and Equivalents + Accounts Receivable + Notes Receivable) divided by Total Current
Liabilities = [x].



Capital Requirements

“Experience is wonderful – it enables you to recognize a mistake when you make it again.”
Remember what we said earlier – ask for enough!
Respect the money. No one is so rich that ‘they don’t care about money…”it’s nothing to them…”
The more wealthy people become, the tighter they seem to be. You must respect their $$$ more
than they do if you want them to invest in your project.
Remember that investors want their investment paid back first! The profit is gravy, but be sure your
mantra is all about returning their initial investment to them asap.

Capital Structure
[Company] is a [State] [sole proprietorship/LLC/LLP/C-Corp/S-Corp]. The largest shareholder is CEO
[Owner/Founder], who contributed his/her intellectual property ownership of [product/patents/sole
proprietorship] and currently owns x% of the Company. The other largest shareholder is co-founder
[Founder 2] who currently owns x% of [Company]. The Company will be structured to enable a generous
Incentive Stock Option Plan for employees, contractors, advisers and directors.
The Company has been operating with limited staff and financial resources. With funds generated from
operations it has successfully funded [initial/partial/extensive] product development and related patent
filings, established manufacturing relationships and has cultivated a blue chip customer list and
accelerating sales pipeline. Revenue projections for 2007 and beyond reflect the leveraging of this
[beginning/strong] foundation.

Financing Plan
Through 2004 [Company] has funded itself from [internally generated cash / borrowings from the
founder’s personal credit lines]. Commencing in 2007 the Company has arranged for accounts receivable
and inventory financing from two [State] banking institutions that, combined, will be adequate to fund the
working capital needs of the Company for 2007 and into 2008. [Company] is seeking an initial equity
investment of up to $x00,000 at this time. This equity investment will allow the company to build its
management team, expand its operations and accelerate its sales and marketing activities. The Company
anticipates an additional professional Venture Round of between $x,000,000 and $x,000,000 in early
2006 to allow for further market expansion.

Financing Requirements
The [initial / first year / total] capital required is $[x]. We require additional investments of $[x], $[x],
$[x] and $[x] in [years / months], [years / months], [years / months] and [years / months] respectively, to
enable us to increase our production capacities and meet market demand.
Describe the operating requirements for the five years you have projected in your financial
statements. Your operating working capital is defined as your cash in the bank, plus accounts
receivable, plus your inventory, minus your accounts payable; this can be calculated for each of the
five years from the values on your Balance Sheet for years 1 - 5.



For more information on estimating working capital, see the Working Capital and Operating
Working Capital discussion in the BizPlanBuilder Handbook of Business Planning or on the JIAN
website.
After analyzing our working capital, we estimate our operating working capital requirements to be $[x],
$[x], $[x], $[x] and $[x] for years one through five, respectively. We will need to borrow $[x] to finance
working capital for a period of [months / years], with the remainder to be financed through cash from
operations.
Recap the total short-term and long-term loan requirements for the five-year period, and for each of
the five years.
In order to purchase [additional facilities / equipment / inventory], an estimated total of $[x] loan
financing is required for the five-year period ending [month / year]. The annual requirements for each
year are estimated at $[x], $[x], $[x], $[x] and $[x] respectively.
Discuss the level of safety for this loan or investment.
The level of safety is [normal / low / high] for this [industry / type of investment]. Our confidence in
achieving the attached financial projections within [x]% is [high / average / 90%]. In addition to the
operation of the business, additional protection is provided by [x] as collateral. In a [worst case /
liquidation / unforeseen] situation, the realizable value of the collateral would be $[x], reducing the
amount "at risk" to $[x]. With a projected return of $[x], this represents a return of [x]% of the amount ‘at
risk’.

Use of Proceeds
Describe specifically how the loan and / or line of credit funds will be used.
Where will the money get you?
Investors want to see their money build a complete phase of a business – get the drug to clinical
trials, the airplane to FAA certification, restaurant up and running for 6 months… the idea is that by
achieving a certain milestone, your company now has a new story to tell the next level of investors,
or it could be sold at a significant increase in valuation – the pump is primed and the business can
continue. This is an important concept to understand and be able to sell investors.
The [loan / equity investment] proceeds will be used to [purchase / buy / build / develop / gain / acquire /
finance] [equipment / facilities / property / working capital]. This will enable the Company [complete the
prototype, file our patent / launch the product into the retail channel / complete the integration of all of
our products onto the web].
Use of Proceeds Minimum Maximum
Product Development $300,000 $600,000
Inventory 1,200,000 2,000,000
Direct Marketing Campaign & Publicity 1,500,000 5,000,000
Administrative Expenses 250,000 400,000
Working Capital 500,000 2,000,000
TOTAL $3,750,000 $ 10,000,000
These expenditures are best estimates and may be subject to change if management determines that it is in the best
interests of the Company to reallocate its resources.
List your actual uses for the money in priority order.



