Instruction Guide for the Business Plan Templatepage1

Instruction Guide for the Business Plan TemplatePage1

FIRST NATION

YOUTH PRE-ENTREPRENEURIAL

TRAINING PROGRAM

Business Plan Template

Instruction Guide

Community Futures Development Corporation of Central Interior First Nations

215-345 Chief Alex Thomas Way, Kamloops, BC V2H 1H1
Phone: (250)828-9833

INSTRUCTION GUIDE

FOR THE

BUSINESS PLAN TEMPLATE

FIRST THINGS FIRST

Look up to the top right-hand corner and find the Arrow-Question mark icon. Beside it there is a Light bulb, then a box with a 100%. Click the tiny arrow beside the 100%. The 100% is then highlighted in green [ 100% ] type 65%. This will shrink this page and make it easier to read.

Do not Print a hard copy of the Instructional Guide to use while filling in the bracketed areas in the Template. [This Guide is 50 pages long]. Only print the pages you want to use today. This cuts down on the paper used and lets you stay focused on that part. When that part is near completion, print only the next part you want work on.

[ While you are looking at the page you need to print Click - File, then Print, then look to Page range- the second section down. Click Current page then OK, or Click Pages, then enter the page numbers -you need to use today- use the format outlined just below Pages: see Enter page numbers and/or page ranges separated by commas… then follow the examples shown.]

Before you do anything else, it is imperative that you make copies of this instructional guide, the appendix[financial plan] and the business plan template on another floppy disk or your hard drive.

I can not express too strongly the importance of making, at least, one copy of the template, financial plan(appendix) and instructional guide. Once you have made at least one copy, work from the copies.

If the template your using gets out-of-whack you can use the master for reference while making corrections.

It is a good idea to write protect the master disk and store it in a safe place.

Instruction Guide for the Business Plan TemplatePage1

Underlying Assumptions

You have abasic understanding of MS Word and MS Excel.

You have a basic understanding of introductory accounting procedures.

You have a copy of the CFDC Business Planning Handbook.

You have a reasonable level of patience and creativity.

Introduction

The business plan template, financial statements, and instructional guide were designed by Frank E. Wilson of MGT Accounting Services, a division of TaxShak Financial Services Inc.,.

The business plan template and instructional guide was designed to accompany the Business Planning Handbook. The handbook was designed by CFDC and used in conjunction with the Senle’7 Self Employment Assistance Program.

As outlined, in the Business Planning Handbook, this material is intended for the private use of the course participants and may not be reproduced or distributed without the written permission from the publisher.

Instruction Guide for the Business Plan TemplatePage1

HOW TO USE THE GUIDE AND TEMPLATE

Key Points

1.Do not Print a hard copy of the Instructional Guide to use while filling in the bracketed areas in the Template. [This Guide is 50 pages long]. Only print the pages you want to use today. This cuts down on the paper used and lets you stay focused on that part. When that part is near completion print only the next part you want work on.

[ While you are looking at the page you need to print Click - File, then Print, then look to Page range- the second section down. Click Current page then OK, or Click Pages, then enter the page numbers -you need to use today- use the format outlined just below Pages: see Enter page numbers and/or page ranges separated by commas… then follow the examples shown. ]

2.Just a reminder: Before you do anything else, it is imperative that you make copies of this instructional guide, the appendix and the business plan template.

3.To use the power of your Microsoft software Click the Yellow folder [or File then Open]. From the Open menu,find -then-Click The Business Plan Handbook Template -then- Click Open. Now you have both the Template and Guide in the window.

[To switch between windows: Click Window, then Click your choice from the list at the bottom of the drop-down menu or press the number beside your choice.]

4.You do not have to read the entire Guide and Template before you can begin. Use the Table of Contents to locate the topic you want to work on today. Again, this allows you to remain focused on the parts that make up your plan. When all the parts are complete your plan is complete.

5.Familiarize yourself with layout of the files on your template disk and page printing procedures. Once your familiar, choose a section and begin. Read up on that section in your CFDC Business Planning Handbook. Use the Handbook, as a reference, while editing your Template.

[Replacing the text in brackets with information relative to your business. Remove all brackets[..] after you have made the appropriate alterations. ]

6.You may alter the text that does not appear in brackets. This should be kept to a minimum to insure the proper flow is maintained.

