Business plan-template master-plans.doc”

Business Name **replace “Business Name” with your intended business name**

Business Plan

Contact: **your name**

Business Name

_______________________________________________________________________________ CONFIDENTIAL – Do Not Distribute Without Permission

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Phone: (555) 777-7555 E-mail: [email protected]

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Table of Contents 1.0 Executive Summary .........................................................3!

1.1!Financial Highlights ..........................................................5!1.2 Start-up Summary ............................................................6!1.3 Mission .............................................................................8!1.4 Company Ownership........................................................8!1.5 Company Location ...........................................................8

2.0 Products and Services.....................................................8 3.0 Market Analysis Summary.............................................10

3.1 Market Needs .................................................................12!3.2 Industry Analysis ............................................................12!3.3 Competitive Comparison ................................................13

4.0 Strategy and Implementation Summary.......................14!

4.1 Competitive Edge ...........................................................15!4.2 Marketing Strategy .........................................................15

5.0 Management Summary ..................................................16!

5.1 Personnel Plan ...............................................................17 6.0 Financial Indicators ........................................................18!

6.1 Revenue Forecast ..........................................................21!6.2 Break-even Analysis.......................................................23!6.3 Projected Profit and Loss ...............................................23!6.4 Projected Cash Flow ......................................................25!6.5 Projected Balance Sheet ................................................27

Appendix ...............................................................................29!

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1.0 Executive Summary Business Name, **insert Company structure (LLC, Inc., SP, etc.)** (also referred to as “the Company”) is a start-up business located in **insert city and state here** and selling **insert information about your intended product or service**. Business Name will distinguish itself from other businesses by keeping a close eye on trends in the industry, and by maintaining an excellent customer service record. The Company will operate within the **insert official industry name** industry. Add information about the industry and your specific area of operations. Within a five-mile radius of the Company’s location, there are **insert number of residents, if available**, indicating a strong ability to continue purchasing vehicles. To increase awareness of its business, Business Name intends to launch a creative promotional campaign. Marketing channels will include use of a website, print media advertisements, hosting of a grand opening event, word of mouth referrals, Internet advertising, and a Yellow Pages ad. Through these efforts, the Company will establish its reputation as a trusted provider of **insert product/service**. XXXXXXXX will own and operate the Company. **add a brief summary of your employment background, education, and any relevant experience**

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To achieve the Company’s objectives, Business Name is seeking $000,000 in total funding through bank or Small Business Administration (SBA)-backed lending. The bank or SBA-backed loan will be repaid from the cash flow of the business within seven years, collateralized by the Company’s assets, and backed by the personal integrity, experience, and contractual guarantee of the Company’s owners. **if you are also seeking outside investment or are adding direct owner investment, include that information here**

**THIS IS THE MOST IMPORTANT SECTIONTHIS IS THE MOST IMPORTANT SECTION** What you write here must convey what your What you write here must convey what your business intends to do, and how it will be business intends to do, and how it will be profitable. If you can’t convince a lender/investor profitable. If you can’t convince a lender/investor here, you’ve lost them.here, you’ve lost them.

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1.11.1 Financial Highlights

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**FINANCIALS DEMONSTRATE YOUR FINANCIALS DEMONSTRATE YOUR UNDERSTANDING OF PROFITABILITYUNDERSTANDING OF PROFITABILITY**

The worst thing you can do is put numbers up The worst thing you can do is put numbers up that don’t add up and don’t tie in to the rest of that don’t add up and don’t tie in to the rest of your document.your document. 1.2 Start-up Summary The following tables and graphs detail the funding the Company needs to bring its vision to reality. Start-up expenses include all the expenditures incurred in the “start-up period” – the development stage before the Company starts earning revenue. In other words, “start-up” precedes “Month 1” and “Year 1” of accompanying projections. The “cash required” element of the asset table represents the balance of cash at the beginning of Month 1 of the financial projections. Total start-up requirements, which can be funded with loans (liabilities) and/or investment, equal the sum of start-up expenses and assets.

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**ARE YOU THINKING BIG? OR BEING ARE YOU THINKING BIG? OR BEING

REALISTICREALISTIC** Don’t go nuts. Plan for steady growth and pad Don’t go nuts. Plan for steady growth and pad yourself for mistakes. Your funding requires a yourself for mistakes. Your funding requires a frugal mind.frugal mind.

