This document provides guidance on writing an effective business plan. It discusses why writing a business plan is important, including for evaluating the feasibility of a new business idea, developing an operating plan, and communicating the idea to potential investors or lenders. The document outlines the typical sections of a business plan, including descriptions of the business, products/services, market analysis, marketing plan, financial projections, and supporting documents. It provides questions to address in each section and tips for an effective presentation. Common mistakes that can undermine a business plan are also outlined.
Entrepreneurship Lesson 1 Introduction to Entrepreneurship Pinoy StyleWilfred Dexter Tanedo
Introduction to the Filipino Entrepreneurship Definition and Importance of Entrepreneurship, Filipino Values and how it makes or breaks us as an entrepreneur the Creative Industry and the Entrepreneur
Entrepreneurship Lesson 1 Introduction to Entrepreneurship Pinoy StyleWilfred Dexter Tanedo
Introduction to the Filipino Entrepreneurship Definition and Importance of Entrepreneurship, Filipino Values and how it makes or breaks us as an entrepreneur the Creative Industry and the Entrepreneur
A business plan is a document that brings together the key elements of a business that include details about the products and services, the cost, sales and expected profits.
This is a Feasibility Study conducted by a group of students "The Incorporators" from Capitol University's Bachelor of Science In Business Administration major in Marketing Management and Human resource Management.
Note: This document is not available to download, sorry for the inconvenience.
Business ethics forms of business organizations abm specialized subjectGian Paulo Rabanal, LPT
Business Ethics and Social Responsibility
based on the book Business Ethics and Social Responsibility by A. Racelis
Learning Competencies Covered:
ABM_ESR12-IIIa-d1.1
ABM_ESR12-IIIa-d1.2
ABM_ESR12-IIIa-d1.3
This is the product proposal paper prepared by the students of Capitol University major in Marketing Management and Human Resource Management taking up Introduction to Entrepreneurship Feasibility Study paper.
Business Plan Sample - Great Example For Anyone Writing a Business PlanThe Business Plan Team
We are often asked for an example of a professional business plan. Here is one for a Technology (Hosting) company that we did 3 - 4 years ago which enabled the owner to secure an exit from the business. In terms of structure it is fairly typical of any business plan. However, there are some specific issues that you should address for a technology business that de-risks the plan for investors which a business plan writer should include. There is a post about this on our blog http://thebusinessplanteam.blogspot.co.uk.
If you are writing your own plan go to this section on our web-site where you can find links to affordable software here: http://www.thebusinessplanteam.co.uk/buy-business-plan-software.html
Alternatively, if you are looking for help developing your business plan and are looking to engage a business plan writer or business plan consultant take a look at some tips about how to select a consultant we have listed out here: http://www.thebusinessplanteam.co.uk/business-planning-consultants.html. You can also reach us on 0845 026 0198 if you would like to see how we can help.
A business plan is a document that brings together the key elements of a business that include details about the products and services, the cost, sales and expected profits.
This is a Feasibility Study conducted by a group of students "The Incorporators" from Capitol University's Bachelor of Science In Business Administration major in Marketing Management and Human resource Management.
Note: This document is not available to download, sorry for the inconvenience.
Business ethics forms of business organizations abm specialized subjectGian Paulo Rabanal, LPT
Business Ethics and Social Responsibility
based on the book Business Ethics and Social Responsibility by A. Racelis
Learning Competencies Covered:
ABM_ESR12-IIIa-d1.1
ABM_ESR12-IIIa-d1.2
ABM_ESR12-IIIa-d1.3
This is the product proposal paper prepared by the students of Capitol University major in Marketing Management and Human Resource Management taking up Introduction to Entrepreneurship Feasibility Study paper.
Business Plan Sample - Great Example For Anyone Writing a Business PlanThe Business Plan Team
We are often asked for an example of a professional business plan. Here is one for a Technology (Hosting) company that we did 3 - 4 years ago which enabled the owner to secure an exit from the business. In terms of structure it is fairly typical of any business plan. However, there are some specific issues that you should address for a technology business that de-risks the plan for investors which a business plan writer should include. There is a post about this on our blog http://thebusinessplanteam.blogspot.co.uk.