7.The Guide comes with a Business Funding Template. In it you will find a vast amount relevant information you can use in preparing and presenting your plan. There are worksheets formatted to help you figure out the financial part of your plan. There are topics on areas of Market Research and how to find pre-qualified funding sources.

8.Upon completion of alterations, print a hard copy of your plan. Critically go over the plan and make adjustments to page breaks, formatting, and headers and footers.

9.Although the major financial components are included within the body of the plan, you may have additional information. Insert this additional info after you have printed your final draft. Be sure to alter the table of contents and page numbers. It is recommended that you add the majority of additional information in the appendix or exhibits section. This will make adjustments to your table of contents and page numbers much easier.

10.This template is intended for use in a wide range of businesses. You will need to tailor this template to suit your particular business. Be certain these changes are necessary enough to warrant altering the template. Only alter your working copy of the template.

11.If your business is at the start-up phase you may have to alter some adjectives. For example: CICE is located at 345 Salish Road, may have to be written- CICE will be located at 345 Salish Road.

12.Even if you are a computer whiz, get a copy of the MS Office manual or copies of the MS Word and MS Excel manuals.

13.Read the next two pages, Businesses Need Capital and the Table of Contents, to get an overview of what is contained in The Business Funding portion of this Guide. Then read section 1. Plan for Success.

Instruction Guide for the Business Plan TemplatePage1

Businesses Need Capital

Successful businesses are well planned and well capitalized. Being well capitalized, is having the ability to access capital when you need it. Being well planned, will help you to be well capitalized. This book is designed to first help you become well planned, and then lead you to becoming well capitalized.

I have watched many entrepreneurs lose valuable opportunities because they thought the cost of the capital was too high. They spent too much time negotiating over the cost of the money, while their window of opportunity passed them by. You should try to cut yourself a good deal, but the cost of capital should only be a consideration of the function of losses sustained by not having it. Simply, if it costs you one dollar in order to make two, are you ahead or behind?

Libraries and book stores are full of financial "How To Books" (I highly recommend you read as many as you can). These books will tell you about; generic sources of capital, debt versus equity financing, business planning, goal setting, etc. This book will brush these topics, but its main focus is:

• What information to present to Lenders or Investors;
• How to package your request to get noticed;
• The format the presentation package should take; and,
• Where to find the Funding Source to provide the capital.

(If you don't know where to send your request, what's the point?)

While there is no new technology discovered here, the methods are proven and you will surely benefit from using them. This book is designed to be a workbook. Get out your pencil and fill in each section as you go. Each chapter will guide you by asking you questions and giving you a place to arrive at your answers. When you are finished you will be able to use this material to complete the section you have chosen to work on today.

The statistics show that 90% of all new businesses fail. I believe that is a direct result of the failure to plan. Take the opportunity to plan and increase your chances of success.

"Failing to plan, is planning to fail."

Table of Contents

1. Plan for Success...... 7

Executive Summary, History, Stage, Structure

2. Management...... 8

Ownership, Management, Consultants

3. The Market ...... 11

Nature of Market, Market Niche

4. Market Strategy...... 14

Market penetration, advertising and promotion

5. Setting Goals...... 18

Milestones, short-term, long-term, exit strategy

6. Competition...... 20

Complementary products, current market share

7. Capital Requirements( see also section 13 )...... 23

Conservative request, downside planning, assumptions

8. The Terms...... 24

How long?, Interest rates, prepayment penalties

9. Use of Proceeds...... 27

R&D, start-up costs, advertising, be specific

10. Repayment Plan...... 28

R&D Requirements, break-even analysis

11. Pro Forma Financial Projections...... 30

Don't do the math, you won't get the money, projection information, Income projection worksheet, Balance Sheet worksheet, Cash Flow projection work sheet, Key indicators and ratios

12. Preparing Your Presentation...... 42

The format and additional information

13. Type of Capital Desired...... 43

Debt, equity, asset based, venture capital

14. Find Your Funding Source...... 47

Venture capital, commercial lending, investors

15. The Internet Factor...... 49

If your not there, you're already behind

16. Negotiating Your Deal...... 50

First learn to say "No", then…

"Nothing is quite so embarrassing as watching someone

do what you told them couldn't be done."

