SIMPLE BUSINESS PLAN Outline/Overview
A less complicated format for a business plan. The key focus of any business plan is the existence of a market and how the company will attract that market for revenue generation. The marketing section of the plan validates the existence of a core market and quantifies the revenue generation. Without this you have nothing.
The KIS (Keep it Simple) Business Plan
I. Executive Summary Keep It Short!
One and a half pages, emphasizing your professional (as well as other principals in the business), the business concept, products, customer base, marketing, approach, competition and past (if any) or projected (realistic) sales income. What contingencies do you have if the plan fails?
State how much money you need to borrow ( if any)? How much money is being put up by principals and/or others? What is the role of the others in the business? What is your collateral and its appraised market value? How do you plan to pay back the loan?
II. Business Profile
One page that states: Legal structure of the business (e.g., proprietorship, subchapter, S. corporation, etc.) as well as the educational and professional backgrounds of management and principal stakeholders. Brief history of the company (if any) and /or related history of principals. List the company banker, accountant, and legal counsel, industry, or government regulations that impact your operation. Include an organization chart ( on separate page, if necessary).
III. Market Place Product/Service, Price, Place, and Promotion
Write a primary objective that is both quantitative and qualitative and can be reasonably accomplished in a given time frame, What makes the product/service desirable? Develop strategies that cover the four P’s of marketing above. Market analysis should cover both sales and industry market potential in both dollars and volume. Describe, in some detail, the features and benefits of the product/service, competitors and customers. Sales forecasts or revenue should be conservative. and tied closely to available resources and justifiable.
IV. Financial Statements
Start-Up costs: licenses, equipment, inventory, remodeling, deposits, etc. SHow a break-even analysis: how many units must be sold to cover fixed and variable costs. Current personal balance sheet should show: assets, liabilities, and net worth. Include past personal/business income statements for the past three years. Produce pro-forma income statments: anticipateed sales, expenses, and net profit or loss projected over the next three years. Pro-forma balance sheets should cover: anticipated assets, liabilities and net worth of business.
Finally, when going for a business loan, financial statements should be prepared by an independent accountant, collateral offered should be appraised by an independent appraiser, and collateral of any existing receivables should clearly justify the amount and risk of the loan. Many financial institutions will expect a personal guarantee or co-signer as well, due to economic uncertainties.
“WHEN COMPLETED THE SBDC WILL REVIEW YOUR BUSINESS PLAN DRAFT AND HELP YOU PREPARE FOR A LOAN APPLICATION or BUSINESS LAUNCH”