Building a Business Plan

A business plan is a carefully constructed guide for a person starting a business. The purpose of a well-prepared business plan is to show how practical and attainable the entrepreneur’s goals are. It also serves as a concise document that potential investors can examine to see if they would like to invest or assist in financing a new venture. A business plan should include the following components:

I.Business Description

  • Briefly describe the type of business you plan to start
  • Mission Statement
  1. Organizational Plan

oTeam Members/Owners of Business

  • Briefly describe the management team’s experience.
  • Briefly describe each member of the management team’s duties and responsibilities.
  • Briefly describe what employees if any you plan to hire and what their job description will be.
  • State what legal form of organization the business will be set up as (e.g. Sole Proprietor, Partnership, Corporation, Limited Liability Company):
  1. Customer Analysis
  2. Target Market(s)
  3. Briefly describe your primary target market.
  4. Briefly describe what products or services you plan to offer to the primary target market.
  5. Briefly describe any secondary target markets.
  6. Briefly describe what products or services you plan to offer to the secondary target market.
  7. What are the needs of each target market?
  1. Competitor Analysis
  2. Who? Where? How many?
  3. What needs don’t they satisfy?
  4. Briefly describe who your competitors are and how you plan to differentiate your product or service from the competition (e.g. better price, better service, better quality, better features, etc.). What exactly is your competitive advantage?
  1. Customer Service Strategy
  • How will you continue to satisfy and service your customers better than your competitors? Customer Relationship Management (CRM)

VI.Product or Service Description

  • Briefly describe the products or services you plan to offer:
  • How will products meet customer needs better than the competition?
  1. Place/Location
  • Briefly describe where you plan to operate the business (i.e. out of the home, retail storefront, warehouse, online, etc.):
  • Briefly describe what channels of distribution you plan to use (e.g. will you sell directly to the customer as a retailer, operate as a wholesaler, etc.):
  • Research and estimate the following expenses for your location:

Rent$______

Common Area Maintenance Fees$______

Utilities$______

Insurance$______

Tenant Improvements$______

Other$______

  1. Price
  • Briefly describe how customers will pay you for your product or service (i.e. cash, credit card, invoice, etc.):
  • Customer, Competitor, and Cost Analysis
  • Positioning with the Competition
  1. Promotion
  2. Briefly describe what types of advertising you plan to use-print media, e-marketing, radio, television, billboards, other
  3. Why will it reach the target market?
  4. Personal Selling strategies, if any
  5. Sales Promotion- Start-up plan?
  6. Public Relations/Publicity- How will people know about your business?
  7. Briefly describe what if any personal selling efforts you plan to conduct (e.g. networking through chambers of commerce, business groups, civic groups, etc.):
  8. Briefly describe how you will try to obtain publicity for your company (e.g. sending out press releases to the media):

X.Financial Plan/Budget- Decide What Figures you will Gather

  • Startup Expenses
  • *Projected Income Statement-Revenues and Expenses (Required)

OPTIONAL:

  • Balance Sheet, Cash Flow Statement
  • Break-even Analysis
  • Types of financing- Loans, Equity Partners, Angel Investors, Venture Capitalist, Rich Grandmother, etc.

Estimated Start-Up Expenses

Purchase of Property______

Equipment______

Inventory______

Fixtures______

Tenant Improvements______

Lease Deposit______

Utility Deposits______

Insurance Deposits______

Deposit for Seller’s Permit______

Telephone Installation______

Business License______

Fictitious Name Statement______

Health Department Permit______

Business Cards______

Stationery______

Grand Opening Promotions______

Signage______

Other - ______

Other - ______

Other - ______

Other - ______

Total______

  1. Closing- Be Creative
  • Investment Proposal
  • Why should I invest?