1. Plan For Success

Capitalizing your business is a full time endeavor. Developing your business plan is the single most important step you can take toward your success. To maximize your potential to receive capital, it is vital that you develop a business plan that will guide your company and allow outsiders to picture where you are going and how you plan to get there. Take great care in preparing your plan, it is the road map that will lead you where you want to go.

Lenders or Investors, which way do I go? They tend to look at transactions from very different perspectives. Lenders are mostly concerned with "Can you repay?". While investors are more interested in "How far can you go?" There are certain items of information common to both. That will be the information to be disclosed at the start.

Executive Summary

This is it! Grab them here and you may never lose them. This summary is an overview description of your product or service, its market, your niche, the management, the mission, company structure, pro forma highlights, funding request, use of funds and proposed terms. No more than two pages, sell the sizzle not the steak.

EXECUTIVE SUMMARY WORK SECTION

Give a brief yet concise explanation of the following items. Remember, you will fully detail and support each of these later on in your plan, so keep it short.

Desired Amount:

Desired Terms:

Company Name:

Industry Type:

Time in Business:

Principals:

Use of Funds:

Collateral Offered:

NarrativeBriefly describe what your company is all about.

History

Your reader needs a summary of how this venture came to be. Where did the idea come from? How did it evolve? Who is responsible? Be concise but give dates, background, etc. Paint a short picture from how you started, to where you are today.

Mission Statement

One sentence defining what the Company is all about. Think about it and "make it mean something". Don't just write a bunch of flowery words.

Stage

Clearly identify what stage of funding you are at. Is your business a start-up, initial growth, positioning for going public, seeking a strategic partner, looking for near future acquisition or sale?

The Market

It is important for any funding source to know where you fit in the economic food chain. What niche is your business exploiting that will make it jump over your competition? What are you doing that is better, faster, or newer than what everyone else is doing? For this part you must be very detailed. Remember the investors know nothing about your business. You must prove to them you know what you are doing or are about to do.

Market Research

This is yours or a third parties research that supports your determination that there is a market and a need for your product or service. This will form the back bone of support for the price points and revenue assumptions contained in your pro forma projections indicating to investors or lenders how your company can turn a substantial profit.

Financial Overview

Here is where you briefly highlight, graph and preview your outstanding financial projections. This provides a glimpse into where your gross sales, net income, net worth, etc. should be in years one , two and three. Remember this is only an overview. It should contain no details or support information. That will come later in your financial pro forma section.

"Business is the art of extracting money from another

person's pocket without resorting to violence."

2. Management

Funding Sources are going to want to know with whom they are dealing. Important issues become; what are the qualifications, experience, goals and most of all the character of those in the management of this venture?

Personal

Lenders and Investors are both concerned with whether or not you have what it takes to be successful. Highlight information that demonstrates you have the ability to make this business a success. Detail your education, past successes or failures that made you stronger. Indicate how you started this business and what makes you believe it will be a success.

Character

Who are you? Take a deep look inside. Character is not only about winning. It's about getting up again and again when you've been knocked down. Will you panic in a crisis? Will you run for cover when things get rough? Are you the Captain that brings the ship in against all odds? Character is staying power!

To be a successful entrepreneur you must not only be able to start well, but you have to be able to finish strong. For most, running a business is a hard road and not an easy one. Search your soul. If you don't have this kind of character, do yourself and others a favor and don't even start.

Management

Good management is essential. Funding Sources desire to see that you understand your market and have the skills to succeed. Are you a stand alone player, or are there others helping you? If alone, do you plan to keep it that way? Who will comprise your management team? Give detailed resumes of all those involved, along with a description of the vital roles they will play in the business' success. If your management skills or your team is weak, take on the task of building it up in order to support your own success, as well as the success of your funding request.

Third Party Professionals

Listen to "GOOD" advice, and forget "BAD" counsel. Carefully seek out and select professionals who can help you. Do your homework in advance of your need to avoid delays. These legal, financial, tax, marketing, etc., professionals may be willing to advise your company for a piece of the glory to come or can act as consultants once you have the money to pay them.

Survivorship

What plans have you made to ensure your business will continue to survive without you? Have you trained someone to take over? Is there going to be key man insurance in place for the possibility of illness, disability or death? Without you, can the business continue to survive? Describe how your management team will be able to step up and work the plan.

"The closest to perfection a person ever comes

is when they fill out their resume."