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1.3 Mission The Company’s mission statement is as follows:

“**insert your mission statement here**.” 1.4 Company Ownership Business Name will be a **insert Company structure here** registered in the state of **insert state of registration**. The Company will be jointly owned by **insert owner(s) and percentages**. 1.5 Company Location Business Name will be located in **add location here**.

**THIS IS THE EASY PARTTHIS IS THE EASY PART** But… choosing a location matters for your But… choosing a location matters for your incorporation, taxes, and demographics (if you incorporation, taxes, and demographics (if you service or sell locally).service or sell locally). 2.0 Products and Services Business Name will be a locally-owned business located in will be headquartered in **add location here**. Add a paragraph about the products and/or services you will sell, with detailed information or descriptions if applicable.

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**KNOW WHAT YOU’RE SELLINGKNOW WHAT YOU’RE SELLING** You may be aYou may be able to speak about your product or ble to speak about your product or service knowledgably and passionately, but can service knowledgably and passionately, but can you you writewrite the same way the same way convincinglyconvincingly??

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3.0 Market Analysis Summary The Company’s location in **insert city** (**insert county**) places it in a thriving and diverse metropolitan area. The specific location will be chosen to maximize the store’s ability to tap into a steady stream of consumer traffic. The following table provides the most current U.S. Census data with regard to the population growth of XXXXX County. **the latest county population data can be found at www.census.gov**

County Population & Growth1 The following table provides pertinent figures for the population living within five miles of the Company’s location. **add a table that provides the most recent demographic information for the area immediately surrounding your business**

Full Demographic Report

Radius: 1.0

miles

Radius: 3.0

miles Radius:

5.0 miles 2010 Total Population 2015 Total Population 2010 - 2015 Annual Rate 2010 Households 2010 Average Household Size 2010 Families 2010 Average Family Size 1 U.S. Census Bureau data. Obtained at: http://www.census.gov/.

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Median Household Income 2000 2010 2015 Per Capita Income 2000 2010 2015 Median Age 2000 2010 2015 2010 Households by Income Household Income Base < $15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000 + Average Household Income 2010 Population by Age Total 0 - 4 5 - 9 10 - 14

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15 - 19 20 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 - 84 85+ 18+ 2010 Population by Sex Males Females 2010 Population 25+ by Educational Attainment Total Less than 9th Grade 9th - 12th Grade, No Diploma High School Graduate Some College, No Degree Associate Degree Bachelor's Degree Master's/Prof/Doctorate Degree 3.1 Market Needs **add a paragraph about the market needs that are solved by your product or service** 3.2 Industry Analysis The Company operates within the **insert industry** industry (Standard Industrial Classification 5521). The table below shows Dun & Bradstreet data

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regarding the performance of the businesses in this industry on a national, state, and local level.2

Industry: **Industry Name** (0000)

Market Size Statistics Estimated number of U.S. establishments: 00,000 Number of people employed in this industry: 000,000 Total annual sales in this industry: $000,000 Average number of employees per establishment: 0 Average sales per establishment (unknown values are excluded from the average): $000,000 Market Analysis by State and Metropolitan Area

State/Metro No

Bus. %

Total Total

Employees Total Sales

Average Employees

Average Sales

**add data about your specific state

**add data about your specific metro area, if available

3.3 Competitive Comparison Business Name has identified the following primary competitors. For a comprehensive analysis of the Company’s competitive strengths, refer to 4.1 Competitive Edge. Competitor 1 Strengths: Weaknesses: Competitor 2 Strengths: Weaknesses: Competitor 3 Strengths: 2 Dun & Bradstreet, Industry Data for SIC 0000-0000; obtained 2011

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Weaknesses: For a comprehensive analysis of the Company’s competitive strengths, refer to 4.1 Competitive Edge.

**DO YOU KNOW YOUR COMPETITION?DO YOU KNOW YOUR COMPETITION?** Saying “I don’t have any competition, because my Saying “I don’t have any competition, because my business is unique” is usually the wrong answer.business is unique” is usually the wrong answer. 4.0 Strategy and Implementation Summary The Company recognizes that building its brand is important to securing a strong standing. Therefore, Business Name will focus on building a brand that encompasses its quality and overall excellence. To raise brand awareness among its intended audience, the Company will create an appealing logo that it will use throughout its promotional strategy and in its various marketing materials. This will aid in brand reinforcement and adoption, and the enhanced growth of its name and positive reputation among its intended target audience. With its brand and guiding principles established, Business Name will send a clear message about what it stands for, thereby building brand loyalty and encouraging the steady growth of its base of clientele. Business Name intends to achieve the following objectives:

o Establish a strong brand name and reputation in the industry o Fuel growth through positive word of mouth referrals

In order to reach these operational goals, the Company will build on its strengths and advantages as outlined in the following section.