Another way of presenting your Use of Proceeds is to use the table below (it is linked to the
Comprehensive Financial model on the Use of Proceeds tab, at the bottom.)
If investors were to put more in, they would finance the further depth and breadth of development.
They should be set at stages of evolution (prototype, roll-out, expansion) – each level brings the
company a higher valuation.
The farther you go, the more value you will build -- where is the optimum investment point for you
and your investor(s)?
"Fund our operation for X months. This is what we can do…"

Use of Investment Proceeds 9 months 12 months 18 months 24 months
Start-Up / Expansion Costs $ - $ - $ - $ -
Product/Service Development - - - -
Production & Inventory - - - -
Marketing & Sales - - - -
Additional G & A 843 843 843 843
Capital Equipment - - - -
Working Capital 250 300 500 500
Total $ 1,093 $ 1,143 $ 1,343 $ 1,343

Detailed Use of Funds
1) Hire key management to oversee product development.
2) Eliminate / minimize potential risks if possible.
3) Buy top ranking in search engines (Google & Overture) for select key words/phrases.
4) Fix minor software problems causing unnecessary technical support calls.
5) Begin extensive PR campaign $x-$xk/month.
6) Conduct detailed focus group research to determine additional product requirements.
7) Technology phase 1 development of the [xxx] – (Prioritized specifications available upon
request.)
8) Expand capability for seamless integration of the entire ‘suite’ of tools.
9) Integrate [product/service] into new system.
10) xxx
Insert your summary financials behind this page in your printed plan.
Find the financial model you want to use in the lower left of the navigation menu – click to open the
folder, then RIGHT-click to open and add the model to your plan.

Financial Models
Financial models for [Company] follow this page, demonstrating the viability and expected profitability
of this business. We feel strongly that these numbers are a [conservative / representative / very optimistic]



assessment, and intend to re-evaluate [monthly / quarterly] until we have established clear trends upon
which we can base future projections.
The amount of money you need in a Series A round basically gets you to the next point on your
Roadmap. Basically, how much do you need to reach a certain set of pre-established milestones,
whether those are product, sales, growth, or whatever based. Then you look at the Series B and C
rounds. Also, is your exit strategy IPO or Acquisition? Who is buying other companies like yours in
this space, and while you're at it, EXACTLY what space are you in. VC's are generally 'Pigeon
Holers', and if they can't figure out what you do in about 15 seconds, they will typically lump you in
with something they think is close, but more often than not, they're way off. Nevertheless, that’s
your challenge to address!
OK, this is where the case you’ve been building counts – the story you’ve told, the data and
evidence you have collected, your business model and strategies all build to the crescendo of
substantiating your financial assumptions… the numbers that drive all the others are the ones that
must make complete sense (the rest is arithmetic). You may need to review parts of your plan to
further build the foundation for some of your assumptions.
“Conceal a flaw, and the world will imagine the worst.” - Marcus Valerius Martial



Financial Plan
Extraordinary yet Realistic Projections “Many budding entrepreneurs fail to actually look at their
proposition from the investor’s (or even the banker’s) point of view. Investors will take the following
approach: “If I put X dollars in today under the following assumptions, will I end up with 10X
dollars at a certain period in the future?” Your projections need to show that a tremendous
return is possible, to compensate for the risk; yet the projections need to be based on
numbers that are realistic.” ~ Ken Wilcox, Executive Vice President & Chief Lending Officer,
Silicon Valley Bank
As you started this project, you were asked to select the financials you would need for your plan.
You will use those completed documents to proceed with the next section of your narrative.
Valuation: Valuation is very important, but don't obsess over it, or be penny-wise and pound-foolish.
You must give credit to the value added by your angel or venture investors. Everyone gets a piece
of a much larger pie than you would without your investor’s money and experience.
Never discuss valuation in your business plan.
For a more detailed overview of the Financial Plan, refer to the BizPlanBuilder Handbook of
Business Planning, or visit our website for more answers.
Recommended Reading: “Are Your Financial Projections Believable?” (Excerpted from Business
Black Belt by Burke Franklin), in the Resources Section of BizPlanBuilder:

