| It doesn't matter whether you have had a college | | | | demographics, etc. This section is where you want to |
| education, or years of entrepreneurial experience | | | | mention a few pertinent numbers, including any market |
| under your belt -- Anyone can write a business plan! | | | | surveys. |
| We want to help you write a quality business plan. This | | | | Surveys can be very powerful tools in showing the |
| guide gives you a good background of knowledge. | | | | potential of your venture. |
| Business plans are needed for a number of reasons: | | | | The advertising section should not only describe the |
| To raise capital To have anyone take your venture | | | | means (direct mail, newspaper, cable, radio, internet, |
| seriously. | | | | etc.) but also cost analysis, your edge over the |
| To make sure you will have a viable enterprise. | | | | competition, public relations, guerilla tactics, etc. In this |
| To expand your existing business. | | | | section, you need to convince your reader of how you |
| To attain business loans To give you a guide for | | | | will sell your product or service. |
| running your business. | | | | Having an 'in' with an established client base can be |
| Honestly, money is why we all write the business | | | | extremely helpful. |
| plans! You already know how you are going to run | | | | These days, just saying: 'Make it and they will buy' |
| your business, it's all in your head. But, as soon as you | | | | does not work. If someone is considering loaning or |
| realize you need money to do it right, a business plan | | | | investing money with your venture, they must see that |
| starts to sound better. | | | | you can make sales. Whether you realize it or not, you |
| A few things before you get started: 1.Start your plan | | | | are a salesman; from the moment you began talking |
| with the numbers. Plot out your sales versus | | | | about your business idea to friends and family, you |
| expenses, projecting forward up to seven years. | | | | became a salesman! Your business plan is merely an |
| This is where spreadsheet programs come in handy. | | | | in-depth sales brochure. The more you think of it as |
| Don't be intimidated, we have the solution that gives | | | | such, the better the plan. |
| you real business plan financial templates. More later | | | | Competition The Competition section will cover exactly |
| on. | | | | who you compete against. You want to compare |
| 2.Don't get overwhelmed. Once you get going, you | | | | every aspect of you versus them. You must know |
| realize that you already know what you need to say. | | | | your competition inside and out. This is where you |
| 3.The business plan is a small part of what will get you | | | | make or break your plan. And there is always |
| financed. A Private Placement Offering can be crucial | | | | competition- Maybe not in your town, but they are out |
| to money-raising in the venture capital world - We will | | | | there. With the every increasing growth of the internet, |
| show you how to use our sample to create your own. | | | | competition can be a keystroke away. |
| 4.This guide briefly describes the pieces you need to | | | | Also, there is indirect competition. |
| put together your business plan. Use it as a reference | | | | These companies can include those that have similar, |
| tool in the writing process. | | | | but not the same as, your product or service. |
| This following is a brief description of each major | | | | Management Team This section is important for |
| heading required for a professional business plan: | | | | overall confidence in those who are to set forth the |
| Executive Summary This is your opening paragraph(s), | | | | actions described in your plan. |
| the most important part of your written plan! Most | | | | Management can include, but not limited to, yourself, |
| readers of your plan look to the Executive Summary | | | | partners and key employees. |
| to capture their interest, and entice them to read on. | | | | You want to briefly describe each person's |
| The Executive Summary will state your company | | | | background, position in the company and duties to be |
| name, nature of your business and what you need to | | | | performed. Each person should fit like a piece of a |
| make it happen. This can be done in a single | | | | puzzle in the overall company structure, and be |
| paragraph, do not feel that you have to state your | | | | invaluable to the future success of the company. |
| entire case in this section. But, be specific... | | | | If there are key positions that have not been filled, you |
| Your plan is not the place for generalities. If you are | | | | must mention them. |
| unsure about the name of your new venture, don't | | | | Describe the nature of the position and qualifications |
| worry, just pick something that sounds good. You will | | | | required. Don't worry if you have many openings, just |
| see that nothing you have in your plan is etched in | | | | know the position and who you need to fill it. |
| stone; things change! Once you are up and running, go | | | | Try to limit each person's coverage to one half of a |
| with the flow. | | | | page. Make them powerful, noting key and positive |
| In closing your Summary, make sure you include the | | | | points. |
| amount of money needed, whether it be in the form of | | | | Remember to back up this section, you must have |
| debt, equity or a combination of both. Generally, debt | | | | resumes as part of your attachments to the plan. |
| financing is in the form of a loan from a bank or other | | | | You may also want to list an advisory board. The |
| means. Equity financing deals with investors owning a | | | | advisory board consists of friends or business |