If you are writing your own plan go to this section on our web-site where you can find links to affordable software here: http://www.thebusinessplanteam.co.uk/buy-business-plan-software.html
Alternatively, if you are looking for help developing your business plan and are looking to engage a business plan writer or business plan consultant take a look at some tips about how to select a consultant we have listed out here: http://www.thebusinessplanteam.co.uk/business-planning-consultants.html. You can also reach us on 0845 026 0198 if you would like to see how we can help.
OSS Telecom Technology is an exciting Bend, Oregon based offshoot of OSS Telecom Technology Taiwan, a $300 million steel conglomerate. The main company was formed to pursue opportunities in operations support systems (OSS) in the telecom software industry. The company has enjoyed a solid base of 24 telecom operators utilizing their software.
Discusses, from a potential employer\'s perspective, the expectation of a BA in the areas of roles, activities, deliverables, skills, knowledge, performance measures and education
This revision presentation provides an overview of the marketing planning process including a brief description of each stage in marketing planning together with discussion of the role of the marketing budget.
How to Write a Marketing Plan: A Comprehensive Guide with TemplatesVital Design
Since we are a digital marketing agency, this marketing plan discussion will focus heavily on
digital marketing (what we call “inbound marketing”) — but the strategies and concepts discussed
can be expanded to encompass your entire marketing department.
Social business or social enterprise needs careful planning. This slide series was developed and presented for the Social Business Launch Pad seminars by William P. Kittredge, PhD. The Social Business Launch Pad is a joint education seminar series co-sponsored by the Yunus Center at AIT and the Thai Social Enterprise Office http://www.tseo.or.th/
During this session we define what a business plan is and it's uses and benefits. We provide a framework to follow when developing your plan that helps you go through all the key elements to ensure that you have a concise and solid plan for investors and for your partners, employees and other stakeholders.
BUSINESS PLAN
Creating an extensive business plan is unnecessary for most businesses to get started. Keep it short when
you are getting started. You don’t have time to write a 50-page document and no one wants to read it
either. However, the exercise of creating a business plan offers you several benefits that more than
outweigh the investment of time:
• The process of thinking and writing the plan provides clarity to your business • If capital is needed from beyond your savings, investors want to see a plan that demonstrates a solid
understanding and vision for your business • The plan will help you to prioritize the tasks that are most important • With growth, the plan offers a common understanding of the vision to new leaders • It is something you should continually review and update over time
A simple business plan for a product or service company that is just forming, can be completed rather
quickly. Write it simply keeping in mind who the audience might be. It needs to be understandable,
readable, and realistic.
This template is organized into seven sub-plans or sections to be completed. It is recommended to
complete the Executive Summary last once the other sections have been completed. As you move from
the Company Overview to the Financial Plan, the writing should tell the story of your motivation, your
vision, why you will be successful, how you will achieve success, and how you will measure it.
It will be important to keep your plan up to date so you can see your progress, celebrate success, and
adjust where you missed the mark. This is best done on a quarterly, if not monthly basis
When you launch a business without a plan, you can easily waste money and precious time targeting the wrong audience, launching failed marketing campaigns, underestimating their business costs, and simply spinning their wheels in their quest for success.
A business plan functions as a “crystal ball” of sorts. It helps you to peer into the future and predict different outcomes. Though it’s certainly not perfect, it helps you map out where you currently are and where you’re headed.
In this slideshow, you will learn how to:
1 - DIY your Business Plan
2 - Write a Successful Business Plan that you can leverage to fund your business
3 - Appeal to investors
You can also grab our business plan template here:
https://bit.ly/BusinessPlanTemplateBundle
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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Business plan outline
1. Writing a Business Plan Georgia State SBDC 1
Writing a Business Plan
Small Business Development Center
Georgia State University
404-651-3550
web: www.gsu.edu/sbdc
2. Writing a Business Plan Georgia State SBDC 2
Why Write a Business Plan?
A Business Plan helps you evaluate the feasibility of a new
business idea in an objective, critical, and unemotional way.
• Marketing – Is there a market? How much can you sell?
• Management – Does the management team have the skill?