“Show me something I can believe.”
~ Common Venture Capitalist sentiment

[Company]’s financial plan consists of profit(loss) projections by month for 12-months, by quarters for
years 2-3, and by years for years 1-5. Likewise, we include a detailed budget, cash flow projection,
projected balance sheet, and a breakeven calculation. Our worksheets also include a detailed headcount
and space requirements analysis (indicating who is paid from investment/loan funds and when they switch
over to being compensated from operating cash flow). Other financial models provided include:
Detailed Expansion/Start-up Cost worksheet summarized to the Uses of Funds page.
Revenue/Demand Model indicating possible market segments, total available market and projected
penetration, including product lines and pricing.
Sales Assumptions with allowances for future changes in product/distribution channel mix as well as
seasonality effects.
Comprehensive Ratio Analysis
Detailed Sensitivity Analysis showing best/worst case scenarios.
Together these form a reasonable estimate of your company's financial future. More importantly,
however, the process of thinking through the financial plan will improve your insight into the inner
financial workings of your company.

Assumptions
Describe the assumptions you made to develop your financial statements (your business
assumptions, not the numbers you entered into the financial spreadsheets).
Everything you have included so far in you business plan, builds your case for your assumptions.
This is where you will face the most challenges from investors and others—what numbers go in at



the beginning… How did you arrive at them? Can you back them up? How they will change over
time due to circumstances you presume, forecast, create, etc. The rest is arithmetic (we’ve done it
all for you!)
[Company]’s financial projections are based on the assumption that additional [equipment / facilities /
product lines] will generate an increase in profits of [$][x][%] within [years / months].
The new equipment will reduce [production / packaging / transportation / delivery] costs by $[x], thereby
increasing our profit margin by [x]%.
Taking advantage of volume discounts, we will reduce Cost of [Goods Sold / Sales] by [x]%.
We plan to have a working prototype by [month], 20[xx]. Product field-testing is to begin by [month],
20[xx] and complete by [month], 20[xx]. Initial market penetration is anticipated to be $[x] at a [x]%
margin and increase to $[x] at the end of the first year. By the end of our fifth year we project revenues
exceeding $[x].
It is usually assumed that your costs, including labor, will increase by the general inflation rate.
Hopefully, costs will also be decreased by volume discounts and better negotiations with suppliers.
If costs are shown to be level or increasing, comment on that fact and the underlying reasons.
General inflation rates are assumed to be [x]% per year, and we expect a [slight / moderate / significant],
[positive / negative] impact on our profit margins.

Financial Statements
Keep in mind that projected financial statements do not stand on their own. Anyone reviewing your
financial statements will also expect to read a discussion that supports the projections you made
(based on market research, competition, industry forecasts, etc.).
Discuss briefly the summary/analysis results for each of the financial statements that you provide in
the Financials section of your business plan. Growth rates for sales and any large expense items
should be discussed. Economies of scale should be noted. Any large fluctuation in a category
should be explained. Volume-adjusted measurements are helpful to add perspective to the
discussions. These include income subtotals as a percent of sales; inventory, accounts receivable
and accounts payable levels in days; return on equity; etc.
The basic question to ask yourself is: "What would I want to know to evaluate a business proposal
before I would consider investing my own money?" If you have answered all the questions that you
would have as an investor, you are probably prepared for lenders or outside investors.
The following table highlights our primary income-related items:
If you have an established business, your operating results from any year, up to three years prior
years should be included in the following table.
The sales dollars, gross profit dollars, operating income dollars and net income dollars come
respectively from the Total Sales, Gross Profit, Income from Operations, and Net Income After
Taxes lines of your Income Statement for years 1 - 5.
You will likely want to use the financial models to show the numbers – this section enables you to
add certain notes and explanation to your financial projections.
We pasted in the table below from the Comprehensive Financial Model for you. However, given
Excel / Word , you may need to re-paste it in. You can easily copy the section from the “Summary”
tab and paste it below.