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4.1 Competitive Edge The Company intends to capitalize on its core strengths in order to establish itself as a leading **insert business type** in the area. These competitive advantages are outlined in greater detail below.

o Affordable prices o Superior level of professionalism o Extensive marketing tactics will reach a large segment of

customers 4.2 Marketing Strategy Business Name will generate interest in its products/services by utilizing a variety of advertising channels that will increase the Company’s exposure among its target audience. • Internet advertising: Business Name will use non-intrusive

banner ads to on websites and partner URLs. These ads will feature the Company’s brand name, and may include information on the services and current inventory that the Company offers. Primarily, the purpose of the ads will be to generate interest in the Company, resulting in visits to the website and/or storefront.

• Website: The Company will create a comprehensive website

that provides information on products/services. • Print media: Business Name will place advertisements in local

area newspapers to advertise itself and encourage people to visit the dealership.

• Word of mouth: Word travels quickly between peers, family

members, and colleagues who are pleased a particular business.

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The Company will rely on this form of effective, yet inexpensive marketing to generate interest in its vehicles. Consumers have reported that “a person like me” has become the most credible source of information about a company or a product – from 20% in 2003 to 68% today.3

• Yellow Pages: Business Name will purchase a large

advertisement in the Yellow Pages, which briefly lists the Company’s various services, hours of operation, and location.

**WHAT’S YOUR STRATEGY?WHAT’S YOUR STRATEGY?** Do you know, or do you think you know? With Do you know, or do you think you know? With over 12,000 business plans wover 12,000 business plans written, MasterPlans ritten, MasterPlans has the marketing strategy to fit your business has the marketing strategy to fit your business model.model. 5.0 Management Summary **include detailed biographical information about each owner in this section**

3 Edelman Trust Barometer. Ecommercetimes.com. “Can Web 2.0 Help Retailers Win Price Wars?” Obtained at: http://www.ecommercetimes.com/story/56517.html

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5.1 Personnel Plan

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6.0 Financial Indicators The following table summarizes the Company’s projected financial performance with standardized measurement indicators used to evaluate profitability, leverage, asset turnover, and liquidity. As with any long-range projection, accuracy is based on reasonable estimates of return on investment and past performance. The Company believes the following numbers are attainable and reasonable. However, actual results will vary.

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**THIS IS ONLY THE BEGINNINGTHIS IS ONLY THE BEGINNING**

Your financials aren’t going to get any easier. Your financials aren’t going to get any easier. Nearly all bank loans require a 3Nearly all bank loans require a 3--year financial year financial model. Equity, VC or Angel Investors may require model. Equity, VC or Angel Investors may require 55--year or longer.year or longer.

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6.1 Revenue Forecast The following is a three-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include “cost of goods.”

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6.2 Break-even Analysis The following break-even analysis shows the revenue necessary to break even in the first year of operation. It equilibrates revenue and expenses. As shown below, the Company is expected to incur average monthly fixed costs of $8,436 in Year 1. To cover fixed costs and variable costs, which rise and fall with revenue, the Company must, on average, achieve revenue of $16,873 per month to break even.

**BREAKBREAK--EVENEVEN** This comes down to understanding the numbers in front of This comes down to understanding the numbers in front of you, and what it takes to meet and exceed your base costs. you, and what it takes to meet and exceed your base costs. How soon do you breakHow soon do you break--eveevenn

6.3 Projected Profit and Loss The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table below, gross margin equals sales minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses.

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6.4 Projected Cash Flow The following depictions of the Company’s projected cash flow show that the Company expects to maintain sufficient cash balances over the three years of this plan. The “pro forma cash flow” table differs from the “pro forma profit and loss” (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include “non-cash” items and exclude funding and investment illustrations.

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**THE REASON YOU’RE BUSINESS THE REASON YOU’RE BUSINESS EXISTSEXISTS** Know what it takes to keep the engine Know what it takes to keep the engine running strong. Get the tools you need to running strong. Get the tools you need to grow it.grow it.

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6.5 Projected Balance Sheet

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