• Financial – Can the business make a profit?
It provides an operating plan to assist you in running the
business and improves your probability of success.
• Identify opportunities and avoid mistakes
• Develop production, administrative, and marketing plans
• Create budgets and projections to show financial outcomes
It communicates your idea to others, serves as a “selling tool,”
and provides the basis for your financing proposal.
• Determine the amount and type of financing needed
• Forecast profitability and investor return on investment
• Forecast cash flow, show liquidity and ability to repay debt
Who will use the plan? If you won't use the plan to raise money,
your plan will be internal and may be less formal. If you are
presenting it to outsiders as a financing proposal, presentation
quality and thorough financial analysis are very important.
3. Writing a Business Plan Georgia State SBDC 3
Basic Business Plan Guidelines
Writing a Business Plan will probably take a lot of time. Up to 100 hours or
more is not uncommon for a new business that requires a lot of research.
A typical plan will have three sections. Section one is a written section
describing Management and Marketing aspects of the business. Section Two
includes financial projections. Section Three is supplemental information.
A short (3-5 pages) Executive Summary is often added at the beginning of
more complex business plans.
• Section One should be thorough, but concise and to-the-point. Use
headlines, graphs and "bullets" to improve readability. Length of this
section is usually 10 - 20 pages.
• Section Two describes in numbers the outcome of your business
strategies and plans. Your financial projections should be based on facts
and research, not “wild guesses.” Be prepared to justify your numbers.
• Section Three contains supporting information to reinforce the first two
sections. This section’s contents will vary with your type of business.
Owners should be very involved in the planning process. Hiring someone to
do it or delegating it to someone who is not a key member of the company
will result in an inferior plan.
No plan (or a poor plan) is a leading cause of business failure. You can
improve your chances of success with a good Business Plan.
4. Writing a Business Plan Georgia State SBDC 4
Ten Ways to Ruin Your Business Plan
These errors in business plan preparation and presentation will undermine the
credibility of the plan and hurt your chances to receive funding:
• Submitting a “rough copy,” (with coffee stains and typos) tells the reader that
management doesn’t take the planning process seriously.
• Outdated historical financial information or unrealistic industry comparisons
will leave doubts about the entrepreneur’s planning abilities.
• Unsubstantiated assumptions can hurt a business plan; the business owner
must be prepared to explain the “why” of every point in the plan.
• Too much “blue sky” - a failure to consider prospective pitfalls - will lead the
reader to conclude that the idea is not realistic.
• A lack of understanding of financial information. Even if someone else
prepares the projections, the owner must be able to explain them.
• Lack of specific, detailed strategies. A plan that includes only general
statements of strategy (“We will provide world class service and the lowest
possible price.”) without important details will be dismissed as fluff.
Especially important if the business plan is prepared for a lender:
• No indication that the owner has anything at stake. The lender expects the
entrepreneur to have some equity capital invested in the business.
• Unwillingness to personally guarantee any loans. If the business owner isn’t
willing to stand behind his or her company, then why should the bank?
• Starting the plan with unrealistic loan amounts or terms. Do your
homework and propose a realistic structure.
• Too much focus on collateral. Even for a cash-secured loan, the banker is
looking toward projected profits for repayment of the loan. Cash flow should
be emphasized as the source of repayment.
5. Writing a Business Plan Georgia State SBDC 5
Business Plan Outline
Cover Sheet: Business Name, Address, Phone Number, Principals
Executive Summary or Statement of Purpose
Table of Contents
Section One: The Business
A. Description of Business
B. Products/Services
C. Market Analysis
D. Marketing Plan
E. Location
F. Competition
G. Management and Operations
H. Personnel
I. Application and Effect of Loan or Investment
Section Two: Financial Data
A. Projected Financial Statements
Income Statements
Cash Flow Statements
Balance Sheets
Assumptions to Projected Financial Statements
B. Break Even Analysis
C. Sources and Uses of Funds
Section Three: Supporting Documents Historical financial statements,
tax returns, resumes, reference letters, personal financial statements,
facilities diagrams, letters of intent, purchase orders, contracts, etc.