Projected Product/Services Revenue 2004 2005 2006 2007 2008 2009 2010 2011
Intro Offer $ - $ - $ - $ 4,200 $ 105 $ 221 $ 347 $ 486
Start-Ups - - - 100 105 221 232 365
Small Businesses USA - - - 100 105 221 232 365
Businesses Non-USA - - - - - - - -
Associations - - - - - - - -
Affiliates - - - - - - - -
Resellers - - - - - - - -
Schools - - - - - - - -
Corporations - - - - - - - -
Consultants - - - - - - - -
Other - - - - - - - -
Returns & Allowances - - - (42) (1) (2) (3) (5)
Total Revenue $ - $ - $ - $ 4,408 $ 369 $ 720 $ 873 $ 1,284
Growth #DIV/0! #DIV/0! #DIV/0! -92% 95% 21% 47%

Total Cost of Goods Sold - - - 889 51 93 122 179
Gross Profit $ - $ - $ - $ 3,519 $ 318 $ 627 $ 752 $ 1,105
Gross Margin 0% 0% 0% 80% 86% 87% 86% 86%

Operating Expenses
Sales & Marketing $ - $ - $ - $ - $ 125 $ 245 $ 297 $ 437
Research & Development - - - 132 11 22 26 39
G & A (without Depreciation) - - - 1,799 1,637 1,738 1,813 1,916
Depreciation - - - - - - - -
Amortization of Capitalized R & D - - - - - - -
Total Operating Expenses $ - $ - $ - $ 1,931 $ 1,774 $ 2,005 $ 2,136 $ 2,391
Income from Operations $ - $ - $ - $ 1,588 $ (1,455) $ (1,378) $ (1,385) $ (1,286)
Operating Profit Margin 0% 0% 0% 36% -394% -191% -159% -100%

Interest Income $ - $ - $ - $ 8 $ 6 $ - $ - $ -
Interest Expense - - - - - - - -
Income Before Taxes $ - $ - $ - $ 1,596 $ (1,450) $ (1,378) $ (1,385) $ (1,286)

Taxes on Income* $ - $ - $ - $ 622 $ - $ - $ - $ -

Use “Paste Special” (you’ll see in Excel) when you paste the table here – it will automatically
update this table as you make changed to your financial model.
If you do not want to link the spreadsheets, you can easily fill in the table below.
Y ear 2005 2006 2007 2008 2009
S a le s $ 1 ,0 0 0 $ 2 ,0 0 0 $ 3 ,0 0 0 $ 4 ,0 0 0 $ 5 ,0 0 0
% G ro w th 200% 150% 133% 125%
COGS 35 65 120 200 350
G r o ss P r o fit $ 965 $ 1 ,9 3 5 $ 2 ,8 8 0 $ 3 ,8 0 0 $ 4 ,6 5 0
% G ro w th 201% 149% 132% 122%
O p e ra tin g E x p e n se s $ 350 $ 450 $ 550 $ 650 $ 750
O p e ra tin g In c o m e $ 615 $ 1 ,4 8 5 $ 2 ,3 3 0 $ 3 ,1 5 0 $ 3 ,9 0 0
% G ro w th 241% 157% 135% 124%
O th e r In c o m e / E x p e n se 50 50 50 50 50
In c o m e T a x e s $ 266 $ 614 $ 952 $ 1 ,2 8 0 $ 1 ,5 8 0
N e t In c o m e $ 399 $ 921 $ 1 ,4 2 8 $ 1 ,9 2 0 $ 2 ,3 7 0
% G ro w th 231% 155% 134% 123%



The growth percentages over prior years should be manually calculated by taking each year's
amount minus the previous year's amount, then dividing by the previous year's amount.
To get industry ratios, visit Robert Morris Associates (RMA)
Also, take a look at www.BizStats.com – we have included links on the Ratios page in the
Comprehensive Financial Model.
This excerpt below comes from the Summary tab:
Some Rows are Hidden for Brevity -- Details are available on the Balance Sheet, Cashflow and Ratios pages

Selected Ratios 2004 2005 2006 2007 2008 2009 2010 2011
Current Ratio - - - 5.25 (2.13) (9.60) (16.21) (20.13)
Quick Ratio (Acid Test) - - - 4.98 (2.15) (9.64) (16.25) (20.18)
Interest Coverage - - - - - - - -
Liabilities / Net Worth (Debt/Worth) - - - 0.24 (0.32) (0.09) (0.06) (0.05)
Total Liabilities / Total Assets - - - 0.19 (0.47) (0.10) (0.06) (0.05)
Return on Assets 0% 0% 0% 81% 448% 82% 45% 30%
Values for the ratios listed above can be obtained from the Ratio Analysis section of the Integrated
Financials Spreadsheet. If you did not use the Integrated Financials Spreadsheet to project your
financial statements, you will need to manually calculate any ratios you plan to include. See the
Analyzing Financial Statements discussion in the BizPlanBuilder Handbook of Business Planning
for more information on ratios.

