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