6. Writing a Business Plan Georgia State SBDC 6
Section One: The Business
The following pages describe in detail each part (A through I) of the previous
Business Plan Outline. Disregard any questions that do not apply to your business.
A. Description of the Business
Part A provides an overview of key information which is developed in greater detail
in the following pages. Aim for clarity and simplicity in this part. Too much detail
here gets in the way of the main ideas. The Elevator Test - Can you explain your
basic business idea in the time it takes to get from the lobby to the 5th floor?
Basic Questions:
1) What general type of business is this?
2) What is the status of the business? Start-up, expansion or take-over?
3) What is the business form? Sole Proprietorship, Partnership, Corporation
or Limited Liability Company?
4) What are your products?
5) Who are (will be) your customers?
Additional Questions for Start-Ups:
1) Why will you be successful in this business?
2) What is your experience with this type of business?
3) What will be special or unique about this business?
4) Why will your business be successful?
Additional Questions for Purchase of Existing Business:
1) When and by whom was the business founded?
2) Why is the owner selling?
3) How was the purchase price determined?
4) What are the current financial conditions and trends?
5) How will your management make the business more profitable?
7. Writing a Business Plan Georgia State SBDC 7
B. Products/Services
In this section, describe your product offering. This will include details of product
features and an overview of unique technology or processes. But don’t stop there and
don’t focus too much on technology. You must also describe the product benefits and
why customers will want to buy.
For most businesses, the products/services are not totally unique. If yours are, take
advantage of this while you can and plan for the competitive battles that will come.
If your products/services are not unique, you must find a way to position your
products/services in the mind of your customer and to differentiate them from the
competition. Positioning is the process of establishing your image with prospects or
customers. (Examples include: highest quality, lowest price, wider selection, Best
customer service, faster delivery, etc.)
Basic Questions:
1) What products/services are you (will you be) selling?
2) What are the features and benefits of what you sell?
3) What Position do you have (or want to have) in the market?
4) How do your products/services differ from the competition?
5) What makes your products unique and desirable?
6) Why do (will) customers buy from you?
8. Writing a Business Plan Georgia State SBDC 8
C. Market Analysis
For start-ups or existing businesses, market analysis is important as the basis for the
marketing plan and to help justify the sales forecast. Existing businesses will rely
heavily on past performance as an indicator of the future. Start-ups have a greater
challenge - they will rely more on market research using libraries, trade associations,
government statistics, surveys, competitor observation, etc. In all cases, make sure
your market analysis is relevant to establishing the viability of the business and the
reasonableness of the sales forecast.
Questions for Existing Businesses:
1) Who are your current customers? (List largest customers or categories.)
2) What do they buy from you?
3) Why do they buy from you? (Quality, Price, Reputation, etc.?)
Basic Questions:
1) Who are the purchasers of your products or type of products? (Geographic,
Demographic and Psychographic characteristics)
2) What is the size of the market? Is it growing?
3) What is (will be) your share? How will your share change over time?
4) What is the industry outlook?
5) Are there segments of users who are under-served by competition?
6) Do any of these under-served segments present opportunities?
9. Writing a Business Plan Georgia State SBDC 9
D. Marketing Plan
In this section, you include the highlights or your detailed marketing plan. The basic
components of a Marketing Plan are:
· What are you selling? (What benefits do you provide and what position or
image do you have?)
· Who wants the things you sell? (Identify Target Markets)
· How will you reach your Target Markets and motivate them to buy?
(Develop Product, Price, and Promotional Strategies)
Product Strategies
1) How will products be packaged?
2) How broad will your product line be?
3) What new products will you introduce?
4) What Position or Image will you try to develop or reinforce?
Pricing Strategies
1) What will be your pricing strategies? (For example: Premium, Every Day
Low Price, Frequent Sale Prices, Meet Competitor Price, etc.)
2) How will you compare with competition and how will they respond?
3) Why will customers pay your price?
4) What will be your credit policies?
5) Is there anything about your business which insulates you from price
competition?
6) Can you add value and compete on issues other than price?
Promotional Strategies
1) Who are your Target Markets?
2) How will you reach your Target Markets? (What Media will you use?)