Gross Profit Analysis
The Gross Profit Analysis in the Supporting Documents section shows monthly sales revenues, cost of
goods sold and gross profit values for each of our product lines for our first year.
Budget
The budget is primarily for internal purposes. You may not want to include your budget in your
business plan package. Instead, include a monthly Income Statement that summarizes your
expenses into categories. During your presentation, have the budget available (in case your
potential lender or investor asks to see it), and be prepared to discuss it.

Income Statements
Comment on any unusually large items or changes, such as R&D or marketing expenses that are
relatively large in your first few months (especially as a percentage of sales revenue), but taper off
over time.
This narrative assumes the use of either the Comprehensive Financial Model (first option below) or
the Intermediate Financial Model (second option). These descriptions apply to each of the
statements discussed below, as incorporated in the Comprehensive and Intermediate Financial
Models respectively. The Basic Statements cover one or two years, by month, or annually,
depending on the statement.
The Income Statement in the Financials section of this business plan reflects year one by month, years
two and three by quarter, and years four and five as annual figures.
—OR—
The Income Statement in the Financials section of this business plan reflects years one, two and three by
both month and quarter.



Balance Sheet
Comment on any large or unusual items, such as other current assets, other assets, other accounts
payable, or accrued liabilities.
The Balance Sheet in the Financials section of this business plan reflects year one by month, years two
and three by quarter, and years four and five as annual figures.
—OR—
The Balance Sheet in the Financials section of this business plan reflects years one, two and three by both
month and quarter.

Break-Even Analysis
The Break-Even Analysis in the Financials section indicates that the break-even point will be reached in
[month], 20[xx]. Sales are projected to be $[x] above break-even in [month], 20[xx]. The contribution
margin for the first year is [x]% representing $[x].

Cash Flow Statements
The Cash Flow Statement in the Financials section of this business plan reflects year one by month, years
two and three by quarter, and years four and five as annual figures.
—OR—
The Cash Flow Statement in the Financials section of this business plan reflects years one, two and three
by both month and quarter.



Exit / Payback Strategy
Although an investor's first thought is the excitement of your investment, his or her next priority is
how to get out of it. An IPO is one obvious path, but today, strategic buyers are acquiring more and
more companies. Be explicit about potential buyers and the rationale for their interest in your
company.
Determine how much time you will require before you can pay back the loan, or until investors can
convert their equity; in other words, when will 'exit' be possible.
"I can't understand why people are frightened of new ideas. I'm frightened of the old ones."
~ John Cage
Describe how repayment will be handled, or the strategy for how investor equity will be converted to
cash (i.e. a public stock offering, sale of the business, etc.).
Your financial projections should indicate that the loan/investment funds will help generate the
profits and cash required for payback and exit. Discuss any significant increases in profits/cash
flows anticipated as a direct result of financing, and how these increases will help to pay back the
funds.

The market for [Company] [product(s) / services] is clearly [what the market is doing], giving us a prime
opportunity to [what you’ve said you will do in your plan]. The [consistent sales volume / rapidly
expanding 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 back
into the company, we expect to [accelerate loan payments / reduce our line of credit balance to zero] and
be debt free by [month / quarter / year], a full [x] [months / years] ahead of schedule.
The increase in profits generated by [x] will allow us to have the funds to repay the loan in [months /
years].
Although you might not want to sell your business, it’s likely hat this will be the best way to return
your investors the best return on their investment. And, with the right offer from a buyer, you should
take the money and spend some quality time at the beach!

Acquisition
At every level of business development, we anticipate a significant jump in business value. Each
milestone achieved will incrementally bump valuation. While we simultaneously track competitors, we
also track possible acquirers. Some will want our intellectual property, others will want our distribution
channels and customer base, others will see value in our strategic relationships. Some strategic acquirers
include:
[Starbucks – they will want our line of coffee carts and mall relationships]
[Microsoft – they will want our engineers and patents]
[FedEx – they will want our packaging systems]
Initial Public Offering (IPO) – You really need to prove that your business is scalable (like ebay,
Google, drug companies – lots of work, but when a drug hits, its big $$$) A ‘time & materials’ kind
of business will not achieve the kind of economical scalability investors will be interested in. (more
people, more costs, etc. like perhaps a consulting firm) Investors want to see your ability to rapidly
grow revenues while marginal costs rapidly diminish.
While, if we can demonstrate our ability to scale quickly and economically, we believe that the Company



will be a viable candidate for an IPO. However, given our marketplace and industry, the logical exit for
investors will likely be through a future merger or acquisition.
Our financial projections indicate that exit of [Investor] will be achievable in [x] years.