| portion or shares (more on financing later in the | | | | contacts who can offer advice for your business. |
| manual). | | | | These people do not have to have a stake in your |
| Background This section works both for new | | | | company, just offer experience in areas that |
| start-ups, and existing businesses looking to expand | | | | compliment your venture. |
| operations. | | | | Financials/Operating Performance In the financial |
| With a start-up situation, you want to explain the | | | | section, there is no need to be long winded. Mention |
| background of the type of business you want to start | | | | some gross sales and profits that you anticipate, throw |
| and/or your new product or service. Do not take the | | | | in a graph or chart (samples are included in our |
| background literally, this is a catch-all section for | | | | software package). You also want to re-iterate the |
| anything you want to say. | | | | money needed to be raised, and by which means. |
| This is not rocket science, it will all come naturally once | | | | Now you are faced with the decision of the legal |
| you commit to writing your plan. | | | | structure of your company; Corporation, Limited Liability |
| Now if you have an existing business, the background | | | | Company, Sole Proprietorship or Partnership. |
| is self-explanatory. You want to describe your | | | | Today, unless you are a one-man show, you need a |
| business to-date. | | | | Corp. or LLC. The main reason deals with liability: In a |
| This section can easily work as being listed as 'History' | | | | Sole Prop. Or Partnership, the person(s) involved can |
| instead of 'Background'. Be factual, not long-winded. | | | | be personally liable for anything attached to the |
| Always remember, you want to get your point across, | | | | company. Anything you own can be fair game to |
| but try to be concise. Too much 'blah, blah, blah' will | | | | repay company debts and lawsuits. |
| bore your reader. You want the reader to have | | | | Corp.'s allow you to defer some or most of the liability |
| questions after reading the plan, or else, he probably | | | | to the Corp only; you are a shareholder and can loose |
| did not read it. | | | | only your shares in the company. Another benefit is to |
| Objectives The 'Objectives' section is not merely there | | | | register a Corp. in a state where taxes are fewer, like |
| to boast: "We will be the best widget company in the | | | | Nevada, which has no state income tax. |
| history of widgets". In this section, you want to clearly | | | | In most cases, you will have a set Offering for your |
| state the goals for your company. | | | | venture. When you are dealing with a Corporation, |
| You want to start with some bullet points, for example: | | | | there are a total of shares outstanding and those you |
| Achieve $100,000 in sales by year's end Complete | | | | are offering for sale. The combination of all shares |
| marketing campaign in first two months Begin | | | | determines each person's percentage of ownership in |
| construction by Summer 2006 Hire sales team by April | | | | the company. |
| 2007 Once you give some bullet points, then expand | | | | The description of the offering should be detailed in an |
| on them. Also, you will want to talk about other short | | | | Offering Memorandum, which includes risk, share |
| term and long term goals. Generally short term is 2 - 5 | | | | breakdown, dilution, etc. The Offering Memorandum |
| years out, and long term covers 5+ years. | | | | should precede the business plan, and in most cases, |
| It looks good to have a bigger picture in mind, although | | | | will add more credibility to your venture. It also covers |
| an investor is always looking for that 'exit strategy'. | | | | the legal areas of your offering, a must for new |
| The exit strategy is the way out for your investor (exit | | | | ventures seeking equity financing. |
| strategy is covered later in the manual). | | | | The exit strategy is important to some investors. List |
| The Experience This section may or may not be | | | | the potential ways out of the deal once revenues are |
| appropriate. There are a number of different headings | | | | generated. |
| you may use, but 'The Experience' allows you to paint | | | | You may want to leave an option to buy out the |
| a picture of your service/business idea. It can be called | | | | investor after a certain length of time. Or, you may |
| 'The Product', "the Concept', 'The Service', etc. Simply, | | | | plan on a secondary offeringlater in the life of your |
| you are describing, in detail, what your business is all | | | | business, using some of the proceeds to buy back |
| about. What makes your product or service better | | | | existing shares. |
| than the others. | | | | At the end of this section, you want to direct the |
| Marketing Analysis & Advertising Depending on the | | | | reader to your financial attachments. |
| scope of your venture and target market, you may | | | | Attachments You must include the following |
| want to split this into two separate sections; one | | | | attachments with your plan: Projected Profit and Loss |
| dealing with your market analysis, the other with | | | | Statement Break-Even Analysis Balance Sheet (if |
| advertising. | | | | applicable) Cash Flow Statement Return on |
| In the market analysis, you describe who your | | | | Investment Statement Marketing Analysis |
| customer is. This will entail everything you know about | | | | Demographic Report Advertising literature Photos and |
| who will purchase your product, your competition, | | | | or examples, clippings, diagrams Key person resumes |