3) How will you motivate them to buy? (What Message will you stress?)
4) What is the cost and timetable for implementation of the marketing plan?
10. Writing a Business Plan Georgia State SBDC 10
E. Location
Locations with greater customer traffic usually cost more to buy or rent, but they
require less spending for advertising to attract customers. This is especially true of
retail businesses where traffic count and accessibility are critical.
Basic Questions:
1) What is the business address?
2) Is it owned or leased? If leased, what are the terms?
3) Are renovations or modifications needed, and what are the costs?
4) Describe the property and the surrounding area.
5) Why is this a good location for your business?
For Mail Order, Telemarketing, Manufacturing, Consulting, or other companies
where the customer does not purchase while physically at the business address, less
location detail is needed. Modify the location section to fit your situation. In some
cases, a good location may be one close to suppliers, transportation hubs or a
complementary business that will also attract your Target Market.
F. Competition
"Who is your competition?" is one of the first questions a banker or investor will ask.
Business by nature is competitive, and few businesses are completely new. If there
are no competitors, be careful; there may be no market for your products.
Expand your concept of competition. If you plan to open the first roller skating rink
in town, your competition includes movie theaters, malls, bowling alleys, etc.
Basic Questions:
1) Who are (will be) your largest competitors? List them.
2) How will your operation be better (and worse) than your competitors?
3) How are competitors doing? What are their sales and profits?
4) (If Start-Up) How will competition respond to your market entry?
11. Writing a Business Plan Georgia State SBDC 11
G. Management and Operations
Because management problems are the leading cause of business failures, it is
important to discuss management qualifications and structure. Resumes of Principals
should be included in supporting data. If your business will have few employees and
rely heavily on outside professionals, list these key people and their qualifications. If
you are seeking financing, include personal financial statements for all principals in
supporting data section.
Basic Questions:
1) What is the business management experience of the management team?
2) What are the functional areas of the business?
3) Who will be responsible for each functional area?
4) Who reports to whom?
5) What will salaries be?
6) What management resources outside the company are available?
7) How will your products/services be produced? (Describe manufacturing
processes, proprietary technology and key supplier relationships.)
H. Personnel
The success of many companies depends on their ability to recruit, train and retain
quality employees. The amount of emphasis in your plan will depend on the number
and type of employees required.
Basic Questions:
1) What are the personnel needs now? In the future?
2) What skills must they have? What training will you provide?
3) Are the people you need available?
4) What is their compensation? What fringe benefits will be provided?
12. Writing a Business Plan Georgia State SBDC 12
I. Application and Effect of Loan or Investment
This section is important whether you are seeking a loan, outside investment (equity)
or investing your own money. It may be necessary to complete Section Two,
Financial Data, before completing this part.
Basic Questions:
1) What is the total investment required?
2) How will the loan or investment be used?
3) How will the loan or investment make the business more profitable?
4) When will the loan be repaid?
5) If you are seeking equity (selling part of the business to an investor): -
What percent of the company are you willing to give up?
- What rate of return is possible for the investor? (Note: If your business
plan will be presented to private investors, seek legal counsel to be sure
you are in compliance with securities laws.)
13. Writing a Business Plan Georgia State SBDC 13
Section Two: Financial Data
A. Projected Financial Statements
The basic purposes of financial projections are:
• Establish the profit potential of the business, given reasonable assumptions
• Determine how much capital the company needs and how it will be used
• Demonstrate the business can generate the cash to operate and re-pay loans
It is usually helpful, but not necessary, to complete at least a rough draft of Section
One (the written section) before attempting the financial section. In the written
section, you will develop and describe your strategies for the business. In the
financial section, you will estimate the financial impact of those strategies by
developing projected Income Statements, Balance Sheets, and Cash Flow Statements.
It is usually recommended that these projected statements be on a monthly basis for
at least the first twelve months or until the business is profitable and stable. Activity
displayed beyond the monthly detail may be in summary form (such as quarterly or
annually.) The forecast period for most business plans is two to four years.
Before you start developing projected financial statements, gather the suggested
information on the following pages. The personal computer is an excellent tool for
financial projections; and those with a good background in accounting and personal
computer spreadsheets may want to create their own financial forecast model. (There
are also some specialized software programs which have basic templates to help with
your financial forecast.)