Summary

This is the time and the place to ask for the cash. Be concise, be direct, be professional, be sincere,
and ask for either a signature or a list of additional items to be provided or steps to be completed to
get a signature. DO NOT BE VAGUE. Nobody “gets” subtle.
This is your all-out pitch to the investor as to why this is a good deal for them, and why they should
put their money with you, your idea, your project, your scheme.
In order to [start / continue / proceed] we are requesting a [loan / investment] of $[x] by [date], 20[xx].
Our highest priority is [loan repayment / returning our investor’s invested capital].
Your ‘mantra’ with investors is paying them back FIRST! They can be flexible with the upside ROI,
but their initial invested capital is precious – they cannot, under any circumstances, lose that!
Convince them that you appreciate this risk and that protecting and returning this investment is your
top priority.

Market Success
Based on the attached financial projections, our research, our own personal experience, and careful
scrutiny of the specific audience and area where we are focused, we are convinced that the market for
[Company] [product(s) / services] will support the accomplishment of our goals and objectives.
We have built in specific means of measuring our effectiveness in our marketing efforts, engaged with
strategic partners and secured co-marketing relationships to support our success. The market is [still wide
open / growing quickly / building on the growth of the [xxx] industry in this area / forecast to enjoy
consistent, steady growth…] over the next [x] years. We fully intend to [ride the wave / be first and best
in our class / lead the industry in our market / establish and maintain the highest standards / position
ourselves as the [product] retailer of choice for [city / county / region / area] and surrounding areas.
We fully anticipate reaching our break-even point by [month / quarter / year]—ahead of schedule—and
profitability in just [x] years. We will drive [x]% of profits back into the company, to support our planned
[acceleration of loan payments / reduction our line of credit balance to zero] and be operating debt free on
cash from sales, with cash reserves of $[xxx] by [month / quarter / year].

Future Growth
Approaching our goals aggressively will allow us to build an even stronger position than indicated in this
plan. Our most recent test marketing indicates that demand [may be greater than originally projected / will
probably experience a sudden spike in 20xx / will be affected by xxx / will fluctuate…]. With careful
monitoring, we will be prepared to respond immediately to such shifts in the market, and protect our
market share and profitability.
As we expand our Internet presence to encompass [online sales / online sales with in-store pick-up /
community features that will attract and hold loyal customers…] we expect to further strengthen our
market position. We are excited about the prospects of turning this business into a recognized contributor
in our community, effectively meeting the needs of our customers, and growing with them as the market
and their needs change.



Investor FAQs
Can’t people do this all by themselves? Why do they need your [product/service]?
Sometimes they can and they often do. These subjects like writing a business plan or an employee manual
have been around for years and most people know enough about their business to pull it off, but also these
projects have been addressed by thousands of others—so why reinvent the wheel? Our business is to stay
on top of these subjects and synthesize the best of everything and give it to you in a format you can
simply customize for your business using your PC.
Going forward, we build a line of 100+ modules that any business can use for an average of only $20 per
sale. This is very do-able from our side and very compelling from every customer’s perception.
Why haven’t you raised money sooner?
Until now, we have been assembling our management team, developing and testing our
[products/services], surveying our market(s), and making sure that the Company is fully compliant for
raising capital. We have been very careful to solicit investors with an appetite for our industry and
[products/services].
The Company has already raised a round of capital from friends and family. We are now seeking
additional, professional capital from appropriate investors who can not only provide needed cash, but can
also include their unique expertise and industry contacts to assure our success.
JIAN example: Until now, investors have been enamored of retail software, multimedia, hand-held
computers, and now the internet… small business has been perceived as small; however, the
combination of explosive entrepreneurship and the Internet as a platform, makes now the perfect
time to roll this business out and scale it up.
What is [Company] doing differently?
Here is an example from the JIAN business plan
The simple thing to do is just take the stuff from books and put it into software—and that’s what our
competitors have done. We constantly compare… and what we see is that they’ve added nothing new. At
JIAN, we’ve taken advantage of what a computer can really offer, plus we work with specialists in many
areas of business—these are active business experts who share with us what is currently working in the
real world. Plus, we’ve been in business over seventeen years so we’ve had a long time (and been through
several business cycles) to include much customer feedback enabling us to continuously refine our
software.
What builds the most value in the Company?
The most expensive part of building a business is marketing. Therefore, our reputation, brand image and
experience are the major component of long-term value. Technology comes and goes, but who you are
remains. The size and quality of our customer base, our strategic alliances and marketing relationships are
what IPO investors or acquiring companies really value.
The Company has a low overhead and burn rate. The profit margins on our products are good and can be
made even better by [continued engineering/revisions/workflow] of the [product/service].
Given that we can solve and or simplify the technical issues involved in enhancing the
[products/services], [Company] can cost-effectively develop many successful products/services that
should tie-in nicely with the our other [products/services/programs].
A broad product offering can be used to [Company]’s advantage. There are some products that can be
developed or modified to ‘sell’ into larger companies. A key factor will be how the Company can develop
a way to raise capital to support the product development and marketing expenses.
In order to optimize the capital, an option would be a ‘pay’ program that includes revenue participation to
the content contributors and technical developers, as well as the investors.



Be careful here… although you may be able to make deals with certain key suppliers/contributors,
you don’t want to over-sell your business – these details can be worked out later (perhaps with your
investors’ assistance), but it may be worth mentioning that you are thinking about to demonstrate
flexibility and shrewdness.

Invest in [Company]
I believe in [Company] and think that it has very real potential and a very bright future. As a wise
investment, the Company provides a solution to many real problems experienced daily by many people
ready, willing, and able to [spend/invest] money for the results. These are real products, in a viable
business model, showing profits and credibility and an enormous customer base. Furthermore, it’s an
understandable product anyone can explain and refer at a cocktail party!
Language lesson: ‘Spend’/’expense’ = money spent/gone, a cost… Investment = money put in
expecting more back. You would do well to consider using the word ‘invest’ in places of the words
‘cost,’ ‘expense,’ ‘spend’, etc. anytime you are speaking to a prospective customer or investor about
your products/services.
It will be easy and inexpensive to demonstrate value to new customers—as well as to quickly convert
many current [Company] customers. All promotions will link to our compelling Web demo to offer
proven solutions—right now—at prices enabling any [customer/manager] to take immediate action to
purchase or subscribe.
We’ve got the [prototype/products/people] and we’re ready—the world is waiting.
Thank you very much for considering investing in [Company].
Warm regards,
[Your Signature Here]
Either leave a space to sign here or copy your signature from a graphics file

[Owner/Founder]
[Title]
Leave your investor with a positive feeling about you and your company.
“Your last impression is your lasting impression.” – Burke Franklin, Author: BizPlanBuilder,
Business Black Belt (I think of otherwise good movies that ended badly – I walked out afterwards
not liking the film. I believe you can overcome a bad first impression, but leave people with a
positive memory of you and that will remain as their lasting memory.)
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, you will probably do yourself a favor to incorporate the
topic into your plan. Be sure you provide a clear response and explanation.
"When you do the common things in life in an uncommon way, you will command the
attention of the world." ~ George Washington Carver,1864-1943, Scientist & Educator



Supporting Documents

The documents that follow include supporting information relative to [Company] logistics, background,
management, and preparedness for operating this business successfully.
“A bureaucrat's idea of cleaning up his files is to make a copy of every paper before he destroys it.”
- Laurence J. Peter
You may choose to insert a table of contents or a list of the supplements you are including here,
making it easier for your reader to find any necessary items, or to see at a glance if a particular
document is included.
Insert supporting documents behind this page in your printed plan to support the viability and likely
success of your business. To be sure you include everything you need, you can use this as a
checklist to gather the necessary items. There is a printed, perforated copy of this list in the back of
your manual that you can use, also. Include copies* of:
Articles of Incorporation and Corporate Bylaws (if applicable)
Tax returns of principals for last three years
Include personal financial statements for each owner and major stockholder, showing assets and
liabilities held outside the business and personal net worth. Owners will often have to draw on
personal assets to finance the business, and these statements will show what is available. Bankers
and investors usually want this information as well.
Please refer to the Personal Financial Statement spreadsheet in the menu at left.
Personal financial statements for the owners.
You’ll find a template for this in the Master Supporting Documents section of BizPlanBuilder, and all
banks have these forms as well.
In the case of a franchised business, a copy of franchise contract and all supporting documents
provided by the franchise
Fictitious Name or “Doing Business As” (DBA) filing, and the requisite publication copy and proof of
publication.
Resumes for all principals
Detailed lists of equipment owned or to be purchased
Tax and wholesale licenses
Business and professional licenses, permits and other legal documents
Include details & studies used in your Business Plan; for example:
Brochures & advertising materials
Industry studies
Market research studies
Magazine or other articles
Blueprints & plans
Any pending or issued patents, trademarks
Proposed or executed lease or purchase agreement for building space and occupancy permits
Maps & photos of location
Any other materials needed to support the assumptions in this plan