The quality of your projection depends on the accuracy of the assumptions. (Garbage
in - Garbage out.) Existing businesses will rely heavily on past financial results as the
basis for their forecasts. Start-ups have greater challenges. They must do extensive
research to prove the reasonableness of their numbers. Examples of sources include:
Industry data from public sources and trade associations, personal interviews with
potential customers and people in the business, competitive observation and analysis,
etc.
If you would like assistance, gather the suggested information on the following pages
and contact the Small Business Development Center. The SBDC will review the
information from your research and help you develop your projection.
14. Writing a Business Plan Georgia State SBDC 14
Steps in Financial Projections
For items 1 and 2, use the following “Fixed Asset/Start-up Expense List.”
1) Estimate fixed asset requirements for the first year. Include Land, Buildings,
Leasehold Improvements, Equipment, and Vehicles.
2) Estimate any start-up or one-time expenses. Include any expenses needed to begin
operation such as legal fees, licenses, and initial marketing costs.
For item 3, use the following “Unit Selling Price and Cost Analysis” sheet.
3) Define each “unit” of your product or service and estimate the selling price and
direct cost per unit. In the appropriate places on the form, estimate Cost of Sales and
calculate Gross Profit as a percentage of the selling price.
For items 4 through 6, use the following “Projected Income Statement”.
4) Estimate sales by month for at least one year. (Unit sales price times the number of
units.) Consider how start-up, marketing, and seasonal factors affect sales.
5) Estimate monthly Cost of Sales and Gross Profit based on the percentages of sales
calculated in #3 above. Use a weighted average if multiple product lines.
6) Estimate and itemize fixed expenses by month for at least one year. Include things
like rent, insurance, utilities, salaries, marketing, legal/accounting, etc. Determine all
categories which apply to your business, but don’t include expenses here that are in
“cost of goods (services) sold.”
Research items 7 through 10, and provide a short narrative.
7) Describe the amount of inventory (if any) required to support the sales forecast.
Express in number of days sales or turnover if possible.
8) Describe your credit, sales, and collections policies. If you will make sales on credit,
estimate the number of days after the sale before the average customer pays.
9) Describe how fast you must pay your vendors for any items you will purchase.
10) Also: - Estimate obligations for Income Taxes.
- Businesses already in operation will need the latest Balance Sheet.
15. Writing a Business Plan Georgia State SBDC 15
Fixed Asset/Start-up Expense List
Fixed Asset Description: Cost:
Land/Building ____________________________________
Equipment and/or Vehicles ____________________________________
Leasehold Improvements ____________________________________
(Other)_____________________________ ____________________________________
___________________________________ ____________________________________
___________________________________ ____________________________________
Start-up Expense Description:
Legal/Organization Costs ____________________________________
Initial Marketing & Promotion ____________________________________
Licenses and Permits ____________________________________
Beginning Inventory ____________________________________
(Other)_____________________________ ____________________________________
___________________________________ ____________________________________
___________________________________ ____________________________________
___________________________________ ____________________________________
Total Fixed Asset and Start-up Expenses: _______________________________
Note: List major items individually. You may group other, smaller items (like office equipment)
into a single line item.
16. Writing a Business Plan Georgia State SBDC 16
Unit Selling Price and Cost Analysis
(Make additional copies of this sheet if necessary.)