Letters of intent from suppliers, prospective customers, etc.
List of assets available as collateral for a loan
See also the included “Due Diligence Checklist” located in Master Managing Your Business
Documents section of BizPlanBuilder.
*Keep all original documents stored safely in a secure place such as a safety deposit box or a fire
safe. Since many of these documents are sensitive in nature, you should consider including them
with your business plan only upon request. Include only photocopies of the stored originals.



Here is a sample PowerPoint “Investor Pitch”
No more than 15-18 slides
LARGE print – Remember that the average angel or VC investor is 50+ and often needs reading
glasses.

Bus ines s Po e To o l s ™
wr
A Positive Force in Business™

[Date]
[Your Name]
[Title]
[Email]

Business Model / Overview

What we DO (in simple terms)
Goal is to quickly generate investor
interest
Reference past milestones… (if relevant)
Present business overview as an
opportunity

[Company]



Value Proposition
67% of businesses are sued by former
employees – average lawsuit: $250,000
Describe pain in the market

Present case study or scenario of market
problem or need
Others have not addressed xxx
Quickly mention why other products and services have not adequately solved the pain

Introduce your compelling solution
How you make money

[Company]

[Company] solution / products

Our solution & key features of [product
or service] (use visuals when appropriate)
Cost savings/customer
No acronyms – keep it simple!
Why customers need/must buy your
product/service?

[Company]



Market Opportunity / Drivers
Top down and bottom-up market
estimates
Market penetration estimates
Market drivers
How will you reach your target customers
and how much will it cost to acquire them

[Company]

Marketing Channels / Partners

Describe sales, distribution or marketing
channels – execution strategy and typical
sales cycle
Highlight any exclusive or unique
channels or partners
Identify key strategic partners or
alliances

[Company]



Demand/Revenue Model
(000) 2005 2006 2007
# Units 574 2,500 12,500
Revenue $574 $25,000 $125,000
COGS $138 $12,000 $50,000
Expenses $775 $ 8,000 $32,000
Gross Margin ($339) $5,000 $43,000

[Company]

Competitive Position
•Show your relative competitive position
•Adjust the axes [yellow] to position your company/product/service most favorably

Competitor 1 Your Company
Quality/Compatibility

Here

Competitor 2

Competitor 3

Competitor 4 Competitor 6

Competitor 5

Value/Scalability [Company]



Advantages / Barriers to Entry

Advantages should be sustainable
Patents, exclusive channels or contracts,
high transaction costs, R&D
If the market opportunity is so big, what
prevents others from quickly entering
your market

[Company]

Management Team
Bob Jones, CEO
Formerly with abc, xyz & xxx –

John Smith, CTO

Janet Johnson, CFO

Janet Johnson, VP Marketing

To Be Hired, COO
Manage the xxx process

[Company]



Directors & Advisors
Directors

Bob Jones, CEO, xyz Company
Bbb
Ccc
Advisors

Aaa
Bbb
Ccc

[Company]

$xxx million
Xxx shares of common stock
12.5% Note paid over 5 years (cumulative
interest)
+ convert upon first institutional round
>$500K @ same valuation
+ warrants to purchase 1% of
outstanding shares @ $.50/share
Principal + 20% APR repaid first from
10% of revenue
+ 20% APR paid as equity @ $.50/share
[Company]



Use of Funds
Hire team
Complete product
Secure key customers
Launch
Roll-Out Launch
3 Key Customers
Alpha Test
Complete Team

Funding Month A Month B Month C

[Company]

Possible Liquidity Scenarios

Valuation = $xxx @ 1x Revenue
Valuation = $xxx @ 2x Revenue
Valuation = $xxx @ 1x Profit
Valuation = $xxx @ 2x Profit
Acquisition by abc, Inc., xyz, Inc.
IPO in [Date]

[Company]



Summary

Describe funding needs and use of funds
Exit Strategy – potential value based
upon recent comparable acquisition or
IPO
[Company] = flexible, scalable, unique

[Company]



Whew!


Aptitudes d'un entrepreneur business plan sample

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