Product or Service #1: _______________________________________________
A. Selling Price: __________________
less
Direct Costs:
Materials ___________
Labor ___________
Sub-contractors ___________
(Other)_______________ ___________
_____________________ ___________
_____________________ ___________
_____________________ ___________
B. Total Cost per Unit __________________
C. Unit Gross Profit (A minus B) __________________
D. Gross Profit % (C divided by A) ____________
Product or Service: #2: ______________________________________________
A. Selling Price: __________________
less
Direct Costs:
Materials ___________
Labor ___________
Sub-contractors ___________
(Other)_______________ ___________
_____________________ ___________
_____________________ ___________
_____________________ ___________
B. Total Cost per Unit __________________
C. Unit Gross Profit (A minus B) __________________
D. Gross Profit % (C divided by A) ____________
17. Writing a Business Plan Georgia State SBDC 17
Projected Income Statement
For the 12 Months Beginning __________
Total
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1
Total Revenue
Cost of Goods Sold
Gross Profit
Accounting & Legal
Admini Salaries
Autos & Vehicles
Depreciation
Dues & Subscriptions
Entertainment
Equipment Rental
Insurance-Business
Insurance-Health
Interest
Contract Labor
Licenses
Marketing
Miscellaneous
Office Supplies
Postage
Rent
Repairs & Maintenance
Telephone
Taxes-Payroll
Taxes-Other
Travel
Utilities
Other:
Total Expenses
Pre-Tax Profit (Loss)
18. Writing a Business Plan Georgia State SBDC 18
A. (Cont.) Optional Method to Calculate Needed Capital
Many businesses can get a reasonable picture of their financial future by using the following
formula. If the business will start making sales very soon after opening, you may decide to multiply
monthly fixed expenses by a number smaller than six.
Total Required Capital =
Six Months of Fixed Expenses + Asset Purchases + Start-up Expenses
Column 1 Column 2
Monthly Fixed Expenses
Salaries (include owner) __________
Payroll Taxes at 12% __________
Rent __________
Marketing and Advertising __________
Supplies __________
Telephone & Utilities __________
Insurance __________
Maintenance __________
Legal and Accounting __________
Miscellaneous __________
(Other)_________________ __________
Monthly Fixed Expense Sub-total _________ x 6 = _________
Asset Purchases
Purchase of Land and Building ___________
Decorating and Remodeling ___________
Fixtures and Equipment (plus installation) ___________
Deposits on Rental Property and Utilities ___________
Beginning Inventory ___________
Asset Purchase Sub-Total __________
Start-up Expense You Pay Once
Legal and Accounting Organization Costs ___________
Licenses and Permits ___________
Initial Advertising and Promotion ___________
(Other)______________________________ ___________
Start-up Expense Sub-total __________
Total Estimated Cash Needed to Start (Add Column 2) __________
19. Writing a Business Plan Georgia State SBDC 19
B. Break Even Analysis
Break even (B/E) analysis is a simple, but very effective financial feasibility test. B/E is used to find
the amount of sales necessary to pay all fixed costs (and have zero income.) In your business plan, it
represents a minimum acceptable performance. Follow these steps to calculate:
1) Determine Contribution Margin Percent. Contribution Margin (CM) equals Sales minus
Variable Expenses. CM% equals CM dollars divided by Sales. Note: The biggest variable
expense is usually Cost of Goods Sold (CGS), which is the direct material and labor necessary
to make a product or service ready for sale.
2) List and total all Fixed Expenses for a specific time period (usually one month.) Fixed
expenses do not rise or fall with sales volume. Examples: rent, insurance, utilities, etc.
3) Break Even Sales is Fixed Expenses divided by Contribution Margin %. (See Example)
Example:
Unit sales price: $10 Monthly Fixed Expenses:
Rent 2,000
less Cost of Goods Sold: Utilities 1,000
Material & Labor 3 Salary 3,000
less Other Variable Exp: Other 4,000
Commissions 1
Total Fixed Exp. $10,000
Unit Contribution Margin = $6
($10 - $3 - $1)
CM % ($6 ÷ $10) = 60%
B/E = Fixed Expense ÷ CM %
B/E = $10,000 ÷ .6
Monthly B/E Sales = $16,667
20. Writing a Business Plan Georgia State SBDC 20
C. Sources and Uses of Funds
The Sources and Uses of Funds is a statement of how much money you need (and where it will
come from) and how that money will be used. This statement should be included if your business
plan is being presented to a lender or investor. By definition, sources must equal uses. The
following is an example of a typical format.
Sources:
Term Loan __________
Line of Credit __________
Personal Equity __________
Outside Equity __________
Other __________
Total Sources __________
Uses:
Purchase Building __________
Purchase Equipment __________
Renovations __________
Inventory __________
Working Capital __________
Cash Reserve __________
Other __________
Total Uses: __________